John Key just spent another $30 Million of tax payer’s money to prop up his privatisation ideology:
Tiwai Pt power deal done – Meridian
Meridian Energy has resolved its negotiations with Rio Tinto subsidiary New Zealand Aluminium Smelters locking in the Tiwai smelter until at least January 2017 – with the help of a $30 million subsidy from the New Zealand government.
The deal, which has been a year in the making, will help clear the way for Meridian’s $5 billion float on the stock exchange – expected to go ahead before the end of the year. …
The smelter firm will also be able to terminate the contract completely from January 2017 provided it gives 15 months notice. …
The New Zealand government will chip in $30 million to secure the medium-term future of the smelter and provide greater certainty for the electricity market.
Who would buy shares in a company that needs to be propped up like this?