New Zealand - asset sales legislation

Opposition pledge to delay asset-sale process

Opposition parties are planning to propose hundreds of amendments to delay Government legislation which would allow for the partial sell off of state owned assets.

TVNZ,

14 June, 2012

The Government is pressing ahead with its asset sales plans after it was given a second reading and was passed by politicians, 61 votes to 59 yesterday.

The bill now goes to committee stage, where opposition parties are planning on proposing hundreds of amendments to delay debate.

Green MP Gareth Hughes is urging everyone to sign a petition calling for a referendum on the issue, which needs about 300,000 signatures.

The Greens claim their Keep Our Assets petition has gathered 30,000 signatures since it was launched five weeks ago, but the Prime Minister is resisting calls to hold a referendum.

They have written to the leaders of all the other political parties asking them to support an amendment to the Bill which would prohibit any sales, if the legislation is passed, until after a citizen-initiated referendum.

The Mixed Ownership Model Bill will allow the sale of up to 49% of electricity companies Mighty River Power (MRP), Meridian Energy, and Genesis Energy, and coal-miner Solid Energy.

The first shares to go on sale, in Mighty River Power, are set to be offered in the next 16 weeks.

Kiwis 'have spoken' - John Key

John Key said yesterday it is not necessary to hold a referendum as Kiwis were able to have their say about whether they supported the plan at the election.

"National won with the biggest result it's ever had in MMP history and Labour had the worst result in MMP history so the people of New Zealand have spoken," he said.

Hughes rejected Government claims it had a mandate to sell assets because it won last year's election.

Labour's SOE spokesman Clayton Cosgrove called for a u-turn on the asset sales policy yesterday.

"They did it with education. They should do it with assets," he told Parliament. "Even if they get one away, the people of New Zealand have the opportunity to stop them on the second, and the third, and the fourth."

The issue provoked fiery exchanges in the debating chamber. New Zealand First leader Winston Peters claimed it was "about treason, it's about treachery, it's about betrayal".

But, Economic Development Minister Steven Joyce insisted "the National led Government is committed to getting on top of debt, protecting and growing our economy".

He stressed the legislation requires the Government to retain a 51% controlling shareholding, claiming the policy would "help control debt, increase savings, strengthen capital markets, and help get New Zealand through the worst economic times in nearly a century."

Around 100 people gathered outside Parliament yesterday afternoon to voice their opposition to the Government's plan.