Treasury's SOE advice

Photo / Mark Mitchell

Treasury two years ago advised the Government to have greater private sector involvement in state-owned enterprises to improve their performance.

It also pushed for SOEs to borrow more from the private sector and pay special dividends to the Crown, arguing higher debt would put pressure on SOEs to perform.

It also advocated smaller and better quality SOE boards, according to Treasury reports released under the Official Information Act to the left wing blog The Standard.

The reports were also obtained by NZPA. In releasing the reports Treasury said no work had been commissioned by the Government on the sale of state assets. It is the Government's policy not to sell state assets in its first term.