JB Were says the LabourGreen power plan will sap energy from the local market:
The Labour/Greens announcement on electricity sector reform concerns us on two fronts: firstly, the move to a state buyer of power risks being a retrograde step for the New Zealand economy. Secondly, we believe it will prove damaging for New Zealand capital markets, and comes at an unfortunate time given the significant progress made here since 2010. We detail these two concerns below: . . .
The damage to capital markets has already started.
Share prices in energy companies fell yesterday in the wake of the LabourGreen plan to power us back to the socialist seventies.
TrustPower, which is 50.7 percent owned by Infratil, fell 5 percent to $7.18, leading decliners as fallout from the opposition parties’ plan to centralise buying of electricity and split generators from their retail arms weighed on utilities.
Contact Energy fell 2.8 percent to $5.31 and lines company Vector slid 2.1 percent to $2.82. Infratil dropped 1.3 percent to $2.30. . .
Those shares aren’t just owned by the wealthy the left hate.
They’re also owned by people of modest means who have worked hard and put something away for a rainy day.
They’re also owned by community trusts and other philanthropic organisations which fund charitable projects.
They’re also owned by insurance companies, including ACC.
They’re also owned by Kiwisaver and the Superannuation Fund.
The LabourGreen power plan is in sabotaging the value of investments is stealing from us all.