Lange denies party rejected BNZ sale

Press, 30 December 1988, Page 1

Lange denies party rejected BNZ sale

By

BRENDON BURNS

political reporter

The sales of Air New Zealand and Postßank would not have happened without the process of consulting the Labour Party, says the Prime Minister, Mr Lange. In an end-of-year interview with "The Press,” Mr Lange also denies suggestions that the Bank of New Zealand sale was rejected by the party.

The decision not to sell the BNZ had been taken by the Cabinet, he said. Mr Lange said the Labour Party had been extremely responsible about its consultation over asset sales.

No details had been leaked and consultation had not meant the Government had lost its power to govern. “All the writings and musings about how the Labour Party was

going to exercise a veto over Government administration has been laid totally to rest,” he said. Mr Lange said he personally had strong misgivings about the sale of Postßank.

But with the $665 million price tag offered by the ANZ and assurances on maintaining services, he said it was worth selling. Market sources have suggested ANZ offered more than $2OO million higher than any other bidder for Postßank.

Mr Lange said the process of consultation with the Labour Party had allowed the two most recent asset sales to proceed. 4 Without it the party could have been up in arms because it would not nave known full details of the reasons for sale.

Interview, page 16