Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Meridian flop another failure for National’s asset sales

23 October 2013

Meridian flop another failure for National’s asset sales

The Meridian Energy flop is another failure for National’s asset sales agenda, Green Party Co-leader Dr Russel Norman said today.

Only 62,000 retail shareholders have bought shares in Meridian Energy. That compares to 113,000 who bought shares in Mighty River Power and an expected take-up of 250,000 buyers per sale when the asset sales were being planned. 62,000 equates to just 1.4% of the New Zealand population.

Buyers will reap the benefit of paying only $1 per share up front and the remaining 50 cents in 18 months’ time – the total cost to the Crown of these interest free loans will be $50 million. Overseas investors bought 28% of the shares sold (13.5% of the company), meaning the New Zealand taxpayer is paying $14 million to incentivise foreign institutions to buy our electricity company.

“The Meridian flop confirms that National’s asset sales are a failure and a huge waste money,” said Dr Norman.

“Only 1% of Kiwis bought shares in Meridian. The other 99% of us have lost the profits from a strategic asset and can now look forward to higher power prices.

“The Meridian sale cost around $90 million. We know the ‘buy now, pay later’ scheme alone will set taxpayers back $50 million while the fees for brokers, lawyers, and ad-men will add around $40 million to the bill. That’s on top of the $173 million that National’s asset sales have already cost the taxpayer.

“Mr Key has just cost the New Zealand taxpayer $14 million to subsidise overseas buyers as they swoop in to take a chunk of Meridian and its profits.

“The low sale revenue of just $1.88 billion means it’s very unlikely that continued asset sales would raise the $5-$7 billion that National promised.

“National is wasting public money at an alarming rate so that a handful of wealthy investors and large overseas institutions can buy a strategic public asset that Kiwis don’t want sold.

“At every step, John Key has thumbed his nose at the New Zealand public. He should have waited until the asset sales referendum and let Kiwis have their say. He didn’t. Mr Key has acted arrogantly and he has wasted huge sums of public money.

“It’s hard to do a belly flop while simultaneously giving 99% of New Zealanders the fingers, but John Key has shown that it is possible,” said Dr Norman.

Additional information:
Green Party costwatch
Treasury Request for Proposal forecasting 250,000 retail customers per sale

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Anzac Issue Out Now: Werewolf 47

Alison McCulloch: Lest We Remember

Local iwi have plans to spruce up the Te Ranga site as part of the 150th commemorations this year of key battles in the “New Zealand Wars”, but not a lot of money to do it with.

Information gathered from numerous government agencies shows that while more than $25 million is being spent on monuments and commemorations relating to foreign wars, primarily World War I and its centenary, only around $250,000 has been set aside for those fought on our own soil. More>>

Anne Russell: Anzac Day - Identity Politics, With Guns

Even cursory research into media reports from the past forty years reveals a cultural shift in the commemoration of Anzac Day. Among other things, turnout at Dawn services has increased significantly in recent decades.

Contemporary numbers are estimated at 3,000-4,000 in Wellington, and 10,000-15,000 in Auckland. Newspaper reports from the 1970s and 80s estimated Wellington turnouts at 300-800, and Auckland at anywhere from 600 to 4,000. More>>

 

Parliament Today:

Spookwatch: New Inspector-General Of Intelligence And Security Appointed

Prime Minister John Key hasannounced the appointment of Cheryl Gwyn as Inspector-General of Intelligence and Security. The appointment was made by the Administrator of the Government on behalf of the Governor General and is for a term of three years. More>>

Crowdsourcing: Green Party Launches Internet Rights And Freedoms Bill

The Green Party has today launched the Internet Rights and Freedoms Bill, New Zealand’s first ever Bill crowdsourced by a political party. More>>

ALSO:

Gordon Campbell: On The Shane Jones Departure

Shane Jones has left Parliament in the manner to which we have become accustomed, with self interest coming in first and second, and with the interests of the Labour Party (under whose banner he served) way, way back down the track. More>>

COMMENT:

Multimedia: PM Post-Cabinet Press Conference - April 22 2014

The Prime Minister met with reporters to discuss: • The recent improvement in the economy with a growing job market • Income and wealth inequality • Easter trading laws • The New Zealander killed in a drone strike in Yemen... More>>

ALSO:

Easter Trading: Workers 'Can Kiss Goodbye To Easter Sunday Off'

The Government’s decision to “reprioritise” scarce labour inspector resources by abandoning the enforcement of Easter Sunday Shop Trading laws means workers can kiss goodbye to a guaranteed day off, says Labour’s Associate Labour Issues spokesperson Darien Fenton. More>>

ALSO:

ACT Don't Go For Maximum Penalty: Three Strikes For Burglary, Three Years Jail

Three strikes for burglary was introduced to England and Wales in 1999. As in New Zealand, burglary was out of control and given a low priority by the police and the courts. A Labour government passed a three strikes law whereby a third conviction for burglaries earned a mandatory three years in prison... More>>

ALSO:

Gordon Campbell: On Drone Strikes And Judith Collins‘ Last Stand

The news that a New Zealand citizen was killed last November in a US drone attack in Yemen brings the drones controversy closer to home. More>>

ALSO:

Elections: New Electorate Boundaries Finalised

New boundaries for the country’s 64 General and seven Māori electorates have been finalised – with an additional electorate created in Auckland. More>>

ALSO:

Policies: Labour’s Economic Upgrade For Manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages. More>>

ALSO:

Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news