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


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Gordon Campbell: On Plastic Bag Activism, And Street Harassment

Amusing to see the Act Party experiencing another outbreak of young fogey-ism. What has aroused the ire of Act Leader David Seymour this time is the introduction of a Greens private members bill to the ballot process, calling for a 15 cents levy on plastic bags to reduce pollution. More>>


Unclear Weapons: US Navy Ship Cleared To Visit NZ For Navy's 75th

United States Navy ship, the USS Sampson, has been given clearance to visit New Zealand next month by Prime Minister John Key... “The process for considering the visit by the USS Sampson is the same as that used for all ships attending the International Naval Review." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news