3. Hon ANNETTE KING (Deputy Leader—Labour) Link to this
to the Prime Minister
At recent meetings he has had with Grey Power, have they raised with him their concerns about the sell-off of state assets?
Hon BILL ENGLISH (Deputy Prime Minister) Link to this
Is he aware that, according to Statistics New Zealand, 81 percent of senior citizens live on New Zealand superannuation, with little or no other income; if he is aware of that, where does he suggest older people get money from to invest in assets they already own, and have paid for?
The comments the member is referring to relate to the Prime Minister’s discussing with Grey Power whether they want the choice of investing in finance companies—where, under the previous Labour Government, investors lost $8 billion in those finance companies; the legacy of Labour’s economic management—or the opportunity to invest in a utility company providing reasonable returns consistently over time. Most of them indicate the obvious choice.
What is his answer to Grey Power members who are quoted as saying in their magazine: “Why are we buying back what we have already paid for in taxes? They belong to New Zealanders now; why buy them back?”
Grey Power members will not have to buy them back. Many of them will be quite happy with their 51 percent ownership retained by the Government. They will also be happy to see 1.7 million KiwiSavers buying into our State-owned enterprises. They will be happy to see ACC, in which they have all invested, being able to buy shares, along with Kiwi mums and dads looking for ways to invest their hard-won savings.
Can he remember advertising in the Grey Power magazine recently, stating “We’re working for you. Security. Well-being. Respect.”; if so, does that respect include listening to, and acting on, the advice of those older people who are saying that selling the State assets they paid for is totally unacceptable?
I do recall some ads in the Grey Power magazine, including one on asset sales, that did not carry an authorisation statement. I think that will be among the material referred to the police, with the Labour Party yet again in trouble for breaking the electoral law.
I seek leave to table an advertisement from the National Party in the Grey Power magazine that solicits votes and is unauthorised.
Mr SPEAKERLeave is sought to table an advertisement from the Grey Power magazine. Is there any objection? [ Interruption] Someone wants to know what date it was published.
Peseta Sam Lotu-Iiga Link to this
What other economic messages has he communicated to superannuitants?
There is more good news, which is why the Prime Minister is so popular at Grey Power meetings. In the last 3 years prices have gone up 10 percent in total, but superannuation rates have gone up 19 percent. That means, for example, that a married couple on superannuation is getting $166 more per fortnight than 3 years ago—$166 more per fortnight. This is a result of tax cuts and real after-tax average wage increases, and those people are happy about that.
In light of his claim that he shows respect to older New Zealanders, will he undertake a thorough and independent analysis of the impact on power prices of his privatisation plans before the election, and make it available before people go to the polls so they can be fully aware of what they are voting for; if not, why not?
An independent analysis of power prices shows that older people were right to feel they were victims of rapacious State-owned companies over the decade that Labour was in power: power prices went up 70 percent in 8 years. An independent analysis of the electricity market shows that Government decisions are likely to lead to power price increases lower than that in the future.
I raise a point of order, Mr Speaker. I asked whether he would undertake a thorough and independent analysis of power prices before the election and release it so people could know what they were voting for. I did not ask about what had happened in the past. I asked whether he would do that and he went nowhere near that question.
Towards the end of his answer—I accept it did not start as a direct answer to the question—the Minister claimed an analysis had been done, if I heard him correctly. I cannot judge the accuracy or otherwise of that, but that is what I believe that the Minister told the House. So he did answer the question. He said an analysis has already been done.
Could the Minister tell the House which document he is using to say that the independent analysis has been done on privatisation and power prices under National’s policy?
The Government has done an electricity market review that showed that regardless of ownership, the structure of the market was not as competitive as it should have been—something the Labour Government said it was going to fix but did not. The Government has made a number of changes as a result of that review. The second point is if Labour thinks that private ownership automatically means that businesses can put up prices, then why did it not go out and buy back the supermarkets and buy back the clothing stores so that people could have lower prices?
Peseta Sam Lotu-Iiga Link to this
What other reports on asset sales has the Minister seen in relation to Grey Power?
I have seen reports that back up the material we have already covered today, which is that a lot of older New Zealanders are bitterly disappointed they lost their life-savings, $8.5 billion worth, in the crash of the finance companies. They are looking for better opportunities for them and particularly for their families to invest their savings safely in New Zealand. A re-elected National Government will provide those opportunities.