Grid buyback essential if foreign owners go under

Published: Tue 30 Sep 2008 12:22 AM
30 September 2008
Grid buyback essential if foreign owners go under
The Green Party is calling on the New Zealand Superannuation Fund to buy back the South Island electricity grid if Wachovia Bank - which effectively owns the grid - collapses as expected.
"The repurchase of this key strategic asset is exactly what the New Zealand Superannuation Fund should be investing in, rather than gambling on fragile international money markets," Green Party MP Sue Kedgley says.
"Our Government should never have allowed its state owned enterprise, Transpower, to flog off the South Island electricity grid to an American-owned bank, but now we have an opportunity to return it into New Zealand ownership.
"Transpower sold the South Island high voltage transmission grid in a secretive and complex, tax-driven lease in 2003. The deal gave Wachovia a 100-year lease, in an arrangement that is routed through the Cayman Islands, a tax haven.
"Now Wachovia is in serious financial trouble and is expected to be the next American bank to collapse.
"If this happens, the Superannuation Fund should buy this key strategic asset back," Ms Kedgley says.
"The pending collapse of Wachovia Bank shows the folly of flogging off key strategic assets to private foreign owners, and of putting short term profitability ahead of the long term stability of key strategic assets."

Next in New Zealand politics

The Nation: Patrick Gower interviews Jacinda Ardern
By: The Nation
Not too late to do the right thing for parents
By: New Zealand National Party
Ombudsman emphasises importance of monitoring seclusion
By: Human Rights Commission
Q+A: Prime Minister Jacinda Ardern interviewed by Corin Dann
The Nation: Lisa Owen interviews Grant Bayldon
By: The Nation
Cassidy Morris Interviews Jacinda Ardern
By: Bravo New Zealand
The Veiled Threat: Aust’s Campaign Against NZ Refugee Policy
By: Binoy Kampmark
Questions and Answers - Nov 16
By: Hansard
Further NZ assistance for Myanmar humanitarian crisis
By: New Zealand Government
NZ to become a leader in the fight against climate change
By: New Zealand Government
Strong leadership must emerge to drive Pacific COP
By: Greenpeace
Trade Minister accepts open letter against TPPA-11
By: Joint Press Release
Peace Activists Occupy Labour Party Offices Across Aotearoa
By: Auckland Peace Activists
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media