Partial listing of big SOE's great idea

Tuesday, February 20th, 2007

Partial listing of big SOE's great idea

The Employers & Manufacturers Association (Northern) wholeheartedly backs the partial privatization of some of our large state owned enterprises proposed by leading economist and architect of the SOE model, Rob Cameron.

"The suggestion reported in today's Herald would be an excellent way for Government to free up and re-direct some of the capital available to it," said Alasdair Thompson, EMA's chief executive.

"In fact EMA promoted the same idea last June.

"Several billions of dollars of taxpayers' capital is currently tied up in our SOE's.

"But rather than 10 per cent, we think Government should float up to 49 per cent holding of some of the SOE's on the stock exchange.

"This would provide New Zealanders with more opportunities for savings and investment, which would be especially useful as KiwiSaver approaches.

"In any event there is no shortage of privately held capital to invest in these businesses, and it would give them the higher degree of discipline required by a stock exchange listing.

"The funds freed up could be redirected to increased health, education and infrastructure investment thereby relieving taxpayers.

"It would allow Government to maintain a sensible surplus while retaining control of the SOE's.

"The investment capital freed up would kick start economic transformation while protecting the Government's fiscal position."

ENDS

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