NZ First leader Winston Peters has criticised the government for not providing more detail on a Mighty River Power loyalty scheme today.
The government is aiming for 85% to 90% local ownership of the power company at the time of the IPO with a series of incentives and priority measures for so-called local mum-and-dad investors.
But beyond the mid-May listing date, there is nothing to stop small parcel holders onselling their shares to foreigners - a negative outcome in Mr Peters' view.
The government has floated the idea of a loyalty scheme which would incentivise mum-and-dads to keep hold of their shares for a year or more.
Last year, SOE Minister Tony Ryall pointed to a state railway privatisation in Queensland that saw $A1000 share parcels dished out as loyalty bonuses after 12 months.
However, at the Mighty River pre-registration launch today, no detail was offered on a possible loyalty scheme. The government said it wanted to get a better idea of demand before it settled on a specific scheme.
Mr Peters labelled that "one more quisling moment" from the Prime Minister.
“Mr Key is clearly selling the assets of the many, for a favoured few who in time will become a favoured foreign few," the NZ First leader said.
The NZ First leader also claimed that while the government said it wanted to make the share offer "as easy as possible" for ordinary New Zealanders, this was merely a guise for minimalist registration requirements that would make it easy for foreigners to leap in through loopholes.
“When the only requirements to be counted as a New Zealander are an IRD number, New Zealand bank account, residency and a New Zealand address, this isn’t going to be hard to get around," Mr Peters said.
“The so-called promise of Kiwi Mums and Dads being first in the queue is a transparent exercise in deception. Kiwi mums and dads are first in the queue now - they own these assets outright. When this process is over, the mass majority won’t."