The Government remains confident that 85% to 90% of the state-owned enterprises will remain in the hands of New Zealanders as the partial sell-down of Mighty River Power is announced.
Finance Minister Bill English and SOE Minister Tony Ryall yesterday confirmed the Government would go ahead with the mixed ownership model programme.
That prompted Labour SOE spokesman Clayton Cosgrove to announce the "fire sale" had begun.
"Labour is vigorously opposed to the sale of these hard-earned, taxpayer-owned assets. And we know the majority of Kiwis are overwhelmingly with us on this.
"The current owners of Mighty River - the New Zealand public - will gain nothing from the sell-down," he said.
Also to be sold down in the next three years, depending on market conditions, are Genesis, Meridian, Solid Energy and a reduction in the Government's share of Air NZ to 51%.
Mr English said Cabinet had decided to proceed with the programme, just as National had promised New Zealanders before the election.
The Government had previously set several tests, including retaining majority Government control and significant participation by New Zealand investors who would be at the front of the queue for shares.
The Government would provide more detailed information of the Mighty River IPO (initial public offering) - including how widespread New Zealand ownership could be achieved - when detailed decisions had been made early next year, he said.
The ministers said they could ensure New Zealanders were at the front of the queue for shares by controlling the allocation of shares. Decisions supporting that would be considered next year.
The Government would always retain 51% of the mixed ownership companies on behalf of all New Zealanders. In addition, no other shareholder would be able to buy more than 10% in all cases.
No further decisions had been made, but Messrs English and Ryall expected about 85% to 90% New Zealand ownership of the mixed ownership companies.
With about $100 billion sitting in cash deposits, along with many billions of dollars more in KiwiSaver funds, other investment funds and iwi investments, New Zealanders were strongly placed to invest in the mixed ownership companies.
Selling shares through IPOs would enable all New Zealanders to apply for shares, the ministers said.
In response to Mr Cosgrove's claims that 80% of New Zealanders were opposed to the sell-down, Mr English said the Government had been open and transparent about its proposal to extend the mixed ownership model.
It had been used successfully by Air New Zealand for almost a decade.
"We've been talking about this issue since January and we said we would put this and other policies to voters at the election, before proceeding if we were re-elected. That's precisely what we're now doing."
The Government believed the mixed ownership programme, which was different from the state asset sales of the 1980s and 1990s, would be popular among New Zealand investors who would be at the front of the queue for shares, he said.
The Government came under fire during the election campaign for not making available to Opposition parties the briefing documents on the sale process.
Mr English said the supporting documents would be released when that no longer prejudiced the commercial position of the IPO.
Main points
• Mighty River Power to be listed in the third quarter of 2012
• IPO details, and how New Zealanders will have access to shares, released early next yearGovernment will retain 51% ownership
• No shareholder other than the Government will hold more than 10%
