Cabinet to rubber stamp partial asset sales on Monday

Prime Minister John Key expects the cabinet to rubber stamp its partial asset sales plan on Monday.

He says ministers will sign off on the order-in-council to remove Mighty River Power from the State Owned Enterprises Act to the mixed ownership model legislation, paving the way for the sale process to begin.

The government will then invite offers to buy shares.

Mr Key cannot confirm whether the sale process will be under way by the May 16 Budget day.

He says the cabinet decision to delay the process while it consulted with iwi and evaluated the merits of the shares-plus concept helped it win the Supreme Court case.

“If we hadn’t have done those things, we might have been in real strife when we got to the Supreme Court. So we followed the right process, had the right advice from Queen’s counsel David Goddard.”

Business New Zealand chief executive Phil O’Reilly has welcomed the decision, saying it adds clarity and will also provide a huge opportunity to develop capital markets.

“The decision will provide a boost to business confidence and confidence in capital markets.”

bcunningham@nbr.co.nz

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2 Comments & Questions

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Good bye New Zealand.

By the time the general sleeping populace wakes up it will be too late and only then will they realise they have but themselves to cry too.

Nay blame.

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Great news.
Just imagine if the Mallard duck had sold Solid Energy when he was Minister of SOE's and Solid Energy was making a profit of $200m?
1) The whingeing left would've marched and prostrated themselves on the steps of Parliament in protest. And
2) The Taxpayer would've been half a billion dollars better off to-day and laughing up their collective sleeve.
'sigh' such is life in NZ

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