The National-led Government today announced our next steps to extend the mixed ownership model. 

National campaigned on extending mixed ownership to four state-owned energy companies – while keeping majority control.  This is a sensible policy for New Zealand’s future at a time of continuing international volatility.

Mixed ownership is a win-win for New Zealanders

It frees up $5 billion to $7 billion – less than 3 per cent of the Government’s  assets – to invest in much needed public assets like modern schools and hospitals. This means we can provide much needed new assets without having to borrow on fragile overseas markets.

This policy will help the Government reduce debt and meet our commitment to get back to surplus by 2014/15. It also gives New Zealanders the opportunity to invest in good Kiwi companies at a time when they are looking for alternatives to property and finance companies.

How mixed-ownership works

Over the next three to five years, the Government will offer shares in four state-owned energy companies – Mighty River Power, Solid Energy, Meridian, and Genesis – along with further shares in Air New Zealand (which is already successfully operating under mixed ownership). 

We’ll keep at least a 51 per cent majority control of each company.  New Zealand investors will be at the front of the queue for shares and we’re confident that 85-90 per cent of shares will be owned by New Zealanders.

Legislation, introduced to Parliament today, also makes sure no investor, other than the Government, can own more than 10 per cent of each company.

Next steps

Legislation will be debated in Parliament this Thursday before going to a select committee.

Subject to market conditions, Mighty River Power will be offered to market later this year.

For further information click here.