Prime Minister John Key's state of the nation speech this week indicated if re-elected at this year's general election, the National Party would explore the selling of partial shares in New Zealand energy companies.
MP Simon Bridges explains why New Zealand should sell shares in some state owned assets on video below.
This move is seen by the National Party as a necessary step to better balance the country's books as the nation's debt is high due to excessive borrowing.
The idea is receiving much scrutiny from the opposition with Labour Party leader Phil Goff suggesting that New Zealanders will suffer from this decision in the long term. This is based on profits heading offshore into the coffers of overseas investors.
New Zealand's economy is struggling to bounce back from the global financial crisis though and it is the National Party's belief that selling minority shares in some state owned assets is necessary.
7 comments
NZ STRUGGLES
Posted on 29-01-2011 12:02 | By The Master
Perhaps becasue of the previous "selling off" of the family silver already, just look at power prices now where we are all basically subject to the whim of overseas investors desired profits. Look at banks, all the profits go to Australia, economically they win we loose, think about it ....
hogwash
Posted on 29-01-2011 14:41 | By Capt_Kaveman
its because NZ does not have much assets to fall bk on and now key wants to flog off whats left what an idiot
Shares in SOE's
Posted on 29-01-2011 18:29 | By Pamaxx
A strategic sale (49%) of these four SOE's to NZ investors makes sound economic sense; 1. The sale releases capital to fund other necessary infrastructure such as Broadband, hospitals, schools, roads etc. 2. Provides NZ's small investors and Kiwisavers a range of blue chip investments which promise regular dividends plus capital growth over time. 3. These floats will add much needed additional capital and volume to the NZX. 4. The Govt retaining 51% holding guarantees foreigners cannot take over the company. This initiative plus the proposed changes to the financial services legislation is just the tonic NZ needs to divert investment away from property and into productive investments to provide the jobs the country so urgently needs. Max Lewis, Mt Maunganui.
NZ OWNED NO PROBLEM
Posted on 30-01-2011 11:03 | By The Master
I would agree with selling if and only if shares can only be held by NZers, that way the profits, income and asset growth remain in NZ for NZers. I like PAMAXX ideas of this, although if the NZ Government had lessthat 50% would not worry me as long as all stays in NZ. "KEY" industry to NZ must remain like this always.
FALSE PROPHESYING
Posted on 11-02-2011 14:39 | By Ratcatcher
Absolute bollucks Simon selling the family silver doesn't and won't create gold.If you think otherwise go off and train as an alchemist and try your luck no one has succeeded in doing it yet.
chch clean up
Posted on 07-03-2011 22:02 | By The author of this comment has been removed.
After watching tv tonight & seeing all those aged people outcleaning up the mess in the suburbs,with all the MPs going to chch & all burbling on why don't they pick up a shovel or wheelbarrow & help that way instead of just talking,could help I suppose if you could keep them on the job macca
Govt owned assets generate income
Posted on 12-03-2011 15:09 | By Ngaere
Solid Energy made a $45 million half year profit. We still own 2 electricity retail companies...Why on earth do we need to sell off the countries assets??????? The decision to keep KiwiRail was out of the recognition that the country required a national transport infrastructure that might otherwise have been lost. The sale of this and the privitising of ACC has been seen to produce a less than satisfactory outcome so why continue to rehash this issue? Simon shame on you for supporting such a negative policy.
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