WEDNESDAY 22 AUGUST 2018

"A new independent study released this morning shows that the Mixed Ownership Model (MOM) was a big success and that a further sell-down of the Crown’s assets is needed”, says ACT Leader David Seymour.

Government share offers for Mighty River Power, Meridian Energy, and Genesis Energy, and a reduction in the Crown’s shareholding in Air New Zealand took place between 2011 and 2014.

"The study, undertaken by TDB Advisory, shows MOM companies improved their earnings, dividends, and debt metrics at a time where the electricity market had zero growth in demand, competition was increasing, and when retail electricity prices were flat.

"Shareholder returns to June 2017 were 26 per cent (Meridian), 22 per cent (Genesis) and 12 per cent (Mercury), larger than those achieved by private competitors. Remarkably, the Crown received more in dividends post listing on its 51 per cent holding than it did when it owned 100 per cent of the companies.

"The Crown owns assets worth about $300 billion. We need to extend the Mixed Ownership Model to our remaining State Owned Enterprises, such as New Zealand Post and Landcorp.

"A partial privatisation would free up revenue for new road and rail projects, closing the so-called ‘infrastructure gap’.

"It would give Kiwis families new investment opportunities.

"And it would subject these companies to market forces, requiring them to deliver better results for Kiwis as shareholders and customers.

"If we are serious about getting the best outcomes from taxpayer-owned assets, we need to apply the Mixed Ownership Model to our remaining SOEs”, says Mr Seymour.

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