Concurrence on asset sales

Press, 23 March 1988, Page 8

Concurrence on asset sales

By

BRENDON BURNS

political reporter The Prime Minister, M - Lange, j said yesterday there, was no difference of view between him and th e I; Minister for State-Owned Enterprises, Mr Prebble, i on selling strategic statje ( assets to foreign buyers.| Mr Lange, in yesterday’s (edition of "The Press,” said he was pleased that the sale of [ Petrocorp to British Gas fell through and that Fletcher Challenge became the buyer. I j This was contrasted j with comments by Mr Prebble that selling Petrpcorp to British Gas would, in some respects, have ■ left him happier. ; Mr Prebble pointed to a reduction in New Zealand’s total debt, rath[er than just switching the $BOO million purchase

price of Petrocorp from State debt to private debt. British Gas would have provided foreign investment capital and technical expertise.l 1 Earlier, Mr; Lange had said in a radio, interview that he was! determined not to allow ! the sale of strategic State assets to foreign buyers. However, in a statement yesterday he said he had never regarded Petrocorp as a strategic State asset. “I had ; no reservations about the proposed sale of Petrocorp to British Gas, nor about [the sale to' a New Zealand concern," he said. Responding to written questions by “The Press," Mr Lange defined strategic assets as those with a particular economic importance to New Zealand,

[ or where the regulatory ! environment was clearly such that foreign owneri ship would mean less than I optimal resource use.. [j i He said the Reserve Bank was one example of I a strategic asset. [![[! I :| Asked why he would [ “much rather” have I Petrocorp in New Zealand : than external hands, Mr [ Lange replied, “All else ! being equal, I would 1 rather have Petrocorpl in New Zealand- hands: because of the nature of the resource and the importance of Petrocorp to the economy.” !v He said all else was not equal as British Gas made a significantly better Offer than earlier bids. j ] [.. ! “In those circumstances, [I was quitel content to see Petrocorp! go [to British Gas,” Mr Lange said. I -!•.!;!