Labour leader Chris Hipkins has expended some of his huff and puff today to rail against Christopher Luxon for wanting to discuss something that should be discussed.
Hipkins issued a press statement to complain that Luxon had “admitted this morning he is looking at selling New Zealand’s assets” – but (we were reminded) this was something he had repeatedly said he would not do.
On the campaign trail in 2023, Luxon said asset sales were “not something we are focused on or interested in.” He’s repeated that line many times since.
True. He did make that pledge.
Whether he was prudent to make it is arguable.
In a country where there is formidable opposition to state asset sales and privatisation, such a commitment might help to attract votes.
On the down side, it crimps a Government’s Budget-balancing options.
But was Luxon ruling out asset sales for just one three-year term – or was it a longer-term commitment?
It was a commitment to be kept by Luxon “as prime minister”, according to a statement from Hipkins last month.
Under the headline National Breaks Asset Sales Promise, that statement was triggered by the prospect of Chorus being sold.
Plans to sell off Chorus breaks yet another promise Christopher Luxon made – that there would be no asset sales under his leadership.
On the campaign trail on 6 September, Christopher Luxon was asked if he can rule out asset sales as Prime Minister, saying “I’ve done that, a year or so ago. I said to you at the time there will be no asset sales. It’s not something we’re focused on or not interested in.”
PoO typed those words into our Google search engine to examine them in the context of whatever else Luxon had said.
Google steered us to just one on-line post: Hipkins’ press statement last month.
That statement did give us another steer by providing a link to an RNZ report on September 6 2023:
Christopher Luxon ruling out asset sales:
Standup, 6 September 2023, at 14:55: https://www.rnz.co.nz/news/national/497379/watch-national-party-will-deliver-10-000-electric-vehicle-chargers-by-2030-leader-says
Again, we were thwarted. That report makes no mention of asset sales.
What about Luxon’s intention to sell state assets if he is re-elected Prime Minister?
Hipkins complains in today’s press release:
But on RNZ today, he let the mask slip – saying “owning everything we own forever isn’t the right thing to do,” and that government assets “could be sold or redeployed.”
Obviously they COULD be sold or deployed.
But WILL they be sold or redeployed in Luxon’s next term (something Hipkins presumably is hoping to frustrate)?
More important, SHOULD they be sold or redeployed, and – if so – which ones?
Luxon told RNZ only that the government will “think about” possible sales of government assets.
It would be comforting – of course – to be assured the government thinks about everything it does, although there is ample evidence that too often its thinking is flawed.
But let’s get back to Hipkins, who said Luxon knows his economic strategy is failing,
“… so he’s desperate.
“He has failed to manage the books, so he is reverting to type, turning to selling off the family silverware to fill the hole in his budget.
“Selling off what little we have left [our emphasis] won’t fix the economy. It will just rob future generations and drive more young Kiwis out of the country.”
Hipkins should spend some time reading the Financial Statements of the Government of New Zealand for the year ended 30 June 2025
These record state assets valued at $598 billion.
On the down side, there are liabilities of $408.8 billion.
Luxon’s readiness to foster a conversation on whether there should be sales, and on redeploying the money to create new ones, was occasioned by a Treasury Report last week which raised the issue of whether the government should sell state assets that are under-performing or no longer needed.
Treasury said there needed to be better asset management, that some assets were under-performing or poorly maintained.
“A formal capital recycling programme may be useful where government reallocates or reinvests capital from existing assets or infrastructure projects into new opportunities or projects to meet policy objectives,” the report said.
Luxon said New Zealand did need a “more mature conversation” about asset sales.
What about Chris Hipkins?
Bob Edlin is a veteran journalist and editor for the Point of Order blog HERE. - where this article was sourced.
On the campaign trail in 2023, Luxon said asset sales were “not something we are focused on or interested in.” He’s repeated that line many times since.
True. He did make that pledge.
Whether he was prudent to make it is arguable.
In a country where there is formidable opposition to state asset sales and privatisation, such a commitment might help to attract votes.
On the down side, it crimps a Government’s Budget-balancing options.
But was Luxon ruling out asset sales for just one three-year term – or was it a longer-term commitment?
It was a commitment to be kept by Luxon “as prime minister”, according to a statement from Hipkins last month.
Under the headline National Breaks Asset Sales Promise, that statement was triggered by the prospect of Chorus being sold.
Plans to sell off Chorus breaks yet another promise Christopher Luxon made – that there would be no asset sales under his leadership.
On the campaign trail on 6 September, Christopher Luxon was asked if he can rule out asset sales as Prime Minister, saying “I’ve done that, a year or so ago. I said to you at the time there will be no asset sales. It’s not something we’re focused on or not interested in.”
PoO typed those words into our Google search engine to examine them in the context of whatever else Luxon had said.
Google steered us to just one on-line post: Hipkins’ press statement last month.
That statement did give us another steer by providing a link to an RNZ report on September 6 2023:
Christopher Luxon ruling out asset sales:
Standup, 6 September 2023, at 14:55: https://www.rnz.co.nz/news/national/497379/watch-national-party-will-deliver-10-000-electric-vehicle-chargers-by-2030-leader-says
Again, we were thwarted. That report makes no mention of asset sales.
What about Luxon’s intention to sell state assets if he is re-elected Prime Minister?
Hipkins complains in today’s press release:
But on RNZ today, he let the mask slip – saying “owning everything we own forever isn’t the right thing to do,” and that government assets “could be sold or redeployed.”
Obviously they COULD be sold or deployed.
But WILL they be sold or redeployed in Luxon’s next term (something Hipkins presumably is hoping to frustrate)?
More important, SHOULD they be sold or redeployed, and – if so – which ones?
Luxon told RNZ only that the government will “think about” possible sales of government assets.
It would be comforting – of course – to be assured the government thinks about everything it does, although there is ample evidence that too often its thinking is flawed.
But let’s get back to Hipkins, who said Luxon knows his economic strategy is failing,
“… so he’s desperate.
“He has failed to manage the books, so he is reverting to type, turning to selling off the family silverware to fill the hole in his budget.
“Selling off what little we have left [our emphasis] won’t fix the economy. It will just rob future generations and drive more young Kiwis out of the country.”
Hipkins should spend some time reading the Financial Statements of the Government of New Zealand for the year ended 30 June 2025
These record state assets valued at $598 billion.
On the down side, there are liabilities of $408.8 billion.
Luxon’s readiness to foster a conversation on whether there should be sales, and on redeploying the money to create new ones, was occasioned by a Treasury Report last week which raised the issue of whether the government should sell state assets that are under-performing or no longer needed.
Treasury said there needed to be better asset management, that some assets were under-performing or poorly maintained.
“A formal capital recycling programme may be useful where government reallocates or reinvests capital from existing assets or infrastructure projects into new opportunities or projects to meet policy objectives,” the report said.
Luxon said New Zealand did need a “more mature conversation” about asset sales.
What about Chris Hipkins?
Bob Edlin is a veteran journalist and editor for the Point of Order blog HERE. - where this article was sourced.
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