Not fit for sale

Prime Minister John Key says Genesis Energy will be the last State Owned Enterprise to be partially sold by the government.

Asked why he had decided to end the sales programme if it was so successful, Mr Key said a company had to have the “right characteristics” to be part of the mixed ownership model. A company like Kordia did not fit as it was too small in value and a monopoly, like Transpower, did not fit the model.

The only other two which could be sold were Television New Zealand and New Zealand Post and neither was fit for sale.

Companies which aren’t fit for sale aren’t assets they’re liabilities.

Yet opponents of even partial sales are still clinging to the view that state owned companies are sacrosanct and that the portfolio should remain exactly as it is in perpetuity.

 

 

One Response to Not fit for sale

  1. Gravedodger says:

    I disagree with Mr Key as regards TVNZ and add RNZ, anything either might be worth in current times, coupled with the money continually being hoovered up in annual subsidies, such monies have many better places to be employed.

    It is no longer the 1930s when there was a serious need for a direct communication path to the people from their government in the changing social times that prevailed.
    With the massive advances of the internet through online news, blogs, twitter and face book, any residual value is diminishing and subsidies are the only funding that will sustain them.

    Like

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