The Crown Financial Statements to the end of November 2013 show that the sale of Meridian and Air New Zealand added hundreds of millions of dollars to the cost of the asset sales programme. Combined with the cost of the Mighty River Power sale and ancillary costs such as the Rio Tinto payout, the total cost of the asset sales now stands at $440m. National just likes burning the money of the taxpayers for no productive purpose.
Meridian’s share price appears to be under value and will no doubt ensure that shareholders reap an early bonus. With a rate of return of over 10% for the first year you have to wonder what economic genius decided to sell shares to pay down debt with an interest rate of half that amount.
Over in the UK the tories there have engaged in a similar exercise where Royal Mail was sold under value and shareholders watched as their shares went up in value by over 60% in a month.
I wonder if Key and English have been receiving lessons from the Tories?
Hey John, how much public money are you going to pay the wealthy to “buy” our assets? (And how just desperate are you…?)
Yesterday John Key gave $30 Million of tax payer’s money to Rio Tinto in order to prop up its electricity deal with Meridian – and thus to prop up his privatisation ideology. Mighty River Power shares took a hit. Smart investors getting out?
John Key just spent another $30 Million of tax payer’s money to prop up his privatisation ideology.
When even the notoriously right-wing NZ Herald Editorial is pleading for Meridian not to be sold (just now), you know that the government’s asset sell-down is in trouble.
But the Herald assumes that getting the best dollar possible is the plan here.
It’s not.
That’s what Mighty River stocks closed at today. Down on their issue price within ten days.
We’ve seen the last minute back down on mining after tens of thousands of Kiwis stood up, we’re seeing a growing tide of anger as Kiwis realise that all our work rights and wages are for the chop.. but one policy that has avoided public criticism on the level it is getting from within the industry is Gerry Brownlee’s mad electricity reforms.
From the Meridian Energy web site. Meridian Energy Limited has confirmed it has suspended offering new Renewable Energy Notes under the investment statement […]
A friend just texted: “Brownlee’s power reforms look relatively benign, what’s the catch?” It’s true, Brownlee’s reforms are just minor tinkering. The only […]
