Scoop has an Ethical Paywall
Licence needed for work use Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

National’s billion dollar bonus stings taxpayers

David Shearer
Labour Leader

23 July 2012

National’s billion dollar bonus stings taxpayers

Kiwi mum and dad taxpayers will potentially miss out on $1 billion dollars in revenue lost from the asset sales to pay for John Key’s bonus scheme for private investors, says Labour Leader David Shearer.

“John Key is refusing to say how the so-called loyalty scheme will work and how much it will cost. We’re seeing great big chunks of the promised windfall from this venture eaten into by brokerage fees, PR and advertising campaigns and now the bonus scheme. How many shares will have to be held back to cover that scheme?

Treasury said last year that, for example, keeping back an additional 9% of the companies – selling down 40% rather than 49% - would cost around $1.3 billion in foregone revenue. It is Kiwi taxpayers who will have to cover the cost of the lost revenue to pay for a bonus scheme that benefits private investors. That is simply not fair.

“John Key is desperate to live up to his promise that 85-90% of the shares will end up in the hands of ‘Kiwi mums and dads’. That’s why he’s come up with his so-called loyalty scheme. But he’s not building up long-term ownership of shares as he claims, he’s just enticing people to hold onto the shares until after the next election, when with the extra loyalty shares they’ll be able to sell off even more to corporate and foreign buyers.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“It’s just another dodgy deal that will see taxpayers lose out in the end. John Key should be honest with New Zealanders and admit that these valuable assets will bring in less than he promised and that’s not in our best interests,” said David Shearer.


Click for big version.

ENDS

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On National Spreading Panic About The Economy


It is a political strategy as old as time. Scare the public with tales of disaster and stampede them into supporting your ideological agenda because they believe There Is No Alternative. Yet, if the NZ economy truly is as “fragile” as PM Christopher Luxon says it is... Then how come New Zealand has enjoyed a double AA+ credit rating from the international rating agencies for so long? If we have truly been in the thrall of incompetent tax, spend and borrow extremists for the past six years, how come our net government debt burden is only in the middling average of OECD countries, and how come our government debt-to-GDP ratio – however you measure it – is less than half the average for the Asia-Pacific region?..
More


 
 


Labour: Grant Robertson To Retire From Parliament
Labour List MP and former Deputy Prime Minister and Minister of Finance Grant Robertson will retire from Parliament next month, and later in the year take up the position of Vice Chancellor of the University of Otago... More

Government: Budget Will Be Delivered On 30 May

Plans to deliver tax relief to hard-working New Zealanders, rebuild business confidence, and restore the Crown’s finances to order will be unveiled on 30 May, says Nicola Willis... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.