Loss of Kiwi share another broken promise on privatisation

Moves by the Government that allow a full foreign take-over of Telecom set an ominous precedent for their plans to privatise our state-owned energy companies, the Green Party said today.

The Government yesterday introduced new law late in the legislative process that abolishes the Kiwi share the Government holds in Telecom which restricted foreign ownership and ensured free local calling.

“The Government has moved a highly controversial law change late in the game ensuring that there is no possibility for public debate over whether Telecom should be fully privatised,” said Green Party Co-leader Dr Russel Norman.

“When Telecom was privatised in 1990, the promise was made that the Kiwi share would be kept in perpetuity to protect the interests of New Zealanders forever.

“National have now broken that promise.

“How can we be sure that National or any future Government won’t break the promise to keep a majority ownership stake in our state-owned energy companies?

“The underhand way the Government has handled this major policy change on the Kiwi share suggests that John Key can’t be trusted. He’s obviously committed to a privatisation agenda and seems to have learned nothing from the disastrous decisions made in the 1980s and 1990s.

“This demonstrates why the Green Party have been warning that partial privatisation will ultimately lead to full privatisation as has been the case here with Telecom.

“The best way forward for our state-owned energy companies is to keep them kiwi,” Dr Norman said.