16 December 2009
Media Statement

Taskforce feared as stalking horse for privatisation

The final report of the Capital Market Development Taskforce could be used by the Government as a stalking horse for privatising State Owned Enterprises, says Labour SOE spokesperson Clayton Cosgrove.

Clayton Cosgrove said that while Labour welcomed the report of the taskforce, set up under Labour in 2008, Labour would not support the taskforce’s recommendation to partially list central and local government-owned companies.

“While the taskforce clearly believed that private stakes in government-owned businesses could bring more discipline to those businesses, the Government’s longer-term privatisation agenda means that partial listing is only one step away from selling off assets that properly belong to Kiwis.

“Labour has built up confidence and trust in SOEs, and they must remain as assets from which all Kiwis can benefit. It would be wrong and foolish to use that confidence and trust as a means for carrying out National’s political agenda,” Clayton Cosgrove said.

“Finance Minister Bill English told journalists just yesterday that while it did not plan privatisation at this stage, it recognised that various state assets were ‘under pressure’.

“There was a clear indication that assets like TVNZ, Kordia, NZ Post and KiwiRail will be reviewed in the future, and given National’s privatisation agendas, there’s no prize for guessing what this means,” Clayton Cosgrove said.

“The taskforce’s report is a richly worthwhile addition to improving New Zealand’s economic future, but there is too much risk involved in even a partial listing of SOEs for Labour to support that recommendation.”

ENDS

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