Use Kiwisaver to buy back Contact, Mighty River - Peters

New Zealand First is proposing the Cullen Fund and Kiwisaver funds be used to re-nationalise Mighty River Power and possibly Contact Energy.

Treasury estimates suggest the Mighty River Power share float could value the company at as much as $1.6 billion.

And current estimates would suggest Contact Energy’s market capitalisation was around $4 billion.

But speaking on TV3’s “The Nation”, Mr Peters said the Government had the ability to access the Cullen Fund. 

“You’ve got the ability to access Kiwi Saver in the short term,” he said.

He said buying back Mighty River Power would be bottom line for NZ First support for any Government.

You’ve also got the ability to internationally access the market and borrow, which as you know according to Treasury, because this is a high yielding asset, that makes economic sense to do that, he said.

Mr Peters said to use Kiwisaver funds the Government would need to change the investment rules.

“You could quite easily do that in the short term so that Kiwi Saver is advantaged, whilst you over time recompense Kiwi Saver and the Cullen Fund with respect to this asset,” he said.

“The market needs to know, anyone advising them on their investment capacity should be telling them about the political environment.”

But though Mr Peters said the re-nationalisation would be a bottom line for NZ First support for any Government after the next election, he conceded that party might end up not supporting anyone.

“I well know that there are politicians who will crawl over cut glass to get to power,” he said.

“I don’t happen to be one of them and my record proves it despite what you people say. 

“I've given up offers on matters of principle in the past a number of times, so I just know what they're prepared to do

“We don’t go into negotiations in a blind way, we go in knowing what our supporters want, why they voted for us, and intend to deliver to them. 

“That’s why we will walk in fully aware of what is the price of our support, and it may be that we don’t go into government, are prepared to sit on the cross benches and keep them honest. 

"We're not making up our mind on that, but what we are saying is, that if you see the slide in this country's economic and social performance this last 30 years, there are dramatic changes that are required, and we're happy to even stay on the cross benches, but insist that the government follow sound policies, which they haven't been doing for a long time.”