4. Hon CLAYTON COSGROVE (Labour—Waimakariri) Link to this
to the Prime Minister
Further to his answer to Oral Question No 10 yesterday, what evidence does he have for disagreeing with Treasury’s finding that “significant participation by foreign investors will be essential to achieve the Government’s overall objectives” if the Government’s privatisation plan goes ahead?
Hon BILL ENGLISH (Deputy Prime Minister) Link to this
Hon Clayton Cosgrove Link to this
What evidence does he have that so-called Kiwi mums and dads will be able to afford to buy shares in energy companies and Air New Zealand, not including shares purchased indirectly through the likes of KiwiSaver, ACC, and other entities?
There is accumulating evidence for that. The fact is that Kiwis are saving more than they have for 20 years, so, clearly, they have decided they can save money. They are looking for something reasonable in which to invest those savings. The other piece of evidence is that the economy is growing surprisingly fast, and Kiwis have a better opportunity now than they once thought to look forward to higher incomes, which will give them the opportunity to boost their savings and invest where it will earn them a satisfactory return.
Hon Clayton Cosgrove Link to this
Can he provide the House with an estimate of the proportion of New Zealanders who will own shares in our energy companies should his planned privatisation go ahead?
As the Government moves to the mixed-ownership model that is modelled on the Air New Zealand one, which was set up by the previous Labour Government, we expect that the same Kiwi mums and dads who currently own shares in Air New Zealand, as permitted by the previous Labour Government, might also like to own shares in a Government-owned energy company.
Chris TremainWhat indications has he seen that New Zealand investors are keen to participate in a mixed-ownership model?
As we discussed in the House yesterday, there has been an indication from recent Grey Power meetings that the Prime Minister has attended, where people who lost $8.5 billion in finance company crashes—which the Opposition does not seem to care about—are showing real interest in being able to invest their savings in shares that will give them a reasonable return. Many New Zealanders will have a good opportunity, because interest rates are at a 45-year low, they have just had the benefit of lower taxes, and their savings rates are the highest in 20 years. That means an unprecedented level of interest from New Zealanders in investment.
Hon Clayton Cosgrove Link to this
Given that Treasury has said that the “NZX is already heavy in energy stocks”, what evidence does he have that the State-owned energy companies will be an attractive proposition for Kiwi mums and dads, given that weighting?
Well, they will be an attractive proposition, because they will be 51 percent owned by the Government. Kiwis will be at the front of the queue with the best opportunity to buy these shares should it go ahead. The Government will be able to pay dividends to good, honest New Zealand mums and dads, rather than follow the Labour policy, which is to pay large interest bills to foreigners.
Hon Clayton Cosgrove Link to this
How can he be so confident of widespread New Zealand ownership when a spokesperson for his Minister of Finance said yesterday that work on maximising Kiwi ownership of State-owned enterprises is still at an early stage, and will he halt the sale of State-owned assets if he is not certain of, and cannot confirm, widespread Kiwi ownership?
The Opposition cannot have it both ways. On one day those members criticise the Government for going too fast on mixed-ownership models—
Hon Clayton Cosgrove Link to this
I raise a point of order, Mr Speaker. The issue is self-evident. I ask the Minister to address the question.
Mr SPEAKERA point of order has been raised, and members should not add their contributions just from the sidelines. It is never helpful to start answering a question by climbing into the questioner, unless the question is absolutely highly provocative. I am not sure I would put that question in that particular category. I invite the Hon Clayton Cosgrove to repeat his question, because it is not a good approach to start answering a question by talking about problems with another political party.
Hon Clayton Cosgrove Link to this
How can he be so confident of widespread New Zealand ownership, when a spokesperson for his Minister of Finance said yesterday that work on maximising Kiwi ownership of State-owned enterprises is still at an early stage, and will he halt the sale of State assets if he is not certain of widespread Kiwi ownership?
We are confident because New Zealanders have put behind them a wasted decade of debt and property speculation. They are now looking forward to higher savings, bigger exports, a more productive economy, and good income growth. We believe that that is an environment where they will view this kind of investment opportunity positively.