Having been sworn in just yesterday, Cabinet has moved fast to get the Government's "mixed-ownership model'' going, with the issue a focus for Cabinet in its first meeting's agenda yesterday afternoon.
Under the model, up to 49 percent of shares in Crown companies, including three other power companies and Air New Zealand, will be sold off.
In an announcement today, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall said Cabinet had agreed that Mighty River Power should be the first company prepared for an initial public offering (IPO), which would most likely happen in the third quarter of next year.
"The Government has previously set a number of tests - including retaining majority Government control and significant participation by New Zealand investors who will be at the front of the queue for shares. The Treasury confirms these tests can be met,'' the ministers said.
In the meeting yesterday, Cabinet also agreed that decisions about share allocations would be made during the design phase of the IPO early next year, and that Maori would be consulted.
Legislation would be needed to support the plan, including removing Mighty River Power, Genesis, Meridian and Solid Energy from the State Owned Enterprises Act.
The ministers said the advice Cabinet had received was that Mighty River Power was ready to go to the market, and that more detailed information about the IPO would be made public following discussions early next year.
National campaigned on the controversial partial asset sales plan, saying it would consider an election win a mandate to go through with the programme.
Mr English and Mr Ryall defended the plan again today, saying the alternative was "a lot more debt'' and that mixed ownership was a "win-win''.
"It's an opportunity for New Zealanders to invest in something other than housing or finance companies.
"And it will free up taxpayers' money so the Future Investment Fund can invest in priority new assets like schools, hospitals and irrigation, without having to borrow from overseas lenders.''
