“…It is no accident that Mighty River Power, the jewel in the crown when it comes to profitable and innovative state-owned enterprises – was the first choice for enticing middle and low-to-middle income earners to dip their toes in the sharemarket for the first time.
The motive is political as much as economic.
It fits National’s long held belief that boosting an individual’s ownership of capital inevitably induces a slow, but perceptible transfer of political allegiance from left to right.
Thus the heavy stress on New Zealanders being “at the front of the queue”.
Hence, the introduction of a loyalty bonus to entice small investors to keep their Mighty River Power shares for three years.
And hence the likely pricing of the shares to ensure they do not lose value on listing.
National is pulling out the stops to ensure the float is a success.
Quite simply, it is putting politics ahead of maximising the return to the taxpayer…”
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