Gallagher Martin: Questions for Oral Answer — Questions to Ministers Questions to Members 
Gallagher Martin: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:642;Page:12343] 
3.  
MARTIN GALLAGHER (Labour—Hamilton West) 
 to the  
Minister for State Owned Enterprises 
: What reports has he received on the performance of State-owned enterprises? 
Hon Dr MICHAEL CULLEN (Leader of the House) 
 on behalf of the  
Minister for State Owned Enterprises 
: The Minister has seen a number of reports showing that State-owned enterprises have generated net profits of more than $500 million in the last financial year. Over $400 million of this has been paid in dividends and over $100 million has been reinvested into New Zealand’s infrastructure. 
Martin Gallagher 
: Has the Minister seen any reports purporting to suggest ways to improve the performance of State-owned enterprises? 
Hon Dr MICHAEL CULLEN 
: The Minister has seen three. One was from Mr Bill English proposing that New Zealanders—by and large wealthy New Zealanders of course—can buy shares in these assets which currently all Kiwis own. That is what State-owned enterprises are. He has seen another report from Gerry Brownlee in the same publication proposing to sell Landcorp but retain Transpower but saying nothing about the other 15 State-owned enterprises. Clearly the leader of the National Party does not agree with a slow-burn fire sale; he is saying: “Now we’re listening to the public … we know they don’t want to … sell assets and we understand that”. 
Gerry Brownlee 
: Does the Minister accept that with the assets of all the State-owned enterprises being valued at some $20 billion the dividend of $400 million represents a return of only 2 percent; if so has he thought of taking the advice of the Hon Trevor Mallard who suggested in March this year that some of the assets might well be sold except of course for Kiwibank in which he could invest some of the proceeds for a staggering 8 percent return on his money? 
Hon Dr MICHAEL CULLEN 
: What the member seems to ignore is the substantial profits retained by State-owned enterprises for reinvestment in growth and development. Normally the Opposition members are complaining about the level of profit gouging by the State-owned electricity generators— 
Gerry Brownlee 
: Yes. 
Hon Dr MICHAEL CULLEN 
: He says: “Yes.” Having just asked that question he now says that the State-owned electricity generators which are the largest part of the actual State-owned enterprise portfolio are taking too much profit out of the system. 
Gerry Brownlee 
: That’s right. 
Hon Dr MICHAEL CULLEN 
: He says: “That’s right.” I rest my case. We do not need two National MPs for a contradiction; one will do. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. 
Madam SPEAKER 
: I remind members that points of order are heard in silence. 
Gerry Brownlee 
: My point of order is probably a borderline point of order. The Minister has to answer the question and the fundamental question which he failed to answer was why it was OK for Trevor Mallard to propose asset sales but not anybody else. 
Madam SPEAKER 
: The Minister did address the questions. Also as the member knows when there are interjections they often occasion responses as part of the answer.