The first of the State Asset sales saw Mighty River Power shares put on the block as promised in the budget. The second half of this year will see up to 49% of Meridian Energy shares being offered for sale but this will depend on the state of the market.
The sale of shares in State Owned Companies such as Might River Power and Meridian is part of the asset sell down programme by the Government. When listed on the IPO Mighty River Shares were $2.73 each with 9.2 per cent premium on that price. Using these figures this has established a market value of around 3.8 billion dollars for the company.
The money raised by sales of shares will be used to boost the Future Investment Fund set up by the Government. An amount of 1.5 billion dollars is to be spent in the next few years thanks to this funding and will include a percentage going to KiwiRail, schooling and the rebuild in Christchurch.
“We must consult our means rather than our wishes” George Washington
Time limit for getting smart
Student Loan borrowing is the subject of a crack down by the Government with several changes being announced in the latest budget.
If you were thinking of starting a study course later in life (nearing or over age 65) you may want to reconsider as the Government will be removing eligibility for a student loan for this age group. Even over 40’s will find eligibility criteria more stringent when applying for a student loan.
The Government is also reining in criteria for students living overseas who have a student loan debt. If a borrower who is based overseas defaults on their repayments knowingly this will now be an offence. Also overseas based borrowers who have higher balances on their student loan accounts will now be required to pay a higher amount in repayments.
Visit the StudyLink website for up to date information on student loan and allowance schemes.
ACC Relief which may help your business
The budget has also heralded a drop of up to 40% in ACC Levy rates for businesses and households effective over two years.
2014/15 levies will be made final later this year and there will be public consultation of the issue before these are decided.