Remember when Phil Goff campaigned that the dividends would be lost forever?

During the 2011 campaign Labour opposed the partial sell down of state assets and even went so far as to sabotage the sales process.

One of his favourite lines was that the dividends would be lost forever: Quote:

Mr Goff has described the moves as “economic madness”.

“The power companies return $700 million in dividends every year — that will be lost forever. This pays for 10,300 teachers, 12,600 new police officers or 33,000 hip replacements.

“And $1 billion of dividends has been lost over the past decade as a result of National’s sale of Contact Energy in 1999.”?End quote.

And what have we found out? Quote:

The Government may be getting more in dividends from its 51 per cent holding in three major power companies than when it owned the companies outright, a?new report claims.

On Wednesday TDB, a Wellington corporate advisory firm, published a report on the mixed ownership model, a process under which the former National-led government sold 49 per cent stakes in Mighty River Power (now known as Mercury), Meridian?and Genesis to private investors.

The sales process was fraught;?Opposition parties collected enough signatures to force citizens initiated referendum and a Labour/Green electricity policy was blamed for wiping hundreds of millions off the amount raised.

Critics warned of a loss of control as well as dividends going to private hands, but ultimately the sales went ahead, raising around $4.7?billion from share sales,?below the original $5b-$7b target.

The TDB?report, headed by former Treasury director Phil Barry, claims that, at least by one measure, the Crown is now receiving more in dividends from the electricity companies now than when it owned the companies outright. End quote.

Proving yet again that Labour has no economic sense and certainly no business sense.

This is another case like the “fiscal hole” case. Labour says everything they can to discredit National and history proves National were right all along.

38%
×