Peters Winston: Questions for Oral Answer — Questions to Ministers 
Peters Winston: Questions for Oral Answer — Questions to Ministers 
[Volume:619;Page:14726] 
6.  
Rt Hon WINSTON PETERS (Leader—NZ First) 
 to the  
Minister of Finance 
: Does he have any interest in the recently announced sale of Powerco to Australian interests? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 I assume the member is not referring to a pecuniary interest! Yes I certainly find it encouraging that Australian investors are showing an interest in the New Zealand economy but any comments on the particular merits of that proposal would be inappropriate because I would have to consider it under the Overseas Investment Act. 
Rt Hon Winston Peters 
: Has the Minister read the Powerco board chairman’s speech to the company’s annual general meeting in which he states: “The time is looming when electricity supply availability and system reliability will become a severe constraint on economic growth for the country.”; and does he not think it is a matter of great concern that such an important infrastructural asset is now in the hands of majority 
foreign ownership? 
Hon Dr MICHAEL CULLEN 
: It is not yet because the sale is subject to Overseas Investment Commission approval and because it involves sensitive land it will actually come to Ministers. But I cannot comment further on that. On his primary point around concerns about power supply yes I do agree with him but I tell him he will not have to wait too long for some good news. 
Jeanette Fitzsimons 
: Is the Minister aware that the first privately owned lines company in New Zealand United Networks milked profit from the lines but failed to maintain them so Coromandel businesses and residents suffered frequent prolonged blackouts over the Christmas period; and how can he be sure that that Tranz Rail - like situation will not happen again to our power lines? 
Hon Dr MICHAEL CULLEN 
: It would be nice to pretend that if New Zealanders owned the lines they would necessarily be better owners from a public perspective; I am afraid that is not demonstrated historically. But I refer the member to the Electricity Commission and to the legislation passing through the House which is a major move to ensure there is not a repetition of that kind of failure. 
Rt Hon Winston Peters 
: As a matter of principle how does it advantage this country’s balance of payments crisis to have a very high returning asset like Powerco now in the hands of not a savings fund that we are saving for in respect of retirement but again a foreign-owned operation—given that Telecom which is a good example is about to repatriate in excess of half a billion dollars off shore to its shareholders? 
Hon Dr MICHAEL CULLEN 
: In the case of the latter the level of New Zealand ownership of Telecom now is considerably higher than it has been previously and indeed the level of New Zealand ownership of the New Zealand market in general has risen quite substantially over recent years. Foreign ownership has declined from 60 percent to 40 percent. 
Rt Hon Winston Peters 
: 50. 
Hon Dr MICHAEL CULLEN 
: No it is about 40 percent. It is also worth noting that not a single major business investment proposal has been turned down by the Overseas Investment Commission since 1984 which includes the period when the member was the Minister in charge. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. I missed what the Minister said at the end there because of some chat on my right. Could he just outline the comparison with the period post-1984. 
Mr SPEAKER 
: Could the Minister just repeat the last part of his answer. 
Hon Dr MICHAEL CULLEN 
: Not a single major investment proposal on the business side as opposed to the land purchase side has been turned down since 1985 which includes the period when the member as Treasurer was the Minister in charge.