Bennett David: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeBennett David: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 02 July 2013. Volume:691;Page:11716. Text is incorporated into the Bound Volume.]1.DAVID BENNETT (National—Hamilton East)to theMinister of Finance: What are the advantages of using proceeds from selling minority shareholdings in energy companies to buy new public assets instead of borrowing that money from overseas lenders?Hon BILL ENGLISH (Minister of Finance):Very significant advantages. In the case of the share sales programme the Government is swapping one asset—that is a minority stake in an energy company which it can only hold and collect dividends—for another asset which is cash which it can use for all sorts of purposes. Over the entire programme we expect to free up between $5 billion and $7 billion of cash as a replacement for the asset that we are selling. This will be invested in schools hospitals irrigation schemes the rebuild of Christchurch and other infrastructure projects. The alternative is to borrow the money from overseas bankers rather than get it from New Zealand savers.David Bennett: How are proceeds from the share sales programme being allocated to reinvest in other priority public assets?Mr SPEAKER: Order! The level of interjection coming from this side of the House is excessive. Could it please be toned down.Hon BILL ENGLISH: The Government has set up the Future Investment Fund. The money going into that fund comes mainly from New Zealand savers who have had the opportunity and chosen to invest in large New Zealand companies. The Opposition despises them for this but we think it is good for the country. The Future InvestmentFund will show transparently where that money is going and it is going to other public assets.David Bennett: What investments in new public assets has the Government so far confirmed will be made from the Future Investment Fund using proceeds from the share offer programme?Hon BILL ENGLISH: As the Opposition has pointed out it is amazing just how many new public assets you can procure. Last year’s Budget allocated $33.8 million for modernising schools $250 million towards a KiwiRail Turnaround Plan $88 million for health sector capital and $76 million for the new Advanced Technology Institute. This year’s Budget allocated $426 million for the Christchurch and Burwood hospitals $50 million to speed up the School Network Upgrade Project $94 million for the 4th year of the KiwiRail Turnaround Plan $80 million for irrigation projects $700 million in contingencies for projects such as new schools in Christchurch Christchurch’s justice and emergency services precinct and supporting Canterbury’s tertiary institutions to recover from the earthquake. The Government also agreed that over the life of the fund $1 billion will be allocated to other health capital projects.Rt Hon Winston Peters: I raise a point of order Mr Speaker. Unusually I am seeking leave for an extension of time so the Minister can outline the other hundred projects the money is going on as well.Mr SPEAKER: Order! That is not a helpful point of order.Hon Clayton Cosgrove: Does he stand by his statement yesterday that the forecast $5 billion to $7 billion raised from asset sales will pay for “almost all of those promises” including Kiwibank irrigation schemes schools and hospitals the rebuilding of Christchurch KiwiRail paying down Government debt and building the City Rail Link which totals up to a grand total of $84 billion; if so does he agree that asset sales cash is the National Government’s version of printing money?Hon BILL ENGLISH: No I disagree with that and it just shows how little respect the Labour Party has for New Zealand’s savers. We did not print the money; they saved it from their hard-earned weekly wages and decided to invest in it. If the Labour Party cannot tell the difference between that and the Greens’ mad scheme to print money it will never be the Government.Hon Clayton Cosgrove: I raise a point of order Mr Speaker. It is a simple point of order. Given the noise I just want it confirmed: is the Minister disagreeing with the statement he made yesterday?Mr SPEAKER: Order! If the member listened he would have heard that the Minister said he disagreed with that right at the start.Hon Annette King: Well you couldn’t hear.Mr SPEAKER: Well I could hear it on this occasion.David Bennett: How does New Zealand’s approach to investing in new public assets while limiting extra debt compare with approaches in other countries?Hon BILL ENGLISH: Although some regard this idea as extreme in fact it is very common around the world. The following OECD countries have Governments that partially own companies that are floated on the stock exchange: Austria Belgium Chile the Czech Republic Finland France Greece Japan Korea Norway Poland Slovenia Switzerland and the United Kingdom. Unfortunately the Labour Party models itself on Albania which does not have any of these sorts of companies.