Asset sales

Every state house is a sacred state house?

Phil Twyford explaining why the derelict state house behind him should be kept for eternity.

Phil Twyford explaining why the derelict state house behind him should be kept for eternity.

At the moment the National led government is looking at selling some state houses.

You’d think the world and caved in on itself if you listened to the Labour party.

They are invoking asset sales because in their world if even a single house is sold that is an asset sale.

Presumably they will also be protesting about the Ministry of Education’s¬†Surplus Property Disposal Incentive Scheme¬†where schools are encouraged to “release surplus school property to the Ministry of Education for disposal through the Surplus Property Disposal Incentive Scheme (SPDIS).”

Surplus property is surely just another word for assets?

When you think about it the mere suggestion that because something is owned by the government it can never be sold, even when tried, worn out or simply in the wrong place for modern times.

Society changes as do our preferences and the way we live. But for some reason the Labour party thinks that we should forever remain stuck in the heydays of state housing in the 40s and 50s, with every citizen hankering after a state house. ¬† Read more »

What do you call and asset sale when you sell assets, but you campaigned on no more asset sales?

Seriously, the wheels have come off this government’s tight communication strategy. ¬†Did National really think they could sell thousands of state homes out of Housing New Zealand’s stock, essentially cashing them up and adding the funds to the consolidated fund, and not get accused of selling assets?

It’s gob smacking.

This is entirely aside from the issue that selling them may be a good idea with a sensible explanation.  My problem is that National seem to be trying to sell assets while claiming they are not selling assets.   I can just see that going wrong.

Social Housing Minister Paula Bennett says “thousands” of state houses could be sold under the Government’s new approach to social housing.

But she would be surprised if those sort of numbers were sold in the short term, and Housing New Zealand would be the dominant force in providing social housing in “the foreseeable future”, she told TV3’s The Nation.

She would not make a commitment that all money earned from the sale of state houses would go back into housing.

“Well, we see ourselves reinvesting and using it better to help vulnerable New Zealanders,” Bennett said.

Now some state houses were in the wrong place or were the wrong size.

“Our intention is for people who need housing support to have more stock available. We just may not own it.”

She denied it was an asset sale but later said “this is not a big asset sale”.

/facepalm. ¬† They are assets. ¬†You’re selling them. ¬†For crying out ¬†loud. ¬†¬† Read more »

Labour refuse to confirm leaks on Asset buy-back fund

Winston Peters is the one who lacks principles

Winston Peters is the one who lacks principles

Andrea Vance’s sources have her convinced Labour have set aside $100M to buy back NZ assets.

Labour leader David Cunliffe is refusing to be drawn on whether the party will announce plans for a new asset fund, but says he “stands behind public opinion” in opposition to asset sales.

The party is understood to be planning to set aside funds to buy mainly New Zealand assets, partly to woo NZ First leader Winston Peters into coalition.

Labour would likely need the support of both the Greens and NZ First to form a government. It has said a policy costing about $100 million a year is yet to be announced.

$100M a year doesn’t stretch very far. ¬†But it would allow Labour the high road claiming they are “buying back our assets as we can afford it”. ¬† Read more »

Show me the money set to make a return

It looks like Labour is going to conjure a few billion out of nowhere and attempt to fool voters into thinking they will buy back the assets.

Labour is understood to be planning to set aside funds to buy mainly New Zealand assets, partly to woo Winston Peters into coalition.

The party, which would likely need the support of both the Greens and NZ First to form a government, has said it has one policy costing roughly $100 million a year to announce.

It trimmed back its spending plans after the pre-election update from Treasury showed a weaker outlook than May’s Budget.

Yesterday, leader David Cunliffe refused to say whether the remaining announcement related to buying back assets sold by National, but said voters “will certainly know before they cast their vote”.

Finance spokesman David Parker would not be drawn on what the policy was, but said the size of the fund meant “if this was a big asset buy-back fund, it would take 60 years”. ¬† Read more »

Ex Labour MP wants to commence asset sales – “Don’t!”, says Labour MP

I thought asset sales were something the left could never actually permit to happen?

