David

CUNLIFFE

Labour Leader

26 February 2014 MEDIA STATEMENT
Key admits defeat before even selling Genesis

John Key has given up on the Genesis sale before it has even begun by saying he may only be able to sell 30 per cent of the state asset, Labour Leader David Cunliffe says.

“Everyone knows the Genesis sale is going to be a failure, from the public to investors to Treasury. Now it turns out even John Key knows it.

“Not only is it a bad idea to sell off assets in the first place, it’s economic idiocy to sell three in the space of a year. The sharemarket just isn’t that interested. That’s why John Key has admitted he may not be able to sell the full 49 per cent of Genesis.

“John Key must have looked at the figures. The number of investors in SOE energy company sales has halved after each sale since Contact Energy was floated in 1999. Given that just 62,000 Kiwis bought shares in the last company sold, Meridian, it’s possible just 30,000 will buy shares in Genesis.

“That compares to 920,000 people who voted ‘no’ to asset sales in last year’s referendum.

“Nothing shows this Government has run out of ideas more than the return of the ‘buy-one-get-one-free’ scheme of Mighty River Power. Since then they’ve tried ‘buy-now-pay-later’ with Meridian and ‘Grab-a-Share’ with Air New Zealand but with little success.

“John Key has already effective admitted that the asset sales programme has failed. It’s been so unpopular and so unsuccessful that he’s had to say ‘no more sales’ after the election.

“He should listen to the people and stop the sales right now. The Genesis sale is the last cab off the rank. The Government should leave it there,” David Cunliffe says.

ENDS

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