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

 


Govt share offer programme costs below target

Hon Bill English
Minister of Finance

Hon Tony Ryall
Minister for State Owned Enterprises

20 June 2014

Govt share offer programme costs below target

The Treasury’s total costs for the Government’s share offer programme were $85.5 million – or 1.83 per cent of the $4.67 billion in total proceeds, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

This is slightly below the 2 per cent estimate made at the start of the programme, which excluded costs to the share offer companies themselves and the cost of incentives to New Zealand retail investors.

“This final cost is low by the standards of share offers in both New Zealand and overseas,” Mr English says. “In the context of a programme that raised almost $4.7 billion to be reinvested in new priority public assets, it represents good value for money for New Zealand taxpayers.”

Of the Treasury’s $85.5 million costs, $12.6 million was for advertising and communications, $64.9 million was for other outsourced professional services such as legal, brokerage and advisory, and Treasury’s own internal costs were $7.9 million.

The share offer companies themselves incurred an extra $35.1 million in costs associated with the programme.

Mr Ryall says that in addition to keeping costs below the initial target, the share offer programme had met all of the Government’s wider objectives.

“Firstly, it has raised billions of dollars that we can spend on new public assets New Zealanders want, without having to borrow overseas.

“Secondly, through each of the four share offers we achieved more than 85 per cent New Zealand ownership.

“Thirdly, the share offers have deepened and strengthened our capital markets, with the Mighty River Power, Meridian and Genesis Energy IPOs together adding more than $8.85 billion in capitalisation to the NZX main board.

“Fourthly, 111,000 common shareholder numbers have been issued during the share offer programme, indicating that tens of thousands of New Zealanders have become shareholders for the first time.

“Finally, mixed ownership will be good for the companies themselves, giving them extra scrutiny and accountability, and additional sources of capital,” Mr Ryall says.

The final share offer programme cost details are available at: www.treasury.govt.nz/commercial/resources/pdfs/mixed-ownership-model/mom-cipgso-final-20jun14.pdf

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

EPA: Board Of Inquiry Rejects Basin Flyover By Majority Of 3 To 1

The independent Board of Inquiry delegated to decide on the Basin Bridge Proposal has, by a majority decision (3 to 1), cancelled the Transport Agency’s Notice of Requirement and declined its resource consent applications for the construction, operation and maintenance of a flyover on State Highway 1 in Wellington City between Paterson Street and Buckle Street/Taranaki Street...

Parties specified under Section 149Q(3) of the RMA now have 20 working days to make comments on minor or technical aspects of the report. More>>

 

Parliament Today:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

Gordon Campbell: On The Non-Apology To Tania Billingsley

The refusal by Prime Minister John Key to issue a personal apology to Tania Billingsley has been accompanied by an array of excuses... Yesterday though, Key’s choice of words indicated that an apology was the last thing on his mind. More>>

ALSO:

Conventions: Winston Peters On The Nation

Winston Peters opens door to standing in East Coast Bays electorate, says it's an "exciting point" and he's thinking about it. "I’ve had a whole lot of people writing to me and calling up and saying ‘why don’t you have a go in East Coast Bays’." More>>

ALSO:

Waitangi Tribunal: Report On The MV Rena

In its interim report, the Waitangi Tribunal has found that the Crown’s conduct in response to the grounding of the MV Rena on Otaiti (Astrolabe) reef breached the principles of the Treaty of Waitangi. More>>

ALSO:

Gaza: Wellington Protest For Palestine Calls For End To Bombing

Around 300 people gathered outside the Israeli Embassy in Wellington on Friday to protest Israel’s occupation of Palestine. More>>

ALSO:

Gordon Campbell: On The Failure To Prosecute The GCSB

So one hand of the state – the Independent Police Conduct Authority – has now washed the hands of its brother agencies, and declared that all hands are clean. Case closed. More>>

ALSO:

Illegal Search: Police Behaviour 'Reminiscent Of Tūhoe Raids'

"Māori will lose further trust and confidence in the New Zealand Police and the Independent Police Conduct Authority (IPCA) if the recent incident in Stratford is not adequately addressed. This behaviour would not occur in Epsom or Khandallah so why should police think that such behaviour was acceptable in Stratford," says Chris McKenzie. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news