Shearer David: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Shearer David: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 24 October 2012. Volume:685;Page:6110. Text is incorporated into the Bound Volume.] 
2. 
DAVID SHEARER (Leader of the Opposition) 
 to the  
Prime Minister 
: Does he stand by his statement on asset sales “It’s a minor delay but in the overall scheme of things sometimes the longest way home is the fastest way home”; if so is he still confident that his asset sales schedule is on track? 
Rt Hon JOHN KEY (Prime Minister) 
: 
 Yes. The Government’s share offer programme is completely on track. Between March and June next year we intend to offer shares in Mighty River Power while still holding at least 51 percent of the company. We always expected legal action from the Maori Council and in fact it is better that this is happening sooner rather than later. 
David Shearer 
: Has he read any reports to his Government about the progress of asset sales and privatisation plans of other Governments? 
Rt Hon JOHN KEY 
: No from memory. 
David Shearer 
: Mr Speaker—[ 
Interruption 
] 
Mr SPEAKER 
: Order! I want to hear the question of the Leader of the Opposition. 
David Shearer 
: Has he seen advice that shows that in Portugal Ireland Greece and Spain where asset sales are required as part of bailout packages sale processes have largely stalled because anticipated revenue was not raised? 
Rt Hon JOHN KEY 
: I cannot talk too much about the economics in Greece other than to say that I am pretty convinced that Labour the Greens and New Zealand First would probably turn us into Greece. But what I can say is just because there has been a global financial crisis which the Opposition seems to remember now but never remembers when it is asking every other question about what has been happening in the last 4 years actually the Dow Jones— 
David Shearer 
: I raise a point of order Mr Speaker. That was a pretty straight question I have to say. 
Mr SPEAKER 
: The member’s point is reasonable. The Prime Minister was asked whether he was aware of certain asset sales programmes in a range of countries. Just to refresh the Prime Minister’s memory I invite the Leader of the Opposition to repeat his question if he could. 
David Shearer 
: Has he seen advice that shows that in Portugal Ireland Greece and Spain where asset sales are required as part of bailout packages sale processes have largely stalled because anticipated revenue was not raised? 
Rt Hon JOHN KEY 
: Well the answer now is maybe because Clayton Cosgrove is holding something up. I think it was his application to become leader. 
David Shearer 
: Is the Prime Minister aware that Kurdistan recently postponed selling its State-owned mobile network Russia recently cancelled three State privatisations Hungary is preparing to renationalise a gas company and Croatia has cancelled selling off its State bank? 
Rt Hon JOHN KEY 
: No but now it is all starting to become clear where Labour is getting its economic policies from! 
Michael Woodhouse 
: Why is it important that the share offer programme goes ahead? 
Rt Hon JOHN KEY 
: It is important firstly because the Government can use the proceeds of the share offer to invest in new public infrastructure without having to borrow so much to do so. This is exactly the same situation as in 2005 when the previous Government took $600 million from the sale of publicly owned asset Southern Hydro and used it to invest in roads. The share offer also gives New Zealand savers the opportunity to invest either directly or indirectly in big New Zealand companies and being publicly listed will be good for the companies themselves. 
David Shearer 
: Has the Prime Minister seen the Privatization Barometer report that noted in 2011 at least 215 initial public offerings totalling a record $44 billion were withdrawn worldwide—most either cancelled or delayed until some time in 2015? 
Rt Hon JOHN KEY 
: No but what I have seen is a report—I cannot recall whether it is from the IMF or the World Bank—that basically looked at countries that over the last 20 or 30 years had involved themselves in partial privatisations or the mixed-ownership model and what it showed was that there were literally tens of thousands of them and by the way if the argument of bringing a company to the market is such a bad idea in New Zealand why did it work so well for TradeMe? 
David Shearer 
: I raise a point of order Mr Speaker. That was also a specific question about 2011 not some ancient history— 
Mr SPEAKER 
: Order! I think the Prime Minister did actually answer the question. He went on to add a little more information which was reasonable for a while but then it got unreasonable at the end. 
David Shearer 
: Is he comfortable being in the company of Spain Greece and Portugal the only countries still contemplating sell-offs or does he think that now is the right time to sell off New Zealand’s assets? 
Rt Hon JOHN KEY 
: I do not believe that the member is correct. I do believe bringing these companies to the market through the mixed-ownership model is a good sound economic approach and actually I think it will deliver a better result for New Zealand without having to borrow more money. I know the member’s policies are to print money and borrow money but— 
Mr SPEAKER 
: Order! 
David Shearer 
: Is it his aim in selling off assets to maximise return to the New Zealand taxpayer or given that the value of shares is likely to slump as a result of the sales to give enormous bargains to those buyers rich enough to buy shares? 
Rt Hon JOHN KEY 
: The member will be aware because of the Securities Act that I cannot offer a comment on whether the share sales are likely to be successful or not. What I can say is that if one goes and looks at TradeMe as an example one will see it was brought to the market under what can really only be described as the mixed-ownership model and that has proven to be very successful. I think if one also looks at the number of KiwiSaver accounts the New Zealand Superannuation Fund the other pension funds in New Zealand and mums and dads looking for investments one will find those to be attractive investments. We know that Labour was happy for them to pour their money— 
Mr SPEAKER 
: Order! The Prime Minister has no responsibility for Labour. 
Hon Trevor Mallard 
: I raise a point of order Mr Speaker. I ask the Prime Minister to table the advice that indicates— 
Mr SPEAKER 
: Order! The member knows he cannot do that. 
Michael Woodhouse 
: What reports has he seen on any alternative approaches to paying for new public infrastructure? 
Rt Hon JOHN KEY 
: I am aware of a couple of approaches. One is simply to go out there and print money in the misguided belief it will make a country wealthy. Today I have with me actually a $500 million Zimbabwean note. Members might be interested to know that when this was issued in May 2008 you needed 100 of these to buy— 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. The Prime Minister did that same trick the other day. It was not relevant to the answer then and it is not now. 
Mr SPEAKER 
: On this occasion the Prime Minister was asked what reports he had seen of alternative approaches to paying for State assets and the Prime Minister answered that the printing of money was one such proposal and was giving an example of the possible outcomes of that. I do not see that as being—so long as he does not go on too long—out of order in respect of the question asked. 
Rt Hon JOHN KEY 
: As I say one option is to print money and you would have needed 100 of these when it was printed 100 $500 million notes to buy an egg—poached boiled fried scrambled or any other way. The other option— 
Kevin Hague 
: I raise a point of order Mr Speaker. How long is too long? 
Mr SPEAKER 
: I think in fairness the Prime Minister had just finished. The Prime Minister was asked what reports he had seen. He may continue as long as he is not going to go on too much longer— 
Rt Hon JOHN KEY 
: The second approach I have seen is to go out and borrow $5 billion to $7 billion at a time when countries around the world are trying to reduce their debt. We know that that policy belongs to the big-spending big-promising— 
Mr SPEAKER 
: Order! That is sufficient. 
Te Ururoa Flavell 
: Tena koe Mr Speaker. Kia ora tatou. Has the Prime Minister had any positive responses at all from iwi Maori to indicate satisfaction with the consultation process over asset sales and can he provide examples of that to this House? 
Rt Hon JOHN KEY 
: I have not directly asked that question but what I have seen are reports that state as part of the consultation that was undertaken the belief of some iwi that if “shares plus” had been adopted it actually would have been a negative step for Maori.