17 Feb 2012

Asset sales sum prediction on track - Key

8:34 am on 17 February 2012

Prime Minister John Key says Treasury's prediction the Government's partial asset sales programme will raise $6 billion is in line with earlier estimates.

Finance Minister Bill English said on Thursday the figure was just a guess - prompting Labour to describe the Government's numbers as laughable.

But Mr Key remains confident that the programme of partial sales will be a success.

He says the reduction in borrowing costs that will result from partial asset sales will more than offset the loss of dividends from the companies.

Labour says the Government's plan is starting to look a bit ropey.

Finance spokesperson David Parker told Morning Report that even if the $6 billion dollars is achieved, the Government will be poorer because it loses more in dividends and growth in value than it saves in interest.

Earlier he said that rather than focus on asset sales, the Government should concentrate on driving export growth.