No sales this term

19/02/2010

The government’s response to the Capital market Task Force report has prompted questions about the possible sale of State Owned Enterprises.

One of National’s election promises was that is wouldn’t sell any state assets in its first term.

That doesn’t preclude discussion on possible sales, possibly only partial, in a future term.

Landcorp would be a good place to start. I can’t think of any good reasons for the government to be involved in farming and some of the SOE’s farms were sold under the previous administration.

Listing would shine a bit of daylight on the operation of SOEs and there could be benefits from the financial rigor required of publicly listed companies.

Divesting even part of the shareholding from the government to individuals would free up public money for other things and provide much-needed opportunities for investment in something other than property.


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