Parker David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeParker David: Questions for Oral Answer — Questions to Ministers[Sitting date: 02 July 2013. Volume:691;Page:11556. Text is incorporated into the Bound Volume.]6.Hon DAVID PARKER (Labour)to theMinister of Finance: How much have investors lost on the value of their Mighty River Power shares compared with the price at float on May 10 and what effect will this have on the price the Government expects to receive if it proceeds with the partial float of Meridian?Hon BILL ENGLISH (Minister of Finance):The market price of the shares has declined about 10 percent but investors who have retained their shares of course have not lost anything. They still have their shares. They are in line for significant dividends. In addition New Zealand investors will receive bonus shares if they keep their shares for 2 years. Many investors of course disappointed the Labour Party by taking a view of these shares as a long-term investment proposition and so they will retain them in order to earn the dividends and the long-term capital growth. In terms of the second part of the question about the effect on the price of Meridian Energy I do not intend speculating on future floats. As the Labour Party should know financial and political markets move around and can go through flat patches a bit like opinion polls.Hon David Parker: Will he proceed with the partial float of Meridian Energy if the money forecast to be raised is significantly less than the $3.1 billion predicted by Treasury in 2011?Hon BILL ENGLISH: Treasury has not done any accurate predictions of the value of any particular float. We have always said that we would anticipate proceeds of $5 billion to $7 billion. It is a bit rich for the Labour Party to be criticising the impact on the value of Mighty River Power shares after it set out to reduce that value and—Mr SPEAKER: Order! I do not think that is necessary to that part of the question.Hon David Parker: How can moneys raised from asset sales through the Future Investment Fund be utilised to fund the Auckland City Rail Link in 2020 when the Future Investment Fund is due to expire in Budget 2016?Hon BILL ENGLISH: Of course what happens with the Future Investment Fund will depend on what view the Government takes as it lays out subsequent Budgets and we get the proceeds from the sales because the timetable for the sales is going to be flexible as well. But the general point is correct—we are selling 49 percent of these power companies. As a result of the Mighty River Power sale we have $1.7 billion in the bank which I have to say is much more use to the Government than 49 percent ownership of that company.Hon David Parker: Given that the Government has pledged the asset sales cash several times over is it true that its new economic plan is to photocopy State-owned enterprises sale proceeds to cover spending—National’s version of printing money?Hon BILL ENGLISH: No the handling of the proceeds of the asset sales is set out transparently in the Future Investment Fund as laid out in the Budget. Of course the Labour Party will have to be transparent with the public about its plans to borrow a lot more money from foreign bankers to pay for the assets that we are paying for from the proceeds of asset sales. I look forward to the transparency with which Labour sets out its extensive borrowing plans.Hon David Parker: Does he agree with the 2011 version of John Key that asset sales are necessary to avoid a credit downgrade or the late-2011 version of John Key that asset sales are necessary to fund Kiwibank or does he agree with Tony Ryall in 2012 that asset sales are necessary to pay down debt or does he agree with the 2012version of John Key that asset sales would be used to build new schools and hospitals or does he agree with Steven Joyce in 2012 that asset sales will fund KiwiRail or does he agree with Nathan Guy—Mr SPEAKER: Order!Hon David Parker: I raise a point of order Mr Speaker. This is considerably less than the length of answer that we had from Mr Joyce—Mr SPEAKER: Order! The question is now getting very very long. Would the member bring it to conclusion.Hon David Parker: Does he—I will not start again. Does he agree with Nathan Guy that it should be used for irrigation or with Gerry Brownlee that it should be used to rebuild Christchurch or with John Key that it should be used to fund the Auckland City Rail Link in 2020?Hon BILL ENGLISH: Yes because the asset sales give this Government the choice of paying for almost all of those things without borrowing from foreign bankers. What is even better is that our choices to invest in those things allow New Zealanders to invest in a large New Zealand company. I am pleased that the Labour Party finally understands all the reasons for the asset sales.