Expect incentives for Genesis: PM

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 Power.

Mr English is set to release further details in a speech tomorrow.

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 value.

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 sale.

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