National's asset sales just transfer wealth to the rich

The Alliance Party says the proposed partial sale of some SOEs by the National Government would simply be a transfer of wealth from all New Zealanders to a small group of the wealthy and overseas corporations.

Alliance Economic Development Spokesperson Quentin Findlay says the Prime Minister's claims that partial privatization would benefit ordinary ‘Mum and Dad’ investors were without substance.

"In reality the lion’s share of the proceeds of any privatization will go to Uncle Scrooge, not Mums and Dads."

Mr Findlay says that most investments in former asset sales came from large corporations, agencies or rich individuals rather than small investors.

Mum and Dad investors already owned the assets in question through public ownership.

National's asset sales proposals were there to test the waters for public response so it was important that New Zealanders spoke up now in opposition.

The asset sales of the 1980s and 1980s were the most fundamentally stupid decisions ever made by New Zealand Governments, Mr Findlay says.

The sales had the effect of New Zealanders losing control over the assets in question as ownership moved into private hands and then, often, offshore.

It increased private debt and led to mass capital underinvestment, he says.

“When Telecom was a state owned company it had up to date technology, but private ownership has made it a walking joke. Air New Zealand nearly collapsed as did New Zealand Rail, which required them being both being brought back into public ownership.”

Mr Findlay says that state investment in productive areas of the economy needed to be increased and economic policy changed.

The tax base to fund significant economic development could come from a more graduated tax system and the introduction of a Financial Transactions Tax.