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

Anzac Issue Out Now: Werewolf 47

Hi and welcome to the 47th edition of Werewolf, published on the eve of Anzac Day. Its become a cliché to describe Gallipolli as the crucible of this country’s identity, yet hold on... Isn’t our national identity supposed to be bi-cultural... and wouldn’t that suggest that the New Zealand Wars of the 19th century is a more important crucible of national identity than those fought on foreign soil?

Yet as Alison McCulloch eloquently reveals in this month’s cover story, New Zealand devotes a mere fraction of its attention span and funding resources to commemorating the New Zealand Wars compared to what it devotes to the two world wars, Vietnam and Afghanistan... More>>

 

Parliament Today:

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>>

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:

Bad Transnationals: Rio Tinto Wins 2013 Roger Award

It won the 2011 Roger Award and was runner up in 2012, 2009 and 08. One 2013 nomination said simply and in its entirety: “Blackmailing country”... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news