State assets policy attacked

Press, 4 March 1988, Page 8

State assets policy attacked

PA ! Wellington | ! i National believed that it would win the General Election and; be able to give selected taxpayers shares in State assets at attractive; prices, said the Associate Minister of Finance, Mr Neilson, on Thursday: National’s manifesto said it would sell off assets such as Petrocorp to New Zealanders, he said, during debate on the introduction of the Petroleum Corporation of New Zealand ; Limited (Retention of! New Zealand Ownership and Control) Bill. !

The private member’s bill, moved by the Opposition’s associate spokesman on finance, Mr Doug Kidd, j would limit overseas ownership in Petrocorp to 24.9 per cent. National’s ' policy was based on that adopted by the British Prime Minister Mrs Thatcher, said Mr Neilson. Her policy discounted the value of public assets

to a relatively small number of buyers "in j the expectation that they would then vote for 1 the Tory party,” he said.. “They thought that (they were going to inherit power and be able to! give to selected ! taxpayers some of these (assets; at a discounted price.” [ But Labour : was going sell assets for the I best possible return to the taxpayer and use the money to pay off overseas debt.

Mr Kidd said the bill was needed to protect New Zealanders’ interest in Petrocorp’s strategic assets.

According to Mr Kidd, Petrocorp would make a profit of $lOO million this year and $l5O million next year. If it was sold some debt might be repaid and money would be saved on interest payments. “But you don’t get the dividends anymore.; “In the next few years those are going to amount to'- far more per annum than the interest on the debt they will repay.”