Labour and consistency. Never the twain shall meet

via mediaspanonline.com

via mediaspanonline.com

Katie Bradford-Crozier writes at ZB

International interest in the Mighty River Power float was high, so 13.5 per cent of the company will now be owned by overseas investors.

The Finance Minister revealed details of the share allocation and pricing of the energy company last night.

113,000 Kiwis have bought shares, at $2.50 a pop.

Bill English says offshore institutions have been allocated $472 million worth of shares – but those were limited to ensure 86.5 per cent of the company was kept in New Zealand hands.

No wonder the share price hasn’t crashed to the $2.00 – $2.20 level that the Green Taliban and Labour were crowing about.  There is genuine interest in the Mighty River Power float.

Mr English is eagerly anticipating the company officially being floated.

“A lot of New Zealanders will understand at that point that selling off 49 per cent of these companies is not the end of the world.

“In fact it’s going to give New Zealand government $1.7 billion to invest in other assets that New Zealanders will own.”

But Labour’s Clayton Cosgrove thinks that figure is a joke.

“You sell a revenue generating asset, you buy non-revenue generating assets, and eventually the money runs out.”

Here’s where it gets silly.

NZ Power wasn’t going to pay dividends to the Government to free up some money and create the amazing reduction of about $1 per household, per day.

So why is Cosgrove now lamenting the loss of “revenue generating assets”, when the whole idea begind the NZ Power rort was to stop paying dividends to the government in the first place?

One of the outcomes of NZ Power would be the loss of income to the government, and if you do your sums, it’s not hard to see that the Green Taliban and Labour don’t really expect to operate NZ Power any more efficiently – they simply ar rebating the dividends back to the public.

 


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  • Guest

    More poor maths from the NZ media. 13.5% of the shares offered have been bought by overseas investors. As just under half of the company was sold that leads to around 6.75% of the company being foreign owned.

    Or am I misreading the original statement about the percentage of shares that had been sold to overseas investors?

  • Ian

    What the hell does “Buffoon” Cosgrove know, like the rest of his line-up he is a useless joke. When is one of these deadbeat lefties going to show NZ how they have made a buck, and not leeched a living off taxpayers, ratepayers, and ill-informed trade unionists. The likes of Cosgrove are a disgrace to Parliament.

  • Patrick

    you sell a revenue generating asset, you buy non-revenue generating assets, and eventually the money runs out.

    Non revenue generating “assets” – like the billions paid to welfare recipients to ensure they voted Labour in the past? Piss off Cosgrove you are a pumpkin headed twat.

    • SnapElection

      they’re not assets – they are liabilities

      every single thing the govt owns costs taxpayers and keeps on costing taxpayers until they are dumped.

      It would be better for NZ to dump 100% of all SOEs overseas and zero nett benefit to the exchequer than to keep 51% of this around, along with 100% of schools hospitals motorways and all the rest.

      • Cadwallader

        Your words are like music! Thank you.

      • Patrick

        Agree – that is why the word assets was in “”

    • Gazzaw

      Labour will always be remembered for purchasing a loss-making liability called Kiwi Rail. A masterpiece of socialist financial brilliance. The directors and shareholders of Toll Holdings still can’t believe their luck seven years on. Was there any truth in the rumour that Cullen was in negotiations for the Sydney Harbour Bridge before the 2008 elections cut him short?

  • All the Greens and Labours work just made it a more attractive investment because dividends will be a higher percentage return on investment now. LOL

  • JeffDaRef

    On the subject of Labour and consistency – Shearer had a crack at JK over Gilmore saying he’d expect the Leader to have him in his office for a talk.
    Remembering that was “only” over behaving like a drunken knob and trying to cover it up – maybe Shearer would like to outline the chat he had with Phil Goff over breaking suppression laws???

    • Ian

      Slippery Shearer and Weasel Goff are not even worth mentioning. What did Weasel cost NZ taxpayers to bring “The Dyke’s” husband of convenience home from the US on a one-off Air Force flight so as to save it the embarrassment of serious molestation being laid against him? Where is Shearer’s $210,000 now? What does Goff know about the King cover-up of Ginga the Poof from Otaki?

    • Honcho

      “In his office for a talk” In labour mean, “In his office for damage control, and a media campaign about something superficial that John Key may have said to create a diversion, until it all blows over”

  • JC

    My head hurts.. a while ago Labour fought an election to retain 100% of the dividends from power companies, a week or two back Lab/Green swore not to take any dividends from power companies, and now they are saying $1.7 billion from the sale should go to buying revenue generating assets?

