Sunday, April 27, 2008

Class Action Against Labour - Woopeee!

Fran O'Sullivan takes a hard hitting look at the scheming machinations of our Finance Minister Michael Cullen and his shady dealings over Auckland Airport.

It turns out Treasury made it crystal clear to Cullen that his proposed action in blocking the sale was (a) unjustified on logical or economic grounds; and (b) was damaging to NZ's reputation and the future governance of the Airport company itself and (c) would result in a massive loss to shareholders. Here's what they said to this flea brained history teacher.

"If that's not enough, Treasury also noted Government intervention in this sale process would arbitrarily change the property rights of existing shareholders, which may cause both domestic and foreign investors to be sceptical about the certainty of New Zealand's regulatory environment and therefore be more wary about investing in Kiwi firms.

But the crucial factor as far as the NZX is concerned is that Treasury also noted the Auckland Airport share price was likely to drop immediately following an announcement and existing shareholders were likely to see the Government as responsible for the immediate loss in value of their shares and as such, "potentially liable for the full difference between the new share price and the full value of the CPPIB offer"."

Adolf calculates that loss to be in the vicinity of $1.7 billion dollars.

That's the fiscal time bomb Shady Cullen is leaving for John Key to fund, when the government has to pay out the shareholders.

As corporate crooks and other thieves go, Shady Cullen makes Ron Bryers look like a saint.


Anonymous said...

National stands up for property rights!

They should promise - now -

to reimburse shareholders in Telecom whom labour destroyed by the nationalisation

to reimnburse shareholders in the Airport, ditto

to remiburse shareholders in the finance companies that Labour has destroyed by their intervention in the housing market

and - yes - as ACT says - to restore the foreshore & seabed, with compensation for that confiscation.

Expensive? yes! and once interest is included, it will be more like 10 Billion, rather than 5!

But doing the right thing: priceless!

And besides, by simply selling of HCNZ and the schools, National will easily be able to afford this!

emmess said...

Shareholders should send start sending Cullen invoices for their loss

Anonymous said...

Cullen leaves incoming National Government a fiscal time bomb ah la Caygill and the BNZ in 1990.

Nothings changed.

pdm said...

Oops a bit quick on the publish trigger and omitted my name.

dad4justice said...

Sullen Cullen don't worry about profit and loss accounts, because the moronic taxpayer gives him everything he needs too manipulate anything he so desires.

The idiot should be wearing an electronic bracelet doing home D! Preferably with the dog collar around his insipid neck.