Parliament

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

 

Green Party proposal will keep more Meridian in public hands

New Green Party proposal will keep more of Meridian in public hands
 
The Green Party has announced it will offer investors in Meridian Energy the choice of not paying their second instalment payment in return for the Government retaining more shares in public ownership, Green Party Co-leader Dr Russel Norman said today.
 
In National's sale of Meridian in October, investors paid a dollar per share up front and owe a further 50 cents in May 2015 to take full ownership of the shares. The Green Party proposal will give investors the option to opt out of the remaining 50 cents instalment and, instead, receive fewer full shares which will remain in public ownership instead (the number of shares investors forego will depend on the current share price).
 
The shares investors forego will go to the Crown to settle the investors' payment obligation. If the share price in 2015 is $1.50 and all investors take up this option, the Crown's ownership of Meridian will be 67-68%, rather than 51%.
 
This option will be open to both individuals and institutions and will be voluntary.
 
"This plan will give investors choice and will see more of Meridian in public hands," said Dr Norman.
 
“This is a smart solution to keep more public ownership of Meridian. It is a win for the public and a win for those investors that want to get out of the Meridian sale.
 
"Effectively, investors will be able to choose to settle their obligation in shares, rather than cash. New Zealanders who don't want to put more money into their Meridian investment will now have another choice.
 
"The Crown will trade higher ownership in Meridian for receiving slightly less asset sales revenue.
 
"The higher net dividends that the Crown will receive from owning more of Meridian, rather than receiving asset sales cash, will add up to $18 million a year to the government surplus.
 
“The Government holding on to a greater number of Meridian shares is more financially beneficial than selling them now. 
 
"Instalment sales, such as National's sale of Meridian, are notorious for investors refusing to pay the second instalment, especially when the value of the shares has fallen since the first instalment was paid.
 
"The Greens have steadfastly opposed asset sales from day one. This move will keep more of Meridian in public ownership.
 
“New Zealanders oppose asset sales. A strong no vote in the current referendum sends a strong message to the Government to use all means possible, such as the Meridian proposal we have announced today, to keep as much of our assets in public ownership.
 
"Further options to return the assets to public ownership will depend on the state that the Crown accounts are in following National's record borrowing binge and the strength of the mandate that we receive in the current referendum," said Dr Norman.
 
Backgrounder on the proposal - https://www.greens.org.nz/factsheets/backgrounder-green-party-plan-higher-public-ownership-meridian-0

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The EU’s Beef With Google

There’s every indication that Google would be on a losing wicket if it chooses to fight the European Union competition watchdogs, who have just levied a $3.3 billion fine on the firm – with the prospect of worse to come if Google doesn’t quickly change the anti-competitive practices at the heart of a court battle that’s been seven years in the making.

Essentially, the case involved Google’s alleged abuse of the stranglehold it enjoys on the online advertising associated with its search activities. More>>

 
 

Legislation: Point England Housing Bill Passed

The passage of the Point England Development Enabling Bill through Parliament this evening will benefit Auckland with additional housing, help resolve Ngāti Paoa’s Treaty claim and improve the local environment and recreation facilities, Building and Construction Minister Dr Nick Smith says. More>>

ALSO:

Cyberducation: Digital Curriculum Launch And Funding Package

Consultation on new digital technologies content for the New Zealand Curriculum and Te Marautanga o Aotearoa, the Māori-medium Curriculum, was launched today by Education Minister Nikki Kaye. More>>

ALSO:

PM's Press Conference: Red Socks And Secret Tapes

Prime Minister Bill English began his post-cabinet press conference by explaining how well the National Party's annual conference went. He also mentioned today's announcement of changes to the EQC disaster insurance legislation and wished Emirates Team New Zealand well in the America's Cup. More>>

Max Rashbrooke: On How To Make Government More Open

International surveys, while often complimentary, have also pinpointed major weaknesses: political donations are badly regulated, for instance, and appointments to government boards frequently go to those with strong political connections. More>>

In Court: Hamilton Student's Lawsuit Over Climate Change Policy

A law student from Hamilton is preparing to challenge the Government in the High Court on Monday over what she says is a “failure” to properly address climate change. More>>

ALSO:

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement. As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog