Where our Assets have gone

• Ben Clark
• 11 years ago
• Categories: Privatisation
• Tags: asset sales, future investment fund

National got around $1.7 billion from selling Mighty River Power, and then allocated $2.1 billion to the “Future Investment Fund” – this ring-fenced barrel of cash tat would meet our future capital expenditure needs, especially those electorally popular schools and hospitals.  This was after they ditched paying off $6 billion worth of debt with it.  They’re flexible you see.  Flexible enough to turn $1.7 billion into $2.1 billion with the stroke of a pen (and a bit of debt) for a start…

They’d previously announced at least $5.26 billion of spending based on that $2 billion (not counting debt pay-off), so where has that money gone / actually been allocated to?

Schools and hospitals, yes, $84 million to schools, and nearly $90 million to “health projects”.

And the other >$1.9 billion?

• Well $40 million to the looters’ bonus share sweetener to those who bought our assets.
• $100 million to bail out Solid Energy
• $80 million on irrigation to subsidise farmers to strip our 100% 90% 80% 70% Pure water tables faster.
• $15.7 million on replacement refugee facilities
• $20,000 on strengthening capability on security and risk management in John Key’s Department
• $285,000 on closed captioning Parliament TV
• $5.4 million on a “whole of government” radio network (?)
• undisclosed amount on start up costs for vulnerable children projects at MSD
• $900 million on Christchurch Rebuild
• 3 magic beans

In other words, it’s become a government slush-fund to pay for National’s mistakes and pet-projects, along with some general expenditure.

That’s what our taxpayer-owned wealth-generating asset has been converted into.

Do you feel we got a good deal?