By 3news.co.nz staff / RadioLIVE
'Mum and dad investors' are being given plenty of promises by the Government over its asset sales plans, but no guarantees they'll actually get a stake.
State Owned Enterprises Minister Tony Ryall says the Government expects 85 to 90 percent of the shares to be sold to Kiwis, including the Government's 51 per cent stake.
He's reiterated the pledge to have Kiwi "mums and dads" at the front of the queue, but has revealed there'll be foreign interests too that could push the price out New Zealanders' reach.
"The price will be good for New Zealand, and quite affordable for New Zealand shareholders," says Mr Ryall, but "we've got a responsibility here to make sure that we get the price."
Foreign investors will be subject to the same 10-percent stake holding cap as New Zealanders, but there's nothing stopping them from buying the entire floated stakes in future.
Mr Ryall made the announcement this morning at the Institute of Financial Professionals in place of Finance Minister Bill English, who was sick.
SEOs under consideration for sale include Mighty River Power, Genesis Energy, Meridian and Solid Energy, and sell some of its shares in Air New Zealand.
"We would rather pay dividends to New Zealanders than interest on rising debt to foreigners," says Mr English.
"The mixed ownership model is a win-win. New Zealand savers get to invest in good Kiwi companies," says Mr Ryall.
It is "very unlikely" New Zealanders would get a discount on the shares.
Sales would begin in 2012, provided National wins the election this November, and be spread over the next few years.
3 News / RadioLIVE