Legislative changes for Petrocorp

Press, 7 May 1987, Page 24

Legislative changes for Petrocorp

Wellington reporter Legislative changes are planned by the Government to place Petrocorp in the same commercial environment as other publicly listed companies. The Minister of Energy, Mr Tizard, said these changes would be introduced soon. This followed the announcement on March 9 that 200 million shares in Petrocorp would be offered for public subscription. The company’s directors had now asked the Government to review the various legislative provisions that had applied to it as a wholly Government-owned enterprise. Mr Tizard said the Government had decided that, as Petrocorp would soon be applying to have its

shares listed on the New Zealand Stock Exchange, it should be placed in a competitively neutral enviroment similar to other publicly listed companies. The legislation to be introduced in Parliament would: • Require Petrocorp to submit its annual report and financial statements to Parliament. • Remove Petrocorp and its subsidiaries from the State-Owned Enterprises Act, the Official Information Act, and the Higher Salaries Commision Act. • Remove legislative provisions in the Ministry of Energy Act that could require Petrocorp to present its financial statements in a manner inconsistent with the Companies Act.

As the Crown would retain a majority shareholding in Petrocorp, the Auditor-General had been confirmed as company auditor under the Public Finance Act, Mr Tizard said. Petrocorp had also asked for the removal of certain restricitve provisions contained in the Gas Act The proposed amendments were complicated and could not be implemented immediately. These provisions would be reviewed as soon as possible within the context of the general review of the structure of the gas industry being done by the Government, he said. This review would put Petrocorp in the same provision as other gas retailers. -