No asset sales in term 1: Key

John Key has ruled out asset sales in the first term of a National government, but is not saying if it could happen after that.

Prime Minister Helen Clark on Saturday told Labour's congress in Wellington that asset sales were a defining issue for this year's election, and highlighted National opposition to buying back

Air New Zealand and the intended purchase of rail tracks.

Yesterday, she seized on Mr Key's comments, telling journalists at the congress National was preparing for future sales.

On TV One's Agenda yesterday morning, Mr Key was asked for National's position on asset sales.

‘‘In the first term of the National government, there will be no state assets that will be sold either partially or fully,'' he said.

Mr Key said focusing on assets would divert the party from lifting wages and other priorities, and ‘‘I just don't think the motivation is actually there''.

Previously, the party supported some asset sales.

Asked if he would rule out sales in a second term, Mr Key said: ‘‘Oh well, I'm not going to write our policies for 2011 before we've even had the 2008 election, but I'm telling you, and I'm telling New Zealand quite clearly, that we will not be selling state-owned enterprises in the first term of the National government. If there's any change to that position then we'll come back to the people of New Zealand with transparency and seek a mandate for that.''

Yesterday afternoon, Miss Clark told reporters asset sales would be an election-year issue and Mr Key had put it ‘‘squarely on the agenda''.

‘‘I think this is a huge issue. National wants to sell the Government's state-owned enterprises. That is now plain for all to see. We don't.''

She said Mr Key's refusal to rule out future sales spoke volumes.

‘‘The promise seems to be they will spend a whole first term working on it, and then really get down to business selling the family silver in the second.

‘‘That's what they stand for and now that we know it, it's obviously a very powerful campaign tool for the Labour Party.''

Deputy Prime Minister Michael Cullen also attacked Mr Key in relation to asset sales, during his closing speech to the congress.

‘‘[Mr Key is] a man who said he favoured asset sales, and then said he favoured partial asset sales, and then today on Agenda said he wouldn't have any asset sales in the first term of government - although of course it doesn't stop him preparing for those asset sales in the second term of government - but on Friday opposed us opposing asset sales in the form of Auckland airport.''

National has criticised the Government's decision on Friday to block the purchase of a stake in Auckland International Airport by a Canadian company.

It said the decision would affect future investment in New Zealand and confidence in the stock market. National would have approved the sale so long as the majority ownership remained in New Zealand hands.

On Agenda yesterday, Mr Key said Labour was wrongly trying to portray the airport as an asset sale.

‘‘. . . This is an asset that was sold, rightly or wrongly . . . a decade ago. This is about the change in composition of those shareholders.''

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