Government to Look at Loyalty Bonuses for Asset Share Buyers

The Government is looking at a Queensland scheme where buyers of shares in the state’s railways got issued with bonus shares if they did not sell the shares for a specified time.

Speaking today on TV3’s “The Nation" State Owned Enterprises Minister, Tony Ryall, said that the Government was currently undertaking a market research exercise to see what participants in the share market might want the forthcoming float of four state owned energy companies to look like.

Mr Ryall said that the market research would help inform the Government about exactly what structure would work best for these floats.

“Clearly if we're to have as much everyday New Zealander participation, we've got to make it as attractive as we can,” he said.

And Mr Ryall said the Government would look at the Queensland loyalty bonuses.

“Certainly I think the experience in Queensland has that it has encouraged Queenslanders to hold on to their shares longer,” he said.

“We'll be considering that over the next few months.

“But I wouldn’t want people to think that that is necessarily going to be a feature of the offer.

“We haven’t made any decisions on that yet.”
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