KiwiRail next asset to go on the auction block

KiwiRail is being lined up by National as the next asset to go on the auction block just 24 hours after it passed a new law allowing it to sell-off our power companies and national airline, says Labour’s SOEs Spokesperson Clayton Cosgrove.

“National has been dishonest with Kiwis. It must have known the write-down in KiwiRail value was coming months ago given the no surprises policy and the fact it was flagged by the company at its annual meeting.

“It should have included the figures in its Budget last month. While it does not affect the operating balance excluding gains and losses, it clearly did not want to have to add $1.8 billion to its already mammoth deficit.

“This Government is setting KiwiRail up for failure. It has no intention of turning the company around. It is simply softening New Zealand up for the news that KiwiRail will one day be on the chopping block as part of National’s asset sales agenda.

“It’s a case of going, going, gone with this Government. First it’s our energy companies being hocked off, then our national airline is next in line. The question is where will it stop?

“This Government is determined to flog off as many of our assets as it can. They will end up in corporate and foreign ownership and that’s not in the best interests of New Zealand,” said Clayton Cosgrove.