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

 

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Post Cab Presser: Inquiries And Consciences

    This afternoon the Prime Minister John Key announced that his cabinet had drafted terms of reference for the Havelock North water contamination inquiry... In response to questions on the Shop Trading Hours Amendment Bill, the Prime Minister said he didn't think allowing National MPs a conscience vote was warranted. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news