David Shearer on Asset Sales

Here’s just a couple of nuggets from the Duncan Garner interview with current Labour Leader, David um Shearer on asset sales today.

Shearer says he won’t be buying the assets back because “I’m not sure that the economic argument stacks up”, he could become an owner through KiwiSaver, and he can understand why Kiwis might want to invest in Mighty River Power to keep it Kiwi-owned.

All-in-all.. a good chunk of um…


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  • PlanetOrphan

    No context behind his thoughts, No ground under his feet.

    He doesn’t even trust his own choice of words, within 20 milliseconds he’s decided too say it differently, problems is he already started saying something else, and he’s actually trying to say the same thing two different ways, which makes for a non-informative and slow conversation which will always leave the listener in doubt.

  • Michael

    Can’t wait for leaders debate next year – Peters, Norman and even Dunne are going to wipe the floor with him and “steal” all his votes.

  • Steve (North Shore)

    Would he buy shares?
    Of course – with other people’s money, never his own

  • neil

    he said it may not make sense to buy the asset back to get the dividend stream, so as long as he Govt sell fro more than the discounted dividend stream then it is better than holding. So his only argument must then be a combination of central ownership/control and not wanting foreigners. So a philosophical position. No why he wont buy them personally seems idiotic and really are Garner said put his money where his um er machine is.

    • Jagg

      Exactly what I was going to say – the argument about losing the dividends is so ridiculously retarded and shows a fundamental lack of understanding of asset valuation.

      The value of the assets and, ergo, the sale price will be the discounted value of the future dividend stream. Simples.

      Similar void arguments are put forth by the likes of Greenpeace saying that private ownership will somehow result in our renewable capacity disappearing (despite hydro being the cornerstone of baseload generation in NZ). Completely blown out of the water (no pun intended) by the example of Contact that has a huge (and growing) portfolio of renewable assets and is in 100% private ownership.

      This is, as you say, an argument against private ownership and for big politburo style government. Dividend streams and environmental concerns are nothing but red herrings.

  • JeffDaRef

    I’m salivating at the thought of Shearer being interviewed the minute it comes to light that one of his MPs, one of the unions or any one of those sanctimonious pricks have invested in shares…

    • Sir Cullen’s Sidekick

      I heard from my spies that none of the Labour associates will be buying any shares. I also hear a rumour that some of the Toxic Greens will buy the shares and then tear the documents at Parliament steps to create some sensation….

      • Jagg

        Even more reason to buy then – the Greens are threatening to concentrate my potential stake, I won’t be standing in their way – tear away!!!

      • peterwn

        Except share certificates are a thing of the past, your record of ownership is a few bits of magnetism on some computer.

  • Steve R

    If its such a bad idea to sell them and he thinks the cash is there why not by them back ?
    I know I’m just a dumb truck driver but I don’t get his reasoning.
    If all kiwis are so against asset sales then campaigning on a buy back is a landslide election winner.

    • P1LL

      What i cant fathom is why would we sell assets that generations of Kiwis have paid for that make NZ corp money for a short term gain ?
      If we hold onto these assets for another 5 – 10 years the profit will out way the sell off gains & we will still own them .

      Look at the fuckup that was the Telecom sell off

      • Sym Gardiner

        Two words – Solid Energy!

        • P1LL

          Open cast mining will solve that

          • Sym Gardiner

            Not likely. The US conversion to shale gas will see the coal price tanked for many years.
            Governments should not be in business. They always make a mess of it.
            In terms of power companies, its high time these get moved into private ownership so there is some real incentive for people to explore different energy options… something ironically the Greens should support.

          • Sir Cullen’s Sidekick

            Where will you bury the Greens then?

      • Jagg

        Look at my comment below re:dividend steams.

        I can’t summarise valuation in a nice digestible sound bite for you unfortunately so suggest (preferably before you comment again) that you spend a few hours reading and learning how assets are valued.

    • Sir Cullen’s Sidekick

      Steve R – Wait for the election campaign time. Sheep and Norman will make a joint call to buy the shares back funded by a rich prick tax scheme

  • fozzie2

    What a red faced bunch of befuddled individuals appeared on our TV screens tonight … the PM Dep PM and Ryall looked like a group of school boys that were caught short on an explanation of the inexplainable – buck passing red faced and buckpassing between each other – have never seen such a pathetic political performance – at least Muldoon hasd the excuse he was drunk !!

    • axeman

      … red faced bunch of befuddled individuals…

      Ah yes you are referring to Cap’n Mumblefuck and the Tasmanian unicorn rider, Wed Wussel?

  • Sir Cullen’s Sidekick

    At least puff pastry asked some hard questions to Sheep….

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