Labour puts up bill to stop asset sales

NZPA

Monday 20th June 2011 9 Comments

Labour has drafted a bill to stop state asset sales, unless there was strong support.

Labour leader Phil Goff announced details of Clayton Cosgrove member's bill today.

"It says there must be a specific mandate before any Government can sell our assets. That mandate could be by a 75 percent vote of Parliament or it could be by way of a referendum. Frankly the Government's planning to sell assets that are our assets, they belong to New Zealanders," he told reporters.

"They don't have the approval from New Zealanders to sell them, that's theft. (The) assets were built up by New Zealanders, their brains and their skill and their toil, their taxation."

The State-Owned Enterprises and Crown Entities (Protecting New Zealand's Strategic Assets) Amendment Bill would cover any move to partly or wholly privatise assets such as power companies, New Zealand Post, Landcorp and Solid Energy plus state broadcasters and Crown research institutes.

Goff said surveys showed there was 2:1 opposition to sales.

The Government is campaigning this election on partial asset sales which it calls a "mixed ownership model". It has named Mighty River, Meridian, Genesis and Solid Energy as candidates for sale and is looking at reducing its 75 percent holding in Air New Zealand. The sales would happen over three to five years, starting next year, depending on market conditions.

Goff disagreed that should National again win power this election that that could be considered a mandate.

"It's not a specific mandate. Obviously people against asset sales can vote against this Government and a large number of people will but we are saying for any Government at any time to sell off assets that belong to New Zealanders...once they are sold they are lost forever, that should have a specific mandate on the people."

Labour had sold assets in the 1980s but that was a "mistake".

"That's why in the nine years of the last Labour Government we sold no assets. We understood that New Zealanders wanted to retain their key assets and we honoured our key undertaking to them not to sell."

Previously calls for Maori seats to be entrenched (where support of 75 percent of MPs is required before change could be made) were rejected.

Other key issues such as superannuation have not been entrenched either.

"We think it is that important. New Zealanders do not want their assets sold," Goff said.

However, Goff admitted the bill did not have that much chance of passing given the Government would vote against it but its key goal was to raise discussion and debate.

In fact even if the bill is drawn from a ballot with other members' bills it may not get a first reading before Parliament rises for the November general elections.

Comments from our readers

On 20 June 2011 at 12:28 pm Chas said:

Would they also require 75% approval to buy assets - e.g. Kiwirail? Then Labour wouldn't be able to throw tax payers' money at loss-making, vote buying overpriced assets whenever they get into power and creat poisoned pills for National to swallow!

On 21 June 2011 at 8:49 am Nina O'Fyfe said:

Poor performing and directionless SOE's such as NZ Post Ltd can still be sold under this attention-seeking bill as surely they are now listed as liabilities rather than assets?

On 21 June 2011 at 8:53 am Nina O'Fyfe said:

Poor performing and directionless SOE's such as NZ Post Ltd can still be sold under this attention-seeking bill as surely they are now listed as liabilities rather than assets?

On 21 June 2011 at 9:21 am Max Lewis said:

Get the language right,National are not selling any SOE's they are introducing a "mixed ownership model" with the Govt retaining ownership of 51%. Goff knows this and is trying to confuse voters with these highly emotive incorrect statements.

On 21 June 2011 at 9:40 am Mark S said:

That is rich! The last Labour Government's unsustainable policies were an effective mortgage on these assets,and now it is time for the mortgagee sale - someone has to pay the ferryman Phil. We are about to harvest what he has sown, so how can he complain about that?

On 21 June 2011 at 9:52 am Ash said:

Interesting but not a big deal. However, Nina your comments suggest that the Government's role is to make money. NZ Post, Electricity companies etc. provide essential services to NZ. If we sell and they don't make a profit then the buyer will simply run the company down, e.g. Kiwi-rail and we are left without those services. Profit should not be a motive for Govt. ownership of assets providing essential services to NZ.

On 21 June 2011 at 11:44 am Bill said:

There has been a lot of complaints regarding the announcement of the mixed ownership model. But for all the complaints I have heard, I have yet to hear a robust alternative solution

On 21 June 2011 at 1:17 pm stanace said:

They don't need a bill, the nation will vote on the issue, if we don't like it, we will vote Key out. What a stupid idea to put the Bill through Parliament, how could it possibly pass? Smoke and mirrors by Labour.

On 22 June 2011 at 12:45 pm Rod said:

Well I`m going to abandon this motley National Govt lot. Jenny Shipley has had her go now it looks like she swaying John Key to sell off New Zealand to the Chinese. Anyone who wants to do that should pack up and shift off. I don’t fancy being owned by the Chinese Communists, so this Govt is History as far as I am concerned. If we are that tight for cash we should be open cut mining our minerals and earning income like the Australians. Not sell the land and our Core strategic assets. Has this Govt gone bonkers, In my view this is first class Treason. Jenny Shipley & John Key can take a hike. I`ll VOTE for the Bill and Bring Back Winston Peters