3. MARTIN GALLAGHER (Labour—Hamilton West) Link to this
to the Minister for State Owned Enterprises
What reports has he received on the performance of State-owned enterprises?
Hon Dr MICHAEL CULLEN (Leader of the House) Link to this
The Minister has seen a number of reports showing that State-owned enterprises have generated net profits of more than $500 million in the last financial year. Over $400 million of this has been paid in dividends, and over $100 million has been reinvested into New Zealand’s infrastructure.
Has the Minister seen any reports purporting to suggest ways to improve the performance of State-owned enterprises?
Hon Dr MICHAEL CULLEN Link to this
The Minister has seen three. One was from Mr Bill English, proposing that New Zealanders—by and large wealthy New Zealanders, of course—can buy shares in these assets, which currently all Kiwis own. That is what State-owned enterprises are. He has seen another report from Gerry Brownlee in the same publication, proposing to sell Landcorp but retain Transpower, but saying nothing about the other 15 State-owned enterprises. Clearly, the leader of the National Party does not agree with a slow-burn fire sale; he is saying: “Now, we’re listening to the public … we know they don’t want to … sell assets and we understand that,”.
Gerry BrownleeDoes the Minister accept that, with the assets of all the State-owned enterprises being valued at some $20 billion, the dividend of $400 million represents a return of only 2 percent; if so, has he thought of taking the advice of the Hon Trevor Mallard, who suggested in March this year that some of the assets might well be sold, except, of course, for Kiwibank, in which he could invest some of the proceeds for a staggering 8 percent return on his money?
Hon Dr MICHAEL CULLEN Link to this
What the member seems to ignore is the substantial profits retained by State-owned enterprises for reinvestment in growth and development. Normally, the Opposition members are complaining about the level of profit gouging by the State-owned electricity generators—
Hon Dr MICHAEL CULLEN Link to this
He says: “Yes.” Having just asked that question, he now says that the State-owned electricity generators, which are the largest part of the actual State-owned enterprise portfolio, are taking too much profit out of the system.
Hon Dr MICHAEL CULLEN Link to this
He says: “That’s right.” I rest my case. We do not need two National MPs for a contradiction; one will do.
Madam SPEAKERMy point of order is probably a borderline point of order. The Minister has to answer the question, and the fundamental question, which he failed to answer, was why it was OK for Trevor Mallard to propose asset sales, but not anybody else.