Meridian review not sale step - English

A review at Meridian were up to 100 jobs could be cut is not a step towards privatisation, Finance Minister Bill English says.

State-owned enterprise Meridian Energy started a strategic review of its core operations in June at a time the Government made it clear it wanted profit and productivity improvements from the SOEs.

Concerns were raised that a restructure of Meridian's 700 workforce was preparing the ground for privatisation.

"No it isn't," English told Radio New Zealand.

"We have said to Meridian Energy, like every other SOE, that they can't continue with the approach where they weren't worried about their costs, and they weren't worried about their returns. They have to review themselves and that is what they are doing.

"These are taxpayers investments we need that money, dividends, in order to maintain our health services so they have to come up to the mark just the same as every other business out there."

National pledged before the election that no SOEs would be privatised in its first term of government.

- NZPA