Water row could lower asset prices - Greens
Wed, 11 Jul 2012 1:13p.m.
Opposition parties and electricity industry experts are warning uncertainty over water ownership will drive down the value of the energy companies the Government is going to partially privatise.
The Maori Council is seeking a finding from the Waitangi Tribunal that the share sales should be put on hold until water ownership claims are resolved.
It is confident the tribunal will find in its favour, and is going to use that to seek a High Court injunction.
Green Party co-leader Russel Norman says taxpayers stand to lose hundreds of millions of dollars if the Government goes ahead and sells 49 percent of the shares in Mighty River Power, Genesis Energy, Meridian Energy and coal miner Solid Energy.
"Any investor with an ounce of sense is going to demand a hefty risk discount before investing in these companies with so much uncertainty swirling around their water rights," he said today.
"The Government shouldn't proceed... there's a risk of our strategic energy assets being sold at bargain basement prices."
Independent electricity industry consultant Brian Cox told the tribunal yesterday Maori water ownership claims would create uncertainty and drive down share prices, Fairfax reported.
Australian financial markets expert Philip Galloway said in his submission the right to use water was fundamental for companies using hydro generation and buyers would be sure to ask questions about ownership.
The Labour Party has also called on the Government to delay the sales.
Prime Minister John Key says no one owns water, and that isn't going to change, but he has acknowledged court action could delay the first sale.
Shares in Mighty River Power are due to be floated late next month or in September.
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23/07/2012 12:49:39 p.m.
talking more crap thomas -the Queen signed document granting maori sole rights to all what talk about and til this day under the DOI the Queen wil indorse this doc,see there was a lot of corupt dealing going by the Queen british subjects where they didn t listen to what her request & demands were,some to be imprisoned,hanged some blamed others ,got away with it-all this is recorded with the british monarchy even the injust s of govena hobson & what he did here to maori against the Queen orders -now if the TOW is not honored & treated with respect then the pakeha governance doesn t exsist
11/07/2012 11:31:38 p.m.
Many Maori claim that because of their ethnic origin of being the first inhabitants of this land they have sole rights to the ownership of the water, well if they want to talk about 'origin' I would like to point out the origin of the water...that came from the sky didn't it? & as far as I know Maori don't have or claim ownership of the sky or maybe if Maori can come up with some sort of distillation process to separate the 'sky' water from other water then maybe they might have a case to take to the table, but then pigs don't fly do they.
11/07/2012 10:55:59 p.m.
The Government don't think you own it: that 4 sure geoff & huang.....so fat lot of good trying to say the water belongs to all NZers
11/07/2012 4:00:13 p.m.
geoff / Huang need an education.
11/07/2012 3:21:05 p.m.
What Mrs Turia should realise that the Maori Party have a small minority of votes at the last election.Perhaps she should ask herself what do most NZders think and I am sure she will realise that most NZders think that the Water belongs to all NzDERS.
11/07/2012 1:22:00 p.m.
The greens are hypocrites! There is a bigger issue here; water ownership, and all they are worry about is the value of assets. Make your stand Russel. Water belongs to all of us, not just one racial group.
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