Posted on 10-10-2003

C & R Spins Privatisation Agenda

The privatisation of electricity by a share float is about creating
opportunities for wealth for the shareholders who buy those shares. It has
nothing to do with provision of electricity in the public interest,
Powerlynk says.

The claim by Citizens and Ratepayers Now that their campaign is about
keeping Vector "public" is pure spin, says Powerlynk candidate Jill Ovens.
"They are advocating an initial share float of up to 25% of the lines
company Vector because people like John Collinge who own Vector bonds stand
to benefit personally if a float happens by 2006," Ms Ovens says.

According to the Vector Annual Report, Mr Collinge, who is an AECT trustee,
a Vector director, deputy chair of both bodies and a candidate for the AECT
elections next week, holds 200,000 Vector bonds (125,000 in his own right
and 75,000 through a family trust). "That's more than any other director,
but nearly all of the Vector directors have them. Owning these bonds gives
the holders preferential rights in a share float. Thus they have a vested
interest in finding growth opportunities, such as expanding into Australia
or getting into power generation, that would require large scale investment
in order to justify a share float."

Ms Ovens says the only way for the public to maintain their rightful
control of this essential public service is to retain 100% ownership. C&R
is being mischievous in distinguishing between "ownership" and "control"
when it comes to privatisation, she says. The US Department of Energy
defines privatisation as "any movement that diminishes public ownership and
control and increases private ownership and control". Ms Ovens says
Powerlynk candidates have been talking to people in shopping centres and
markets throughout the region and they are finding almost unanimous support
for 100% ownership of our electricity. She says people know there is a
direct link between privatisation of electricity and large-scale blackouts
in California, the north-eastern US, New York, and Canada, as well as
Italy. "New Zealanders did not ask for the electricity reforms that were
foisted on them by Max Bradford during Warren Kyd's chairmanship of the
Energy Select Committee. The people did not demand, nor did they want
unaccountable corporate structures that focus on profit-making. Their main
concern is customer service and security of supply. People want to know
that when they turn on the switch, their lights will come on."