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Power switch competition working

“It’s not who owns the energy companies that influences prices, but the regulatory environment which the National Government changed to increase competition, says State Owned Enterprises Minister Tony Ryall.

“And it is working. New Zealanders are increasingly taking advantage of that change and are switching companies for a cheaper deal.

The Government’s Bill enabling New Zealanders to own minority shares in four state owned energy companies has passed its second reading in Parliament.

New Zealanders wanting more information can visit the website: www.governmentshareoffers.govt.nz

The Mixed Ownership Model Bill enables the Government to offer minority shareholdings in Genesis Power, Meridian Energy, Mighty River Power, and Solid Energy, while retaining majority control of 51 per cent.

State Owned Enterprises Minister Tony Ryall today announced new appointments and reappointments across a number of SOEs.

“This is a group of highly capable new directors. I also wish to acknowledge the retirement of Landcorp Farming’s chair Hon Jim Sutton.”

“Mr Sutton has served as Chair of Landcorp Farming since August 2006 and made a significant impact on the company’s performance and management of a large asset base”.

The Government has today launched a website to provide New Zealanders with information about the Government’s mixed ownership programme.

State Owned Enterprises Minister Tony Ryall says the new website, www.governmentshareoffers.govt.nz, will give New Zealanders factual information about the proposal to sell up to 49 per cent of four State Owned Enterprises - Mighty River Power, Genesis Energy, Meridian, Solid Energy, and a further stake in Air New Zealand.

It’s now fifteen months since the Prime Minister indicated the National Government would sell minority stakes in the four state owned energy companies and Air New Zealand.

Since that time, there’s been a general election.  The opposition parties focused their campaigns on the Mixed Ownership Model.  The voters gave the National Party their confidence… with the highest vote of any party under MMP ever.

The Minister for State-owned Enterprises, Hon Tony Ryall has reappointed three directors and appointed one new director to the Board of Mighty River Power Ltd (MRP).

"MRP will be the first company the Government wants to offer shares in, so it will be important that membership of the Board is settled well in advance of the listing process," said Mr Ryall.

Joan Withers is being reappointed as the Chair for a further three years.

The Mixed Ownership Model Bill had its first reading in Parliament today and has been referred to the Finance and Expenditure Committee.

The Bill enables the Government to offer minority shareholdings in Genesis Power Limited, Meridian Energy Limited, Mighty River Power Limited, and Solid Energy New Zealand Limited.

The new legislation provides for the State Owned Enterprises to be shifted from the State Owned Enterprises Act 1986 and put under a new part of the Public Finances Act enabling the Government to offer minority shareholdings in the companies.

The Government will today introduce legislation supporting its mixed ownership programme, which will help get on top of debt and pay for priority new public assets like modern schools and hospitals.

Minister for State Owned Enterprises Tony Ryall is introducing the new legislation and confirmed the Government is aiming to undertake the first initial public offering – for Mighty River Power – around the third quarter of this year.

The Government has completed consultation with Maori on removing the mixed ownership companies from the State Owned Enterprises (SOE) Act and will make decisions on new legislation in coming weeks, Finance Minister Bill English and SOE Minister Tony Ryall said today.

"We've completed 10 hui around the country and received about 200 written submissions. It's been an excellent process where Ministers and iwi and hapu have been able to exchange views," the ministers said.

The Government has announced a series of hui to consult with Maori on legislative changes it considers are necessary for the float of minority shareholdings in four State Owned Enterprises to New Zealanders.

Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall will lead the February consultation process with iwi around the country, which will be facilitated by Sir Wira Gardiner.

The Government has confirmed the next steps in its mixed ownership programme to offer New Zealanders minority shareholdings in four state-owned energy companies and Air New Zealand.

Cabinet has agreed that Mighty River Power should be the first company prepared for an initial public offering (IPO), most likely in the third quarter of 2012, subject to market conditions, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall said today.