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Labour Confused on Power Policy

Labour Leader David Shearer and Finance Spokesman David Parker still appear to differ on whether power generator SOEs will pay a dividend under the party’s new electricity policy.

Mr Shearer issued a media statement yesterday saying the party would forgo dividends.

But today, speaking on TV3’s “The Nation, Mr Parker said that meant “all” dividends.

But Mr Parker said Labour thought a Labour Government would forgo dividends only during the start up period of establishing a state owned New Zealand Power monopoly wholesale power company.

“We think the power companies should earn a profit and pay a dividend, we're not saying that they should be driven to extinction,” he said.

And Mr Parker claimed that his claim that under the scheme, the Government would not lose tax from the SOEs was based on an assumption that lower power prices would lead to increased economic activity.

“We actually get more tax revenue” he said.

“The net cost to the Crown is modelled, it's been put out in the papers and it is credible.

“It is around 100 million dollars per annum.”

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