New Zealanders like She Who Must Be Obeyed and ourselves will be at the front of the queue when SOE shares go on sale later in the year; Stuff reports:
Prime Minister John Key has announced measures to put New Zealanders "at the front of the queue" for the upcoming float of shares in State owned assets.In a speech to National Party faithful this morning, Key announced measures including:* Loyalty bonus shares in Mighty River Power for New Zealand investors, perhaps after three years.* Minimum share parcels of $1000.*A guarantee that New Zealanders seeking up to $2000 worth of shares will not have their application scaled back - meaning they are guaranteed to get the shares they apply for.* The appointment by Treasury of a retail syndicate of share brokers and banks to help potential investors, particularly first time share investors, to understand how hey can participate in the share offer.Key said the measures would make buying shares easier for New Zealanders, while also encouraging long term share ownership.The Government would offer New Zealand who held onto their shares for a certain length of time a loyalty bonus, in the form of additional shares."We're working through the time period involved but it's likely to be somewhere around three years.""We believe it is important to recognise the loyalty of New Zealanders who retain their shares and we want to encourage long term share ownership among New Zealand savers."
We're certainly going to put some of our savings into Mighty River Power shares. We can't imagine a better long-term investment than a well-performed New Zealand-based infrastructure company that is majority-owned by the Government. That's why we are happy to put our money where our mouth is.
And if there's a loyalty scheme in place, that's a bonus. But our investment will be a long-term one whether or not there's a loyalty scheme. Shares in SOE's will not be a key to getting rich quickly; they'll be in the slow and steady category. And when we shuffle off this mortal coil, there'll be something else to bequeath to our children. Isn't that the epitome of being Mum and Dad investors?
Around the social media, the Left is already getting all a-twitter. We've seen a few comments to the effect that only 7% of New Zealanders will be able to afford to invest in SOE share parcels of a minimum of $1000, and that John Key is just looking after his rich mates. If that figure has any credibility whatsoever, it's an indictment on our national ability to save. We suspect however that it's made up; rather like "We are the 99%" was.
32 comments:
Key is right with these actions.
The most important and symbolic part is that it rebuilds some grunty compnaies with sound controlling shareholders back into our stock market.
No one wants to rejoin the wild west of the past.
K+1
Agree completely Viking; the NZ sharemarket isn't that flash at the moment, so solid investments like the SOE's will give it a fillip. As well as my individual investment, I hope that my Kiwisaver provider buys up large as well.
Congratulations taxpayers. Propping the NZX forever.
"If that figure has any credibility whatsoever, it's an indictment on our national ability to save."
Or an indictment on our ability to pay decent wages and employ the under and un employed. Try raising a family on less than $750 a week and saving $1000. It's possible but I`d like to see you do it.
Good for you KS.
Never mind anyone who is in a worse of situation than yourself and she who must be obeyed.
Huh?
Bugger the rest of the country - as long as the rich keep getting richer - that is all that matters.
Blessed be the greedy for they shall inherit the earth.
I'm not rich by any stretch of the imagination Jacqueline. But I am of Scottish heritage, and my father's thrifty habits rubbed off on me. I don't smoke, don't drink much, and live a relatively frugal life. We save because we want to be comfortable in our retirement, and we have invested heavily in a business that now employs over 40 staff. If that's "bugger the rest of the country", such is life, I guess.
We all make choices. At the end of the day, I will stand or fall by mine.
Jacqline = yor envy and naievity are showing.
Inv. - be carefl yo do not expose yourself to shares in only one sector as that ncreases yor risk.
I am not in KiwiSaver excluded due to age) but mrspdm is. My preference is for as mch as is possible of her KiwiSaver to be invested offshore because that is where the investment growth will be as economies recover.
Oh please Inv2 let Sludge have a go at this post. I miss my daily laugh at his/her expense.
And don't forget now
National good. Labour AND Greens baaaaddd
"I miss my daily laugh at his/her expense."
Yet you were always too scared to engage. Curious and a wee bit sad at the same time.
This post is weak, self-serving rubbish about how IV2 will try and profit at the expense of ordinary New Zealanders. A pretty vile gloat.
I may be in a worse position than KS and SWMBO, Jacqueline, and will not be buying any shares when they are offered. I not concerned by this, and can not understand why you should be either. I have other things going on in my life, as maybe you have. Just because I will not be in this market is no reason for me to stop others, or to try and belittle them.
