Prime Minister John Key expects prospective investors in
Genesis to react well to incentives likely to be
announced tomorrow by Finance Minister Bill English.
Genesis is the last of the Government's energy assets to be
partially sold down and responding to questions in
Dunedin today, Mr Key said there would be an incentive for
investors as there was with Meridian Energy and Mighty River
Mr English is set to release further details in a speech
Mr Key defended the asset sales programme, which will fall
well short of the up to $7 billion the Government
expected to raise.
Solid Energy, which the Treasury had estimated to be worth $3
billion had little oversight and was now a company of no
The partial sale of other energy companies meant the
Government had more oversight, still retained 51%
control of the companies and the partial sales had raised
around $4 billion so far.
Asked why he had decided to end the sales programme if it was
so successful, Mr Key said a company had to have the
"right characteristics'' to be part of the mixed ownership
model. A company like Kordia did not fit as it was too
small in value and a monopoly, like Transpower, did not
fit the model.
The only other two which could be sold were Television New
Zealand and New Zealand Post and neither was fit for