The concerns come on the eve of the official launch in Wellington tomorrow of a petition calling for a citizens' initiated referendum to retain the SOEs (state-owned enterprises) in Government hands.
The Green Party released a list yesterday of the 93 individual subsidiary companies of Genesis (seven companies), Meridian (36), Solid Energy (13) and Mighty River Power (37), with concerns they could be sold off, or "asset-stripped", in order to boost quick returns for the new SOE shareholders.
Greens co-leader Dr Russel Norman said: "The lack of protection over the full sale of SOE subsidiaries is an invitation for the SOEs to asset-strip".
The Green's concerns were raised after Solid Energy chairman John Palmer confirmed the proposed legislation covering the SOE privatisation would allow the coal miner to sell subsidiaries after partial privatisation.
Dr Norman said large parts of Genesis, Meridian, Solid Energy, and Mighty River Power, some of which hold significant energy generating assets, could be sold into 100% private ownership under the Government's privatisation plans.
He said while Prime Minister John Key had repeatedly reassured New Zealanders that only 49% of the SOEs would be sold, there was nothing in National's Bill to stop the sale of the subsidiaries.
"This is an invitation to the kind of asset-stripping we saw from privatised state-owned enterprises in the 1980s and 1990s," Dr Norman said in a statement yesterday.
Aside from more than 4 million tonnes of coal production annually, Solid Energy is leading the way in diversification of energy production.
That includes the contentious use of low-quality lignite, which Otago and Southland has in abundance. Construction is under way of a boutique $29 million pilot lignite briquetting plant near Mataura, and separately, Solid Energy has begun converting used cooking oil into biodiesel.
Less than a month ago, Solid Energy started up its $22 million underground coal gasification pilot plant near Huntly, Waikato, and it is now producing synthetic gas from coal.
The Keep Our Assets launch tomorrow includes support from Grey Power president Roy Reid and the New Zealand Union of Students' Associations.
Student union vice-president Arena Williams said the Government must be left in no doubt that the "overwhelming majority" of New Zealanders are against the asset sales.
"They belong to us and we must preserve them for future generations. Once they're sold, they are gone for good," Ms Williams said in a statement.
The Green Party's alternative plan for the SOEs' partial sale is to keep them in public ownership and refocus their predominantly domestic operations towards the booming renewable energy export markets, to secure 1% in the global market which would create a $6 billion to $8 billion export industry, Dr Norman said.
