Shearer David: Questions for Oral Answer — Questions to Ministers Urgent Questions 
Text is incorporated into the Bound Volume 
Shearer David: Questions for Oral Answer — Questions to Ministers Urgent Questions 
[Sitting date: 28 March 2013. Volume:688;Page:9057. Text is incorporated into the Bound Volume.] 
2. 
DAVID SHEARER (Leader of the Opposition) 
 to the  
Minister for State Owned Enterprises 
: Is it the Government’s intention to proceed with the asset sales programme? 
Hon TONY RYALL (Minister for State Owned Enterprises) 
: 
 Absolutely yes. The programme of minority share floats in a world of a deteriorating international debt crisis is a very important part of the Government’s wider economic plan to help control debt and fund important social infrastructure like schools roads and hospitals. 
David Shearer 
: Does he agree with Meridian Energy Chief Executive Mark Binns that if the Tiwai Point contract falls over power prices and State-owned asset sale values will fall? 
Hon TONY RYALL 
: I am not sure whether or not Mr Binns has made those comments. I would have to rely on what the member said. But what I would say to that member is that that is a decision that individual investors will be able to make because that information will be made available. All the material information will be made available in the offer document for Mighty River Power. That is what the Government has always said and it is an opportunity for analysts and investors to chew over the information as they are now and make whatever conclusions they want to draw. 
David Shearer 
: What is his Government’s best estimate of the loss in the value of Mighty River Power in the event of the Meridian Energy and Tiwai Point deal falling over? 
Hon TONY RYALL 
: I hope the member will appreciate that under the Securities Act Ministers are not able to speculate on the likely value of the various mixed-ownership model companies. But I would say this to New Zealanders in light of what the Leader of the Opposition has said: I would not take investment advice from anybody who has— 
Mr SPEAKER 
: Order! 
Hon TONY RYALL 
: —a couple of hundred thousand dollars in a bank account— 
Mr SPEAKER 
: Order! That answer will only lead to disorder. 
David Shearer 
: Is the Government negotiating separately with Rio Tinto and has Meridian Energy been kept fully in the loop on these negotiations? 
Hon TONY RYALL 
: As the member will appreciate the negotiations have been run by Meridian Energy up until recent times. They are continuing to discuss it this week. The Government was in contact with Rio Tinto to see what it might be able to do to bridge the gap in the short to medium term with a very moderate amount of money. The longer term is a more significant area. Meridian Energy is aware of the broad parameters of the Government’s discussions with Rio Tinto. 
David Shearer 
: In light of the last part of his answer how does his answer square with Meridian Energy’s advice to the select committee today that it has had no advice on the discussions between the Government and Rio Tinto? 
Hon TONY RYALL 
: I am not able to comment because I was not at the select committee but I am aware that Mr Binns did say in the media stand-up that they were aware of the broad parameters. We look forward to continuing to discuss those matters. This is a very very serious issue for New Zealand. The Government is determined to make sure that we can do what we can to assist those two companies to come to a mutually beneficial arrangement for the two. 
David Shearer 
: Now that the Government has intervened will it now promise to be transparent about the impact on electricity prices and State-owned enterprise sales values? 
Mr SPEAKER 
: Order! Did the Minister adequately hear that question? Otherwise I can ask for the question to be put again. 
Hon TONY RYALL 
: Yes I did hear it. I think this Government is being very transparent I would say to the Leader of the Opposition—transparent. All of these matters will be declared as material in the offer document for Mighty River Power. This is what we have said all along. These negotiations between Meridian Energy and Rio Tinto have been ongoing for 9 months. People have been very well aware of them. All material matters will be declared in the offer document. 
David Shearer 
: How many people are employed either directly or indirectly through the operations of the Tiwai Point aluminium smelter? 
Hon TONY RYALL 
: I think there are about 750 people who work at the Tiwai Point aluminium smelter and there will be other people whose jobs are dependent on that. So it is quite a serious issue. But the Government has been in touch with Rio Tinto because it recognises the seriousness of this issue to say that if there is such a small gap in the short to medium term we are prepared to see what we can do to bridge that but the gap in the longer term is significant. I want to be very clear on this: this Government is not interested in subsidising a foreign multinational in the long term. 
David Shearer 
: Does he agree with Brian Fallow who wrote in the  
New Zealand Herald 
: “It is folly to press on full steam ahead with the partial privatisation of the state-owned power companies when the future of Tiwai Pt aluminium smelter is unresolved.”? 
Hon TONY RYALL 
: No I do not agree with that. I think the New Zealand electricity market is well capable of dealing with all the issues around Tiwai Point and these contract negotiations. There is no surprise there is nothing new to this issue in terms of uncertainty. What is important is to remember what this is all about. This is all about the mixed-ownership model as part of the wider plan this Government has to control debt and to continue investing in important social infrastructure.