Unlocking New Zealand's Economic Potential - United Future's Vision

United Future believes that a change in existing policies, in relation to State Owned Enterprises (SOE's) has the potential to ignite a rapid expansion of the New Zealand economy. These changes could greatly increase the prosperity of New Zealanders. A number of steps are involved:

Firstly a partial sale of up to 40% of the shares in SOE's to mum and dad kiwi investors. The "never-sell-anything" of Labour, the similar sell "only a few small farms" of National, and the "sell-it-all" of Act each have major defects.

Partial sale of SOE's to mum and dad investors on the other hand could revitalise those businesses, lift local savings and investment, increase returns to Government and relieve it of ongoing capital demands.

Safe guards would be put in place to ensure that no more than 20% (10% in the case of TVNZ) of the shares migrate into the hands of non-residents. This will ensure ongoing kiwi control and, for the most part, ownership. The debacle which followed the 100% sale of Air New Zealand and NZ Rail - which have rightly made kiwis nervous about asset sales - could never be repeated.

Australia has it "four pillars" policy which ensures that banks, financial institutions and media remain in Aussie control. United Futures policy represents a kiwi equivalent

We estimate that such a partial sale could release somewhere between $5 billion and $7 billion for reinvestment by the Government in other areas.

Secondly the reinvestment of those funds provides a new and exciting range of opportunities.

For example, some hundreds of millions of dollars could be invested long-term to produce income for universities to award scholarships for post-graduate work, across a range of high level scientific and engineering skills. That skill set, in and of itself, has the potential to significantly lift New Zealand by creating a knowledge led economy.

A similar investment could be made in top end medical technology for our major hospitals, so that New Zealand could establish and maintain first world status in all major surgical and diagnostic areas.

The land transport funding shortfalls in Auckland, Tauranga, Wellington and elsewhere could be overcome thus eliminating congestion and providing the New Zealand economy with a productivity boost.

If anything is left over it can be used to repay government debt!
But it gets even better. The SOE's presently governed by politically appointed Boards could, freed up to become some of New Zealand's largest public companies, utilise their specialist capability (the large energy companies are a prime example), to rapidly expand overseas thus bringing additional income and profit back to this nation long term.

In summary our 40% share sale idea is a great policy initiative and a critical success factor in unlocking and maximising New Zealand's commercial and economic potential.

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United Future Contacts: 0800 UFNZHQ
Parliamentary: Bowen House, Lambton Quay, Wellington E-mail: Ph: 04 471 9410