1 March 2012
Dunne & Key at odds over asset sales
The Government needs to clarify whether it will include explicit restrictions on partially privatised state-owned
enterprises selling strategic assets like dams given the apparent conflict between statements from Revenue Minister
Peter Dunne and Prime Minister John Key on the issue, the Green Party said today.
Peter Dunne reportedly said yesterday that he may not support partial privatisation if there were no safeguards to stop
the subsequent sale of individual electricity generating assets. John Key has said there will be no restrictions.
“The Government must clarify whether there will be legislated restrictions on newly privatised energy companies from
selling strategic assets like dams or wind farms,” said Green Party Co-leader Dr Russel Norman.
“Without those protections, Peter Dunne is right to back away from the Government’s proposal to partially privatise
state-owned energy companies. Strategic energy assets are simply not secure under Key’s plans.
“Key will however be reluctant to include such clauses as they will push down the value of the companies being sold.
He’s likely to fudge this issue in order to retain the confidence of Peter Dunne and the last remaining shreds of public
support he has for his privatisation agenda.”
Under the Government’s proposed mixed ownership model, shareholding Ministers have to manage their 51 percent
shareholding in energy companies according to best commercial practice as legislated by the Companies Act. If it makes
commercial sense for a partially privatised power company to sell a dam, the Government will no longer have any ability
to stop it.
“The 2015 New Zealand China Strategy actively promotes China taking a stake in our infrastructure. They will be first in
the queue to purchase New Zealand power generating assets,” Dr Norman said.
“A smarter alternative is to keep our state-owned enterprises in public ownership and refocus their largely domestic
operations towards booming renewable energy export markets abroad.
“We can create tens of thousands of new, clean technology jobs here at home if we’re smart.”
The Green Party's alternative plan for our energy SOEs: http://www.greens.org.nz/greenjobs
ENDS