Media statement
Wednesday, 26 January 2011

Trading up of state assets exciting news

The trading up of the Government's state assets into even more valuable assets is exciting news, the Employers & Manufacturers Association says.

"This is the opposite of selling the family silver," said EMA's chief executive, Alasdair Thompson.

"This is about realising the value from part of certain state assets and using the funds released to invest in even more valuable state assets.

"Funds released are to be earmarked for investing in much needed infrastructure like schools, hospitals and transport - the return from these new assets will be higher than from Government's current SOEs. "EMA has been proposing to Government it should go down this very track, so we are delighted by today's announcement.

"We have also proposed an Investment Development Fund be established into which proceeds from asset sales of this type should be channelled, and in which kiwi mums and dads could also invest with the fund dedicated to investing in infrastructure.

"This would allow us to develop our country using much more of our own money instead of borrowing it from foreigners.

"The proposal means the Government would hold less shares in certain SOE's but have more to invest in other sorts of public infrastructure instead of borrowing more.

"Furthermore it will give New Zealanders the chance to invest in sound SOEs while giving much greater depth to our equity markets."

ENDS

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