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Selling assets won't help economy - Labour

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Fri, 24 Feb 2012 5:30a.m.

Huntly Power Station

Huntly Power Station

Selling shares in state-owned power companies will make a few rich people even more wealthy and won't help the economy, Labour says.

Finance Minister Bill English on Thursday challenged his political opponents to explain their position on asset sales, saying the alternative was to borrow billions from overseas lenders.

The Government is going to sell 49 percent of the shares in the power companies, which is fiercely opposed by Labour, the Greens and NZ First.

Labour's finance spokesman, David Parker, says changing the ownership of assets isn't going to make any difference to the economy.

"What will really happen is that the small minority of New Zealanders who National rules for will get richer at the cost of the middle classes," he says.

"Even then, New Zealand's net international liabilities continue to grow every year - selling assets won't improve the economy."

NZN

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Comments

27 Feb 2012 08:48p.m.

Carlos wrote:

'Not' having a labour government will help the NZ economy !

24 Feb 2012 03:17p.m.

Esmi wrote:

Hey Mike, to go further with your metaphor about selling off your assets if you are "over borrowed": what if, rather than just sitting in the driveway, your boat and quad were actually making you money, giving you income? The amount they make for you far exceeds what they cost you in insurance etc. In that case, would it be sensible to sell them off for a short-term cash injection, and miss out on the long-term benefits of the steady income? In addition, say you have a number of people living in your home and paying you rent (=taxes). You use their rent money to provide them with services and to pay your debts. Would you think it a sensible idea to reduce their rent in these hard times, just so they will like you more?

24 Feb 2012 02:45p.m.

@ Mike wrote:

"If you find yourself over borrowed and you are struggling to make the monthly payments, you sell the boat and quad or downsize your house etc." That statement right there shows how out of touch the tories are with reality...his idea of doing it tough is probably having to make do with a 2010 Range Rover for another year! For your information, most ordinary kiwis ARE struggling, and don't have the luxury of selling off expensive toys to pay off debt. And when it comes to hocking of SOE's to pay for tax cuts for the rich, a better analogy would be selling the family car to pay for the neighbours holiday.

24 Feb 2012 01:33p.m.

Mike wrote:

@ Clarke. You say that Mike said “"welfare and health" weren’t a part of the treaty of Waitangi”. You also say I think Maori should be entitled to nothing from the government “. Not sure where you get this from, as I have never said any of this. You have a chip the size of the Beehive on your shoulder mate. You are entitled to your opinion, but don’t say I said things that were never said to get your opinion across. As for my comments, it is based purely on good business/economic practise in my opinion. I challenge you though to tell us how anyone else can get us out of the debt we are in without borrowing more. Please use facts and not some figure you plucked out of the sky!

24 Feb 2012 12:33p.m.

Pondering wrote:

I a already suspicious of the creation of a seething mass youth unemployment, removal of youth worker rights, attempts to bring back unlivable youth rates and the recently announced plan to privatise youth employment services. Now they are selling off more of our major assets and potential employment opportunities to devouring overseas interests

24 Feb 2012 12:07p.m.

Clarke wrote:

Actually lets save nearly 2 Billion dollars per year by getting rid of the Overpriveldged tax cuts... we are borrowing to pay for them now... thats nearly a third of the deficit just for the over priveldged. Get rid of the tax cuts and keep the assets... perhaps sell off a few National Party Ministers and their lacky young nat brain washed supporters like Mike. Mike calls everyone unemployed... he thinks Maori should be entitled to nothing from the government because in his words "welfare and health" werent a part of the treaty of Waitangi. Though I think people like Mike and John Key are merely leftovers that other countries have thrown out... and we might actually have to pay people to take them away.

24 Feb 2012 10:58a.m.

Greg wrote:

The old IMF policy is a failure and a modern day land grab,
who has any money left to buy these shares, maybe a few retiries, the share prices will be overvalued and will drop significantly withinb three months. Expect power prices to double.

24 Feb 2012 10:39a.m.

Bruce wrote:

Isn't it funny how the looney nat supporters all trend to follow the Looney Nat doctrine and mirror the comments from John, who me, a liar Key and Bill, its just a guess English. Always resorting to the "how will borrowing billions help the economy" strategy. No one has said from the Labour camp, they intend to borrow to help the economy. But because of the Looney Nat scaremongering, the supporters all gather and reflect the words of the "false prophets".. For one. I wouldn't mind at all, if my taxes were lifted in order to improve the NZ economy. Selling in any way, state owned assets will not help our economy. How can it? any dividend payments will simply be compounded onto the investment total. No extra money will enter the economy. Any profit the Government gains from such sales are just a 'short term" gain. NZ will be gradually worse off with asset sales.

24 Feb 2012 10:36a.m.

Martin wrote:

What Labour needs is to stop winging and come up with a better solution to the problem that does not include borrowing money. Christchurch, Rena, Pike river if Labour is voted in (I'm off to Australia if they do) we are completely stuffed. If Labour has any strength in their party who are accountants or ex accountants they better start using their abilities asap.

24 Feb 2012 09:41a.m.

no asset sales wrote:

Any bright intelligent finance minister or PM would
see that taxing profit going off shore of business,and
corporations would bring in more that what would be
gained from selling strategic assets.
Still key and english continue on the destructive and long
term destruction of our balance sheets,these assets bring
in $1b a year,why sell? brainless.