State asset money earmarked for everything

National changes its mind daily on uses for state asset sales money, throwing the cash to any idea it thinks will win votes, says Labour’s State Owned Enterprises spokesperson Clayton Cosgrove.

“National flip-flops every day on uses for state asset cash. One day they claim it will pay off government debt, the next it will build new schools and hospitals.

“Yesterday they said it will pay bonuses to private investors. And today John Key came up with another plan, to reinvest the money back into the state assets he’s just sold.

“This morning on live TV, John Key admitted he’s not selling the assets to pay off debt, build schools or reinvest in our assets. When asked if he would still sell our assets if the country wasn’t in debt, he said ‘yes’. Finally an admission that this is all about ideology.”

This morning on TVNZ’s Breakfast show, the Prime Minister said the money raised from the state asset sales for the government could be reinvested in the companies, despite previously saying it would pay off debt and be used to build schools and hospitals.

Mr Cosgrove says: “John Key is so excited about the money he thinks he’s getting, he’s earmarked it for everything. What he forgets is National has already banked $5 billion in asset sales to pay off debt. He can’t keep promising that money to causes he thinks will win him an election.

“John Key claims to be a credible economic manager but he’s creating a magical money-go-round where state asset sales pay for every new cause he can think of.

“John Key has even conceded his ‘loyalty’ scheme is an admission of defeat by trying to hold investors into keeping their shares for three years when he knows that otherwise they would be sold straight offshore.”