Licensing extended for corporations

Press, 30 May 1987, Page 3

Licensing extended for corporations

Wellington reporter Interim licensing arrangements for six new State-owned corporations have been extended, according to the Deputy Prime Minister, Mr Palmer. The six corporations are Airways (extended to July 31), Electricity (July 31), Government Property Services (July 31), Land (July 31), Post (July 31), and Telecom (June 30). These interim arrangements empower the corporations to manage their organisations on behalf of the Crown, pending the completion of final sale and purchase agreements, said Mr Palmer, who is chairman of the ministerial co-ordinating committee for State-owned enterprises. All six were involved in detailed discussions with Government officials about the valuations of the businesses to be trans-

ferred to them. “The negotiations are making good progress,” he said. “It is not a matter of concern to the Government that they are taking some time to reach a final conclusion.” This exercise was in the nature of a reconstruction affecting businesses worth billions of dollars. Its essence was that both sides should sit down together and think their way through the detail of the business.

Mr Palmer said the question of valuation was logically the end-point of these discussions. Taking time over them now would tend to improve the quality greatly of the answers they finally reached.

Getting the valuation right was crucial to the future economic efficiency of these organisations, which was the Government’s aim.