The New Zealand Chambers of Commerce is calling for whoever leads the government after November 26's election to expand the National Party's proposed sell-down of minority stakes in a handful of state owned enterprises (SOEs) to all central and local government owned businesses to help get the government's books out of the red, fund the rebuild Christchurch and provide an alternative to property investment.
Michael Barnett, head of the Auckland Chamber of Commerce and a spokesman for the New Zealand Chambers of Commerce, said the government could extend National's so-called mixed ownership model to all central and local government commercially owned and controlled organisations.
"We believe a controlled asset sell down to New Zealanders of minority shares in a range of other selected commercial assets would not only help secure the target of a (government) return to a fiscal surplus by 2015, fund the rebuild of Christchurch and enable faster delivery of critical infrastructure, but create the opportunity for New Zealanders to have some shared ownership (and direct participation) in securing our economic prospects," Barnett said.
“Allowing New Zealanders to invest in the nation’s strategic commercial assets would provide a safe alternative to continuing to invest in property,” Barnett added.
Such a move would "free up" capital for investment in key infrastructure, and give New Zealanders the opportunity to invest in productive New Zealand-owned assets and bolster their retirement funds. The core concept was of shared ownership of assets by New Zealand organisations and individuals with the government retaining at least 51% ownership, Barnett said.
The government instructed Treasury in January to conduct preparatory work to enable partial sales of Mighty River Power, Meridian Energy, Genesis Energy, and Solid Energy and to reduce the Crown’s 74.69% shareholding in Air New Zealand, with the government retaining a majority stake of at least 51% in all the companies.
National says such SOE sell-downs, through sharemarket floats, would happen over a three to five year period starting in 2012. Treasury estimates implementation of this mixed ownership model would raise between NZ$5 billion and NZ$7 billion. Prime Minister John Key says this money would be held in a specific fund for investment in infrastructure.
The issue of partial SOE sales is a key election issue, with National pledging to push ahead with the sales should it be re-elected and the Labour Party strongly opposing National's plan.
Barnett said the Chamber’s proposal gives the next government the opportunity to show it is seriously committed to a policy of promoting all New Zealand’s strategic commercial assets to playing a key role in securing our economic prospects.
"It can show this commitment by extending the shared ownership asset policy to all central and local government commercially owned and controlled organisations," said Barnett, who is a former Auckland Regional Council councilor.
“It is positive for New Zealand and New Zealanders, and because New Zealanders will have some direct ownership will help keep those managing the assets on their toes."
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