9 May 2012

Shared ownership of public assets – a win-win for all New Zealanders

A much improved communication programme is required in moving forward on the partial sell down of public assets, the select committee studying the proposal was told today.

Michael Barnett described the Mixed Ownership Model Bill concept as a big idea and for many it required a clear message of intent – not a distorted view from an opposing political source.

“That clear message of intent should have spoken of a shared ownership – a safe alternative to investing in property or in a finance company – a freeing up of capital for urgent growth initiatives. Instead the message got confused as did the intent.”

It’s important that as we move forward we highlight the values and brand of ‘shared ownership.’

Presenting as a strong supporter of the initiative on the New Zealand Chamber of Commerce submission to the Finance and Expenditure Committee, Mr Barnett, Chairman of the Chamber’s management committee, noted that some of those opposed to the Bill are doing so in a belief that it dilutes New Zealand’s ownership of key strategic assets.

“On the contrary, by spreading the ownership of and resulting benefits from key assets across all levels of society – government, institutions and individuals – we are introducing more stakeholders with a direct interest in the performance of the companies involved.

“We see the Bill as introducing a strengthened ownership culture to New Zealand assets, which we believe will result in greater scrutiny and oversight of the performance of the companies involved.” It will help keep those managing the assets more focussed.

“We envisage the companies becoming a form of ‘co-operatively owned’ New Zealand enterprises, with a strong and proud Kiwi-ownership brand and culture – as Air New Zealand and Fonterra are.”

The bottom line is that Government has a mandate to proceed with this measure, and we predict there will be strong interest by many ordinary New Zealanders to take up the opportunity to invest.

ENDS

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