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

PSA national secretaries vote for equal pay on Suffrage Day
By: PSA
Dairy farms using same amount of water as 60 million people
By: Ropere Consulting
Labour and Greens confirm commitment to restoring democracy
By: Greenpeace New Zealand
Labour committed to fair and progressive tax system
By: New Zealand Labour Party
National & ACT Ignore Human Rights Pledge
By: Bryan Bruce
124 years since NZ women got the vote
By: New Zealand Government
Women’s Suffrage Day to reflect on gender diversity
By: New Zealand Law Society
Gill Greer & Vanisa Dhiru Appointed to Lead NCWNZ
By: Gender Equal NZ
Gender Equal NZ Launched to Change Sexist Attitudes
By: National Council of Women of NZ
Q+A: Bill English
By: TVNZ
Q+A: Jacinda Ardern
By: TVNZ
Commercial water charge the right thing to do
By: Green Party
Peters: Excerpts From Morrinsville Speech - Water Charges
By: New Zealand First Party
Peters’ appearance at Morrinsville hypocritical
By: ACT New Zealand
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media