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

 

PARLIAMENT TODAY:

Flyover Over: NZTA Not Appealing Flyover Decision

The NZ Transport Agency has decided not to appeal the High Court’s Basin Bridge decision, and says the High Court’s findings provide valuable clarity to help guide the development of future infrastructure projects throughout the country. More>>

ALSO:

Developing Crown Land: Government, Auckland Iwi Reach Agreement

The government has reached agreement with Ngati Whatua and other Auckland iwi over developing 500 hectares of excess land in Auckland for private housing which had been under High Court challenge. More>>

ALSO:

Gordon Campbell: On Maurice Williamson

Maurice Williamson seems to have been granted an annual licence to embarrass the National Party, and its that time of year again. Also as per usual, Williamson’s recent exercise in sexism and homophobia has passed by with barely a murmur from his leader. More>>

ALSO:

Green Climate Plan: Shaw Launches 40% Emission Cut Target

Green Party co-leader James Shaw has announced an emissions target initiative for 40% reduction by 2030. He said agriculture has to long been used as a reason for inaction, a roadblock to action... He proposed a tax of 8 cents per kilo of milk. More>>

ALSO:


Images & Video: Four Alternative Flags For Referendum

Flag Consideration Panel chair, Professor John Burrows, said the Panel’s decision had been guided first and foremost by the results of its engagement programme across a range of communities where thousands of Kiwis shared what was special about New Zealand, as well as the Panel’s own selection criteria. More>>

ALSO:

Transport Report: LGNZ Calls For Proactive Approach To Mobilise Regions

LGNZ has today released Mobilising the Regions, its major transport study, which highlights the economic and social impact of strategic transport decisions nationally and in the regions, and the direct link between regional development, national prosperity, social well-being and cohesiveness. More>>

ALSO:

Transport: New Rules Bring Double-Deckers To Our Cities

New rules that allow buses, including double-deckers, to carry more people will ramp up the public transport offering in our cities, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say. More>>

ALSO:

Cycling:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news