31 Jan 2011

Labour says PM shot himself in foot with debt comments

3:20 pm on 31 January 2011

The Labour Party says the Prime Minister has proved there is no need to partially sell-off state owned power companies, with his admission that government debt levels are comparatively low.

John Key said last week the Government is considering partial sales of Mighty River Power, Meridian, Genesis and Solid Energy in a bid to reduce government debt.

On Monday, Mr Key told Television New Zealand's Breakfast programme that the Government's debt is low compared with other countries, although he says New Zealand consumers owe a lot a money.

Labour leader Phil Goff says with those comments, Mr Key has shot himself in the foot as the assets return more to New Zealand than the cost of the debt.