Gordon Copeland Press Release

Thursday, 14th August 2008

National's infrastructure plans fine, but there is a better way to finance them - Copeland

Independent MP Gordon Copeland, the Kiwi Party spokesperson on finance, today praised National's infrastructure and electricity plans but begged to differ on their financing pathway.

"I believe it is unnecessary for National to increase New Zealand's international debt levels to fund these projects," said Mr Copeland.

"They overlook the fact that New Zealand is already massively in debt to the rest of the world, creating an enormous drag on our balance payments and borrowing is, in any event, unnecessary."

"The Kiwi Party would fund the additional infrastructure investment New Zealand needs in roads, rails, schools, hospitals and ports by selling down 20% of the SOEs to kiwi only investors, including KiwiSaver providers and the NZ Super Fund."

"Not one single share however would be sold to a non-resident. The SOEs would remain 100% New Zealand owned and operated."

"It simply makes no sense to borrow the $5 billion needed to fund National's plan when there is a source of local funds available."

"I have no doubt at all that the present "100% Government ownership or bust" mantra of Labour is based on a failed ideology and is suboptimal for the New Zealand economy."

"How much more cost effective and efficient it would be to simply allow New Zealanders to have a 20% direct ownership stake in their own companies."

ENDS

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