Labour’s privatisation history with Air New Zealand

November 20th, 2013 at 4:00 pm by David Farrar

are insisting the exact right share of for the Government to own is 73%. Or alternatively they are saying it is only acceptable for the Government to increase their shareholding in , not dilute it.

Well consider their history with Air New Zealand.

  1. Labour privatized it in 1989 – selling it to Singapore owned Brierleys and Singapore Airlines.
  2. Labour bought 80% of it in 2001.
  3. Labour agreed to sell 22.5% to Qantas in 2002 – 2004
  4. Labour never reinvested the dividends so that’s why the share is down to 73% in 2013. It has been a creeping privatization since 2001. 

National has sold 20% to New Zealanders. The Clark Government tried to sell 22.5% to Qantas, who are not only foreigners (not that I care about that) but would have destroyed trans-Tasman competition!

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17 Responses to “Labour’s privatisation history with Air New Zealand”

  1. dime (9,849 comments) says:

    listen DPF, you and your facts can get back to yoghurt land!

    JK is a sleazy guy in a blue suit. Not like cunners, hes a good normal bloke

    BAHAHAHA

    great post

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  2. burt (8,232 comments) says:

    It’s different when Labour do it !

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  3. 2boyz (260 comments) says:

    When Labour did it they were thinking of all New Zealanders. When National does it, it’s looking after it’s wealthy mates. But you already knew that :)

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  4. KiwiGreg (3,244 comments) says:

    1989 “Labour” isn’t really today’s “Labour”, sadly.

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  5. queenstfarmer (768 comments) says:

    Notable also, as Fran O’Sullivan points out, that Labour squandered the chance to recoup some of the taxpayer recapitalisation:

    The true commercial reality is that the previous Labour Government passed up the chance to recover the $885 million it invested in Air NZ when it recapitalised it in 2001. If Michael Cullen had sold a 25 per cent stake when the share price peaked at $3.12 in June 2007, he would have banked at least $840 million.

    But Cullen, like Labour today, allowed politics to overshadow market realities.

    Just another example of Labour putting politics ahead of the public interest.

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  6. stigie (1,101 comments) says:

    After this seeing this post, how do they garner votes ?

    Oh forgot…. only from dumb people that like pull at heart strings bullshit !!~

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  7. burt (8,232 comments) says:

    stigie

    Believe it or not, some people still think socialism works. I know it’s mad given that it has never delivered a good long term outcome ever – but seriously… people like the idea of other peoples money and forget that last time they were promised it they ended up worse off in the long run.

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  8. iMP (2,364 comments) says:

    If Labour were in power they’d probably try sell to VIRGIN Airlines. This would create problems with their gender quotas and man bans, but several lesbians would protest, or want in, so Cunliffe would eventually settle for only 50% of the pie in the sky. The caucus would be over the Rainbow with that, I expect.

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  9. Jaffa (87 comments) says:

    They are Hypocrites, just like the Greens, that’s why they get on so well.

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  10. JC (948 comments) says:

    But what else can Labour do but play around in the dustbin? There’s no interest for nationalisation and no money for it, there’s little they can offer in the way of benefits with 50% of the population on them already. They can only go so far with the unions who represent just 17% of the workforce.. and the majority of these are public servants.

    Basically all they can do is say no to anything that advances the country and takes it further out of their reach and understanding.

    JC

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  11. Colville (2,261 comments) says:

    Jaffa.
    It took 9 comments for someone to use the H word. I was surprised it wasnt in the top 2 :-)

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  12. ex-golfer (158 comments) says:

    Stigie said:
    “Oh forgot…. only from dumb people that like pull at heart strings bullshit !!~”

    You mean the village idiot Samuel Smith and his side-kick Ross69?

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  13. stigie (1,101 comments) says:

    Yes ex-golfer, those 2 idiots love that pull at heartstrings bullshit.

    Cant see past their fucking noses !!~

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  14. Johnboy (16,059 comments) says:

    Cunliffe has a good point here. He would look a bit less like an aggravated Turtle if he could buy it back and get to dress up like a pilot like the Flight Centre guy! :)

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  15. calendar girl (1,215 comments) says:

    “1. Labour privatized it in 1989 – selling it to Singapore owned Brierleys and Singapore Airlines.”

    I don’t think that the first statement is correct. IIRC the Labour Government sold 100% of Air New Zealand to a syndicate made up of 25% Brierleys (not Singapore-owned at that stage, was it?), 20% Qantas and 20% Japan Airlines, coupled with a contractual undertaking by the syndicate that the remaining 35% would be sold to the public and that the stock would be floated on the NZ Stock Exchange. The public share sale and Stock Exchange listing duly occurred. To protect NZ’s / Air NZ’s international bilateral aviation rights, 51% “A” shares were available to NZ entities only, while overseas interests were restricted to the 49% “B” shares.

    Singapore Airlines did not come onto the scene until much later, I believe.

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  16. Nostradamus (3,244 comments) says:

    November 20th, 2013 at 4:00 pm by David Farrar

    How interesting.

    This post has been up for just under 10 hours, and no leftie (without naming the usual suspects) has commented.

    Why would that be, I wonder?

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  17. Mobile Michael (445 comments) says:

    Unlike previous versions Labour 2013 has principles. If you don’t like them they also have others.

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