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

 


Reports show National flogging off Genesis too cheaply

31 March 2014

Reports show National flogging off Genesis too cheaply

Five independent reports have all concluded that National is selling Genesis shares for less than they are worth, and losing the taxpayer money, Green Party Co-leader Dr Russel Norman said today.

Five reports by stock analysts have concluded that the shares in Genesis are worth more than the $1.55 that National is selling them for. The highest estimates says the shares could be worth $1.97 apiece, which is $200 million in total more than the Government is set to make from the sale.

“The best thing would be not to sell Genesis at all but, if National’s going to do it, they’ve got to get a good price for the taxpayer,” said Dr Norman.

“All the analysts have found that National is selling Genesis for less than it’s worth. Hundreds of millions of dollars will be lost to the taxpayer. National wants to attract as many retail investors as possible and they don’t care how much it costs.

“Once again, we see that National is just bad with money.

“John Key’s cornerstone economic policy of asset sales has been one debacle after another. Mr Key has sold the assets for less than they are worth. There have been only a fraction of the ‘mum and dad’ investors that were promised. Power prices have risen even as demand has fallen. The asset sales have cost $550 million. Selling Genesis too cheap will add to the litany of asset sales failures.

“John Key should listen to the overwhelming majority of New Zealanders who want the asset sales stopped,” said Dr Norman.

The reports also find that the New Zealand electricity market isn’t properly competitive and that NZ Power would have the effect of driving out excessive profits and lowering power prices.

“These independent reports all show that, if National wins the next election, then Kiwis can look forward to higher power prices to pay big dividends to electricity company shareholders. If there is a change of government, the Labour-Greens NZ Power plan will reduce power prices for families,” said Dr Norman.

“There’s a lot of scaremongering from the power companies and their protectors in National about NZ Power but the market is clear: only NZ Power is going to weed out the profiteering and get prices down to a fair level.

“Morningstar analysts call the New Zealand electricity market ‘oligopolistic’; the five big players effectively block out competition so they can charge more and make larger profits. NZ Power will break the electricity oligopoly and allow in real competition in generation, retail, and demand management,” said Dr Norman.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Mt Albert Aftermath

Personality politics – Jacinda is great! Jacinda is not so great! – have dominated the coverage of the Labour Party’s fortunes this week...

Still, this is a relatively new and welcome problem for the centre-left. Labour has seemed so bereft of crossover talent for so long that it seems almost embarrassed by this latest development. More>>

 

Conservation: Central Govt Takes Over 1080 Regulation

“This new approach standardises the rules for using such poisons rather than the current system of different rules in different regions. This change will reduce costs and delays for operators, ensure consistent conditions throughout the country, reduce mistakes from misunderstanding rule differences and allow best practice approaches to be used." More>>

ALSO:

Election Entertainments: ACT Has Prison Plan, Greens Have Water Bill

Green Party launches Member’s Bill to protect our freshwater The Green Party has today launched a member’s bill that will keep water from underground sources, called aquifers, safe from pollution and contamination. More>>

ALSO:

2040 Target And Lower Standards: “Swimmable” Rivers Five Times More Likely To Make You Sick

Forest & Bird has condemned the government’s new water quality standards, warning New Zealanders that they lock in current levels of water pollution and allow for a 5-fold increase in the chance of getting sick from swimming in a river. More>>

ALSO:

Immigration: Clampdown On Rogue Employers Good First Step

The Human Trafficking Research Coalition is pleased at the new clampdown on rouge employers who exploit migrants announced by Minister Woodhouse this morning, and believes this is a step in the right direction. More>>

ALSO:

Mayor: 750 New Social And Affordable Homes For Wellington (Over A Decade)

The next stage of Wellington’s Housing Upgrade Programme will see at least 750 new units of social and affordable housing built over the next decade, Mayor Justin Lester has announced. More>>

ALSO:

22/2: Christchurch Quake Memorial Unveiled

A city, a region, a nation and an international community impacted by the Canterbury Earthquakes will come together to mark the sixth anniversary of the deadly quake and dedicate Oi Manawa Canterbury Earthquake National Memorial. More>>

ALSO:


November Quakes:

Gordon Campbell: On The Mana-Maori Party Deal

If the self-interest involved wasn’t so blatant, the electorate deal between the Maori Party and Hone Harawira would be kind of poignant. It’s a bit like seeing the remaining members of Guns’n’Roses or the Eagles back on the road touring the nostalgia circuit… playing all the old hits of Maori unity and kaupapa Maori politics. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news