Turei Metiria: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeTurei Metiria: Questions for Oral Answer — Questions to Ministers[Sitting date: 15 October 2013. Volume:694;Page:13828. Text is incorporated into the Bound Volume.]3.METIRIA TUREI (Co-Leader—Green) to thePrime Minister: Does he stand by his statement that Mighty River Power’s buy back of $50 million worth of shares is “highly normal”?Rt Hon JOHN KEY (Prime Minister): Yes. Air New Zealand for example started a share buy-back programme last year and is planning to purchase up to $45 million of its shares. Infratil is planning a $65 million share buy-back. Telecom did a $200 million share buy-back last year.Comvita did a buy-back last year. This is normal business practice and the decision is made by the board in the interests of the company and its shareholders.Metiria Turei: If Mighty River Power is charging so much for power that it has $50 million lying around and nothing better to do with it than buy back shares what action has the Government taken as the majority shareholder in the company to ensure it reduces electricity prices for families and for businesses?Rt Hon JOHN KEY: We have a very competitive electricity market in New Zealand. People are free to choose. The member is making a huge mistake in showing her complete lack of knowledge of financial markets if she wants to conflate pricing with the capital structure of the company.Metiria Turei: When power consumption in New Zealand is falling but electricity prices are rising at four times the rate of inflation such that electricity companies are using the surplus cash to buy back their own shares does he honestly believe that the electricity sector is working for New Zealand families and businesses?Rt Hon JOHN KEY: Yes. I think we have a competitive electricity sector. I say this to the member: it will be interesting to see when she goes knocking door to door to tellthe least well off families in New Zealand how much they are going to enjoy paying $500 a year for her emissions trading scheme.Metiria Turei: Can the Prime Minister confirm—[Interruption]Mr SPEAKER: Order! I have called Metiria Turei if she wants to continue with her supplementary question.Metiria Turei: Can the Prime Minister confirm that the Government as the majority shareholder in Mighty River Power prefers that it distributes $50 million in extra profits to shareholders in a share buy-back rather than lowering its electricity prices by $50 million for families and for businesses?Rt Hon JOHN KEY: Whether the company engages in a share buy-back is a matter for the board.Metiria Turei: When the Prime Minister said that he had a mandate for asset sales did he mean he had a mandate to sell strategic public infrastructure to a handful of wealthy investors and institutions who would then get to pocket the excessive profits?Rt Hon JOHN KEY: To start off in the case of Mighty River Power it is one of the most widely held shares in New Zealand. Secondly at the last election the National Party had over 1 million people who voted for it. To quote the then leader of the Labour Party—and I know you have to go back a few now but that was Phil Goff—he said that asset sales were a referendum on the election. When about 90-plus percent of New Zealanders were opposed to smacking the Green Party said well there should not be referendum and they should just ignore it.Metiria Turei: If the Prime Minister believes he has got it right and asset sales have been a success for New Zealand why will he not test that mandate by suspending the sales until after the referendum is held?Rt Hon JOHN KEY: Because in the 2011 general election virtually the entire election campaign was about the mixed-ownership model. National received the highest party vote in our party’s history under MMP. Labour—well they got buried.Mr SPEAKER: Order! The Prime Minister has adequately addressed that question. [Interruption] I have finished with the answer thank you very much.