The company will then set up a two-and-a-half year business plan during which the profitable parts of the company will be separated out and sold as going concerns.
When this process is finished, the remains of the company – one of New Zealand’s oldest state owned enterprises – will be consolidated into a rump body which will probably be closed down. . .
This will be a blow to the employees and other businesses which service and supply the company.
That aside, this result provides good evidence for the case against state ownership of most companies.
Private ownership might not have saved the company but at least it wouldn’t be taxpayers who bore the cost of its failure.