Vector sale a black day for Wellington

Today’s decision to allow the sale of Wellington’s electricity network to a foreign consortium marks a black day for Wellingtonians, Green Party MP Sue Kedgley says.

“The Government should have stepped in and prevented the sale as it did for Auckland Airport.”

“At the same time as the Government is bragging about returning our rail network to New Zealand ownership, it has wimped out and allowed a key strategic energy asset to fall into foreign ownership.

“I challenge the Minister of Finance to explain why Wellington’s electricity network is not considered to be a key strategic asset,” Ms Kedgley says.

“After all, it is a monopoly, and if there was an interruption in our power supply, or the assets were seriously run down, all Wellingtonians will suffer, some severely,” Ms Kedgley says.

“The decision by the Overseas Investment Commission to give consent for the takeover is utterly short sighted and will make us more vulnerable to the whims of the overseas investment markets.

“I have no doubt that the foreign consortium will benefit from the sale of this profitable business, but I strongly doubt that Wellington consumers will,” Ms Kedgley says.

“I predict that there will be a lack of investment in maintaining the network, and it will be flicked on for a substantial profit to another buyer in a few years time.

“Our electricity distribution network is a key strategic and monopoly asset, and should remain in majority New Zealand ownership.

“I am not surprised that the Overseas Investment Commission has rubber stamped this purchase, however. It shows what a toothless body the Commission is, and how ineffective the Overseas Investment Act is.

“This latest sale shows what a tragic mistake it was for the Wellington City Council to sell off this key asset.”