John Key’s great idea for job creation – his cycleway project – has produced some benefits, but is a patchwork production. Some sections will be user pays to fund maintenance. Meanwhile the job creation benefits have been limited.
No Right Turn is annoyed at having a deliberate liar for a Prime Minister. Who wouldn’t be pissed off with the incompetent lying slimeball. It turns out that John Key lied to our faces when he said that no decision had been made on when his government would sell Air New Zealand
This is the last day that you can vote No in the referendum on asset sales. So dig that form out, mark it and send it. This referendum vote is a clear way to send a message that even a self-serving delusional National MP can understand. Being able to form a government is not a mandate to do whatever you feel like with our assets.
But we need more. So persuade your family, friends, colleagues, acquaintances or people that you have a passing relationship to send in their voting papers. Time is running out …
Mighty River, Meridian, and Air New Zealand are all now trading well below their listing prices costing ‘mum and dad investors’ who were taken in by National’s ad campaign tens of millions of dollars of their savings. Bill English’s angry response is ‘you would be complaining if they had made windfall gains too’. He’s right. And there’s the rub.
The proponents of Public-Private Partnerships offer two justifications for the extra cost compared to normal government financing: 1) a mystical claim that the private sector will find efficiencies in a PPP that they wouldn’t find if they were just contracted to build a project normally and 2) risk is shared between the taxpayer and the private investors. Except it’s not.
NZ Herald editor/s selectively reports, omitting the full facts, in favour of the National government. It misrepresents the referendum on asset sales, ignoring significant facts – thereby also seeming to discredit the Green Party, the referendum, & democracy.
In the Budget, the Government said asset sales would increase the net worth of the Crown by half a billion dollars because eager mums and dads were going to snap the shares up for more than they were worth on the government books. As we know, it didn’t quite work out that way. The Greens have updated the Budget and found the impact is $1.5 billion worse than expected.
It just gets worse. Only 6,500 ‘retail investors’ bought shares in the Air NZ asset sale. These are the so-called ‘mums and dads’ who National said would flock to buy into the asset sales. 0.15% of the population. And these are some rich ‘mums and dads’ – they bought $23,000 of shares each on average. Let’s face facts: the asset sales have failed in their own terms. National has failed New Zealand.
So, Mum and Dad Kiwi, you listened to the multi-million dollar ad campaigns and the years of propaganda from National, and you bought shares in one of their asset sales. How are you doing so far? Don’t listen to English, who claims you haven’t lost anything unless you’ve cashed up – that’s the same as saying your house or your Kiwisaver isn’t worth anything. Let’s look at your losses.
If you aren’t currently enrolled or are unsure, then you will have to be enrolled in the next few days. We can shove the lie of “mandate” straight back into this National government’s lying face. Maybe when National are deprived of that silly excuse for their theft, they will stop stealing.
John Key’s government is going full tilt at dismantling everything of value in NZ, and selling as much as possible to the overseas investors. It’s the government of Drill It, Mine it, Sell it. Find out about the asset sales referendum & how to vote.
The Government has announced that the sell down of Air New Zealand shares will occur over the next two days.
Word is out that National is going to slam through the sale of its Air NZ shares early next week ahead of the referendum. No mention of ‘mum and dad’ investors this time. No ad campaign imploring you get ‘get your share’. Nope. It’ll be a quick and dirty sale to some big institution which will then divvy it up to other institutions. We might not even be told until after the fact.
Answering questions on the up-coming Asset Sales referendum, John Key spoke some appalling un-truths. He is rewriting political history to suit “Crazy” Colin Craig’s possible coalition bottom lines on the “anti-smacking” law. Cunliffe finally got there in the General Debate, but the opposition was too slow in countering Key’s lies & spin.
National was warned not to give the main ultrafast broadband contracts to Chorus. All it would do would restore and strengthen the monopoly that had kept internet prices too high (which Cunliffe has addressed). Of course, National ignored that. And now, once again, National finds itself in a corner, about to bailout out a large corporate that is using its market power to threaten its political agenda.
The asset sales have been an unmitigated failure. They’ve raised less money than expected, they’ve cost more than twice as much as National said they would, no ‘mums and dads’ have shown up to buy the shares, and the public is waiting for its referendum. Now, it turns out that Treasury warned Key not to flood the market but Key plans to keep on flooding it.
Granny supported little Johnny’s plan to go off to market and sell the family’s cash cow. But even she’s furious that what he’s come back with amounts to nothing more than a hill of beans. As Granny Herald notes, the Nats’ determination to push ahead with the remaining sales regardless is all about ideology, and the knowledge that they’re going to lose the next election.
