INDEPENDENT NEWS

Meridian sale a failure with 62,000 investors

Published: Thu 24 Oct 2013 09:00 AM
Clayton COSGROVE
SOE Spokesperson
23 October 2013    MEDIA STATEMENT
Meridian sale a failure with 62,000 investors
John Key and Bill English’s asset sales are officially a farce as Meridian was sold off for $1.2 billion less than they promised and attracted just 62,000 investors, says Labour’s SOEs spokesperson Clayton Cosgrove.
“I don’t know how John Key and Bill English can look the taxpayers of New Zealand in the face. They have they sold half of a valuable long term asset for $1.2 billion less than they told the public they would sell it for in 2011. And just 62,000 retail investors, including institutions, bought shares.
“John Key and Bill English threw everything they could at making this sale a success, even offering a Suzanne Paul-style buy now - pay later scheme. Despite offering everything but a free set of steak knives just 62,000 people wanted to buy in.
“The number of investors in Meridian is half that of Mighty River, which was half that of Contact Energy when the National Government sold it in 1999. At this rate of success they will be paying people to buy Genesis Energy shares.
“This is a $1 billion blow out. It is almost impossible that the asset sales will bring in the $5b to $7b John Key promised New Zealanders.
“New Zealanders have realised they have been sold down the river.
“The only winners are the 62,000 retail investors who can afford to buy these shares. That’s just 1.4 per cent of the population.
“That’s a failure by any definition.
“The Government should use the upcoming referendum on asset sales as a face-saving exercise. The result will give the government the reason it desperately needs to stop the programme,” says Clayton Cosgrove.
ENDS

Next in New Zealand politics

New Year Honours List 2018
By: New Zealand Government
National Party launches bid to save highway projects
By: New Zealand National Party
Medicinal cannabis to ease suffering
By: New Zealand Government
CPAG report: The further fraying of the welfare safety net
By: CPAG
Government mourns the passing of Jim Anderton
By: New Zealand Government
Green Party mourns passing of Jim Anderton
By: Green Party
National expresses condolences at passing of Jim Anderton
By: New Zealand National Party
NZ First expresses condolences over death of Jim Anderton
By: New Zealand First Party
CTU mourns Jim Anderton
By: New Zealand Council of Trade Unions
Prime Minister congratulates Honours recipients
By: New Zealand Government
Petition launched to ensure Auckland to Whangarei route
By: New Zealand National Party
Petition launched to support East-West Link
By: New Zealand National Party
Napier to Hastings Expressway at risk
By: New Zealand National Party
Waimak MP backs petition to save motorway project
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media