29 Jun 2010

Good return for Govt of Kiwibank investment - papers

6:49 am on 29 June 2010

Officials have said that further investment in Kiwibank would give the Government a good return.

Papers obtained under the Official Information Act document a meeting in January last year between State-Owned Enterprise ministers and the chair and chief executive of New Zealand Post, Kiwibank's parent company.

During the meeting, the company signalled an intention to ask for a capital injection of $100 million from the Government.

The papers show the Crown Company Monitoring Advisory Unit (CCMAU) told the ministers that the companies would create long-term value for the Government if it invested in them.

New Zealand Post chairman Jim Bolger says discussions with the Government about a possible equity injection are continuing.