David Shearer
Labour Leader

9 May 2013 Media Statement

MRP Sale Will Force Up Power Prices

Kiwis will be whacked in the pocket by this Government’s decision to sell off our power companies as investors look to push up profits, says Labour Leader David Shearer.

“Putting Mighty River Power into the hands of private investors, including overseas buyers, only increases the pressure on profits. 

“That means power prices, which went up more than five times faster than inflation last year, will rise even more. That hurts all New Zealanders.

“I look forward to hearing from John Key what he is going to do to about that. What is he going to do to bring down power prices?

“John Key doesn’t think people are paying too much. But he should tell that to the New Zealanders who are thinking twice about turning their heater or electric blanket on this winter because they can’t afford to pay their power bill.

“John Key knows that the sale of Mighty River Power will push prices up even further, hurting many Kiwis who are already struggling. He’s got no answer for those people. He’s more focused on share-floats than helping people working their guts out to make ends meet.

“Labour has a clear plan to bring down power bills for all New Zealanders. NZ Power will also reduce prices for businesses by between 5 and 7 per cent. It’ll boost GDP by $450 million and create at least 5000 jobs.

“Our economic plan is about creating and building not just trading and selling at the expense of Kiwis,” said David Shearer.

ENDS

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