Goff points to Govt sell-off plan fault

Visiting Clyde dam yesterday  are (from left) Labour Party leader Phil Goff, party member Warren...
Visiting Clyde dam yesterday are (from left) Labour Party leader Phil Goff, party member Warren Crawford, of Oamaru, and Labour Waitaki candidate Barry Monks, of Oamaru. Photo by Colin Williscroft.
Labour Party leader Phil Goff visited southern hydro dams yesterday to highlight what he says are flawed Government plans to sell shares in some state-owned enterprises.

Mr Goff, along with the Labour candidate for Waitaki, Barry Monks, of Oamaru, and a handful of other party faithful, started at Clyde dam before driving to Twizel to see Ohau A dam.

From there it was on to Otematata to visit Benmore, Aviemore and Waitaki dams, part of Meridian Energy's Waitaki hydro scheme.

In January, the Government formally asked Treasury for advice on the merits and viability of selling shares in state-owned enterprises Meridian, Genesis, Mighty River Power and Solid Energy.

At the time, Finance Minister Bill English and State-Owned Enterprises Minister Simon Power said if that were to happen, the Government would maintain a majority controlling stake in the companies.

The Government would also have to be confident of widespread and substantial New Zealand share ownership if any form of privatisation were to go ahead, Mr English and Mr Power said.

The revenue generated from the sale of shares would be used to fund new public assets and reduce the pressure on the Government to borrow, they said.

However, Mr Goff said people should not be fooled by the Government's claims that it would always maintain a controlling stake of any company formed through privatisation. He pointed to the Clyde dam, owned by Contact Energy, as an example of why assets such as dams needed to stay in public ownership.

"These things are a licence to print money. That's why the big corporates want to buy into them. Because they are a natural monopoly, we need to keep them in the public sector."

Mr Goff predicted asset sales would be a key election issue, along with the cost of living, employment and taxation.

colin.williscroft@odt.co.nz

 

 

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