Labour must come clean on secret asset sale

“Labour must explain why it won’t tell the public the terms of a significant asset sale which will see New Zealand Post-owned Express Couriers sold to a German company,” says National Party Finance spokesman John Key.

“No tender process, no other bidders, just a secret deal negotiated in a backroom, with the terms to kept confidential. What is Labour hiding?

“This is a lousy way to do business.”

Mr Key is commenting on the sale of 50% of New Zealand Post’s Courier business to German freight company DHL.

“If New Zealand Post were a public company listed on the stock exchange it would be in big trouble for breaching continuous disclosure rules.

“While the Government won’t tell us what’s involved, industry sources claim there is huge risk attached.

“We’ve been told DHL has entered into a ‘promise-to-pay agreement’.

“It’s been suggested that the price DHL pays for the courier division of NZ Post will depend on earnings in 2005.

“If those reports are true, there is absolutely no incentive for DHL to make sure Express Couriers is operating at peak efficiency in the first year, because that would force up the eventual sale price.

“No public company would be allowed to behave in this manner. The Government must explain,” says Mr Key.

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