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

Gordon Campbell:
On The National Leadership “Contest”

Key’s endorsement of English has turned this “contest” into a race for second place.

This succession was well planned. Lets not forget that English was told by Key in September of his intention to resign, and English was the only member of Cabinet entrusted with that information before it was sprung on everyone else on Monday morning. More>>

Latest: Judith Collins and Jonathan Coleman have withdrawn from the leadership race, leaving Bill English the only candidate to replace John Key as Prime Minister.

 

Education, Marketing, Taxes: Health Groups Call For Actions For Sugary Drinks

The New Zealand Dental Association is launching a new consensus statement on Sugary Drinks endorsed by key health organisations. The actions seek to reduce harm caused by sugary drinks consumption. More>>

ALSO:

More Departures? David Shearer Proposed For UN Peacekeeping Role

Mt Albert MP David Shearer is being proposed for a demanding and exciting role heading the United Nations peacekeeping force in South Sudan, says Labour Leader Andrew Little. More>>

ALSO:

Security Agencies' Reports: GCSB Wants To Give ISPs More Power To Block Threats

The Government Communications Security Bureau wants to give internet service providers more information and power to block cyber threats which are increasing, its director told the intelligence and security select committee yesterday.. More>>

ALSO:

Education: Charter Schools Misleading Pass Rates

Labour: NCEA results for charter schools have been massively overstated... In one case a school reported a 93.3 per cent pass rate when the facts show only 6.7 per cent of leavers achieved NCEA level two. More>>

ALSO:

Rebstock Report Resolution: SSC Apologises To Derek Leask And Nigel Fyfe

Following a complaint by Mr Leask, the Ombudsman found that the State Services Commission acted unreasonably in relation to Mr Leask and identified numerous deficiencies in the investigation process and in the publication of the final report and in the criticisms it contained of Mr Leask... More>>

ALSO:

International Rankings: Student Results 'Show More Resourcing Needed'

NZEI: New Zealand had only held relatively steady in international rankings in some areas because the average achievement for several other OECD countries had lowered the OECD average -- not because our student achievement has improved. More>>

ALSO:

Earlier:

Salvation Army Report: Beyond The Prison Gate Report

A new Salvation Army report says changes must be made to how prisoners re-enter society for New Zealanders to feel safe and secure in their homes and communities. More>>

ALSO:

Surprise Exit: Gordon Campbell On The Key Resignation

The resignation of John Key is one thing. The way that Key and his deputy Bill English have screwed the scrum on the leadership succession vote (due on December 12) is something else again. It remains to be seen whether the party caucus – ie, the ambitious likes of Steven Joyce, Judith Collins, Paula Bennett, and Amy Adams – will simply roll over... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news