Government to splash $200m on Genesis shares while claiming the coffers are empty

Responding to this morning’s announcement by the Minister of Finance that the Government will spend $200 million to buy half of Genesis Energy’s new share issue, Taxpayers’ Union spokesperson Tory Relf said:

“This is an irresponsible use of money the Government simply does not have. If Genesis is such a great investment, private investors can fund it. There is no reason for the Government to step in with borrowed money and it’s even harder to swallow when $200 million is one-fifth of the expected cost of the proposed LNG plant in Taranaki — a project Ministers say must be paid for by taxing electricity users."

"The real motive appears to be preserving the Government’s 51 percent stake, but borrowing more just to cling to a majority shareholding makes no financial sense. If asset sales are being talked about for the future, as the PM has indicated, they should be considered now not after piling on more debt."

"Spending is already out of control and the debt keeps rising. The Taxpayers’ Union’s Debt Clock shows it now sits at the equivalent of $140,000 per household. Another $200 million in borrowing only adds to the tab. When will the Government stop mortgaging taxpayers’ futures?”