This year we are seeing a number of instances of governments attempting to raise their revenues by "instructing" the organisations that they own to increase their dividend payments. This is just a tax by another name.
In some cases it's quite explicit, such as the Auckland Council requiring Ports of Auckland to "double its dividend from a 6 per cent rate of return to 12 per cent over five years" (Auckland port expansion plan put on hold, 7 March), and central government "expecting" Housing New Zealand to double its 2010/11 dividend in two years ("Put on hold then cut off: brave new world of Housing NZ's call centre", NZ Herald, 7 March). In other cases such in the pressures being placed on the Ministries of Police and Foreign Affairs, the cost savings required are equivalent to the imposition of a dividend requirement.
Legally, an enterprise's profit is a surplus, what's left over from revenues once costs have been paid. Thus dividends, the distributed part of that profit, can be expected to vary considerably from year to year, given the variability of such surpluses.
In reality however, the requirement from shareholders for dividends is not unlike the requirement of labourers for wages. Economists understand that dividends really represent part of firms' costs. This is most true where firms are large and have a single controlling owner. That is, this is generally true of firms which are "public" in either sense of that word; listed on the stock exchange, or owned by a central or local government authority.
Governments are under pressure to treat the enterprises they own as cash cows, especially when they need to raise taxes (or rates) but are under strong political pressure not to do so. In the case of the Auckland Council, the much-needed improvements to inner-city rail have to be funded somehow. In the absence of central government support, the Council's obvious targets are the businesses that it owns.