26 March 2014

National gives up on its ‘mum and dad’ investor ruse

The National Government has given up on the myth that it is selling shares in the electricity companies to ‘mum and dad’ investors, with just 9% of Genesis to be reserved for New Zealand retail investors, Green Party Co-leader Dr Russel Norman said today.

The Government has today announced that it will sell up to 49% of Genesis Energy with 40% going to institutions and just 9% to retail investors. In the previous asset sales around a quarter of the companies went to retail investors. The bonus shares offer of the Genesis sale will cost up to $9 million.

“National is not even pretending that everyday Kiwis are going to buy these shares,” said Dr Norman.

“The truth is that under National the cost of living has outstripped wages. Kiwi families simply don’t have the spare cash to invest in buying assets that already belong to the New Zealand public.

“Despite National selling Genesis on the cheap and spending millions on bonus shares, only a fraction of the population will buy shares.

“Only the wealthiest New Zealanders will be able to profit from National’s fire-sale of our assets. This is government by the 1% for the 1%.

“The asset sales have now cost the taxpayer $550 million so far. The sale of Genesis will add tens of millions to that cost.

“John Key should have listened to New Zealanders when they said they didn’t want our assets sold. Instead, he has rammed through this unpopular and economically irresponsible policy, which has been a failure by every measure,” said Dr Norman.

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