Anthony
You are a traitor Inventory buying into Keys thefts and selling your credibility for a few pieces of silver you traitor to your fellow New Zealanders.
Too late, you have already fallen Keeping Stock.
CO Elders and Lawk - you are strange people.
Are you members of the Labour caucus?
@ C.O. Elders - hello, and goodbye. Abusive commenters are not welcome here.
@ Anthony - obviously not everyone will be able to make this investment. Good on you for your pragmatic and realistic attitude; it will take you far.
@ Judge Holden - come back in 2013.
The median income in New Zealand is only $28,600 ($550 per week). I'm afraid the only Mums and Dads who will be able to afford the shares will be the already rich who gained thousands from the tax cuts. :-(
http://www.stats.govt.nz/browse_for_stats/income-and-work/Income/NZIncomeSurvey_HOTPJun11qtr.aspx
So can I invest if I am a kiwi working and living in the land of OZ?
@ Ryan - not sure on that; will check it out
@ bsprout - I'm afraid the only Mums and Dads who will be able to afford the shares will be the already rich who gained thousands from the tax cuts. - like teachers, you mean?
Nice non sequitur IV2, but whatever way you try to spin this, it's a transfer of wealth from the poor to the rich. You might like this, as you fall into the latter category and seem to not understand notions of the greater good, but it's bad policy. Most New Zealanders know this.
Well I guess if Cullen & Clark hadn't squandered the good times we wouldn't be needing to take actions such as these.
Cullen and Clark paid down debt while the Nats spent a decade in opposition screeching for tax cuts. Since taking office they've presided over deficits while cutting taxes.
And we don't need to do this. Why do you think we do?
Edward the confessor you have an unusual view of what has caused our economic malaise. Clark and Cullens massive spending on election bribes are what has caused the country to go into deficit. To switch the tax burden from a tax on work (ie PAYE) to a tax on spending (GST) will provide the right incentives.
The 'transfer of wealth' you refer to is not really. Those that are productive, that create the wealth - ie. workers can afford $1,000 in shares if they choose to. See IV2 and Anthony's comments above.
Paranormal
I have seen several posts and tweets which seem to indicate that the shares will cost $1000 each, just as Sue Bradford was saying on TV last night; it seems that the left doesn't understand the stock market- quelle surprise...
"Clark and Cullens massive spending on election bribes are what has caused the country to go into deficit."
It's been four years now. The Nats have had plenty of time to reverse anything they weren't happy with. Have they? Nope, they've cut taxes for the most well off, are running massive deficits as a consequence and are about to have a fire sale of state assets to the most well off and will use the proceeds to give its farmer mates some more coin. Great policy.
Oh Edward; have you forgotten the "Decade of Deficits" foreshadowed by the Prefu just before the 2008 election? Have you forgotten the global financial crisis, which was just starting to bite as the country went to the polls in 2008?
And when you talk of a "fire sale", surely you are referring to the assets sold by Labour in the 1980's, where entire state assets were sold at bargain basement prices to corporate raiders such as Fay Richwhite. What John Key will do in this term of government, with a mandate from the 2011 election is tame by comparison to what a cabinet including Phil Goff did.
And Edward; did Labour ever take the issue of asset sales to the electorate in a General Election?
I'm not defending the new right here, IV2. What Douglas, Prebble, Bassett, Richardson and co did to New Zealand in the 80s and 90s was disastrous. I'm glad you agree, but I'm confused as to why you want a repeat dose, unless you're thinking you can make some gravy out of it this time around. That certainly seems to be what you're saying in this post.
On the button, Edward.
On the button.
Yes, Edward, on the button.
On the button, definitely.
I agree with Shram.
Shram, you are on the button too.
Summed up perfectly Edward. KS is on the make at others' expense. On the make is ok, but at others' expense is very immoral. Christian-wise, that is. Or is this the 3rd chapter in the prodigal KS life?
Naughty then nice then noisome?
Edward the confessor, do some confessing mate. Confess that we are where we are because of the incompetence of the Clark government - the fact that they were more interested in shower heads and hip hop tours than managing the economy. The poor performing, low wage, high tax economy they created will take many more years to unravel.
That's bunk, Bunk. The Nats have had four years now, and have done next to nothing to fix what you obviously see are fundamental problems with the New Zealand economy. I mean there's half a bicycle track, running down of the public service and some tax cuts for the wealthy, but really? Four years of nothing but deficits, despite being left with the healthiest set of public accounts in the western world.
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