Mixing up state owned assets
The budget introduces the Future Investment Fund as a holding tank for the expected proceeds (between 5 and 7 billion) from the sale of up to 49% of shares in Air New Zealand and four state owned enterprises under the controversial mixed ownership model.
The Future Investment Fund will pump money into other public assets such as schools, hospitals, KiwiRail and The Advanced Technology Institute with around $559 million already allocated to fund these projects alone.
Marketed as changing the mix of assets rather than an asset sell off, the government has already confirmed that Mighty River Power will be the first in line with an Initial Public offering expected this year.
* Wilco : The 2012 Budget