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

 


Govt tricky on real cost of asset sales

Govt tricky on real cost of asset sales

The true costs of the Government’s asset sales are over $640 million, more than five times the $120.6 million National is claiming today, Green Party Co-leader Russel Norman said.

“The Government is being extremely tricky when it says Treasury’s cost for the asset sales was just $85.5 million plus the $35.1 million paid by the companies themselves,” said Dr Norman.

Among the other costs to get the sales away were:

• The cost of bonus shares and incentives paid for the sale of Genesis, Mighty River Power, and Meridian - $80 million

• A $145 million difference in the cost of foregone dividends and reduced interest costs

• $30 million paid by the government to stop Rio Tino closing the Tiwai Point aluminum smelter

• Over $378 million net loss of assets against book value

• Asset sales referendum $9 million

• Bonus payment paid to CEOs of SOE’s $1 million

“The asset sales were projected to bring in between $5 billion to $7 billion. Instead they realised $4.7 billion in gross terms and under $4 billion when all the costs are account for,” Dr Norman said.

“The interest received from sales is less than the foregone dividends – that’s plain bad economics.

“Over a million people voted against the assets sales in the referendum. Nearly everyone understood it was a bad idea. That National is not going into this election with an asset sales programme shows that even they understand it has been a failure.

"New Zealanders will pay for these costs through higher power prices and the loss of services the dividend payments could have paid for,” said Dr Norman.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Flyover Over: NZTA Not Appealing Flyover Decision

The NZ Transport Agency has decided not to appeal the High Court’s Basin Bridge decision, and says the High Court’s findings provide valuable clarity to help guide the development of future infrastructure projects throughout the country. More>>

ALSO:

Developing Crown Land: Government, Auckland Iwi Reach Agreement

The government has reached agreement with Ngati Whatua and other Auckland iwi over developing 500 hectares of excess land in Auckland for private housing which had been under High Court challenge. More>>

ALSO:

Gordon Campbell: On Maurice Williamson

Maurice Williamson seems to have been granted an annual licence to embarrass the National Party, and its that time of year again. Also as per usual, Williamson’s recent exercise in sexism and homophobia has passed by with barely a murmur from his leader. More>>

ALSO:

Green Climate Plan: Shaw Launches 40% Emission Cut Target

Green Party co-leader James Shaw has announced an emissions target initiative for 40% reduction by 2030. He said agriculture has to long been used as a reason for inaction, a roadblock to action... He proposed a tax of 8 cents per kilo of milk. More>>

ALSO:


Images & Video: Four Alternative Flags For Referendum

Flag Consideration Panel chair, Professor John Burrows, said the Panel’s decision had been guided first and foremost by the results of its engagement programme across a range of communities where thousands of Kiwis shared what was special about New Zealand, as well as the Panel’s own selection criteria. More>>

ALSO:

Transport Report: LGNZ Calls For Proactive Approach To Mobilise Regions

LGNZ has today released Mobilising the Regions, its major transport study, which highlights the economic and social impact of strategic transport decisions nationally and in the regions, and the direct link between regional development, national prosperity, social well-being and cohesiveness. More>>

ALSO:

Transport: New Rules Bring Double-Deckers To Our Cities

New rules that allow buses, including double-deckers, to carry more people will ramp up the public transport offering in our cities, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say. More>>

ALSO:

Cycling:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news