Mighty River's profit slumps by $59m

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Mighty River's profit slumps by $59m

3News NZ

Arapuni Power Station is owned by Mighty River Power

Arapuni Power Station is owned by Mighty River Power

The first state owned asset being prepared by the Government for partial sale has seen its profit slump by almost half.

Mighty River Power's full year result to the end of June saw a $68 million profit, compared to $127 million the previous year.

And it's been revealed the company has spent $3.8 million in the past year preparing it for partial sale.

Greens co-leader Russel Norman says the costs of National's asset sales policy keeps on rising - and is costing the public through taxes or higher power prices.

The $3.8 million spend included $3.1 million on direct issue expenses and $700,000 on employee compensation, benefits and other expenses.

Mr Norman thinks too much is being spent on asset sales.

“The total bill for National’s asset sales now stands at over $16 million and will rise into the hundreds of millions if the policy continues.”

He says $1.3 million has been spent preparing other assets for sale, with another million spent on the Waitangi water rights hearings and $10.5 million spent on public relations and policy advisors.

“National’s asset sales policy is in crisis and the costs are out of control,” Mr Norman says.

RadioLIVE / 3 News

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Comments

28/08/2012 11:48:01 a.m.

cyril wrote:

Looks like the goverment is going to be giving away our assetts not selling them