1. Hon CLAYTON COSGROVE (Labour—Waimakariri) Link to this
to the Minister for State Owned Enterprises
Why is the Government proposing to sell shares in State-owned enterprises?
Hon TONY RYALL (Minister for State Owned Enterprises) Link to this
No decision to sell shares has been made. Treasury is providing advice on whether extending the mixed-ownership model can meet the five tests that the Prime Minister has already outlined: retaining majority control by the Government, prioritising New Zealand shareholders, providing good investments, using capital to purchase other public assets and limit debt increases, and protecting New Zealand consumers.
Hon Clayton Cosgrove Link to this
Does he agree with Treasury advice that “there is little evidence to suggest that privatisation would significantly improve the financial performance of many of the SOE companies.”; if not, why not?
No, I do not agree with that advice; because when one looks at what the Government may be considering in the future, one can see that it is not a reflection of what that evidence may have been based on.
Hon Clayton Cosgrove Link to this
Given that he does not accept Treasury’s advice on improving the performance of State-owned enterprises, whose advice is he taking, or can we assume that his proposals are based on ideology rather than analysis?
The Government has asked Treasury to provide advice on whether extending the mixed-ownership model can meet the five tests that the Prime Minister has already outlined. It is quite clear that we cannot continue borrowing at the current levels, so the Government wants to look at where we can change the mix of the assets that we own. The greatest scope to change this mix lies in the Government’s commercial assets. It is crazy to remain locked into an ownership model of the past, which may constrain the future of New Zealand.
Hon Clayton Cosgrove Link to this
Does he agree with the statement of the previous Minister for State Owned Enterprises that the Government “will prioritise New Zealand shareholders”; if he does agree, can he guarantee to the House that the bulk of any floated shares in a partly privatised State-owned enterprise will remain in the hands of Kiwi mums and dads?
The matter is still being scoped and advice is being provided to us by our advisers. What I can say is that there is an absolute guarantee that the Government will be retaining 51 percent ownership of any asset that the Government may consider having a public float of.
Hon Clayton Cosgrove Link to this
Given that the Minister has said he has sought departmental advice on the partial sale of State-owned enterprises, when does he expect to receive that advice, and is he expecting that advice to contain a mechanism to ensure that State-owned enterprises stay in the hands of Kiwi mums and dads, as his Prime Minister has previously stated?