Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 17 July 2012. Volume:681;Page:3538. Text is incorporated into the Bound Volume.] 
7. 
Hon CLAYTON COSGROVE (Labour) 
 to the  
Minister for State Owned Enterprises 
: Is he concerned about the potential loss of revenue from the float of Mighty River Power due to market uncertainty around water rights? 
Hon TONY RYALL (Minister for State Owned Enterprises) 
: 
 Securities regulations prevent me from commenting directly on the likely proceeds from any individual float. What I can say is that the Government is neither concerned nor surprised by the discussions around water. We have always expected a claim to the Waitangi Tribunal and have always acknowledged the likelihood of court action. The Government has prepared for and is working through these expected issues step by step and we will continue to do this as we work towards the float which will help us control debt and allow us to keep investing in the New Zealand economy. 
Hon Clayton Cosgrove 
: Has he received or sought any advice from Treasury on the effects of market uncertainty on potential revenue from the sale of Mighty River Power potential costs to the taxpayer from compensation for water claims and potential losses for the taxpayer from withholding or buying back shares for settlement; if so what is that advice? 
Hon TONY RYALL 
: Certainly there is a long list of things there but no we have not sought any advice from Treasury in respect of the issues of what the member describes as market uncertainty. But I would have to say that if there was this issue of market uncertainty that the member talked about then that would have impacted on the already listed energy companies. I am advised there has been no material impact on the share prices of the existing listed energy companies over the course of the Waitangi Tribunal hearing. For example Contact Energy shares were priced at $4.70 on 7 February when the claim was lodged and traded at $4.81 at the close of trading yesterday and Tauranga-based TrustPower was trading at $7.05 on 7 February when the claim was lodged and traded at the close of trading yesterday at $7.72. 
Hon Clayton Cosgrove 
: Why did he not heed the warnings from numerous submitters during the consultative hui process in February the hundreds of submissions during the select committee hearings and public warnings by Treaty experts lawyers and economists that stated the issues around water needed to be resolved prior to the planned share offer? 
Hon TONY RYALL 
: Those comments were to be expected and the Government has planned for them. The fact is we are working through the issues step by step. These were to be expected and the Government is prepared for them. 
Hon Clayton Cosgrove 
: Given that his Government has been aware of the uncertainty around water rights for months why did his Government book the proceeds from selling the assets before they were sold? 
Hon TONY RYALL 
: I am sure the Government did what was appropriate for the rules at the time. I think what they certainly indicate is that this Government did receive a mandate from the people of New Zealand for this programme which is about controlling debt and continuing to invest in our economy. 
Hon Clayton Cosgrove 
: Why does he not delay the selling off of Mighty River Power until the water issues have been resolved so that the value of that asset can be clarified? 
Hon TONY RYALL 
: I think I have indicated to the House previously that the current issues before the Waitangi Tribunal are having no impact on the already existing hydroelectricity and energy companies on the New Zealand Exchange. But the member needs to be very clear that the Government has prepared for and has expected the various issues that are coming up at this time. The important thing is that the Government does want to move apace to make sure that we have those funds to help control debt and to invest in important things like schools roads and hospitals.