National’s trying to blame it on Labour and the Greens for the Meridian sale flop, which attracted only a quarter of the expected ‘mums and dads’ (rich ‘mums and dads’ who put in $18k each). But let’s just get this straight: the decision to sell was National’s. If they don’t think they’re getting the price that they should for the sales, then they should stop them.
So, Mighty River Power has so much spare cash at the moment that it just doesn’t know what to do with it. Rather than pay out a special dividend, they’re going to buy back some shares. This, naturally, has raised eyebrows because these shares were only just sold to ‘mum and dad’. But the bigger question is: where did Mighty River get a spare $50m in the first place?
“John Key’s asset sales have descended from failure to farce” – that’s how Metiria Turei described the announcement that Mighty River Power will be buying back shares just five months after they were privatised. Clayton Cosgrove put it more bluntly: “It’s a good thing the government doesn’t own a brewery cos they couldn’t organise a pi .. a DRINK in one”.
The Board of Mighty River Power has announced that it is buying back up to 2% of its shares because this is a prudent use of capital and will be value enhancing. It is a shame that the Government was incapable of seeing this. Expect a surge in its share price to occur and I suspect that this will be beneficial for the Meridian float.
The asset sales costs just keep on rising. The tally so far is $124 million. The ‘buy now, pay later’ scheme for Meridian is going to cost $61 million. There will be tens of millions in other sales costs. Now, the Greens have calculated the lost net dividends from Meridian alone at $1.6 million per week. Makes the referendum seem like a good investment in telling Key this is not OK.
“I just utter one fear…”
Remember that?
John Key has today announced that the keep our assets referendum will be conducted by postal vote later this year. He has also announced the Christchurch East by election will occur on November 30. And National MP Chris Tremain has announced that he will not seek re election next year.
Selling Mighty River shares was bad enough: $66m taxpayer dollars spent on selling shares with a dividend yield of 6% (the total shareholder return for the Crown last year was 11%) to avoid borrowing at 4% . That’s spending money to lose money. Not crazy enough, apparently. For the Meridian sale, they’ve doubled down. The cost will be $100m and they’ll be selling shares with a dividend yield of 8%.
In a previous post at The Standard I did a wee bit of math and came to the conclusion that National has already […]
You will have heard of this ‘buy now, pay later’ plan that the Nats have to try to save the Meridian sale. Pay 60% of your shares’ price up front, the remaining 40% in 18 months. It’s an interest-free loan, funded by higher government borrowing. What we didn’t know is this outrageous fact: this taxpayer-funded interest-free loan will be extended to foreign banks
John Key tries to smear the winner of Labour’s democratic leadership contest as “far left”, while his government continues in its anti-democratic, plutocratic ways: sale of Meridian to avoid referendum; Joyce’s Broadband pricing “arm twisting”.
Colin James takes on Key over the asset sales referendum, savaging the economic argument for sales. Then he turns to National’s other big financial markets call – suspending contributions to the Cullen Fund James discovers its cost us a lot of money. What James doesn’t recognise is that asset sales and suspending the Cullen Fund payments were never about what’s best for NZ.
National says that $9m is too expensive for you to have your democratic say on asset sales (that’s less than the budget for Pike River re-entry, which everyone supports even though it’s unlikely to recover bodies). What National doesn’t want to you now is that they’ve spent at least $124m on the asset sales so far, and the foregone net profits from Mighty River is running at $2.3m a week.
Key’s big whine today is that the referendum on asset sales, which over 10% of Kiwis have requested as required by law, will be ‘extremely costly’ at $9m. This guy’s joking, right? Mr ‘2-billion-of-tax-cuts-in-the-middle-of-a-recession’ is whining about $9m on democracy? All up, Key’s squandered well over a hundred million on asset sales so far.
National spent $66 million selling Mighty River Power. That’s what it costs to put 750 kids all the way through school. The Greens have done the numbers on Mighty River’s profit announcement to work out the Crown would have a net $2.3 million more per week if it hadn’t sold the shares. That ongoing loss is enough to pay for the education of 18,000 kids.
If you invested in Mighty River, you’ve lost 13% of your money so far. The word is the current plunge is prices is institutions selling off in order to force the Meridian listing price lower and Mighty River has a long way to fall yet. But the lower it goes, the less likely ordinary people will be to risk their savings on another privatised power company.
