Labour on assets buy back

August 27th, 2014 at 2:00 pm by David Farrar

Stuff reports:

Labour leader David Cunliffe has refused to confirm if his party is planning to buy back state-owned assets sold by National.

In a confusing exchange with reporters today, Cunliffe first said the party would “be saying more about that before the election.” 

Asked to clarify if voters could expect the party to set out a position before polling day next month, he replied:  “No, I haven’t said that.”

But he later appeared to back-track, saying: “They will certainly know before they cast their vote.”

God knows what that means.

Another story suggests that their bribe to get Winston on board will be $100 million a year to buy “assets”. Basically this means the politicians will be playing the stock market with our money. It won’t even be in a professional investment fund. If Labour win, then Cunliffe and Peters will decide on our behalf to buy shares in maybe Contact Energy, maybe Xero, maybe Kathmandu, maybe Woolworths. It will just be a giant slush fund, run by politicians.

If they think they are so good at playing the sharemarket, they should borrow against their homes, and invest with their own money.

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17 Responses to “Labour on assets buy back”

  1. rangitoto (247 comments) says:

    Shares are very highly priced at present. I will stay away.

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  2. Redbaiter (9,102 comments) says:

    “If they think they are so good at playing the sharemarket, they should borrow against their homes, and invest with their own money.”

    Exactly right.

    Nick smith, are you reading this???

    http://www.beehive.govt.nz/portfolio/environment

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  3. Lindsay Addie (1,529 comments) says:

    DC’s explanations sometimes bear an uncanny resemblance to those of Sir Humphrey Appleby on Yes Minister. :)

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  4. ldypen (40 comments) says:

    It’s very simple don’t you know.. Cu?Life means YEAH-NAH!

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  5. polemic (460 comments) says:

    The echo’s ringing across the water were heard…..

    From the ever Illustrious HMNZS Co-Boat

    Yeah -Nah………….. Yeah-Nah

    Rear Admiral Cunners to Commodore Norman Yeah we have to do this to buy Winnie

    Commodore Norman to Rear Admiral Cunners Nah we will just get a boat like the Nats :roll:

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  6. polemic (460 comments) says:

    I say Commodore Norman why are they disappearing into the distance with hardly a ripple…

    …. and Air New Zealand never made any money or a profit through partial privatisation so we should buy them back. Yeah

    Nah said Cunners why dont we just get onto something thats not working for them – Now let me think!!

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  7. queenstfarmer (782 comments) says:

    So Labour will either be:

    (a) exchanging an asset of $100m cash for $100m of shares; or

    (b) borrowing $100m cash to exchange for $100m of shares; or

    (c) a combination of the above.

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  8. ROJ (121 comments) says:

    The exchange will not be $100 million of cash, however sourced, for $100 million of assets.

    With the sudden supply of money, the price paid will end up $100 million for (say) $80 million of assets.

    They again demonstrate they don’t understand markets.

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  9. wreck1080 (3,923 comments) says:

    Labour did say this…

    “”With falling demand for electricity, prices should be going down. Instead prices are going up and companies are extracting excess profit,” he said.”

    Isn’t this at least true?

    The NZ wiseheads built the only competitive market in the world where prices increase when demand drops.

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  10. jcuk (693 comments) says:

    If they have the courage of their convictions they would just nationalise the power companies without recompense … that would set the cat among the pigeons. :)

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  11. srylands (410 comments) says:

    “”With falling demand for electricity, prices should be going down. Instead prices are going up and companies are extracting excess profit,” he said.”

    Isn’t this at least true?””

    No not necessarily. It depends on what has happened on the SUPPLY side. A quick look at the attached data suggests that prices have been increasing (albeit MUCH slower than the period 2000-08) at least partly to recover lines investment.

    If demand is (marginally) falling, then retail prices will – other things being equal – be lower than if demand had been increasing. That does not mean that prices will fall year on year.

    What is clear is that if a regulator (government) forces prices down below a market clearing price, either electricity will need to be rationed, or there will be blackouts.

    http://www.med.govt.nz/sectors-industries/energy/energy-modelling/data/prices/electricity-prices

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  12. Liberty (267 comments) says:

    There is a problem with the current labour leader buying his own.
    Only lives in a do- up and likely to be unemployed in a few weeks.

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  13. greenjacket (466 comments) says:

    Wreck1080 said: “Labour did say this…“”With falling demand for electricity, prices should be going down. Instead prices are going up and companies are extracting excess profit,” he said.” Isn’t this at least true?”
    .
    Err no. Cunliffe is telling lies Wreck1080.
    Look it up yourself – the electricity company financial statements are online.
    Prices have gone up because transmission costs have increased.
    Meridian made a $162m profit on a net asset valued at $5070m – that is to say a return of 3%.

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  14. thedavincimode (6,800 comments) says:

    In a confusing exchange with reporters today

    cunners’ steady state condition.

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  15. IGM (423 comments) says:

    This poor apology for a wimp is becoming a bigger fiscally dyslexic goose by the day.

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  16. dishy (248 comments) says:

    Who can forget this?

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  17. insider (1,028 comments) says:

    @ greenjacket

    but doesn’t the government and the community own most of and regulate prices for all those lines monopolies? If so, what does that suggest might happen if retail is regulated too…

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