Meridian’s profits highlight case against asset sales

Meridian’s huge profits show that we don’t need asset sales, we need lower power prices

Meridian Energy’s $295 million annual profit highlights the economic ineptitude of National’s asset sales programme and the need to reform the electricity market, Green Party Co-leader Dr Russel Norman said today.

Meridian Energy announced a $295 million net profit. The National Government plans to sell shares in the company sometime in October this year. The Green Party, joined by Labour, has announced a plan to reform the electricity market by introducing a single buyer called NZ Power that will bring down prices and curb the electricity companies’ excessive profits.

“Meridian’s huge profits show that we don’t need asset sales, we need lower power prices,” said Dr Norman.

“National wants Meridian to keep on making monster profits from Kiwi businesses and families, and it wants to give half those profits to private investors.

“Treasury has pointed out asset sales will add $180m to the deficit over the first four years due to foregone profits. On top of that, the asset sales process itself has cost well over $100 million so far.

“We don’t need wasteful asset sales that Kiwis oppose. We need to keep our electricity assets in public ownership, and we need to reform the electricity market so that it provides affordable power, rather than acting as a stealth tax.

“New Zealand faces a choice: National’s path of higher electricity prices funding dividends to overseas investors, or the Green Party plan to keep our assets in Kiwi ownership, increase investment in energy efficiency and renewables, and reduce power prices,” said Dr Norman.

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