Asset sale plan giant ponzi scheme - Peters

Winston Peters.

New Zealand First leader Winston Peters has described the government's plan to sell shares four state-owned energy companies as a giant ponzi scheme.

Mr Peters told an audience at the Wainuiomata RSA this afternoon that the power companies identified for the government's mixed ownership model were owned by the people of New Zealand and they should stay that way, despite overseas interest.

“They are profitable and they are being eyed greedily from overseas,” he said.

“The government wants you to spend your money, buying what you already own except for shares that it will retain for what it will refer to as a cornerstone shareholder.”

The cornerstone shareholder will be a company set up and backed by overseas interests, Mr Peters said.

“The shares owned by the few mum and dads will be swamped by those issued to institutions and those sold to the overseas cornerstone shareholder.”

The Contact Energy experience and the sell-off of state assets under Roger Douglas and Ruth Richardson taught New Zealand First that the worst action to take after a mistake is to repeat it, Mr Peters said.

“We teach our children to learn from their mistakes.

“Somehow the National government and its cling-on partner Act don’t understand that it is the height of folly to keep repeating mistakes like selling power stations.

“If we had our way – and the money – we would take back, on behalf of the people, every such energy generating and distribution system in the country.”

New Zealand needed to maintain control of its natural resources, such as its rivers and lakes, he said.

“Just think about these lakes and rivers being controlled from an overseas boardroom.

“If they want to drop the level of Lake Taupo 50m to feed some power stations downstream, who is going to stop them?

“You see, this government is not just going to sell power stations it is going to sell the rights to the water from the lakes and the rivers to generate the power.

“No one will buy a power station if they do not have a guaranteed water right.”

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19 Comments & Questions

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What a load of election year bollocks. Winston at his finest scare tactics. We wouldnt need to sell them if the Clarke government supported by Winston hadnt done such a poor job when the economic climate was healthy. Lets hope the stupid in society can see through this popularist approach (like his asian invasion and other past campaigns) and those that think it through realise that we have no choice thanks to Helen Clarke and Michael Cullen wasting the earnings of the last three years of their reign.

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Makes good sense.
National's the one scaremongering - and people are buying into it. Pretty dumb thinkers.

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Winston is actually right on the ponzi scheme part. And also infers about agenda 21.

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Was it not Winston who presided over other Ponzi Schemes selling assets. Oh yes that right when he does it its OK. Winston attack as you will, that’s the easy part, but tell everyone how you would get NZ out of its debt, that’s all we want to hear. Currently you sound like Phil Goff Labour & the Greens, rubbish everything from National but do not put forward anything positive yourself. Gee your getting closer to Don.

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you are a fukwit. the greens released their own budget alternative which would get us out of debt no worries mate and we could keep all our SOA. Just cause your too narrow minded to see it doesn't mean it's not there. fukwit

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Maybe I missed it, but where is the quote where Dr No says its like a Ponzi Scheme?

Still a slick campaigner with very little substance though.

I hope like hell he can't get the ignorant riled up again.

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Are the elderly really this thick ? Surely their children should be talking to them and explaining the facts of life to them ?

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Go back to sleep Winston.

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It comes down to very simple economics, if you spend more than you earn you have to do something.
1) earn more and pay back the debt
2) cut your costs until you make a profit
3) sell something

Kiwis have for decades borrowed in the hope of having a good time now (all done, plasma, lcd, boat, bach, nice food, funding no hopers) and paying back the money at some stage. Well time is up people, and if we delay fixing the problem we will just have a bigger mess in the future.

Kiwis might all own the power stations and the railway, and lotto, and air nz, but we still have to do either 1) 2) or 3) or some combination.

Winston, come up with a fiscally prudent plan, next we will hear it's China or Russia who are going to buy the assets. That is true, but we still have to do 1) 2) or 3).

