Tuesday 10 April 2012

How not to argue against privatisation

From TVNZ,
[Greens co-leader Russel] Norman said the partial-privatisation of state-owned assets will also hurt the Government's books due to the loss of dividends and he again urged the National party to consider a special levy for the rebuild of Christchurch and a capital gains tax to help service debt.
Yes Russell but if sold correctly (in particular you need a competitive sales scheme) the payment the government receives will equal the present value of the future dividend stream, so we don't lose out. The government just gets the money now rather than in the future.

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