Genesis float in next month

 Minister John Key has confirmed the Government will go ahead with the partial privatisation of Genesis Energy over the next month or so but has underlined the sale will be the last one under a National Government.

Finance Minister Bill English would give further detail about the Genesis sale including a broad timetable in a speech on Wednesday.

Mr Key said Genesis would be the last state owned enterprise (SOE) floated by his Government under its Mixed Ownership Model either before or after this year's election.

"Just as we did before the last election we're making our position on share sales clear to New Zealanders before we go to the polls later this year.

"This Government has been absolutely open and transparent in making commitments to New Zealanders and sticking to them.

"We've achieved what we wanted with the share offers in energy companies and Air NZ. We're now returning to a business as usual approach when it comes to SOEs.''

Despite the fact the program would likely end up raising something between $4 billion and $5 billion - below the $5 billion to $7 billion range set out at the beginning - Mr Key said it had been successful.

"For a start off the Government has raised well over $4 billion by the time we get through the Genesis float that we now can use to buy other assets without borrowing.

"Just as importantly we've provided greater depth to the capital markets and much greater transparency and oversight of these important assets.''

Mr Key again underlined the Genesis float would be the last asset sale under his Government.

"The truth is there aren't a lot of other assets that would fit in the category where they would be either appealing to take to the market or of a size that would warrant a further programme or they sit in the category that they are very large like Transpower but are monopoly assets so aren't suited.''


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