Do the Greens support privatisation?
October 4th, 2011 at 4:14 pm by David Farrar… encourage employees to take an ownership stake in their companies.
I absolutely agree with the Greens on this. Employee should be encouraged to become share-holders in their employers. But why should the employees of Contact Energy be able to do so, but not Meridian Energy?
Related posts:
- Kerr on Privatisation
- The Greens should support this
- Why wouldn’t left voters support the Greens?
- Hooton on Privatisation
October 4th, 2011 at 4:24 pm
Because socialists like to pick the winners and the losers – can’t have people being able to control their own destiny or they don’t vote for handouts….
Vote:October 4th, 2011 at 4:24 pm
Because Meridian Energy employees are already “shareholders” – unless they are dirty, dirty foreigners.
Vote:October 4th, 2011 at 4:26 pm
You’re making the assumption that the Greens’ job document was a rational piece of work and not a PR grab.
Vote:October 4th, 2011 at 4:27 pm
Why indeed. Nice David, you’re the man by the way. And if employees should be encouraged to be Shareholders in the companies they work for, why not other companies, why can’t every New Zealander have the same opportunity.
Vote:October 4th, 2011 at 4:43 pm
What, you mean the desire for the government to own a veritable grab-bag of companies is arbitrary and leads to bizzare policy contradictions?
No way……
Vote:October 4th, 2011 at 4:44 pm
the greens don’t know what they want, with them, it’s a case of be careful what you wish for ..
Vote:October 4th, 2011 at 4:44 pm
Employees of listed companies are generally free to purchase shares in their employers. There are a few glitches – employees cannot attend the company AGM in their own time and there are limitations as to when senior employees can buy or sell shares. In general employees with access to market sensitive information (eg sales) are not permitted to buy or sell shares except for short periods after the announcement of results.
Vote:October 4th, 2011 at 4:49 pm
I agree with Unaha. I suspect that they would argue that Meridian employees are already shareholders by virtue of being New Zealanders (except the ones who aren’t).
Indeed, perhaps what the Greens are saying is that employees of all New Zealand businesses should become shareholders in those businesses by having the government buy out their employer.
Or, rather more likely, they’re proposing to subsidise the purchase of shares by employees in their employer’s business. Should make for a nice little share price bubble, which will no doubt require regulation after it bursts.
Vote:October 4th, 2011 at 5:55 pm
becuase the greens have shown over and over again they do not understand the meaning of the word hypocrisy, and so to them this is completely logical.
Vote:October 4th, 2011 at 5:58 pm
Do they mean ‘ownership’ in that sense, or is it used as a buzzword?
Vote:October 4th, 2011 at 6:15 pm
In the best tradition of all communist parties the Luddites have always spoken with a forked tongue.
Vote:Divide and conquer is the backwards Greens’ motto.
October 4th, 2011 at 6:58 pm
Tell the useless maggots to pay their tax, then they will be shareholders of a country.
Vote:October 4th, 2011 at 7:43 pm
Boy DPF, it looks like you have become a completely tribal nat supporter – no more the more balanced blogging of a few years ago. Reminds me why I don’t check in any more.
Vote:October 4th, 2011 at 8:21 pm
The Greens are all about having different rules if you agree with them.
They believe the rules should be different for them, because they have the moral highground.
Vote:October 4th, 2011 at 8:32 pm
Oh DT you silly billy…..you just did check in…
Vote:October 4th, 2011 at 8:36 pm
The greens giving financial advice. Fuck is that allowed in the Aotearoa Workers paradise where you need a license to express an opinion about finance.
Green clowns everyone knows that people should pay down their 7 or 8% housing loans before anything else.
Vote:October 4th, 2011 at 9:43 pm
“But why should the employees of Contact Energy be able to do so, but not Meridian Energy?”
Vote:As mentioned by others above, those Meridian employees, along with every other New Zealander, are in fact already owners of Meridian. National want to take that way and give it back only to those that are prepared to pay for it again and share it with foreign owners.
October 4th, 2011 at 10:03 pm
Grandmother sellers
Vote:October 4th, 2011 at 10:20 pm
@ M@tt (and other knuckle-heads)
1. The govt is retaining 51%. This protects against strategic issues and security of electricity supply issues.
Vote:2. The govt will still receive 51% of the dividends.
3. However, if you think the govt should be in game running businesses to make makes of NZ citizens/shareholder then you’d be arguing that they should also nationalise Fonterra – but you’re not arguing that, you,re just appealing to some starry-eyed believe in owning hydro-dams.
4. If you do think we should nationalise Fonterrra then you’re an idiot, and God help us all if you were ever the PM.
October 4th, 2011 at 10:22 pm
*running businesses to make money for NZ citizens/shareholders…
Vote:October 4th, 2011 at 10:27 pm
@ minto57
“Grandmother sellers”?
How about “Grow up and join the 21st century you child”.
Vote:October 4th, 2011 at 10:39 pm
East Wellington. No, I’m simply pointing out that the people referenced in the original post as ‘unable to be shareholders’ already own part of the company and that the ‘opportunity’ to buy what they already own, is not really much of an opportunity. Nothing more, nothing less.
Vote:As for governments running businesses; as a tax payer I welcome the ability to purchase goods or services from a government owned enterprise knowing that the profit and dividends generated form my patronage goes into the public kitty where it will reduce pressure on the tax take.
October 5th, 2011 at 10:20 am
M@tt
You’re missing the point: you’d save money on interest payments, as a taxpayer, by selling down the SOEs. So it’s not as simple as saying they reduce taxation. Equally, shareholder participation is a form of objective incentive, particularly for staff incapable of manipulating the figures, as it provides an objective incentive (if you achieve more, in a real sense, your labour further benefits you beyond your immediate pay package). Doesn’t always work (some people may see their own labour as not being irrelevant and you get examples of collective action failure), but it tends to produce superior results. The real issue in NZ is that the Securities Act is very problematic for share schemes and particularly problematic for non-listed companies (as you might have to register a prospectus, even for a small company).
So while I agree with David, the Greens aren’t actually interested in reforming the necessary laws to produce a more meritocratic society (either generally or in the case of SOEs).
Vote: