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:

Parliament Restarts: Prime Minister’s Statement

Our policy agenda and legislative programme will reflect the Government’s four priorities: • to responsibly manage the Government’s finances • to build a more competitive and productive economy • to deliver better public services to New Zealanders, an • to support the rebuilding of Christchurch. More>>

ALSO:

NZEI Survey Report: Special Needs Students Missing Out

The survey revealed that around 16 percent of students were on schools’ special needs registers, but nearly 90 percent of schools’ special needs coordinators did not believe there was adequate support for students and their learning... More>>

ALSO:

Interim Report: Waitangi Tribunal On Ture Whenua Legislation

Labour on Proposed changes to Maori land rules: “To have Treaty Negotiations Minister Chris Finlayson dismiss findings as ‘bizarre’ is totally disingenuous and disrespectful. What’s bizarre is Maori Development Minister Te Ururoa Flavell stubbornly pushing through this Bill before the Waitangi Tribunal has even completed its report..." More>>

ALSO:

Spy Update: Appointment Of GCSB Acting Director

GCSB Chief Legal Advisor Lisa Fong will become the Acting Director of the Government Communications Security Bureau (GCSB) from 15 February 2016, Minister Responsible for the GCSB Christopher Finlayson announced today. More>>

Protests Close Roads: TPP Signed In Auckland

“TPP was signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam.” More>>

ALSO:

Emails Behind 'Diplomatic Immunity' Case: Whitehead Report Released

“As previously indicated the conclusions reached by Mr Whitehead’s investigation are not unexpected but they are very disappointing,” Mr Mccully says. “At the heart of the matter is a single email, along with procedural shortcomings, which gave Malaysian officials the impression it would be acceptable for Mr Rizalman to return to Malaysia." More>>

ALSO:

Gordon Campbell: On The Treaty/TPP Overlap, And Iowa

The fears about the ISDS provisions in the Trans Pacific Partnership deal are well-founded. The reality is that there is a sharp uptick in the occurrence of ISDS litigation in developed countries, and even the right wing likes of The Economist have been souring on the process for some time. More>>

ALSO:

Christchurch Red Zone Offers: Fresh High Court Proceedings

Grant Cameron, Solicitor for the Quake Outcasts said “the action seeks judicial review of the Crown’s recent decision to make a fresh offer to purchase properties from uninsured property owners in red zones. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news