Referendum irrelevant to Air New Zealand sell-down

The announced sell-down of 20% of Air New Zealand shares has been slammed by opposition party leaders, criticisng the timing with the asset sale referendum about to be held.

David Cunliffe:

“This is an arrogant, out-of-touch Government desperate to get the sale done before the public has its say.”

Russel Norman:

“It’s a deeply cynical and desperate measure but a Government that knows there’s a referendum about to happen.”

I don’t know how sensible the timing is from a business and share-market point of view is except that Air New Zealand shares are at a record high which sounds like a good time to sell.

I don’t know if the Government has timed the sell-down to deliberately coincide with the referendum, if that was a primary factor in the timing it would be cynical and stupid.

But the referendum shouldn’t be an issue. It is irrelevant to the asset sale programme, it shouldn’t and won’t make any difference to whether the MOM sales programme continues or not. Like all Citizen Initiated Referenda everyone always knew it could and would be ignored. Cunliffe and Norman knew this.

Cunliffe and Norman know that Government will not pause or halt sales because of the referendum.

They are using the referendum as a political campaign weapon. That’s all it has ever been.

Their posturing is desperate and cynical politics.

Government programmes and parliamentary legislation can’t be scheduled by and dictated by the eighteen month timeframe of a Citizen Initiated Referendum.