11 Jul 2011

Government appoints advisers on partial privatisation

6:19 am on 11 July 2011

The Treasury has appointed Deutsche Bank and Craigs Investment Partners to advise on the partial privatisation of the Government's energy companies and Solid Energy.

They will help the Treasury do preparatory work on the proposed sales in the run-up to the election on 26 November.

The National Party intends to partially privatise Meridian Energy, Genesis Energy, Mighty River Power and Solid Energy and sell down its shareholding in Air New Zealand if it leads the government after the election.

It estimates that would raise $5 - $7 billion to help pay for new assets in housing, schools and medical facilities.

Prime Minister John Key has said voters will have a clear choice between National and Labour because Labour is against the privatisation.

But the Government is not waiting for the election to begin work on the sales.

In the next few days, the Treasury expects to call for tenders from companies to do detailed reports on the Government businesses as part of the sales process.