Labour has launched a policy for a sovereign wealth fund, which it says it would back to the tune of $100 million a year.
The fund would be called "NZ Inc" — a buzz phrase often used by corporate New Zealand, particularly when justifying a bit of pork from the Crown.
Speaking on TVNZ's Q+A, leader David Cunliffe said the fund would take "half of the dividend flows from the remaining SOEs puts it in a pot which will be managed by the New Zealand Superannuation Fund under its own board to invest in high growth New Zealand assets, to keep the ownership in New Zealand.”
Clean technology iinvestments would be another focus.
“We're going to take new revenues from the oil industry, from either new wells or increased revenue levels, increased royalty levels, and use that money as well to fund investment in renewable energy and clean technology, " Mr Cunliffe said.
When asked it is buying back assets, David Cunliffe said, “It could. It's within its mandate if there are market conditions which allow it to invest in buying back some of the shares ...”
David Cunliffe also says a new Kiwi share will be created in each of the remaining SOE’s. This would involve, “the residual Crown holdings of all of the mixed ownership companies, which will vest direct in the Crown an inalienable ownership of those assets and prevent privatisation or dilution.”
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Labour wants 'NZ Inc' sovereign wealth fund — but woolly on if it will be used for asset buy-backs
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