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

 


Genesis sale sends asset sales cost over 1/2 billion dollars

26 February 2014

Genesis sale sends asset sales cost over half a billion dollars

John Key’s inability to admit that his asset sales have been a complete failure has now cost the New Zealanders taxpayer over half a billion dollars, Green Party Co-leader Dr Russel Norman said today.

The cost of the asset sales programme – including Treasury and SOE costs, give-aways to share buyers, foregone dividends, losses on sale, and the Rio Tinto payout – stood at $486 million before today’s Genesis sale announcement. The direct sales for Genesis are likely to total a further $20 million plus tens of millions for the bonus share give-away, and potentially much more in loss on sale.

“With the half a billion dollars that John Key has flushed down the drain on his asset sales, we could have employed thousands of teachers and nurses,” said Dr Norman.

“New Zealanders told Mr Key loud and clear that they didn’t want the asset sales. He has no mandate to continue wasting their money on his failed privatisation obsession.

“National’s decision to sell as little as 30% of Genesis is an admission that they botched the earlier sales. It also raises the question of why they’re going ahead with this sale at all. New Zealanders have shown no interest in forking out to buy what already belongs to them in the previous sales and aren’t likely to line up for Genesis shares either.

“The bonus share give-away is an expensive taxpayer hand-out to a small number of wealthy investors and National doesn’t even know how much it will cost. The Mighty River Power give-away cost $25 million. That’s an irresponsible use of public wealth.

“Rather than wasting its time and the public’s money on selling our power companies, National should have been tackling the massive increase in power prices on its watch.

“In government, the Greens will end asset sales, put an end to the excessive prices that the power companies charge families and businesses, and offer families independence from the big electricity companies with affordable solar power,” said Dr Norman.


Asset sales costs to date:
https://www.greens.org.nz/costwatch
Total: $486.3m – the Genesis sale will add tens of millions to this total
Treasury spending $71.9m (as of 30 December 2013)
Spending by the companies $28.6m (as of 30 December 2013)
Incentives $58m
• Bonus shares for MRP $25.0m
• Cost of Meridian incentive $33.0m
Foregone dividends $84.4m
• MRP Final 12/13 $49.0m
• MRP Interim 13/14 $35.4m
Rio Tinto pay-off $30.0m
Asset sales referendum $9.0m
Waitangi water dispute $0.9m
• Māori Council legal aid $0.6m
• Waitangi Tribunal costs $0.2m
• (Crown's costs included above under Treasury)
Bonus payment to MRP CEO $0.5m
Losses on sale $203m
• Mighty River $167m gain
• Meridian $422m loss
• Air NZ $52m gain


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

2014 General Election: Voting Period Begins

The first votes for the 2014 general election will be cast today, Wednesday 3 September, as advance voting begins ahead of election day on Saturday 20 September.

“Election day is September 20, but if you want, you can vote from today,” says Chief Electoral Officer Robert Peden. “Almost 300 advance voting places will be available around the country for people to cast early votes.”

Times and opening hours will vary around the country to suit local needs. More>>

 
 

Parliament Today:

Two Dead, One Injured: Suspect Charged After Ashburton Shooting

Russell John Tully has appeared in Christchurch District Court. Tully has been remanded in custody on charges of murder of Peg Noble and Leigh Cleveland and attempted murder of Lindy Curtis. More>>

ALSO:

John Key Press Conference: Ashburton Shootings, Judith Collins Inquiry

Prime Minister John Key has delayed the release of Nationals’ fiscal policy in light of this morning’s shooting at a Work and Income office in Ashburton... Key also answered questions about Judith Collins, and confirmed that independent inquiry will be held with regard to allegations made against Collins. More>>

ALSO:

Internet MANA: Georgina Beyer Rocks The Waka

“There is now, and always will be, a range of views about many issues within our movement and members are free to express them, but Georgina’s views on Kim Dotcom are not shared by the MANA Movement leadership or the vast majority of MANA members and supporters around the country” states MANA Candidate for Waiariki, Annette Sykes. More>>

ALSO:

IGIS Update: Inquiry Into Release Of NZSIS Information

The Inquiry would be conducted in private and individuals would appear before her separately over a period of more than a week. She does not intend to name those summoned to give evidence until her report is published. “I can confirm that all persons summoned will be required to appear under oath...” More>>

ALSO:

Gordon Campbell:
On John Key’s ‘Blame It On Judith’ Strategy

Right now, Prime Minister John Key seems intent on limiting the scope of any inquiry into his government’s dealings with Cameron Slater. The declared aim is to make that inquiry solely about Judith Collins’ behavior with respect to the Serious Fraud Office. More>>

ALSO:

Maori Council Lawyers' Statement: Supreme Court Decision On Maori Water Rights

“…the Supreme Court refused to give Pouakani people what they asked for, but may have given them something much, much better instead… the Supreme Court has questioned whether the Crown owns the River at all.” More>>

ALSO:

Gordon Campbell: On The Debate, And The Collins Accusation

Debating is a peculiar discipline in that what you say is less important than how you’re saying it. Looking poised, being articulate and staying on topic generally wins the day – and on that score, Labour leader David Cunliffe won what turned out to be a bruising encounter with Prime Minister John Key last night on TVNZ. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news