The Tauranga Chamber of Commerce is backing the New Zealand Chambers of Commerce by endorsing its submission to government on the Mixed Ownership Model Bill.
The Bill proposes to sell a minority of shares in four state-owned enterprises; Mighty River Power, Meridian Energy, Genesis Energy, and Solid Energy, retaining at least a 51 per cent stake.
It will also sell-down its majority holding in Air NZ.
The government estimates it will net $5 billion to $7 billion through the sale of assets, which will go towards paying down national debt.
Chamber CEO Max Mason says the sale will reduce government debt and provide more savings options for small investors as well as providing opportunities for companies to grown internationally.
He says it will also introduce sharper commercial disciplines and encouraging a share ownership culture.”
Given the considerable public interest in the bill, Max says it is important the Government endeavour to have an open, consultative and transparent process is adopted in proposed scoping studies.
“They need to provide clear details on what mechanism will be provided to ensure individual assets remain in New Zealand majority control.”
He says there is strong potential for global expansion of some of these companies, which will bring all the benefits of export success.
“You only have to look at our own TrustPower and their developments in Australia to see the potential that exists.”
The full New Zealand Chambers of Commerce submission can be viewed at http://www.aucklandchamber.co.nz/Chamber/files/82/82b11b43-2547-4b93-82b1-7439bd033784.pdf