The Genesis share float – or is that share sink?

24 comments on “The Genesis share float – or is that share sink? ”

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1. Enough is Enough 1

   14 March 2014 at 10:11 am

   Don’t waste time trying to argue the economics of this. You will you confuse your poor brain because it makes no sense.

   The intention was always to reward those people that backed them by providing funding over the past decade. Those wealthy backers have now got what they demanded and will own 48.5% of our power stations.

   It is theft and can be explained as simply as that.
2. shorts 2

   14 March 2014 at 10:15 am

   “it means that during the election campaign…whenever the Key government tries to scare us about the prospect of a Labour/Greens cabal running the economy, or with Russel Norman being a heartbeat away from the Finance portfolio or whatever else the Crosby/Textor crew come up with to try and stampede voters into the arms of the centre-right, such tactics can be rebutted with three simple words: “Genesis share float.” At a stroke, this should vaporise any claims that National is a better, more responsible manager of the economy, and a better steward of public assets.”

   http://gordoncampbell.scoop.co.nz/2014/03/14/gordon-campbell-on-the-genesis-share-float-debacle/

   every day we get another depressing reminder of what life outside of planet key is like
   • Colonial Viper 2.1

     14 March 2014 at 10:20 am

     Sorry your strategy won’t work because people don’t see any truly alternative and viable vision for the NZ economy being presented to them.
     • blue leopard (Get Lost GCSB Bill) 2.1.1

       14 March 2014 at 12:05 pm

       @ CV

       I would have thought that the ‘people’ you refer to (I assume you are referring to the ones that say they intend to vote National in the polls) believe the false claims being repeated throughout the mainstream media sources ‘that National is a better, more responsible manager of the economy, and a better steward of public assets’.

       I would have therefore thought that Shorts suggestion was a fairly good one for counteracting these false claims.

       I am of the understanding that Labour ran the country in a more fiscally responsible manner when they were last in power – one that Key spoke loudly against when he was in opposition. where he criticised them for not spending more – Labour governed the country in a manner that led to more raises in the lowest incomes and invested in a manner that led to more jobs and opportunities. This place was a better, far more hopeful place to live in under Labour.

       Perhaps your comment was a request from Labour and Greens to speak more loudly to the public on what they intend to do? – this still doesn’t discount there being a lot of merit in Shorts suggestion.
     • David H 2.1.2

       14 March 2014 at 3:38 pm

       and what if the dairy market goes south?
3. Clemgeopin 3

   14 March 2014 at 10:16 am

   It is a shame that many people STILL support this evil and incompetent stupid government believing their spin, lies and BS hook line and sinker!
   • Enough is Enough 3.1

     14 March 2014 at 12:27 pm

     It is a myth that people support this government or that is is popular.

     Don’t believe the polls, there is nothing at all accurate about them and they are paid for by entities that want the hard right government.

     I have no doubt that if everyone votes this yeat National will lose by a landslide. There is a real possibilty that the record set by English in 2002 will be beaten this time around.
4. Colonial Viper 4

   14 March 2014 at 10:19 am

   And they say that National has the skills to handle the economy?

   I think E is E has it quite right. This isn’t about running the economy badly or well, this is about crony capitalism, and gifting strategic NZ infrastructure into foreign hands. It’s also the absolute opposite of what the old school conservative base of National wants to see done.

   Further, because Labour 5 kept the SOE structure for these generators, and beyond that insisted that they become very profitable (i.e. extracting large sums of money from ordinary communities), Labour painted a big privatisation bullseye on their foreheads.

   All National is doing is pulling the trigger.
   • shorts 4.1

     14 March 2014 at 10:40 am

     good point – and still much of the opposition parties use the revenue we could be earning from these profitable SOE’s as a justification for retaining ownership – never do they talk about offering a service back to the owners at the cheapest sustainable cost
     • Colonial Viper 4.1.1

       14 March 2014 at 10:46 am

       Opposition parties who posit that it is they (and not National) who can run corporate style capitalism the best have totally lost sight that we are in the last 20-30 years of fossil fueled, relatively stable climate, global civilisation which has been taken over by the billionaire class.

       It’s like arguing who can administer the bridge on the Titanic better as the compartments fill with water.
   • Lanthanide 4.2

     14 March 2014 at 2:13 pm

     “Labour painted a big privatisation bullseye on their foreheads.”

