Telecom sale ‘imminent’

Press, 20 November 1989, Page 1

Telecom sale ‘imminent’

Wellington reporter The sale of Telecom is imminent, according to the Opposition spokesman on State-owned enterprises, Mr lan McLean. He said rumours were going around financial markets that the sale was imminent. There were similar rumours about State Insurance, which the Government announced a fortnight ago it intended to sell. National saw Telecom as a strategic business for New Zealand.

It would not let foreigners control Telecom and would re-

strict foreign ownership to 24.9 per cent, Mr McLean said. If the Labour Government sold more than 24.9 per cent of Telecom to foreigners the next National Government would ask foreign buyers to divest themselves of all shareholdings above 24.9 per cent of the equity.

“We will put New Zealanders first in any sale of Telecom,” he said. “It has been built up by capital from its subscribers’ phone bills." National would not allow Telecom to abuse its monopoly

and would require it to provide urban and rural services at reasonable cost. National also considered that State Insurance belonged to its policyholders, Mr McLean said. It was just an ordinary mutual company. The law which had given the Government ownership of State’s funds had been repealed and the Government’s initial cash injection had long since been repaid, he said. “Most people who sell somebody else’s property go to jail,” he said, “but Parliament is being asked to make State’s sale legal.”'