A strategic sale (49%) of these four SOEs 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 and 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.