     Yep. My BF pointed out (as I’ve posted here before), what Labour should have done is moved the power generators into the ownership of the Cullen fund. That way the dividend stream would go right into their pockets, it would allow the government to have more of an arms-length appearance in terms of “taxation-by-stealth”, guaranteed a continuing funding stream for the fund and made the political argument to sell them much more difficult.
5. Steve Withers 5

   14 March 2014 at 11:27 am

   I’ve never expected National to look after the people of NZ. They are, after all, the “Multi-National 1% Party (NZ)”.

   This is easily seen by simply looking at what they DO….and who benefits.

   It certainly isn’t the people of NZ.
   • blue leopard (Get Lost GCSB Bill) 5.1

     14 March 2014 at 12:07 pm

     +1 Steve Withers
6. thatguynz 6

   14 March 2014 at 11:37 am

   National absolutely have skills in running the economy MS – we all just incorrectly assume that they are running the economy for us, the people.

   Lets take their economic approach to its logical conclusion. What happens when we can no longer afford to service the debt on our governmental exposure? What will the IMF/WB/BiS be pushing for? Further asset sales? Greater involvement in NZ policy? Austerity? There is plenty of precedent for what comes next. The entire global economy is based on debt and the control that the ownership of that debt imbues them with.
7. Skinny 7

   14 March 2014 at 11:46 am

   I am now of the belief we start talking about buying our assets back, less the ticket clipping. This was always going to be a failed ideological driven move.

   Reading this snake oil shows slippery at his best.

   http://i.stuff.co.nz/national/politics/4582922/John-Key-reveals-plan-for-asset-sales
8. captain hook 8

   14 March 2014 at 11:47 am

   this is called paying off your mates with a parcel of dodgy shares so that you can take windfall earnings when the supply spikes.
   There is no market.
   Just an artificial creation by the tories to delude themselves and others into believeing that nothing is something.
   straight out of the milton friedman, ronald reagan,george bush playbook for ripping off the taxpayer in the name of de-regulation.
   what a crock of shit yet we still fall for it.
   When is someone going to do a proper analysis and kill this thing once and for all.
9. Pete 9

   14 March 2014 at 12:01 pm

   I’ve decided to create an image macro every day until the election. This will obviously be a hit and miss kind of thing (people don’t always get the references). Here’s today’s.

   Share and enjoy.
10. Ad 10

    14 March 2014 at 12:25 pm

    Personally it would be great if the state gave more oportunities to invest New Zealanders’ savings with them, but not for monopoly and lazy and conservative assets like generators, or sad returns like Treasury bonds.

    Whereas if NZSuper could propose something – for example an invitation to get directly into these alternative power generator companies in the US, or one of the Crown Research entity spinoffs – I am sure New Zealanders who could would be pretty enthuiastic.
    • PapaMike 10.1

      14 March 2014 at 1:42 pm

      I would expect like all of the previous partial sales that all the Kiwisaver Accounts have substantial investments in these companies.
      Their expected return is about 7.5%, very much larger than bank term deposits of 4%
      If people do not like this they should tell their Kiwisaver Investment Managers, and see what they say.
      It was said yesterday that the NZ (hic) Banks are sitting on $150 billion of term deposits so there is plenty of investment money available.
      • Ad 10.1.1

        14 March 2014 at 2:14 pm

        Yes of course on the Kiwisaver thing, but it would be good to identify where the state is heading and invest alongside it as well.
11. Tracey 11

    14 March 2014 at 1:04 pm

    this is odd. english said, as did key, that in good conditions these companies would reach higher sale value. yet this is both economic “good times” and a “rockstar economy” yet we havent got good prices per forecasts. stranfe indeed
    • Draco T Bastard 11.1

      14 March 2014 at 10:46 pm

      It was never about getting a good price, it was always about dis-empowering the people of NZ by taking their assets and wealth away from them. This is how the rich are reinstating feudalism.
12. Midas 12

    14 March 2014 at 3:10 pm

    So to get the full cap of 2,000 bonus shares you’d need to buy 30,000 initially which at the top of the price range ($1.65) would require an initial investment of $49,500. Yay for the mums and dads of New Zealand who can write out a cheque for $49,500 just like that.

    Not, of course, that this was ever really about Kiwi mums and dads.

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1. Mum and Dad investors are no longer a priority - The Standard: posted on 27 March 2014 at 3:09 pm

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