16 February 2011

The Government pledge that New Zealand investors will get first crack at buying shares in any future sell off of state owned assets will likely only delay the inevitable movement of these assets offshore, Green Party Co-leader Dr Russel Norman said today.

The Government today signed an investment protocol with Australia. The protocol allows Australian investors to spend up to $477 million in buying New Zealand companies with no scrutiny from our overseas investment office. The Protocol also includes a provision giving preference to New Zealanders should a future Government sell shares in SOEs

“Selling off state assets is a flawed concept,” said Dr Norman.

“Even if some New Zealanders who can afford it are given a first crack at buying shares currently owned by all New Zealanders there is no way of preventing these shares from being on sold offshore at a later date.

“Signing the Investment Protocol today makes it even more likely that under any future National administration large parts of our State Owned Assets will disappear offshore.

“Australia has a much larger population and economic powerbase than New Zealand.

“John Key’s mythical mum and dad investors don’t plan to buy up hundreds of millions of dollars of infrastructure,” said Dr Norman.

“This deal achieves nothing for small New Zealand investors, but is instead aimed at Australian companies wanting to buy-up major chunks of New Zealand’s infrastructure.

“Removing the oversight provisions of the Overseas Investment Office for virtually all investment from Australia means sales not in New Zealand’s long term strategic interest will be more likely to proceed.

“Inserting a reservation into the Investment Protocol relating to the future sale of state assets is significant but won’t prevent state assets falling into foreign ownership.”

ENDS

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