Separate the Power Companies from Natural Resources

Opinion – Douglas Owens The proposed sale of Mighty River Power is a travesty for the New Zealand general public. It will be a financial windfall for the financial elite and other industry players. The well-off in New Zealand will also have the chance to make some easy … Separate the Power Companies from Natural Resources by Doug Owens Councillor for Tauranga | Bay Of Plenty Regional Council 16th January 2013 The proposed sale of Mighty River Power is a travesty for the New Zealand general public. It will be a financial windfall for the financial elite and other industry players. The well-off in New Zealand will also have the chance to make some easy money by buying shares and then selling them to foreign buyers in the future. Such investors seem to be the majority of the National Party’s constituency. Mighty River Power, and other SOEs, claim rights and interests in New Zealand natural resources that are the envy of the world. The value of these companies is totally dependent on their rights and interests in these natural resources. Geothermal and Hydropower energy companies are worth nothing without rights to use water. The sale of shares in effect capitalises the value of those rights. We must expect that the new private owners, including foreign owners, will fight tooth and nail to extract the maximum value from these resources...

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