A further step in the sale process for four of New Zealand's state-owned assets was taken yesterday when the Government introduced legislation to Parliament supporting its mixed ownership model.
Criticism is likely to follow once the debate starts onThursday as critics come to grips with the legislation which includes a Treaty of Waitangi clause but removes the companies from being subject to the Official Information Act.
Only ministerial decisions relating to the Government's investment in the four companies will be subject to requests for public disclosure, whereas the businesses' commercial decisions will be shielded from the OIA.
Air New Zealand, 73% owned by the Government, is already excluded from the OIA.
Mighty River Power will be the first of three electricity companies to be partially floated in the third quarter of the year. The Government will retain 51%.
Meridian and Genesis, along with coal producer Solid Energy, are expected to be partially floated on the NZX before the 2014 election.
The Government is expected to also sell down its share in Air NZ to 51%.
State-owned Enterprises Minister Tony Ryall said the Government was taking other decisions to align the mixed ownership companies in legislation with other listed companies on the NZX.
Finance Minister Bill English said the mixed ownership companies operated in a competitive environment and once listed would have comprehensive continued disclosure requirements under stock exchange rules.
"Customers have contractual and consumer law remedies available to them, as well as the ability to take their business to a competitor - the same rules applying to their private sector competitors."
During consultation hui last month, Maori conveyed a "clear view" that section 9 of the SOE Act should be retained in the new legislation, he said.
Section 9 would be replicated in a new Part 5A of the Public Finance Act, with clarification that private shareholders were not affected.
The new section wouldprotect Maori interests in memorialised land owned by the mixed ownership modelcompanies.
"We entered this process with an open mind. Replicating section 9 into the new legislation ensures we can proceed without prejudicing the rights of Maori or the Crown's ability to settle further Treaty claims," Mr English said.
Labour Party SOE spokesman Clayton Cosgrove said there would be nothing in the legislation to stop more than 30% of the shares being bought by foreigners.
"There will be nothing to ensure that `mum and dad' investors are at the front of the queue and there will be nothing to stop boards asset stripping these companies after they are sold.
"If National manages to pass this legislation by a single vote and against the will of the vast majority of New Zealanders, our assets will end up in the hands of foreign corporates who will demand larger dividends meaning higher power prices for New Zealanders," Mr Cosgrove said.
