Treasury comes in below budget for running government asset sales programme

Tony Ryall and Bill English (TV3)

The Treasury came in below budget for its costs in running the government's asset sales programme.

The Treasury spent $85.5 million, or 1.83 percent of the $4.67 billion in total proceeds from the share offer programme, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall said in a joint statement. That was below the 2 percent estimate made at the start of the programme, which excluded costs to the companies and incentives to New Zealand retail investors.

Of the costs, Treasury spent $12.6 million on advertising and communications, $64.9 million on professional services such as legal, brokerage and advisory, and $7.9 million on its own internal costs. The companies whose shares were sold incurred an extra $35.1 million in costs associated with the programme.

The government has sprinkled the proceeds of the asset sales programme across projects ranging from housing developments to irrigation schemes and an increased bailout for state-owned KiwiRail. Some $1 billion of the money, held by the Future Investment Fund, was allocated in the 2014 budget.

Gross proceeds from the sale of shares in MightyRiverPower, Meridian Energy, Air New Zealand and Genesis Energy came in below the original estimate of $5 billion to $7 billion, partly reflecting the decision not to sell the financially troubled coal miner Solid Energy.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7850 0.0000 0.00%
AUD 0.8924 0.0000 0.00%
EUR 0.6196 0.0000 0.00%
GBP 0.4880 0.0000 0.00%
HKD 6.0917 0.0000 0.00%
JPY 84.8970 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1231.3 2.700 2014-10-24T00:
Oil Brent 86.1 -0.700 2014-10-24T00:
Oil Nymex 81.0 -1.020 2014-10-24T00:
Silver Index 17.1 0.020 2014-10-24T00:

Indices

Symbol Open High Last %
NZX 50 5292.8 5344.4 5292.8 0.77%
NASDAQ 4459.5 4486.3 4452.8 0.69%
DAX 9008.6 9044.9 9047.3 -0.66%
DJI 16677.0 16811.7 16677.9 0.76%
FTSE 6419.1 6419.1 6419.1 -0.47%
HKSE 23311.9 23352.6 23333.2 -0.13%
NI225 15354.4 15377.0 15139.0 1.01%