Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
[Volume:678;Page:808] 
7. 
Hon CLAYTON COSGROVE (Labour) 
 to the  
Minister for State Owned Enterprises 
: Why is there no provision in the Government’s asset sales legislation to ensure preferential treatment for individual New Zealand buyers despite the Prime Minister’s promise that “Kiwi mums and dads will be at the front of the queue”? 
Hon TONY RYALL (Minister for State Owned Enterprises) 
: 
 There is no need to include any such provision in the legislation because the Government controls which types of buyers will get the shares. During the share allocation process the Government will ensure widespread New Zealand ownership such that 85 to 90 percent of shares will be held by New Zealand investors. 
Hon Clayton Cosgrove 
: So is the Minister asking this Parliament to vote for legislation that does not include any guarantee that mum and dad investors will have the first crack at the shares and asking the public to simply trust the Government when there is no mechanism to ensure Kiwis will be at the front of the queue and the Minister knows it? 
Hon TONY RYALL 
: The people of New Zealand know that this Government is determined to ensure widespread public ownership of these companies and we will achieve that through the share allocation process. The Government has made it clear that retail investors will be at the front of the queue. 
Hon Clayton Cosgrove 
: What specific provisions are there in his legislation to limit the number of shares that could be owned by foreigners in light of his concession last week that up to 30 percent of the shares sold would end up in overseas ownership? 
Hon TONY RYALL 
: If I was to reflect on what the member is saying last week we indicated for the Government’s shareholding that we are expecting that maybe 10 to 15 percent of the ultimate ownership would be held by foreign investors. And we are determined to make sure that there is strong widespread New Zealand involvement in these share floats. 
Hon Clayton Cosgrove 
: I raise a point of order Mr Speaker. I asked the Minister what specific provisions there are in the legislation to limit the number of shares etc. It was a specific straight question—what specific provisions—and I got some gobbledegook about percentages— 
Mr SPEAKER 
: Order! The member was doing reasonably well until that point but I am afraid the point of order ran totally off the rails there. The member has asked that and the Minister has already answered that there were no specific provisions to do that. Keeping asking I do not think is going to change the answer a great deal. Does the member have a further supplementary question? 
Hon Clayton Cosgrove 
: Has the Minister seen the comments by Mr Dennis Barnes Chief Executive of Contact Energy who was reported today as saying that the return on electricity industry assets was “at a level that commercial investors shouldn’t continue to invest in” and does this reinforce the view of the vast majority of New Zealanders that selling State-owned enterprises to the private sector will result in increased power prices in order to gain increased returns? 
Hon TONY RYALL 
: There is no self-interest whatsoever in that comment from the chief executive of Contact Energy. What I would reflect is that while these companies were under 100 percent Government ownership under that party opposite electricity prices went up by 72 percent in a few years. I think that is crocodile tears from that member opposite.