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The Government is exploring the potential sell-down of its investment in telecommunications lines company Chorus in a bid to free up money for other projects next year.
National Infrastructure Funding and Financing, or NIFFCo, will investigate the feasibility of selling the debt and equity securities it holds in Chorus.
Ifit went ahead with the decision, the money would be redirected to other capital projects.
Finance Minister Nicola Willis said that, with the completion of the ultra-fast broadband fibre initiative, there was no longer a policy reason for the Crown to own Chorus.
“Most New Zealanders were probably not aware the Government owns this investment in Chorus, nor feels any particular benefit from it,” she said.
“That’s why it is sensible and prudent to consider the feasibility of divestment to redirect the Government’s capital stored in Chorus into investments that New Zealanders can benefit from.”
Finance Minister Nicola Willis said that, with the completion of the ultra-fast broadband fibre initiative, there was no longer a policy reason for the Crown to own Chorus.
Advice on the potential sale will go to the NIFFCo board and shareholding ministers by the end of the year.
Ministers required that, for any sale to gain approval, the decision would have to go to market, and the sale price would have to meet value-for-money expectations.
Infrastructure Minister Chris Bishop said he had asked NIFFCo to explore the feasibility of selling the securities to private investors early next year, rather than wait for the securities to mature in five to 10 years.
“If such a sale gains approval and goes ahead, the proceeds would return to the Crown and the cash would be made available for capital allocations – that’s hospitals, schools, and roads – in Budget 2026,” Bishop said.
