The Government is dismissing claims by the Greens and Labour that under the mixed ownership model major assets such as hydro dams could be sold into foreign ownership.
When Treasury Secretary Gabriel Makhlouf appeared before Parliament's finance and expenditure select committee yesterday, Greens co-leader Russel Norman raised the issue of directors' obligation to act in the interest of all shareholders.
"Take Mighty River Power, for example, which owns dams on the Waikato river," Norman said. "If an Australian investor came along or a Chinese investor or whoever and said we want to give you a price for the dams which is maybe twice what you or the company think is their commercial value, [the directors] would be under some kind of commercial obligation to accept ... because it would give them a very good commercial return from their point of view to sell those assets.
"There is no requirement on them to retain any of the assets, is there?"
Makhlouf replied that, subject to whatever constraints were placed on them by yet-to-be-introduced legislation and the normal requirements of company law, they would be expected to act commercially.