Opposition parties say the Government is conning the public with its legislation to partially sell four state-owned energy companies.
Legislation paving the way for the partial sale of Mighty River Power, Genesis Energy, Meridian Energy and Solid Energy was introduced to Parliament on Monday.
[image:3473:third:right]Labour's state-owned enterprises spokesperson Clayton Cosgrove says there are loopholes in the legislation large enough to drive a bus through.
He says there is nothing to stop private shareholders selling their shares to a foreign investor.
The Green Party says the legislation doesn't tie the mixed-ownership companies to any corporate responsibility.
Co-leader Russel Norman says most New Zealanders will end up paying higher power prices to companies that are largely owned by overseas shareholders, profits will go offshore and the country will miss the opportunity to lead the world in clean technology.
The Greens on Tuesday also challenged National's claim it has a mandate to partially sell the assets.
Prime Minister John Key says because National has been open about its plans and clearly campaigned on them it has a mandate to go ahead with the sales.
But Dr Norman says elections are fought on a variety of issues and it is unfair to claim the election result as a mandate for one of them.
Mana Party leader Hone Harawira says it is a sell-out of the Treaty of Waitangi because the treaty should be applied to all shareholders, not just the Crown.
The Mixed Ownership Model Bill includes the Treaty clause (Section 9) from the SOE Act which requires the Crown to act in a manner consistent with the principles of the Treaty of Waitangi.
However, it adds that for the avoidance of doubt, the legislation does not apply to persons other than the Crown, ie private shareholders.
NZ public to get first option - Ryall
State-Owned Enterprises Minister Tony Ryall says the Government still intends to offer the New Zealand public first option on the partial sale of the energy companies.
[image:2007:third:right]Mr Ryall told Morning Report the Government will make decisions implementing its share allocation policy when it has clarity around demand for shares.
"We expect that when these companies are floated, 85-90% will be New Zealand owned - and remember the Government's owning 51%, full stop.
"We want to have as many ordinary New Zealanders, KiwiSaver, superannuation funds owing shares as is possible."
He says the Government wants to have as many ordinary New Zealanders owning shares in the companies as possible.
Prime Minister John Key says that while there is no way to ensure the shares are not sold on to foreign buyers, evidence suggests most of the shares would stay in New Zealand hands.
Maori Party co-leader Pita Sharples says iwi got what they wanted with the Government's legislation to allow partial asset sales, as the Crown is bound to the Treaty of Waitangi.
Dr Sharples says he put his job on the line to get an obligation to the Treaty included in the bill, as it is the only protection Maori have in terms of resources.
Radio New Zealand's political staff say the bill is expected to pass its first reading in Parliament on Thursday despite all opposition parties and the Maori Party being against partial asset sales.
