National plans infrastructure fund with asset sale proceeds
The Future Investment Fund was announced at the National Party's election campaign launch yesterday by Finance Minister Bill English.
National plans to use money raised by selling down government stakes in selected state assets to pay for new infrastructure.
The Future Investment Fund was announced at the National Party’s election campaign launch yesterday by Finance Minister Bill English.
"Through the Fund the public can be assured the proceeds of mixed ownership are not being lost. They will be used to buy new assets for New Zealanders, and to upgrade and modernise our existing assets, reducing the Government's borrowing from foreign lenders by $5-$7 billion,” he said.
Selldowns of government stakes – a key policy for National if the party wins a second term in government at the November 26 election - in four energy companies and Air New Zealand are estimated to raise $5-7 billion. The government will keep at least 51% of shares.
Mr English told the National Party campaign launch that the fund would run for at least five years.
He said projects to be funded would need to either improved public services or deliver substantial economic dividends for New Zealand.
“They can’t just involve routine replacement of existing capital.”
Prime Minister John Key said schools would get the initial spending from the fund.
"The first priority will be putting $1 billion into modernising and transforming
NBR staff
Mon, 31 Oct 2011
Mon, 31 Oct 2011
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National plans infrastructure fund with asset sale proceeds
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