Treasury has confirmed that National’s plan to sell public assets would need foreigners to buy a lot of the shares because domestic demand would be too small for the government to make as much money as it is counting on. Forget ‘mum and dad investors’, the big buyers would be foreign sovereign wealth funds.
Here’s what Treasury has to say in papers released yesterday:
“New Zealanders will be at the front of the queue for any offers arising from the extension of the Mixed Ownership Model, but overseas investors have an important part to play in providing pricing tension to support the Government’s fiscal objectives,”
‘Pricing tension’ – in other words, without them the price would fall too low to meet the government’s “fiscal objectives” – that’s the money they’ve already counted on spending from asset sales they don’t have a mandate for.
If we re-elect National in November, we will be selling our strategic and profitable energy assets to foreigners. It would just increase the flow of profits offshore from this country. Some ambition for New Zealand.