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National starts process to sell off our assets

Press Release – New Zealand Labour Party

The Government has already started the process of selling off state-owned power companies despite promising to seek a mandate for the sales in the November election, says Labour’s SOEs spokesperson Clayton Cosgrove.Clayton COSGROVE
SOEs Spokesperson
25 May 2011


National starts process to sell off our assets The Government has already started the process of selling off state-owned power companies despite promising to seek a mandate for the sales in the November election, says Labour’s SOEs spokesperson Clayton Cosgrove.

“It’s less than a week since Prime Minister John Key promised to seek a mandate from Kiwis on the sale of electricity generators Meridian Energy, Might River Power, Genesis Energy , Solid Energy and carrier Air New Zealand,” Clayton Cosgrove said.

“Yet today, just six days after the Budget, the Government is seeking a project manager and adviser for what it hopes will be a $5 to $7 billion sell-down.

“The speed and arrogance with which John Key is abandoning pledges is astounding,” Clayton Cosgrove said. “Kiwis are being taken for granted — and are being taken for a ride by a government and Prime Minister who don’t take the widespread opposition to asset sales seriously.

“If John Key can’t keep a simple promise to seek a mandate, how can he and National be trusted to keep their promise to sell the assets to Kiwi Mum and Dad investors, and that they won’t end up in foreign hands?

“As soon as the companies go on the block, foreign interests will be loosening their wallets ready to pounce. John Key knows that, and Kiwis know it too from bitter experience in the past.”

Clayton Cosgrove said this year’s election would be crucial to Kiwis retaining control of assets they currently own.

“If they are sold, we will never be able to afford to buy them back again, and power prices will increase sharply to meet the demands of corporates and foreign investors. Kiwis already own these companies. They should not have to buy them a second time around”

ENDS

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