We won't dilute Kiwibank equity, says Cunliffe

David Cunliffe. Photo / Herald on Sunday

Labour's finance spokesman David Cunliffe says his party's plans to allow private investment in state-owned enterprises' subsidiaries would not extend to NZ Post-owned Kiwibank.

Mr Cunliffe said last week that if Labour returned to Government it would increase the state's capital investment in growth-enhancing projects through partnerships with business, iwi, local government and the New Zealand Superannuation Fund.

"We can unleash state-owned enterprises to create and grow new subsidiaries with private partners and shareholders," he said.

But he drew the line at private investment in existing state-owned enterprises or their subsidiaries, including Kiwibank.

"We've made clear that that policy would only apply to subsidiaries and we've also made clear that we plan to build Kiwibank up as a publicly owned bank.

"So there is no plan, and we would exclude the possibility of diluting equity in Kiwibank."

Mr Cunliffe said Labour drew that line because it had a policy against privatisation.

But he indicated that Labour was now more receptive to public private partnerships (PPPs), particularly for large transport projects.

When Finance Minister Bill English announced this year a new policy that government agencies would have to consider PPPs for projects costing more than $25 million, Mr Cunliffe described it as a dangerous move.

But last week he said PPPs would be considered by a Labour Government.