Labour accuses Govt of 'dodgy accounting' over SOE sales

Labour finance spokesman David Cunliffe says that the cumulative impact on debt of lost revenues from asset sales will be $9.7 billion by 2025. Photo / supplied

Labour is accusing the Government of "dodgy accounting'' over the sale of state-owned assets and says it is ignoring income that will be lost.

The Government plans to partially sell four state-owned power companies if it wins the November election and Labour is arguing that lost dividends outweigh the gains.

"Labour estimates that the cumulative impact on debt of those lost revenues at $9.7 billion by 2025,'' finance spokesman David Cunliffe said today.

"We challenge National to prove that our estimate is wrong.''

A spokesman for Associate Finance Minister Steven Joyce said Labour was trying to put up a smokescreen.

"The Treasury has advised that any reduction in dividends as a result of extending the mixed ownership model would be offset by reduced debt servicing costs due to the proceeds from sales,'' the spokesman said.

"It's telling that Labour has tried to reheat this stuff rather than explain how it would pay for its own tax and spend ideas, which would require it go to out and borrow an additional $18.5b over the next 15 years.''

- NZPA