Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Partial state asset privatisation a step in right direction

Media release
May 19 2011

Partial state asset privatisation a step in right direction

New Zealand needs to play catch-up on infrastructure investment

Plans to partially privatise state-owned electricity generators and mining company Solid Energy have been welcomed by Deloitte energy and infrastructure leader Paul Callow.

Finance Minister Bill English today announced a three- to five-year programme from 2012 to sell off minority shares in Mighty River Power, Meridian, Genesis and Solid Energy, and to scale back the existing shareholding in Air New Zealand.

Mr Callow says the initiatives have at last provided greater clarity about the Government’s economic priorities and its desire to create an environment to help lift the performance of the assets it owns.

The plan has a threefold benefit of reducing Government debt, encouraging the companies to perform better in the future, and providing a local and attractive new investment destination for savings funds, he says.

“This model has worked well in the past and Air New Zealand is an example of what can be achieved when a company part-owned by the Government is subject to market disciplines,” Mr Callow says.

“Privately owned companies are subject to pressure from shareholders demanding market rates of return and pressure from customers to deliver the services they need creating strong incentives to raise performance.”

The mixed ownership model proposed for the SOEs does raise questions of whether the Government needs to own the majority of the companies it is partially floating, or if it can afford to have that amount of capital tied up in assets which could be 100% investor owned.

“The need for capital elsewhere is pressing and whatever is left tied up in SOEs reduces the amount available for investment in much-needed infrastructure projects.

“New Zealand is well behind the play in its infrastructure development and needs to step up several gears and pedal hard to make up the ground we have lost to other developed economies over the past 10 or 20 years.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Politics Of Scaring Voters Back Into Line

Fear has always been a useful mobilising tool in politics… yet in 2017, bogeymen of all shapes and sizes seem to have fallen on hard times. For years, the National party had painted itself as being the only reliable defensive bastion against the terrifying prospect of a centre-left government…

In fact, the polls suggest that the public seems to quite like the new government, its Prime Minister, and its proposed plan of action. Somehow, even though a Labour/Greens/NZ First government is in power, the sun is still rising and setting, on time. More>>


Gordon Campbell: On Drinking Water As A Failure Of Political Leadership

It is almost possible to feel sorry for the Health Ministry in their terrible, no good, very bad week... More>>


Gordon Campbell: On Saying ‘Work For The Dole,’ Nicely

As New Zealand First learned the hard way from its two previous periods in government, small parties in MMP coalitions get blamed for the unpopular stuff done by their senior partner in power, but no one remembers the good stuff the junior player brought to the table... More>>


Seismic Blasting: Greenpeace Launches Legal Challenge Against Amazon Warrior

A legal challenge against the world’s largest seismic oil exploration ship was launched at a public rally on Parliament Lawn. More>>


Tertiary: 80,000 People Eligible For Fees Free

The Government has today made good on its 100-day promise of delivering the first year of fees-free post school training and education and industry training from 1 January next year, says Education Minister Chris Hipkins. More>>


PM's Presser: Rebuilding Cathedrals, Felling Trees

Prime Minister Jacinda Ardern attended the press conference today with Minister for Greater Christchurch Regeneration Dr Megan Woods to announce urgent legislation this week for the rebuilding of the Christ Church Cathedral. More>>





Featured InfoPages