The Government is exploring ways to free up capital locked in its investment in Chorus, to redirect into capital projects of more use to New Zealanders.
National Infrastructure Funding and Financing (NIFFCo) will investigate the feasibility of selling the debt and equity securities it holds in Chorus.
These debt and equity securities were purchased as the Crown’s funding contribution to the delivery of the Ultra-Fast Broadband initiative, that was completed in 2022.
Minister of Finance Nicola Willis says that with the completion of the Ultra-Fast Broadband initiative there is no longer a policy reason for the Crown to own these securities.
“Most New Zealanders were probably not aware the Government owns this investment in Chorus, nor feels any particular benefit from it.
“That’s why it is sensible and prudent to consider the feasibility of divestment to redirect the Government’s capital stored in Chorus into investments that New Zealanders can benefit from. . .
Prudent private individuals and businesses regularly look at their investments and consider which should be kept and which should be sold.
There are many far better uses for public money than having it tied up in Chorus.
Infrastructure Minister Chris Bishop says he has asked NIFFCo to explore the feasibility of selling the securities to private investors in early 2026, rather than waiting another five to ten years for the securities to mature. This process will be done with oversight from the Treasury.
“If such a sale gains approval and goes ahead, the proceeds would return to the Crown and the cash would be made available for capital allocations – that’s hospitals, schools, and roads – in Budget 2026.
“That means Kiwis reaping the benefits of jobs, infrastructure and growth sooner.” .
The government shouldn’t stop divestments with Chorus.
It would be difficult to sell Landcorp as a going concern but individual farms could be sold one by one.
Quotable Value and Kordia are other businesses that don’t need to be owned by the government and there will be others that could be sold partially or entirely to free up money for infrastructure.
Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.
4 comments:
Sure - give an iwi first right of refusal on all these taxpayer owned assets, receive a fraction of their market value and hold no one accountable.
Ele, your logic makes sense it’s the reality of how these divestments will play out that will help to kill this country.
Government investment in Corus has resulted in the creation of world-class fibre infrastructure. Now its time for that investment to be cashed up and recycled into new projects for the benefit of the nation. The infrastructure asset doesn't go away. The loans made to Chorus are simply repaid decades early and the funds recycled into new infrastructure assets for the benefit of the nation. That's not an asset sale. That's how you get two sets of infrastructure for the price of one. Sounds like a pretty good deal to me. But that's what you get when your PM is an experienced businessman, not an ideological troll with no comprehension of how bookkeeping works.
I'll go with kill. How did selling strategically important assets like banks and electricity companies work out for kiwi battlers?
I'm sure the Chinese would be interest. What could possibly go wrong.
I'm no socialist and generally I'm against government interference in industry, but there are some industries that are too important strategic assets for them to be allowed to fall under foreign control
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