“…When John Key unveiled National’s plan for partial asset sales early last year – it was going to be win-win for everybody.
Selling up to 49 per cent of the three remaining state-owned electricity generators plus up to 49 per cent of the state coal company would bring the supposed benefits of privatisation -
- without the Government losing control of those enterprises.
Public share floats would enable small investors whose fingers had been burned by the collapse of finance houses to put their money into safe havens.
A financially strapped Government would reap between $5 billion and $7 billion from the sales which it could use to either pay off debt or for capital spending on such things as new schools and hospitals.
The companies would flower commercially from being subject to market discipline.
However, National’s preaching of the virtues of privatisation instead ran smack into the brick wall of public opposition to asset sales in any form..”
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