NZ Herald supports SOE private equity

The NZ Herald comes out in support of Rob Cameron’s proposal to allow private investment into SOEs. However they advocate up to 49%, rather than just 10%. Hear hear.

Any structure that exposes state-owned enterprises to the disciplines and measurement of the market, and improves their access to capital and financial flexibility, is welcome. But it is appropriate at the moment, given the Government sees state-owned enterprises as drivers of its economic transformation agenda, and has instructed them to consider diversifying. Greater market scrutiny, and more direct monitoring, provides a greater chance this process will be well managed.

They hope Dr Cullen will announce this in the May budget. Sadly it is most unlikely.