31 Oct 2013

NZ already losing control of Meridian - Greens

8:21 pm on 31 October 2013

The Green Party says New Zealand is losing control of Meridian Energy as predicted, after it has emerged that a New York bank has claimed a large stake of the company.

Russel Norman.

Russel Norman. Photo: GREEN PARTY

A notice to the New Zealand stock exchange shows the Bank of New York Mellon Corporation has bought just over 8% of the instalment receipts the Government sold and means it now owns about 4% of the power company.

Greens Party co-leader Russel Norman says local investors in Contact Energy were quickly bought out by foreign institutions - and the same pattern is happening again.

He says the Government's promise that mum and dad investors would benefit from the sale has turned out to be untrue.

Dr Norman says offshore investors will get all the profits - while New Zealanders are stuck with higher power prices.

Howeber, Prime Minister John Key says the Government has fulfilled its commitment that 85% of state assets are owned by New Zealanders as they are floated.

John Key says the Bank of New York Mellon Corporation is showing great faith in Meridian Energy and the results it is likely to deliver.

Mr Key says the assets are being partially floated so new infrastructure can be built without borrowing.