John Key’s announcement over partial mixed-ownership models of state-owned enterprises has sparked a lot of debate.  The Government would only go ahead with a mixed-ownership model for these companies only if it meets the following five tests:

We would maintain a majority controlling stake by owning more than 50%;  New Zealand investors would be at the front of the queue for shareholdings, and the Government would need widespread and substantial New Zealand share ownership;  the companies involved would have to present good opportunities for investors; the capital freed up would be used to fund new public assets and reduce the pressure on the Government to borrow; we would have to be satisfied that regulations adequately protected New Zealand consumers.

We’ll keep you informed, and we’ll seek a mandate from you before proceeding with any change.