Would Labour stop Trademe listing?

Labour has been running the meme that asset sales are bad. They run all sorts of lines about loss of control, evil foreign investors and loss of dividends, but then along comes Sam Morgan and Fairfax and cacks all over their arguments.

You see Fairfax is going to list 35 percent of Trademe.

If Labour’s spin were correct then the Fairfax board must have rocks in their heads. Surely they aren’t going to allow the family silver to be hocked off to foreign owners?

Our capital markets are thin. Very thin. Right now our Kiwisaver accounts and the Super fund have precious little to invest in in our capital markets. So what do they do? They invest in other countries capital markets. If foreign owners are evil then our very own Kiwisaver accounts and New Zealand’s own Super Fund are the ultimate in corporate evil.

By adding Trademe to the capital markets it will improve the situation somewhat. Fairfax of course still retains the controlling stake but they get a large chunk of capital from investors with which to expand the company.

New Zealand needs to rid itself of the rubbish that Labour peddles and get on with expanding our own capital markets instead of expanding other countries capital markets via our super funds.