10. Hon TREVOR MALLARD (Labour—Hutt South) Link to this
to the Minister of Finance
When he said that “I did visit the Chinese Investment Corporation … They are very pleased with New Zealand’s economic policy”, was one of the policies he discussed with this foreign sovereign wealth fund his plan for privatising state assets?
Hon BILL ENGLISHHon Trevor Mallard Link to this
What is the official advice that he has received on whether foreign investment would be essential to his plans for privatising assets?
We have not received any advice that it is essential. The Government has made its intentions clear—that is, we will maintain 51 percent ownership, and we will provide a very good opportunity for New Zealanders to invest in New Zealand. Kiwi mums and dads will be at the front of the queue.
Hon Trevor Mallard Link to this
When he went on to say “Contact Energy … still has the largest register of shareholders on the New Zealand stock exchange—shares still largely held by Kiwi mums and dads.”, was he aware that 97.5 percent of Kiwis have been stripped of their ownership of Contact Energy, two-thirds of the company is owned overseas, and over $1 billion of dividends from Contact Energy have headed offshore so far?
Well, the Opposition uses the example of Contact Energy, which was sold in a different way. It was sold to overseas owners in a majority. Edison Mission Energy bought 40 percent of Contact Energy shares. The Government’s plans are to retain 51 percent ownership of State-owned energy companies. In the end we would rather pay dividends to Kiwis than interest to overseas lenders. Labour wants us to pay interest to overseas lenders; we want to pay dividends to Kiwis.