Dr RUSSEL NORMAN (Co-Leader—Green) to the Minister of Finance: Does he consider that the Government's Meridian Energy sale was a failure, given that it attracted only 62,000 retail buyers, which is only a quarter of the 250,000 forecast?
Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of the Minister of Finance: No, I do not agree with that. The Meridian Energy float is, in fact, by value the largest retail investment in an internal public offering in New Zealand's history. The 62,000 shareholders mean that Meridian Energy will have the third-largest share register of all the companies on the NZX when it lists next week. The share float will provide $1.9 billion in cash for the Government that we can invest in other public assets without having to borrow for. It will be 86.5 percent New Zealand - owned when it lists, comfortably meeting the Government's target of 85 percent local ownership. And, finally, the 250,000 figure that the member quotes was not a forecast. Treasury thought it might have to cater for up to that figure for planning purposes.
Dr Russel Norman : Will he now accept that his asset sales programme has failed to achieve his goal of widespread public ownership when only 1 percent of New Zealanders bought into Meridian Energy and the other 99 percent of New Zealanders did not, because they are finding it hard enough to pay the power bill let alone buy a power company?
Hon STEVEN JOYCE : No, and I do find it rather unsavoury when a politician who has been doing his best to sabotage a float comes down here and complains about the number of shareholders who participated in a float. He should look at himself—
Mr SPEAKER : Order! That answer now is long enough.
Dr Russel Norman : Will he now accept that his asset sales programme has failed to achieve his goal of keeping costs under $120 million for all of the privatisations, when in fact the cost to the taxpayer for just the first two privatisations is now well over $250 million?
Hon STEVEN JOYCE : I doubt the veracity of the member's comment, but can I tell him this: this Government and New Zealand taxpayers have benefited from these floats so far, to $3.6 billion, and if the member thinks it is that bad, why does he not just go out there and promise to buy them back and borrow the money offshore, or just print the money?
Mr SPEAKER : Order! [Interruption] Order!
Dr Russel Norman : Will he now accept that his asset sales programme has failed to achieve his goal of raising $5 billion to $7 billion, given that it is now very clear that it will not even get near the bottom of the $5 billion to $7 billion band?
Hon STEVEN JOYCE : No, and here we have a member once again, for his own political gain, trying to cost New Zealand taxpayers money by talking down the value of these assets, as he has done the whole the way through. Again, there is something unsavoury when a Government is elected on a policy programme and an individual sets out to economically sabotage it.
Dr Russel Norman : Will he now accept that his asset sales programme has failed to convince New Zealanders that privatisation is a good idea, given that the vast majority—99 percent—did not buy shares in Meridian Energy, New Zealanders have consistently opposed the sales in every published opinion poll, and New Zealanders signed the petition in record numbers for a referendum on asset sales?
Hon STEVEN JOYCE : No, and that is because the New Zealand public is cleverer than Mr Norman, because they understand that the Government makes choices—it has to make choices on their behalf. They do not want to borrow money, they do not want mad printing money; they want to know that the Government is running the economy well. The sad thing that sticks in that member's craw is that this Government was elected on this policy at the last election.
Dr Russel Norman : Who chose to go ahead with the decision to sell the shares in Meridian Energy, in spite of all the problems of going ahead—was it the Minister of Finance or was it the Green Party? Who was responsible for the decision to go ahead with the sale?
Hon STEVEN JOYCE : The Government makes its decisions. It is quite patently obvious that the Green Party is not responsible, full stop.
Dr Russel Norman : Given that it was the Government's decision to go ahead with the sale in very unfavourable circumstances with very poor outcomes, will the Minister of Finance take responsibility for the abysmal outcome, where only 62,000 people bought into the company, or about 1 percent of New Zealanders?
Hon STEVEN JOYCE : Dear oh dear. No. The reality is simply this: it is the most successful retail initial public offering by value in New Zealand's history. We have 62,000 retail shareholders, and if the member wants to look for anybody who wants to know why there were not more shareholders, he needs to look in the mirror at his crazy, 1970s-style, socialist, communist central power policy.
Dr Russel Norman : Does he really think it is credible to blame everyone else for the failure of his asset sales programme, rather than taking responsibility for it himself—I thought individual responsibility was one of the premises of the National Party—and does he really want to blame it on the Green and Labour parties for presenting a popular and credible plan that would reduce power prices, given that only 1,700 potential investors pulled out of Mighty River Power after NZ Power was announced anyway?
Hon STEVEN JOYCE : It is quite patently obvious that the Greens believe in fairy tales. Their politics around economics are absolutely hopeless. This float has been successful. The Government has raised $3.6 billion. If the member is not just politicking like his friend on the convention centre, he should pop out and say that he would buy it back.
Does he consider that the Government's Meridian Energy sale was a failure, given that it attracted only 62,000 retail buyers, which is only a quarter of the 250,000 forecast?
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