Iwi to get formal consultation on partial SOE sales

Friday 27th January 2012 1 Comment

The New Zealand government will take part in a series of hui to consult with Maori on legislative changes it considers necessary in order to float the minority shareholdings of four State Owned Enterprises.

Larger iwi have been targeted as potential investors in the government’s plan to sell down its holdings in some of its energy companies, and in Cabinet papers prepared last year, the Treasury said Maori have the “potential to play a significant role in the achievement of widespread and substantial New Zealand ownership as enduring strategic investors.”

The SOEs include Genesis Energy, Meridian Energy, Mighty River Power and Solid Energy. Under new legislation the government will retain at least 51 percent ownership, with individual shareholdings limited to 10 percent. The government is also seeking written submissions on its proposals.

“We promised to talk with iwi when we originally announced plans to partially sell the four energy companies and Air New Zealand last year,” Finance Minister Bill English said in a statement. “We want to understand Maori views before we take final decisions.”

English and State Owned Enterprises Minister Tony Ryall will lead the process, starting in February. It will be facilitated by former public servant, Wira Gardiner.

English said, the five partial share floats will free up billions of dollars for investment in schools, hospitals and public infrastructure and help ensure New Zealand avoids the kind of debt crisis faced by Europe.

“The Government has promised all New Zealand investors they will be at the front of the queue for the shares,” he said.

Mighty River Power will be first off the block, with a sale flagged for the third quarter this year.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

On 27 January 2012 at 1:48 pm Siena said:

Kiaora Tēnā koutou katoa. 19 April 2012 MĀORI ECOMOMIC & CO-INVESTMENT FORUM I am aware of the Ngāi Tahu Property and Meridian’s hydro-partnership. Frameworks, models and emerging opportunities for Māori Lessons from Ngāi Tahu: Co-investment in privatised SOEs and PPPs As some iwi express interest in receiving state asset shares as part settlement of Treaty claims, examine the ins and outs of effectively investing in privatised SOEs. Compare SOE investment through Ngāi Tahu experiences with PPPs and learn plans, structures and strategies for being a successful partner and investor. • How iwi can actively drive and benefit from co-investment and PPPs • Selecting the right co-investment: Ngāi Tahu’s vision in infrastructure • Weighing the pros and cons of PPP and co-investment ventures • Local and global examples including China’s Agria in PGG Wrightson Mark Solomon, Chairman, Ngāi Tahu Case study: Ngāi Tahu Property and Meridian’s hydro-partnership As newly proposed investment partners, learn of the challenges and opportunities ahead of Ngāi Tahu Property and Meridian in jointly developing the Amuri Integrated Water Project. Learn the reasons for co-investment, the support expected as partners, and the cultural recognition required for successful collaboration. • The decision and process for jointly lodging initial consent applications • Addressing tribal involvement and Māori cultural and environmental values • Projected co-investment structure and collaboration strategies A Representative from Ngāi Tahu Property Nick Eldred, Water Infrastructure Development Manager, Meridian Energy Iwi investment on a commercial basis will be welcomed, so Tony Ryall says however, the consultation will not cover specific investment opportunities. The Māori asset base, has an estimated worth of $36.9 billion and is mainly focused in primary production and processing. Such primary assets are susceptible to negative effects of climate change. Soon to be applied to agriculture, fishing and households, discuss the impact of the ETS scheme and how it has affected Māori forestry assets. Time to diversify and expand and explore other commercial avenues and interests that will benefit the Well-Being of our most special Taonga...A tātou tamariki me ou tātou mokopuna kei konei te kainga. Hei kona rā