Another reason to sell

The NBR provides another argument in favour of the sale of State Owned Assets.

Like other state-owned enterprises under the former Labour government, Solid Energy was encouraged to diversify its core business and take advantage of subsidies encouraging investment in renewable resources and technologies.

To try to put the blame for the company’s plight on National and its assets sales programme is turning reality on its head.

The same goes for Meridian and Mighty River Power having to sell out of similar forays after closer inspection by the Treasury and other as part of the government’s selldown policy.

That has included MRP withdrawing from a project in the US that was driven by government renewable energy subsidies there. . .

Meridian’s decision to withdraw from the Project Hayes wind farm also looked like a proposal driven by politics that didn’t stand up to financial scrutiny.

One good reason for partial privatisation is more financial rigor in the management of these companies.

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4 Responses to Another reason to sell

  1. Neil says:

    When the government bail out comes for Solid Energy who is paying for it ? The NZ taxpayer.
    I have no faith in SOE’s,govt agencies. By their very nature no one has any real feeling or control of the organization. It doesn’t matter, it’s the state and it doesn’t belong to me.Shareholders have a meaningful say in listed public companies.
    None of the SOE’s are performing well in relation to the private sector.
    I’d love some of the socialists to see the rubbish and wastage around those fine Eastern European countries after the fall of Communism.

  2. Charmaine. says:

    It is a shame Meredian don’t feel the same way about Mill creek in Wellington. They are pushing ahead with that turbine park.

  3. robertguyton says:

    “But one person cannot defeat climate change! This is our third drought in four years, and in the worst one four years ago, we lost so many birds and creatures. The native pigeon population was decimated, as young birds had no water, and people talked of seeing pigeons drop from the sky, dead from de-hydration. The kiwis who dig their long sharp beaks into the ground for bugs and worms starved because the ground was so hard they couldn’t break into it, and when they did, the worms and other food had retreated deep down to damper layers of soil.”

    From Valerie Davis, Ele (she’s on your ‘blog roll’).

  4. homepaddock says:

    I know she’s in my blog roll, I enjoy reading her posts but am not sure what the connection is between the one you quote and the topic of this one.

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