Desperate NZ Government Selling off Key Kiwi Assets

Written by KiwiIwi on January 25th, 2011
“In the worst of the recession, running a budget deficit was the right thing to do, as it gave much-needed support to the economy,” Mr Key said.

NZPA © Speaking to National Party supporters at Trusts Stadium in Auckland, Mr Key said this year’s budget would focus on savings and investment.

“Now, as the economy recovers, borrowing $300 million a week is unaffordable and is holding the economy back.”

The economic plan would involve running a tighter budget, with the Government to consider borrowing less for its capital investment programme over the next few years.

The Government would also reconsider the ownership of a number of state-owned assets.

“We need to look at where we can change the mix of assets we own — identifying where new assets are most needed and where we have more money invested than we absolutely need to.”

Mr Key said the mixed-ownership model for Air New Zealand, which is owned predominantly by the Government but with a minority of outside equity, could be extended to other companies.

The Government had asked Treasury for advice on the viability of introducing mixed-ownership to power companies Mighty River Power, Meridian, Genesis and Solid Energy. Advice was also being sought on reducing the Crown’s shares in Air New Zealand.

“No other SOEs are being considered and no decisions have been made,” Mr Key said.

“We will carefully consider the advice we get from Treasury and will clearly spell out our intentions well before the election later this year.”
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See also: “With the help of Maori Party”   “Selling off valuable Kiwi assets”  “Ripping off Kiwi’s” “Taxpayer has to pay another bill” “Tax rise” “GST increase”
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