Asset sales cost taxpayers $871M - Greens

  • 28/08/2015
Asset sales cost taxpayers $871M - Greens

By 3 News online staff

The state asset sell-off of three New Zealand energy companies has meant the taxpayer is almost $900 million worse off, the Green Party says.

It has studied data from the financial statements of Genesis, Mighty River Power and Meridian Energy which they say shows the partial privatisation project which was meant to help the Government coffers, has actually hurt it.

"If the Crown still owned 100 percent of these companies, taxpayers could collectively have earned another $381 million this year alone and a whopping $775 million since the selloff," energy spokesman Gareth Hughes says.

Along with the $96 million of costs associated with the sale process, including bonus shares for private investors, the New Zealand taxpayer is $871 million worse off, Mr Hughes says.

Today, Might River Power reported making a new after tax profit of $46 million, which was $165 million lower than the previous year.

The state asset sale saw the company listed in 2013, and today said its operating earnings fell 4 percent to $482 million for the year ended June 30.

However, it says it was a "robust result" because hydro-generation was 17 percent below average.

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