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Finance Minister Michael Cullen says Vector's Wellington electricity network is not on sensitive land and doesn't come under the same sale criteria as Auckland International Airport.
Vector is seeking approval for a $785 million deal to sell the network to Hong Kong-based Cheung Kong Infrastructure Holdings (CKI).
The sale is subject to conditions, including the approval of Vector's shareholders and the Overseas Investment Office, which will report to ministers.
Dr Cullen told reporters today that unlike the airport, Vector's network could not be described as a strategic asset because sensitive land was not involved.
"Sensitive land is defined in the Act, it borders reserves, or foreshore and seabed, or whatever it may be.
"We can't just say we think this is sensitive land because it's Wellington," he said.
The Government changed the rules on foreign ownership to block the sale of the airport to a foreign bidder, but Dr Cullen said Vector was not in the same category.
"We have to obey the law and the law is quite clear - this doesn't involve sensitive land," he said.
"I can't change the law on that, it would require legislation."
Asked whether it concerned him that Wellington's electricity network would be in foreign hands, he replied: "It's been in foreign ownership twice before. I think that's sufficient answer to that question."
Vector is optimistic the deal will be approved. It stands to make a profit of about $195 million from the sale.
- NZPA
