Chamber backs Mixed Ownership Model Bill

11 May 2012

Media Release

For Immediate Release

Chamber backs Mixed Ownership Model Bill

Tauranga Chamber today endorsed the New Zealand Chambers of Commerce submission to Parliament’s Finance and Expenditure Committee on the Mixed Ownership Model Bill.

The Bill provides for Government to sell a minority of shares in four State Owned Enterprises being Mighty River Power, Meridian Energy, Genesis Energy, and Solid Energy, retaining at least a 51 per cent stake. It will also sell-down its majority holding in Air NZ. The Government expects to net $5 billion-$7 billion.

Chamber CEO Max Mason said, “There are many positives to the bill including the reduction of government debt, providing more savings options for small investors, providing opportunities for those companies to grow internationally, introducing sharper commercial disciplines, and encouraging a share ownership culture.”

Given the considerable public interest in the bill Mr Mason said it was important the government ensured an open, consultative and transparent process is adopted in proposed scoping studies.

“They need to provide clear details on what mechanism will be provided to ensure individual assets remain in New Zealand majority control,” he warned.

He went on to say that there is strong potential for global expansion of some of these companies which will bring all the benefits of export success. “You only have to look at our own Trustpower and their developments in Australia to see the potential that exists.”

The mixed ownership model is widespread in the OECD, and combines the advantages of state ownership with the benefits of commercial and ‘mom and pop’ shareholders.

The full New Zealand Chambers of Commerce submission can be viewed at http://www.aucklandchamber.co.nz/Chamber/files/82/82b11b43-2547-4b93-82b1-7439bd033784.pdf

ends

© Scoop Media