16 May 2014

Budget: $145m annual cost of asset sales

The Budget shows the ongoing cost of the Government’s asset sales is worse than originally projected, the Green Party said today.

Treasury has identified an annual ongoing cash cost of $145 million due to National’s asset sales. This is $43 million worse than projected in December. The $145 million annual cost is due to the fact that lost dividends, as a result of the asset sales, are greater than the reduction in interest faced by reducing debt.

“According to the Government’s own numbers National’s asset sales have failed,” said Green Party Co-leader Dr Russel Norman.

“This budget shows the price tag for this failure is even higher.

“National’s asset sales are now costing the country $145 million a year, permanently. That’s the cost of providing Maternity Services in this year’s budget.

“This hole in the budget will have to be found somewhere else, every budget.

“We’ve sold the family silver, and now each budget we will be reminded of National’s failed plan as New Zealanders face the cost,” said Dr Norman.

ENDS

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