13 August 2013 MEDIA STATEMENT

Asset sales cash to pay for MRP loyalty shares

Over $40 million raised from the sale of Mighty River Power will pay for the loyalty shares given to investors, says Labour’s SOEs spokesperson Clayton Cosgrove.

“John Key has been completely two-faced about his use of Mighty River Power proceeds. He created a loyalty share scheme to convince Kiwis to invest while telling them the money would go into a Future Investment Fund to pay for schools and hospitals.

“Instead I have discovered that $40 million from the Future Investment Fund will pay for the free bonus shares.

“We were never told that money from the Fund would be used to pay for the loyalty scheme. It was not revealed in the Budget.

“The Prime Minister is robbing Peter to pay Paul.

“The vast majority of New Zealanders have lost half their stake in a major state asset. Putting $40 million of that money back into the pockets of wealthy investors is slap in the face to the 98 per cent of Kiwis who couldn’t afford to buy Mighty River shares.

“With Meridian about to go on the block the Government must assure New Zealanders that this will not happen again. John Key must promise not to use money raised from Meridian to pay for more loyalty shares or to pay for his mistakes.

“Last month I revealed that $100 million from the Future Investment Fund was earmarked to prop up the failing state-owned asset Solid Energy. John Key said I was making that up but he had to back down when I showed him his own Cabinet document that he had signed off.

“Yet again National has been shown up for using asset sales money to fund projects and mistakes it never told Kiwis about. It’s time they were straight up with New Zealanders,” says Clayton Cosgrove.

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