Winston would buy back shares – with private KiwiSaver funds?

Richard29 at Kiwiblog pointed out something alarming about Winston Peters’ proposal to buy back asset shares.

“Borrowing money would make economic sense because the returns would make that totally feasible”

This is a fair enough approach – it is a direct reversal of the government’s transaction of selling the assets and paying down debt. And the historical dividend returns on the assets are higher than the government’s costs of borrowing so there will be no great win or loss either way.

But this is freaking scary:
“but there are other resources,” he said. “You’ve got the superannuation fund, KiwiSaver or a number of avenues or options you could exercise.”

The money in MY Kiwisaver account is MY money not Winston’s slush fund! If he wants the government to buy something they should borrow or raise the funds not steal them from savers!

Ignorance? Or dishonest claim?

(I disagree that a buy back would be a fair enough approach after shares were bought in good faith, many for long term investments).

The full related part of the Herald article:

Mr Peters said he would be happy for a Government of which he was a part to borrow or to use the superannuation fund to buy back shares at no more than cost.

Mr Peters said his NZ First party was renowned for going into negotiations “knowing what we want and getting what we want”.

“Borrowing money would make economic sense because the returns would make that totally feasible, but there are other resources,” he said.

“You’ve got the superannuation fund, KiwiSaver or a number of avenues or options you could exercise.”

Did Peters make a mistake, say this through ignorance, or he just doesn’t care what he says to try and get some media coverage and votes?

Last week Peter Dunne called Peters “the Hugo Chavez of New Zealand politics” after similar but less preposterous statements from Peters, and said:

I think this is no more than hot, populist air from Winston – by buy back he means re-nationalise, which no government would ever agree to.

Is this ignorant blatant political grandstanding from Peters? Or is it dishonest blatant political grandstanding?

Leave a comment

2 Comments

  1. Darryl

     /  13th March 2013

    Winston Peters is a very dangerous man. He will say anything to get into power. I wouldn’t trust him with a sick dog on a chain. He has proved how dishonest he is, on other occasions.
    The lefties who think he is great are in for a rude awakening if he gets in via a coalition government.

    Reply
  1. Shearer less uncertain on buy back of assets | Your NZ

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