The Bay of Plenty Times welcomes letters and comments from readers. Here you can read the letters we have published in your newspaper today.
Partial sale of assets better than more debt
Over the past three years more than 50 financial companies failed and somewhere between $5 billion and $6
billion of investors' money was lost with many investors being our older citizens who are unable to make up these losses.
It is therefore my view that the selling off of a minority shareholding in some large state-owned assets makes sense and provides a safe future means for people to invest in assets that will still be majority-owned by the Government meaning that overseas interests will not be able to take control of any asset being sold.
I accept that there may be a potential loss of revenue, but this will be more than made up from the savings on the reduced borrowings required and also the fact that from the 49 per cent sold, the Government will still receive the tax paid on the dividends.
Many state-owned assets currently require significant capital investment and this can presently only be achieved from either additional borrowings or from the taxpayer, whereas shareholders would also be able to invest in the event of a partial privatisation.
It's either partial sales or increased borrowings and risks and the choice is ours in November.
Mike Baker, Bethlehem
Asset sales info
We have heard so much about the asset sales of the Government and whether it is good or bad it would be interesting to know.
What would the value be to the Government if they sold 49 per cent of the assets?
What is our current return on the assets now?
What is the projected return on the assets that are left?
What is the interest rate on the money we have to borrow? In other words is it more economical to sell the assets now and in say 5-10 years start to buy the assets back once the books are in surplus as the shares being sold would be on the open market as time goes by?
If we are paying six per cent on our borrowed funds and only getting a return of three per cent then is it not more economical to sell the assets instead of borrowing money.
I am concerned that the more we borrow then the more we pay in interest, and really, does any Government actually repay those borrowings or are the loans just rolled over year upon year, upon year.
It would be nice if someone could spend time and tell the public just what the benefits/non benefits are in selling or keeping our assets.
Ross Darrall, Papamoa Beach
