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State-owned Assets, Sales—Policy

Tuesday 12 July 2011 Hansard source (external site)

Cosgrove5. Hon CLAYTON COSGROVE (Labour—Waimakariri) Link to this
to the Prime Minister

Does he stand by his statement “we have always been clear that if there was to be any change to our policy on State-owned assets in any way, we would seek the support of New Zealanders at an election, and that is exactly what we will do”?

KeyRt Hon JOHN KEY (Prime Minister) Link to this

Yes. The Government said it would not sell shares in State-owned companies in this term of Parliament, and we have not. We said if the policy changed, we would tell New Zealanders and campaign on it in the next election. That is what we will do.

CosgroveHon Clayton Cosgrove Link to this

In light of his promise not to change his policy on State-owned enterprises before the election, why has Treasury appointed Deutsche Bank and Craigs Investment Partners to prepare the four State-owned energy companies for sale?

KeyRt Hon JOHN KEY Link to this

To do exactly that: prepare them for sale in the event that a National Government is re-elected.

CosgroveHon Clayton Cosgrove Link to this

Given that Budget 2011 banks $3.6 billion in revenue for asset sales for future spending, does this show that his income tax cuts—42 percent of which went to the top 10 percent—were unaffordable and have left the Government’s books in a very poor state?

KeyRt Hon JOHN KEY Link to this

No. What it shows is that Cabinet made a decision to have a net zero capital allowance over the next 5 years. The way that we intend to do that is to extend the mixed-ownership model as the previous Government did with Air New Zealand.

CosgroveHon Clayton Cosgrove Link to this

Why is Treasury spending $6 million before the election to begin carrying out his change in policy on State-owned assets, when he promised that “if there was to be any change to our policy on state-owned assets in any way, we would seek the support of New Zealanders at an election,”—if there was to be any change to his policy in any way?

KeyRt Hon JOHN KEY Link to this

We have made it quite clear to the New Zealand public what we are campaigning on. We will be going to the election with that policy, and not one share will be sold prior to the 26 November election. In the rare event that Labour is elected, it can reverse that policy if it wishes.

CosgroveHon Clayton Cosgrove Link to this

Can the Prime Minister then confirm that New Zealanders can stop the sale of State-owned assets only by voting out his Government on 26 November?

KeyRt Hon JOHN KEY Link to this

What I can say is that this Government is absolutely committed to the mixed-ownership model. We believe it is right on a number of fronts, and we look forward to having that debate with the New Zealand public on the campaign trail.

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