Tuesday, June 13, 2006

Power cuts

Not PC has blogged extensively about this, but it is very simple.
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Transpower lacks capital - the government wont provide it - so the private sector should.
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49% of Transpower should be privatised - sold to a single buyer or consortium. This would inject new capital into the company, see a revitalised board (with privately chosen businesspeople not politically chosen ones) and wipe some more public debt (reducing interest payments and giving more room for tax cuts).
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The remaining 51% should be distributed as shares to all citizens equally. This would mean Transpower would be predominantly publicly owned and controlled. The public would receive dividends, and would have a stake in the national grid - and could appoint directors by annual general meeting. Those members of the public so concerned about Transpower could then increase their shareholding and those who are not, could sell it. It would demonstrate whether the public WANT to own it and the private capital would create a company that truly wants to make a profit, provide good reliable service and grow.

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