3.
Hon DAVID CUNLIFFE (Labour—New Lynn) to the
Minister of Finance: Did he say at the Half Year Economic and Fiscal Update lock-up yesterday that while the Government does not plan privatisation in this term of Parliament, it recognises various assets as not well-managed or struggling to keep up with the pace; and did he single out four entities in this context?
Hon BILL ENGLISH (Minister of Finance)
: The answer to that is yes, and that is because that member’s Government left behind a swath of badly managed taxpayers’ assets, and we are trying to sort them out.
Hon Lianne Dalziel: When the Minister said that Television New Zealand was not well-managed and was struggling to keep up with the pace, was he sending the signal that the only conclusion a National Government review will arrive at is to sell it off?
Hon BILL ENGLISH: No. I was describing the state of an asset that that member’s Government left in appalling shape.
John Boscawen: Does he agree with the 2025 Taskforce that “It is difficult to conceive of a reason why the New Zealand government should own a large coal-mining company, three major electricity generating and retail companies, one of New Zealand’s largest exporting firms …”; if not, what is the compelling reason?
Hon BILL ENGLISH: No, I do not agree with it.
Hon Darren Hughes: When the Minister of Finance said that Kordia and New Zealand Post were “not well-managed” and “struggling to keep up with the pace”, was he sending the signal that the only conclusion a National Government review can possibly arrive at is to sell them both off?
Hon BILL ENGLISH: No. I was describing the state of those assets. A large number of taxpayers’ assets have been left in an appalling state by that member’s Government. We are taking responsibility, kicking its cronies off the boards, and lifting the performance of those assets.
Hon David Cunliffe: When he said that New Zealand Post was “not well-managed” and “struggling to keep up with the pace”, was he talking about Kiwibank’s performance? What was it that disappointed him, and why was he not more open about including Kiwibank in the State-owned enterprise sales list directly?
Hon BILL ENGLISH: When I made those comments I was commenting on the state of the assets. I know that Labour will not accept responsibility, but its members should apologise to New Zealanders for how much value their Government destroyed, and for how badly a lot of taxpayers’ assets were run on their watch.
John Boscawen: What is the compelling reason for the New Zealand Government to own a large coalmining company, three major electricity generating and retailing companies, and one of New Zealand’s largest exporters?
Hon BILL ENGLISH: The compelling reason is that it does own them, and given that those assets were built up by taxpayers giving up their PAYE each week, this Government takes its role of protecting and growing the value of those assets very carefully. They have been built up by hard cash paid each week by people who could easily have used it for other purposes that might have suited them better. The previous Government did not understand that.
Hon David Cunliffe: Why did he single out Television New Zealand, Kordia, New Zealand Post, and KiwiRail, if he does not plan to open the door to sales; is it just coincidence that this comes a day before a report recommending partial privatisation, or is it cover for his brazen manipulation of history and his obvious lack of a real plan for growth?
Hon BILL ENGLISH: No, I singled them out because, as I described them at the time, they are fading network businesses. It is very difficult for New Zealand Post, for Television New Zealand, or for Kordia actually to make money. If that member’s Government had paid more attention to what was going on with those businesses, taxpayers would not have lost so much money.
