4. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance
Which State-owned enterprises have indicated to him a need for additional capital, and what options is he considering to meet these needs?
Hon BILL ENGLISH (Minister of Finance) Link to this
Discussions about the particular capital needs of particular State-owned enterprises are commercially sensitive, and I do not intend to divulge the full detail of those here. I can tell the member that State-owned enterprises regularly have discussions with the Government about how much of their profits should be retained in order to allow them to continue investing. Additional capital is considered where there is a sound commercial case. Under the policy constraints the Government has given itself for State-owned enterprises requiring savings, we can either lower their dividends or borrow in international markets in order to invest in State-owned enterprises.
Hon David Cunliffe Link to this
When did the Minister tell the Minister of Energy and Resources, Gerry Brownlee, about Solid Energy chairman John Palmer’s intention to call for the partial sale of Solid Energy during a speech last Thursday?
I cannot recall every discussion I have had with Minister Brownlee about Solid Energy, but I assure the member there are regular discussions because Mr Brownlee is a very active Minister of Energy and Resources, and a strong advocate of the development of New Zealand’s energy resources.
Aaron GilmoreThe Budget outlined the fact that the Government owns $220 billion worth of assets, which includes something like $70 billion worth of financial assets and over $50 billion worth of commercial assets. The Government expects that the value of that $200 billion portfolio will grow by around $35 billion over the next 4 years. That is if we manage it well. I have to say that the standard of management of some of these assets has been very poor, and the Government is working hard to lift their performance.
Hon Clayton Cosgrove Link to this
When John Palmer told him he was going to call for the partial sale of Solid Energy, did he tell the chairman that the comments were “out of line” and “stepping over the mark”, or was the Minister of Energy and Resources, Gerry Brownlee, wrong when he made those comments and said “No one was particularly happy about it.”?
The member is continuing the Opposition habit of trying to put words in people’s mouths. That was not the nature of the communication between the chairman and me.
Hon Clayton Cosgrove Link to this
Will the Minister rule out ever selling some or all of Solid Energy?
The Government’s position on asset sales is clear: no asset sales in this term of office, and if that changes we will go to the electorate and debate the issues.
Hon David Cunliffe Link to this
If the Minister is not ruling out possible future partial privatisation of Solid Energy, in what respect did John Palmer “go too far”?
The member can play the game of ruling out, but actually Labour’s policy on these matters is much looser than National’s.
Hon David Cunliffe Link to this
I raise a point of order, Mr Speaker. By attempting to refer a question back to the Opposition, the Minister is failing to address it.
Mr SPEAKERI think it is a fair point, actually. The Minister should not comment on the Opposition before attempting to answer the question.