Govt accused of hiding asset sale costs

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Govt accused of hiding asset sale costs

3News NZ

Labour MP Clayton Cosgrove and Finance Minister Bill English (file)

Labour MP Clayton Cosgrove and Finance Minister Bill English (file)

The Government is being accused of hiding the cost of partially privatising four state-owned energy companies.

Watch the video to see Maori Council co-chair Maanu Paul speak to Firstline this morning.

Finance Minister Bill English has told Parliament the total amounts of the contracts with banks and other financial institutions which are preparing the share sales are commercially sensitive but Labour says that isn't correct.

"Just so the public know, the total costs for selling their assets are $7 million this year, $66m next year and $17m the year after that," he said.

"Bill English either doesn't know what he's doing or is taking the public for fools."

Mr Cosgrove has released documents held by parliament's finance and expenditure committee which he says prove his figures are correct.

The Government is going to sell 49 percent of the shares in Mighty River Power, Genesis Energy, Meridian Energy and coal miner Solid Energy.

Shares in Mighty River Power are due to be floated in September.

NZN

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Comments

27/07/2012 12:20:59 p.m.

Paul wrote:

GP. And your point is? You propose an impossible outcome. Too many astute Kiwi investors would not sell. We are not stupid. For example, as average 'Mum & Dad' investor we still own our original share holding in Contact Energy. In fact our family 'Trust' now has over 20,000 of these shares and we enjoy the returns. Same with Auckland Airport and other shares and we will do the same with any new State asset holdings that come along. It's better than money in the bank and helps supplement retirement income.

24/07/2012 8:09:25 p.m.

GP wrote:

3 years later is a pivot point, the big buyers could sweep and take over the sold 49% shares , or might sell off their majority holding shares...depending on which way they could take the most advantage from those asset sale.

24/07/2012 8:08:18 p.m.

GP wrote:

3 years later is a pivot point, the big buyers could sweep and take over the sold 49% shares , or might sell off their majority holding shares...depending on which way they could take the most advantage from those asset sell.

20/07/2012 5:04:09 p.m.

Shelly wrote:

And they call the public fools who don't understand

20/07/2012 4:26:40 p.m.

Gary wrote:

Hey Mike if no one owns water, as you say, how can it be stolen?? Surly for something to be stolen it has to be first owned by someone otherwise you have just found it or the first to claim it? So I think you are saying that all NZrs own the water in NZ. But if that is the case then that gives Maori a rightful claim under the treaty? Not thought about it like that before but it makes a valid point to support the claim! - Thanks

20/07/2012 3:19:50 p.m.

Jamie Diamond wrote:

Kiwis need to learn the two types of world economics:

'Austrian school of economics' (Scientific analyst of the markets)

vs

Neo-classical (Criminal version of capitalism)

20/07/2012 1:58:10 p.m.

Mike wrote:

There is always the thief who is trying to steal NZ's water from all NZ. The NZ law doesn't support anyone owning NZ's water. Any claim to ownership is a breach of the Treaty of Waitangi. The Treaty gave Maori the rights and responsibilities of british subjects, and that included no water ownership as British law (and NZ law) has held for hundreds of years.

Oh wait, thats on racist grounds for the benefit of one race held above all others - so its different!

If the water ownership goes through, it will be the biggest theft the world has seen. Not the biggest theft in NZ, but the biggest in the world!

We had the 29 billion that was mostly stolen pre 2008 election with Labour direction to ACC/Kiwisaver to invest in risky ventures that included Maddoff - the thief who stole billions. But the NZ water ownership would make him look like a petty thief stealing change from kids buying candy!

20/07/2012 12:43:14 p.m.

Gary wrote:

The sale of these assets makes no sense and I have not seen any proof or heard anything that supports the sale as a benefit to NZ. It is just plain ludicrous to beleive this is good for the nation. If national could stand up a tell us all the facts showing the cost of the sales, loss of future revenue vs gains from the money raised, then great lets see how it stacks up but they have not and will not, that to me says everything and only a blind fool would support it. Even if you ignored all the cost/losses of the sale and just took the money raised it does virtually nothing to change the deficit. It just does not add up and thats why they keep all details secret. The NZ people have paid for these great companies so why can we not see the details to form our own opinion based on solid facts??

20/07/2012 12:32:54 p.m.

Judynz wrote:

What the public needs to realise is this is why Govt has made sure there are no jobs. Everything that exists is a Corporation & Corporations make enough profit by selling same products over & over between themselves using public monies & profits go in the Corporations pockets.

20/07/2012 10:53:35 a.m.

Peter wrote:

What ?? Bill English trying to pull the wool over our eyes. Whenever would that happen, this is a Government that can be trusted to the ends of the earth. Oops, sorry wrong planet again. Come on Bill, tell us the truth, or to use the immortal words of your boss - show us the money !!