SOE sell off a windfall for bankers

The New Zealand public’s loss of their state owned assets will result in a windfall for the private banking and finance sectors, Green Party Co-leader Dr Russel Norman said today.

Treasury is seeking to appoint a panel of firms for the retail component of the Government's plan to sell electricity generating state owned assets. The Government expects to spend $100 million in investment bank fees as it seeks to raise between $5 billion and $7 billion from the floats.

“The Government is spending tens of millions of dollars selling off profit-generating state-owned assets,” said Dr Norman.

"The amount set aside for paying companies to market this sale is huge, and it is money that belongs to taxpayers.

“As well as the cost of hiring private firms to market and sell off our state owned assets this ideologically-driven policy will put a $100 million a year hole in the Crown’s books according to the Government’s own numbers.

"The Key Government is selling state owned assets out from under us against our will, and making the taxpayer pay for the privilege,” Dr Norman said.