The Dim-Post

July 24, 2012

More Calvinball

Filed under: finance — danylmc @ 12:37 pm

Before the election Key insisted that the energy companies and Air New Zealand would be sold to ‘Kiwi mums and dads’, and said:

. . . given New Zealanders have $300 billion worth of investments, they will buy and keep the shares.

“We could say one hundred percent of shares to New Zealanders, obviously we could say less, but we are targeting that eighty five to ninety percent and I’m confident we’ll reach it,” Key said.

Here’s Key today on the possible cost of the loyalty scheme:

“If you think about the entire float that could be in the order of $5 billion to $7 billion. Let’s argue that it’s $5 billion for a moment if you then turned around and said about 20 per cent of that could be for mum and dad, it could be more it could be less – but just for the purposes of maths that’s a billion.

Key also adds:

These numbers that the Labour Party are coming up with and the Greens are farcical.

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18 Comments »

  1. Maybe we can taunt Key with “show me the money”?

    Comment by pete — July 24, 2012 @ 12:41 pm

  2. These numbers that the Labour Party are coming up with and the Greens are farcical.

    Well, if he had actual advice on the costings (rather than a hastily-scribbled on envelope whipped up during the dinner break at his party conferance), and he released it, then people wouldn’t have to dig for numbers, and we’d all be able to compare costs to benefits on this.

    Comment by Idiot/Savant (@norightturnnz) — July 24, 2012 @ 12:45 pm

  3. National just keeps making sh*t up…..and the one thing that doesn’t change is that public assets they have been trusted with MUST go their corporate mates and backers….and the ines that might highlight they are talking sh*t (RNZ and TVNZ) get their funding cut or choked. Any way you look at it, National are appalling stewards of public assets they have been entrusted with. They can’t keep heir hands out of the till.

    Comment by Steve (@nza1) — July 24, 2012 @ 12:49 pm

  4. What’s the bet that by the time the last power company is sold, the government has made us all even more poorer so that less than 5% is owned by mum and dad investors?

    Comment by Dan Lang — July 24, 2012 @ 1:00 pm

  5. I think what he is saying is that after it’s all been done, NZers will still own 90%. that’ll be made up of the Crown, Mum and dad’s, and kiwisaver funds.

    He’s now saying he expects Mum and Dad’s to buy 20% of what’s sold. (so around 10% of total, same as what he expects foreigners will grab)

    So for foreigners to end up with 10% of the total company, kiwisaver acc are expected to grab 60% of what’s sold?

    Comment by Pascal's bookie — July 24, 2012 @ 1:19 pm

  6. kiwisaver acc are expected to grab 60% of what’s sold?

    Total funds under management in Kiwisaver and other super funds: $74b
    Source: http://www.rbnz.govt.nz/statistics/monfin/c15/data.html

    Add to that the private institutional funds and possibly owners like ACC (I doubt ACC would be buying) and there’s a plenty big enough pool to soak up $3-4b in IPO’s over the next couple of years.

    Comment by Phil — July 24, 2012 @ 1:27 pm

  7. The tragedy really is the original reason for selling these SOE’s keeps getting lost – was it to pay down debt again? (despite Treasury figures showing we’ll be worse off) Or to boost a useless NZX? Or to get ‘mom n pop’ investors a safe investment vehicle so they’ll keep voting Nat?

    Pity the media are so flighty. How hard is it to ask Key – okay, you’ve told us more about how you see these SOE’s being sold, now why are you selling them again when it will make the public accounts worse off? Repeat until answered. If anyone complains about repetition, tell them it will stop as soon as Key answers the question.

    Comment by bob — July 24, 2012 @ 3:20 pm

  8. Remember the blow-up over the Greens’ asset sales petition being funded by the taxpayer? Well, now it’s Key & Co’s turn.

    Comment by DeepRed — July 24, 2012 @ 5:17 pm

  9. “…These numbers that the Labour Party are coming up with and the Greens are farcical…”

    David Shearer: Did he announce the loyalty scheme to the National Party conference without being aware of the cost?

    Rt Hon JOHN KEY: I announced the intention to have a loyalty scheme. I do not know the exact cost at this point, but what I do know is that there may be no cost.

    farcical indeed.

    Comment by Sanctuary — July 24, 2012 @ 5:27 pm

  10. I’m lining up my $2000 per head to buy some Mighty River, aren’t you?

    Comment by Tim — July 24, 2012 @ 5:54 pm

  11. #10: Careful now, a taniwha might spring up and unbundle it.

    Comment by DeepRed — July 24, 2012 @ 5:58 pm

  12. “I’m lining up my $2000 per head…”

    You know that different pseudonyms in dim-post threads don’t count as extra heads, right?

    Comment by nommopilot — July 24, 2012 @ 6:09 pm

  13. Tim’s a dad? We’re gonna need evidence, otherwise … no shares for you!

    Comment by sammy 2.0 — July 24, 2012 @ 7:09 pm

  14. #11 – A Taniwha may spring up and demand koha to make him feel better more like.
    #12 – You could get a collective order going with all your aggrieved mates, or will you abstain on principle nomo?
    #13 – You projecting your unknown parentage sammy?

    Comment by Tim — July 24, 2012 @ 7:17 pm

  15. Instead of selling assets, we could have forgone the $40billion we’ve borrowed over the last five years.

    Comment by Daniel Lang — July 25, 2012 @ 12:43 pm

  16. Or to boost a useless NZX?

    And here I was, naively thinking that because the NZX is a private company it shouldn’t need massive budgetary initiatives to subsidise it.

    Comment by herr doktor bimler — July 25, 2012 @ 1:49 pm

  17. It seems like your usual objectivity has been lost, sadly. Mixing and matching quotes from different times and occasions to make your case and excluding all other context is disappointing. Objectivity gone = politically motivated, n’est pas?

    Comment by downthemiddle — July 27, 2012 @ 9:14 pm

  18. Sigh! Yet another Wall Street trader ,spinning.

    Comment by peterlepaysan — July 28, 2012 @ 8:31 pm


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