While the Green Party is wasting money attemtping to get enough support for a Citizan’s an MPs’ Initiated Referendum, and Labour is threatening to hold up legislation for the Mixed Ownership Model for state assets, Trans Tasman says:
Mighty River Power Looks Even More Attractive. State-owned Mighty River Power expects electricity from its latest geothermal project to be lower-cost than normally assumed for new geothermal power stations, and well below the assumed cost of new wind farms. MRP, soon to be partially privatised, says it expects the $466m Ngatamariki plant with an installed generating capacity of 82MW to produce electricity with a real longrun marginal cost less than market estimates of $80 to $85MWh. Most wind projects are assumed to require paybacks of around $100MWh. The project remains within budget and on track for commissioning in mid-2013. MRP’s success with geothermal power enhances its competitiveness in the local market and is also strengthening its international operations, both in the US and in Chile, making it a highly attractive investment proposition.
Why doesn’t the left want to allow superannuation funds, community trusts, Iwi, other groups and individuals to invest in this business?
Don’t tell me we already own it. We don’t, the state owns it on our behalf but that is very different from having a private shareholding.
Selling a minority share of the company frees up public money for other investment, and provides a much safer investment for people than finance companies.
The loss of dividend revenue to the government will be factored into the sale price.
If some shares are bought by people or organizations from overseas that’s welcome inwards investment and they, like all other shareholders will pay tax on any dividends.
The left are painting the sale as a loss when the state, taxpayers, shareholders and the company have much to gain from it.
Homepaddock 
“Don’t tell me we already own it. We don’t, the state owns it on our behalf but that is very different from having a private shareholding.”
Ele, surely ‘having a private shareholding’ isn’t ‘owning’ either.
While the state ‘owns’ an asset on our behalf, we benefit from that management system through the receipt of whatever it produces; electricity etc. That we don’t have shares returning money to our own pocket is neither here nor there. The model you promote is a selfish one. You would put at risk the general good for the opportunity of the few to make some money for themselves.
Charming.
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Why doesn’t the left want a profitable state asset with some monopoly characteristics transferred to private hands? Gee, I don’t know. Have a think about it.
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Robert, we’ll still get electricity regardless of who owns it. What’s selfish about people spending their money to free up public funds for investment in much needed infrastructure from which we’ll all benefit?
Judge – we’ve got several competing power companies, and the state owned ones don’t usually have the lower prices. The state will still get at least 51% of the dividends plus the tax on those from the minority share.
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The electricity generation sector is nowhere near fully competitive. The state will lose 49% of the revenues and profits (for the time being, the next manufactured crisis will see that gone). Kiwi Mums and Dads won’t get to buy in once fund managers and Iwi get their crack. The proceeds will be used to benefit the few (irrigation project anyone?). It’s little wonder the Nats don’t want the public to have a say on this.
“Don’t tell me we already own it. We don’t, the state owns it on our behalf but that is very different from having a private shareholding.”
Too right. Private shareholdings are highly concentrated with no democratic oversight. If you’re one of those few shareholders that’s great. The rest of us get to suffer.
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Suffer lower prices than state owned companies charge, Judge?
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Yep, sure right.
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In MHOP it is hard to think of a more subtle Ponzi scheme than the asset sale proposals.
Our Central and Local Governments are experts at Kicking the Can down the road solutions.
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Well said, Colin.
Not so subtle that some can’t se it though.
Your claim, Ele, that we’ll enjoy lower electricity prices as a result of these sales is just sick.
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Kiwiblog had a post comparing power prices a few weeks ago, the state owned companies were not usually lowest. Will try and find it and give link.
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I see mork and mindy are double teaming you HP .. the drudge has been very busy abusing others at No Minister and ranting as usual at Keeping Stock .. sad really .. two “mature” Gweenies losing the plot
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