    Would this be “revenue generating” assets like Kiwirail?

    JC

    • Ian

      They sure are a load of putrid crap!

  • In Vino Veritas

    Clayton Cosgrove is another Labour economicfinance lightweight. By selling MRP, the Government have received any future income they would have made from MRP today. Income in advance. Simple as that. Perhaps Labour are just pissed off that they can’t rort as much in dividends in future. Funny really. National have got the dividends before Labour can waste them! And thats got to be good for NZ.

    • Patrick

      You may have hit the nail squarely on the head – the fact that there will not be billions of dollars worth of power company dividends avaliable for Labour to use to bribe their voters is probably what is annoying them the most. In future instead of using power companies to “tax” the public they will be more upfront.

    • Pokerface

      That is very insightful. I hadn’t looked at it that way.
      “We won, Labour lost”.

    • SnapElection

      National have got the dividends before Labour can waste them!

      so National will waste them all in one go rather than in little dribbles.

      just great.

  • Honcho

    Sound bites from hollow shearer tonight on prime news.

    “Only 3% of NZer’s bought shares, 97% of NZer’s now miss out on the future of this company”
    Not true, 100% of New Zealanders get the benefit of the controlling stake of these companies as the govt. retains 51% ownership, those who bought shares and did their bit by topping up the governments coffers get the benefit of a dividend (if applicable), a portion of the potential profits that those who didn’t pitch in for will miss out on.

    “Power prices are sure to rise under this model, power prices rose 12% over the last year, faster then inflation”
    Might be the case, I will have to check his maths but I certainly haven’t noticed an increase in my power bill, I suspect the portion of power costs which goes towards line charges will be through the roof but all this should be understandable to anyone who isn’t dim witted enough to remember that one of our biggest cities had a massive earthquake and a lot of the infrastructure was destroyed or damaged and is now being replaced.

    • Hazards001

      The largest power price increases occurred under Labour as Helen demanded increased dividends back to the Government to re fill the coffers so she could make some kind of attempt to fulfil the electoral bribes promised to enable her to get her a leading role in the company of prize cunts the UN!
      Of course the rest of us have been paying for that role for the last nine to ten years!

  • SnapElection

    “In fact it’s going to give New Zealand government $1.7 billion to invest in other assets that New Zealanders will own.”

    No, just another $1.7 billion of yet more liabilities by ripping that money from that the few nett taxpayers who already pay for everything for everyone, and will have to keep on injecting yet more and more money into – until, finally, when the flood of borrowed billions from China dries up,

    some future commonsense government will finally get rid of

    and hopefully fix the constitution so that the state can never, ever own any kind of entreprise or “intervene” in the economy ever again

  • niggly

    International interest in the Mighty River Power float was high, so 13.5 per cent of the company will now be owned by overseas investors.

    Does that mean, thanks to Labour and the Greens’ attempted sabotage of the MRP float recenlty which scared off many kiwi mum and dad first time investors, that this resulted in more shares becoming available instead for foreign investors?

    If so, then Labour and the Greens, who previously used scare tactics to imply foreigners would snap up the shares and thus MRP profits, actually made this reality come true and even more so …

    • Whafe

      Yep, they are dumber than a sack of hammers!

      • niggly

        Indeed!

        Even a sack of hammers wouldn’t be so dumb enough to come out with some badly thought-out “policy” that: resulted in hundeds of millions of dollars being wiped off the stock exchange; affected Govt investments; spooked overseas investors; could potentially see interest rate rises as overseas lenders adjust for the new risks; lower the MRP part-sale returns to Govt by a couple of hundred million(which could have been spent to boost the economy or budget or pay off NZ public debt; and now it seems saw more MRP shares leave kiwi hands!

        And a sack of hammers have no brains but somehow Labour and Greens out-do the hammers for stupidity!

        Perhaps Labour & Greens (especially the Greens) need to STFU when it comes to economic matters?

  • LesleyNZ

    Interesting – heard that Katie Bradford-Crozier is Sue Bradford’s daughter. True??????

    • Gazzaw

      Yes. Strangely enough I find her views more balanced than Soper’s.

      • Ian

        Considering her background she is not too bad, a damn sight better than the Labour-pandering, ex-demonstrating Soper. I’m sure he cleaned “The Dyke’s” shoes or worse . . . it was Soper’s idol.

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