Opposition parties are urging Christchurch City Council not to sell assets to solve its funding shortfall.

A Cameron Partners report, released yesterday, says it may need to find an extra $783 million to $883m by 2019.

The authors put up four options for closing the gap: increase rates, borrow more, get money from insurance payments and sell assets.

Mayor Lianne Dalziel says the council can’t borrow any more money and will look at the other options.

That article would have been so much better had it said “ex-Labour MP Lianne Dalziel…”, and also a lot more honest.

Labour’s Canterbury recovery spokeswoman, Ruth Dyson, says her party will vigorously oppose short-term solutions.

“Asset sales would leave the city worse off financially and strategically in the long term,” she said.

Lianne Dalziel has discovered that once you actually sit there in the seat of power and you don’t have the luxury of chanting thoughtless pre-prepared protest slogans but actually have to solve a problem using practical means, asset sales aren’t of the devil after all.

They never were, of course.  We all sell assets in our private lives and think nothing of it.

 

– NZN via 3 News

Labour says it will buy back assets, but they’ve already spent the cash

It looks like we are going to get yet another “show me the money” moment in this election as Labour spends like drunken sailors.

Labour would look at buying back state assets on a “case-by-case” basis, says the party’s leader David Cunliffe.

“We may well, and we would like to,” Mr Cunliffe told TVNZ’s Q+A this morning.

“And we will take opportunities as they arise and there’ll be more to say about that issue between now and the election I promise you,” he added.

The National-led Government has sold shares in several state owned enterprises including Air New Zealand, Mighty River Power and Meridian Energy.

There is a problem with that glib, uncosted, pulled out of his arse comment.

Read more »

The left LOVE asset sales. What?

It seems asset sales, partial ones at that, are to be resisted at all cost.

Except, of course, if you are a leftie trying to sell them.  Then it is JUST FINE.  Catherine Harris reports

Cutting rights to a large Wellington forestry estate have been sold to US company Resource Management Service (RMS).

Described as one of the largest forestry transactions to hit the open market in recent years, the rights give access to Greater Wellington Regional Council’s 5430-hectare forestry estate near Wellington and in the Wairarapa.

The sale price was undisclosed but LJ Hooker agent Warwick Searle, who handled the sale, said the valuation on the cutting rights was $28.5 million.

He was “very happy” with the figure which exceeded the $31m debt that the council had incurred over the years managing the forests.

The tender process also showed there was “plenty of offshore interest” for forestry assets.
“We’re definitely seeing buyer demand from the US and Europe matching or even surpassing the high level of interest coming from Asia.” Read more »

Cunliffe promises to buy the assets back

in-your-money

Amazing – at the end of his interview on Firstline on Wednesday morning.

David Cunliffe promises that Labour will buy some assets back.

This is new policy, and has gone unreported anywhere else. I came across it as I was reviewing video after my day in court.¬† Read more »

Genesis sale no longer a political hot potato

Remember asset sales?  Remember how the Green-led Labour movement wanted your signatures for a referendum?  Remember how this was all going to end in tears?

With Genesis’ share sales starting today, you would be excused for wondering why this sale isn’t being opposed.

Analysts are picking demand will be high for shares in the country’s biggest electricity retailer, Genesis Energy, when its public offer opens today.

The price for shares in the state-owned energy company was announced at $1.55 last night after a bookbuild with institutional investors. The sale would raise up to $736 million for the Crown.

Finance Minister Bill English said already $620 million had been committed through the bookbuild, which was the first stage of the share offer.

At that price the shares will yield a gross dividend of 14.3 per cent, he said.

State-Owned Assets Minister Tony Ryall said the sale would take them to within the Treasury’s target range for the asset sales, with the sale of all four assets earning $4.7 billion, he said.

I’m sure it has nothing to do with the fact we are close to an election, and the Greens and Labour know the voters are sick and tired of two decades worth of manufactured asset sale outrage. ¬† Read more »

Cartoon of the Day

BURN UP

Credit: SonofaMin