Joyce Steven: Mixed Ownership Model Bill — Second Reading 
Text is incorporated into the Bound Volume 
Joyce Steven: Mixed Ownership Model Bill — Second Reading 
[Sitting date: 14 June 2012. Volume:680;Page:2998. Text is incorporated into the Bound Volume.] 
Hon STEVEN JOYCE (Minister for Economic Development)  
on behalf of the  
Minister for State Owned Enterprises 
: I move  
That the Mixed Ownership Model Bill be now read a second time 
. This bill—and this debate—is about three things: it is about controlling our nation’s debt it is about strengthening New Zealand’s capital markets and it is about providing funding for new high-priority infrastructure projects. 
No nation can afford to let debt get out of control. Huge debt is at the core of why countries like the United Kingdom Ireland Spain Italy and Greece are being forced to impose tough measures on their citizens. We do not want that for New Zealand. I ask those on the other side of the Chamber why they would seek to expose this country to more risk and more debt than we need to in volatile world markets. The National-led Government is committed to getting on top of debt protecting and growing our economy and keeping it safe for New Zealanders from the debt-ridden troubles plaguing other countries. Our mixed-ownership policy is part of a wider economic programme to reduce debt increase savings and get our country through one of the worst economic crises the world has seen in 100 years. It is also a key part of our post-election plan and our business growth agenda. 
 It is very important to point out that we have guaranteed that the Government will always own at least 51 percent of these companies and will prevent any other shareholder from owning more than 10 percent. That will ensure widespread New Zealand investment. It is written into this bill and all of the Opposition approach on this is to ignore those simple facts—at least 51 percent Government ownership and no other shareholder able to own more than 10 percent. It is written into the bill. This partial share Government float programme will also help reinvigorate New Zealand’s capital markets and bring stronger commercial disciplines to each of the mixed-ownership model companies. 
The Government has been up front with New Zealanders over our decisions in this matter. We have talked about it for 18 months. We took it to the country last November. We sought and we obtained a mandate. The consultation process that has happened since then has included 10 hui which were held around the country earlier this year. The Finance and Expenditure Committee travelled to hear submissions and all submitters have had their views considered. 
The opponents claim this legislation will increase power prices. Well under this Government there is now a more competitive electricity market than ever before. In the 7 months to February 306000 customers switched providers to get cheaper prices. That market regime is in place and it is not affected by the minority ownership of these mixed-ownership companies. 
This Government and this Parliament have a duty to future generations to control our debt which is projected to increase to about 30 percent of GDP in the next few years. This programme is expected to raise between $5 billion and $7 billion to invest in high-priority infrastructure that will help grow our economy important social infrastructure like schools and hospitals. That is $5 billion to $7 billion we would otherwise have to borrow from overseas lenders. These share floats will provide a minority stake in some of our State-owned enterprises to enable the investment and to enable this country to go forward. This is good economic management. 
The four energy State-owned enterprises’ dividends—because this will undoubtedly come up—have averaged about 4.1 percent over the last 5 years which compares with the cost of new debt for the same period of around 5.2 percent. That is the reality. This arrangement makes strong fiscal sense. The future profitability of these companies which some private shareholders will get to participate in through their dividends will be captured in the eventual sales price. So the country gets the cash up front which makes a lot of sense in these difficult times. 
This Government understands the fiscal risks the world is facing. We are not afraid to make the right decisions to protect New Zealand from the world’s financial crisis. Opposition members will now posture they will exaggerate and they will claim that it is rushed that it is happening too quickly that it is losing money and that it is not needed. They are all wrong on all counts. They are politically posturing and not thinking of the long-term future of this country. Unfortunately—[ 
Interruption 
] 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: Order! I will stand. Can I just remind members on my extreme left that they should look at Speakers’ ruling 60/5(1) which states that interjections are to be rare and reasonable. 
Hon STEVEN JOYCE 
: They are politically posturing and not thinking of the long-term future of this country. Unfortunately it is entirely consistent with their approach where they oppose any move including this one to strengthen the New Zealand economy. They oppose moves to strengthen the country’s accounts and to invest in New Zealand’s future. They oppose the mixed-ownership model. They oppose frankly not just our investment in schools and hospitals; they have opposed broadband investment they have opposed our transport investment they have opposed the irrigation investment they have opposed the new convention centre they are opposed to oil and gas they are opposed to foreign investment and they are opposed to the  
The Hobbit 
 movies. They oppose everything that will give the New Zealand economy an opportunity to get ahead. They are playing politics with New Zealand’s security. They are playing politics with New Zealand’s future. 
This Government has its eye on the ball. This Government is focused on jobs on growth on the financial security of New Zealanders and on investing in our future. Over the next few weeks the Opposition will continue to see how challenging the world is financially. The Mixed Ownership Model Bill is a part of this Government’s wider economic programme which will help to control debt increase savings control spending strengthen our capital markets and get our country successfully through the worst financial crisis the world has seen in nearly a century. I would like to acknowledge the fine and sterling work of the Finance and Expenditure Committee and I would like to commend this bill to the House.