By Political Editor Duncan Garner
Finance Minister Bill English has today talked up a loyalty scheme for Kiwis who buy shares in the energy companies soon to be partially sold.
It effectively means free extra shares for any Kiwi who buys.
It also means Mr English has joined John Key in supporting the sweetener, to entice Kiwis into a deal that the polls say most don't want.
Inside Parliament they scrapped over whether asset sales will push up power prices.
“Everybody knows that the price of electricity is going to go up,” says Labour Party leader David Shearer.
“It's just rubbish,” replies Mr English.
But next week the law allowing four energy companies and Air New Zealand to be sold will be passed by just one vote.
That vote is Peter Dunne's, and he won't budge.
3 News understands the first sale in a few months time will be Mighty River Power. The Government will offer $1000 minimum parcels.
It is formally investigating offering loyalty shares, or free shares, to Kiwis who hold them for a certain period.
It worked for the sale of Queensland Rail three years ago – one free share for every 15 held.
The Prime Minister likes the idea.
“It gives retails mum and dads another reason to buy those shares," says John Key.
Today the Finance Minister joined the chorus.
“It's certainly an option as we have said we want to achieve broad ownership," says Mr English. "The feedback we are getting is the public wants to be encouraged to buy the shares and hold them.”
But Labour says the free share offer just delays the inevitable.
“All a loyalty bonus does is put off the fateful day, maybe by 12 months, maybe by two years,” says Labour MP Clayton Cosgrove. “You get your free shares and you flog the lot off.”
Loyalty schemes can also be expensive.
The Greens say it could cost $400 million over the five sales.
“This is fiscally reckless policy,” says Russel Norman.
But perhaps the most reckless promise came from New Zealand First, with a $7 billion pledge.
“We will move to acquire these assets back,” says New Zealand First MP Andrew Williams.
Officials are now looking closely at loyalty schemes in Australia and the UK.
Mr Key and Mr English have now both talked up this sweetener to the sales, and it would now be surprising if they didn't offer such a scheme to Kiwis when more details are rolled out shortly.
3 News