11 Jun 2012

Select committee endorses asset sales legislation

5:20 pm on 11 June 2012

A parliamentary select committee has recommended that legislation paving the way to partially sell four state-owned energy companies should be passed.

The Mixed Ownership Model Bill would allow the Government to sell up to 49% of its shareholding in Genesis Power, Meridian Energy, Mighty River Power and Solid Energy.

The Finance and Expenditure select committee has reported back more than a month before its deadline of 16 July, recommending that the bill be passed with minor amendments.

Both the Labour and Green parties wrote lengthy and detailed minority reports.

Labour argues the legislation is unnecessary and misguided, and that the select committee process has been rushed.

The Green Party says selling the assets is fiscally irresponsible and limits the ability to invest in renewable energy.

The bill will come back before the House for its second reading on Thursday.