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Interesting quote - “If we had our way – and the money". Unfortunately Winston the money factor is the whole point - "we" the NZ government don't have the money. Some NZ citizens do have the money but a dearth of worthwhile investments into which to deploy their surplus capital. So these people have been encouraged in the past to invest into what truly were Ponzi type schemes (failed finance companies) to chase a return. Seems to me that expanding the depth of NZ's capital markets at the same time as halting a future expense (the financing of government debt) is a win-win situation. I applaud the government in finally putting the spotlight on whether our SOE's are in fact "profitable" when measured against a true weighted average cost of capital. What is measured can be managed, but I suspect that won't suit Winstone's political economics.

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If you want a plan to save the country check out www.ournz

There are some pretty good ideas about how to get the country back on track and a great explanation on how fractional lending and how we got in this mess in the first place.

SERIOUSLY...CHECK IT OUT

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I can only assume that Mr. Peters does not know what a ponzi scheme is.

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Certainly a Ponzi scheme when Lie-bour and Peters Party it was alleged scammed the NZ TAXPAYERS out of thousands of dollars in the 2005 GREAT PLEDGE CARD SCAM and other promotional matters .To the best of anyones knowledge Peters Party still havn't paid back the tens of thousands dollars owed to the voters arising out of the scam.When asked about it Peters goes off his tree.

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Frankie. I did go to ournz - great site, very funny. Keep up the good work, some really good stand-up material in there.

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Who in their right mind would sell a country's primary under pinning of wealth generation and standard of living which is already owned by the population, with politicians like these who needs enemies. Forget the small beer examples above this is serious, I'll consider leaving if this happens because power which is already four times more expensive than it is across the Tasman will be unaffordable in a country with free rain.

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Go Winnie. Adds the only humour to a colourless political spectrum in NZ

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Whilst not agreeing with Winny, isn’t it a fact that we the people of NZ already own the assets and the Gvmt of NZ are purely the stewards for those assets.

That being so then when was I as a shareholder asked for my vote on what should be done with these assets.

Answer, I have never been asked.

And No, voting for a Gvmt of the day does not constitute my approval for them to do any hair brained thing they like, like any company they have a broad mandate to do things but when it does come to selling the countries silver then that exceeds their authority and they need to come back to their shareholders for specific approval.

It would be an easier argument if most of this push to sell wasn’t being driven by Legal, Accounting and Share Broking companies (all companies whose ethics are dictated by profits and whose paying) who don’t actually care about the future but want profit now – that same thinking that has got the USA into our current situation whist people like the Chinese and others take long term (100year) views of what direction and where they want the country to go.

NZ was once a great place, Labour and National have overseen its down fall, we cease to invest in our own people preferring to give away assets already to bogus claims by a section of recent immigrants, so I guess why should we be worried about selling anything that could fund the future growth of this country if we were ever likely to get a proper Gvmt in (and no that’s certainly not the greens!).

The old story about the last person out turning off the light is now outdated – we wont need to worry about that as some offshore boardroom will determine that for us and shut it off irrespective of if we want it or not.

Time for some wiser thinking than above on the actual subject – and lets forget about the person who raised it – even he can raise one right topic in a life time….

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Right on winstone.

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National asset sales programme is nothing more than Key pampering to his overseas masters.

For all of Peters antics, at least he makes the government of the day answerable.

Why would you go with such asset sales when evidently a large component of the profits disappears from NZ inc. We can never compete with overseas interests on price. They have infinitely more money, and their costs of borrowing is way less than ours.

Maybe sale them a lease over these assets, and if they dont keep up the maintenance, the lease is fortified.

There are so many other options to these asset sales that havent been explored. You have to question the reasons why they havent. They more you think about it, the more you recognise the true motives of Key.

Key may have fooled others with his hair piece, but he cant fool me. The answers lie with the number of body guards that protect him.

Free market is promoted, but rarely does this exit. Those that promote it have they own agenda, & Key is one of them. Follow the money.

Buffett, along with Morgan, are amongst the few super rich that are advocating taxing the rich. These rich can not spend the interest on the investments in a lifetime, so what is their game. Bring back the middle class and you'll have a better society. Hardship leads to poverty, which leads to crime on the balance of society.

Keep it up the pressure Winston

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