Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
[Volume:671;Page:18182] 
1. 
Hon CLAYTON COSGROVE (Labour—Waimakariri) 
 to the  
Minister for State Owned Enterprises 
: Why is the Government proposing to sell shares in State-owned enterprises? 
Hon TONY RYALL (Minister for State Owned Enterprises) 
: 
 No decision to sell shares has been made. Treasury is providing advice on whether extending the mixed-ownership model can meet the five tests that the Prime Minister has already outlined: retaining majority control by the Government prioritising New Zealand shareholders providing good investments using capital to purchase other public assets and limit debt increases and protecting New Zealand consumers. 
Hon Clayton Cosgrove 
: Does he agree with Treasury advice that “there is  
little 
 evidence to suggest that privatisation would  
significantly 
 improve the financial performance of many of the SOE companies.”; if not why not? 
Hon TONY RYALL 
: No I do not agree with that advice; because when one looks at what the Government may be considering in the future one can see that it is not a reflection of what that evidence may have been based on. 
Hon Clayton Cosgrove 
: Given that he does not accept Treasury’s advice on improving the performance of State-owned enterprises whose advice is he taking or can we assume that his proposals are based on ideology rather than analysis? 
Hon TONY RYALL 
: The Government has asked Treasury to provide advice on whether extending the mixed-ownership model can meet the five tests that the Prime Minister has already outlined. It is quite clear that we cannot continue borrowing at the current levels so the Government wants to look at where we can change the mix of the assets that we own. The greatest scope to change this mix lies in the Government’s commercial assets. It is crazy to remain locked into an ownership model of the past which may constrain the future of New Zealand. 
Hon Clayton Cosgrove 
: Does he agree with the statement of the previous Minister for State Owned Enterprises that the Government “will prioritise New Zealand shareholders”; if he does agree can he guarantee to the House that the bulk of any floated shares in a partly privatised State-owned enterprise will remain in the hands of Kiwi mums and dads? 
Hon TONY RYALL 
: The matter is still being scoped and advice is being provided to us by our advisers. What I can say is that there is an absolute guarantee that the Government will be retaining 51 percent ownership of any asset that the Government may consider having a public float of. 
Hon Clayton Cosgrove 
: Given that the Minister has said he has sought departmental advice on the partial sale of State-owned enterprises when does he expect to receive that advice and is he expecting that advice to contain a mechanism to ensure that State-owned enterprises stay in the hands of Kiwi mums and dads as his Prime Minister has previously stated? 
Hon TONY RYALL 
: The Prime Minister has made it absolutely clear that in the consideration that has been given to this matter ownership will be retained in the hands of the Crown to the proportion of at least 51 percent.