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.