Where is the authority for National's $400m give-away?

The National Government must show under what legal authority it would give away shares in publicly-owned energy companies, Green Party Co-leader Russel Norman said today.

During Question Time today, Dr Norman asked John Key to point to the legal authority for the Government to give away shares or some other 'loyalty bonus' to purchasers of shares in the energy companies. The Prime Minister claimed that there is appropriation for giving away shares in the Budget. He later said it does not constitute Crown expenditure.

In fact, the Budget contains no mention of a give-away of shares as a so-called 'loyalty bonus' and neither does the Mixed Ownership Model Bill. The issue at question is not the initial sale of shares by the Government but, rather, a later give-away of shares by the Government.

It is long-established practice that unrequited gifts and transfers of capital such as shares are Crown expenditure that require a Parliamentary appropriation - Treaty of Waitangi settlements are one example of this.

The Constitution Act states that "it shall not be lawful for the Crown, except by or under an Act of Parliament - to spend any public money".

"Nothing in the Budget or the Government's asset sales legislation gives it the authority to give away shares in the energy companies at some later date to persons of its choosing", said Dr Norman.

"The Government must seek Parliament's permission before spending taxpayer money. That is a fundamental principle of our democracy.

"The Government has put no such law before Parliament - yet, in just a few months' time, it plans to commit itself to a share give-away worth up to $400m.

"National is preparing to short-cut democracy by spending public money without Parliamentary authority, to provide a taxpayer-funded sweetener to the few people who can afford to buy shares," said Dr Norman.