The Government has cut its estimated earnings from
partial asset sales from up to $7 billion to as low as $4.6
Finance Minister Bill English said the Government's half-year
economic and fiscal update this month would revise the
estimated range of proceeds from the sales to $4.6b to $5b.
That is lower than Treasury's estimate in 2011 that proceeds
from the sales, including Solid Energy, would be $5b to $7b -
with the $6b mid-point range assumed in Treasury forecasts.
Excluding Solid Energy from the sales, the estimated proceeds
were between $4.4b and $6.1b.
"So we are on track to be within that range," Mr English
Mr English gave the revised estimates before Parliament's
finance and expenditure select committee today.
"The revised assumption of share sale proceeds is based on
Solid Energy clearly being in no position to be sold anytime
soon, and it takes account of other developments and the
results of share offers to date," he said.
"This is cash the Treasury expects taxpayers to receive,
which can be invested in new priority public assets without
the Government having to borrow from overseas lenders."
The partial sales of Mighty River Power, Meridian Energy and
Air New Zealand raised almost $4b. The Government plans to
sell shares in Genesis Energy in the first half of next year,
subject to market conditions.