17 November 2013

Private investors set to fly off with our national airline

The two day fire sale of Air New Zealand will see private investors taking a major share in our national carrier ahead of New Zealanders having the chance to vote to stop asset sales in a citizens initiated referendum, the Green Party said today.

Voting in a citizens initiated referendum on asset sales begins this Friday 22 November.
"Private ownership of our national airline has historically been very bad for New Zealand taxpayers and businesses and poses real risks for Air New Zealand's iconic brand," said Green Party Co-leader Dr Russel Norman.

"National is arrogantly playing politics with asset sales. In order to avoid the referendum result National is prepared to economically sabotage our proud Kiwi airline.

"Private investors nearly bankrupted Air New Zealand in the early 2000s and taxpayers had to resuscitate this critical public asset. Private investors will take a big share in the airline again and will seek bigger profits from it.

"Bigger profits for private shareholders could see reduced regional services and increased passenger fares where there is limited or no competition.

"The tourism and export industries are very reliant on Air New Zealand. The Government's risky sale will force the company to prioritise private shareholders’ profits rather than act in the national interest; on behalf of NZ Inc.

"National is foolishly flooding the market with shares for foreign buyers in order to avoid the asset sales referendum where New Zealanders will have the chance to vote no to further sales.

"The Mighty River Power and Meridian sales highlighted that New Zealand mums and dads are not buying shares and that the asset sales programme has been a failure. New Zealanders want the asset sales to stop, not witness a fire sale of our iconic national airline,” said Dr Norman.

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