Finance Minister Bill English has conceded the Government will get less than expected from its partial privatisation programme, but has rejected Opposition criticism that it is a failure.
Bill English. Photo: RNZ
Mr English said the Treasury is now forecasting that the Government will receive between $4.6 billion and $5 billion from its sale of shares in its electricity companies and Air New Zealand.
The minister announced the new forecast at Parliament's finance and expenditure select committee on Wednesday morning.
It represents a significant drop on the previous estimate that it would get between $5 billion and $7 billion from the sales.
Mr English said the forecast takes into account the fact that Solid Energy is in no state to be sold and is based on share sales already completed.
The forecast prompted Opposition MPs on the committee to declare the sales programme a failure.
However, Mr English said the Opposition can't have it both ways - accusing the Government initially of giving away the assets and then criticising it for not getting enough for them.
After the select committee meeting, Mr English confirmed that the Government is prepared to give more money to KiwiRail. However, he said he could not put a figure on how much more it might invest in the company.
