The issue will be a key election issue as Labour has already been active campaigning against sales.
Today's Finance Minister Bill English delivering his third budget outlined the anticipated proceeds from the Government's "mixed ownership model'' policy for Mighty River, Meridian, Genesis and Solid Energy plus reducing its 75 percent holding in Air NZ. The sales would happen over three to five years starting next year depending on market conditions.
"As we promised, we are now clearly setting out our policy to New Zealanders well before the election in November,'' Mr English said.
"The Treasury estimates that extending the mixed ownership model to the four energy SOEs and reducing the Government's majority shareholding in Air New Zealand are likely to free up between $5b and $7b of capital _ depending on the final structure of the programme.''
The move would help the Government reduce debt while also providing investment opportunities, he said.
The Government expected to have to spend more acquiring assets by 2015 requiring $21b.
"Rather than simply borrow this amount, the Government will use proceeds from the mixed ownership model to recycle existing capital towards high priority future investment in assets like schools, hospitals and broadband.
"The proceeds will fund about a third of the Government's new investment in core social infrastructure.''
The Government had not decided exactly how much of each company would be sold or when other than that the Government would retain a majority shareholding.
"It's important to remember that the Government will remain a strong net investor in the next five years - it will accumulate an extra $34.3b of assets over the next five years alone. But we can't continue to fund these assets by building up more debt indefinitely.''
Conditions for sales included that the Government maintained majority control in the companies, that New Zealand investors had the first opportunity to buy the shares, that sales created good investment opportunities, and that consumers would be adequately protected.
No other SOEs were being considered for partial sales.
Labour has accused the Government of selling the family silver and warned consumers would face higher charges while shares would end up in foreign ownership.
