Mixed-ownership Model progressive

National is working hard to build a more competitive economy based on exports and higher savings, helping create sustainable, higher-paying jobs. Building a stronger economy is a key priority for this Government.

We are focused on the things that matter to our Indian communities, and to all New Zealanders.

Currently the Government, on behalf of New Zealanders, owns over $220 billion worth of assets, and over the next four years, we plan to undertake a further $34 billion investment programme.

We are working to ensure that these assets are managed as efficiently as possible.

National does not want to just keep increasing foreign debt to pay for schools, hospitals, roads, broadband networks and other critical infrastructure that you and your family rely on.

Instead, we are proposing to extend the mixed-ownership model to four state -owned energy companies, and reduce the Government’s shareholding in Air New Zealand while retaining a majority stake.

We will take this policy to the election this year to seek a mandate from New Zealanders before proceeding.

The Mixed-Ownership Model will see us offer Kiwi investors shares in Meridian, Mighty River Power, Genesis Solid Energy and Air New Zealand.

Importantly, the Government will keep at least 51% control of these five state-owned companies – the same model used successfully for Air New Zealand and the Port of Tauranga for many years.

To ensure the widest possible spread of shareholders, we intend setting a maximum shareholding cap (likely to be 10%). We expect strong demand from Kiwi investors and there is no doubt these companies will remain overwhelmingly in New Zealand control.

We know that many of you are keen to invest in strong, productive New Zealand assets. The Mixed-Ownership Model will give you an alternative investment option to the sort of failed finance companies that have led to many investors losing their savings.

This smart policy will strengthen the New Zealand economy.

A stronger economy is the only way we will create jobs, boost incomes, and provide the high-quality public services you and your family need.

John Key is Prime Minister of New Zealand. The above article is exclusive to Indian Newslink ©

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