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

 


Misleading costs the final insult on asset sales

Clayton Cosgrove
SOEs Spokesperson

20 June 2014

Misleading costs the final insult on asset sales

Today’s claim by the Government that the cost of the asset sales programme was $120 million is just a lie, says Labour’s SOEs spokesperson Clayton Cosgrove.

“The Government and Treasury need to be straight up with the taxpayer on the costs of the asset sales which totals well over half a billion dollars. Treasury has ignored a whole series of costs and bonuses.

“National’s asset sales policy was a massive failure. At the last election John Key promised Kiwis the sales would raise between $5 billion and $7 billion. They ended up well short of that because they mismanaged the sales process and drove Solid Energy into the ground.

“The Government claimed that the costs of the sales would be no more than 2 per cent of the proceeds; however it has ballooned out to well over twice what they claimed.

“In their list of costs today, Treasury has omitted to include the bonus and free share schemes which cost $80 million, the $30 million subsidy for Rio Tinto, the increases to executive salaries, the foregone dividends and the losses on the sales .

“The Government needs to come clean on what the real costs to the taxpayer are. The asset sales programme has been a massive failure and misleading people over the costs is the final slap in the face for the public.”

Partial list of omitted asset sale costs and expenses
Bonus and Free Shares: $80m
Bonus shares for MRP $25.0m
Cost of Meridian incentive $33.0m
Cost of Genesis bonus shares $22m
Foregone dividends: $147m so far
Rio Tinto subsidy: $30.0m
Bonus payment to MRP CEO, increased board and CEO salaries: At least $1 million (as supported by Bill English)
Losses on sale: $383m
Mighty River $167m gain
Meridian $422m loss
Air NZ $52m gain
Genesis $180 loss

ENDS

© 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