Why does the government own $571 billion in assets?
Wellington (Tuesday, 25 February 2025) - A new report by The New Zealand Initiative shows the government owns $571 billion in assets - equivalent to $275,000 for every Kiwi household.
"The returns from these government-owned assets don't even cover the interest costs on the money borrowed to buy them," says Dr Bryce Wilkinson, author of The People's Portfolio: A $571 Billion Question.
"Interest payments alone are now eating up nearly 4 cents of every tax dollar collected," says Dr Wilkinson. "At a time when New Zealand desperately needs better infrastructure, hospitals and schools, we must ask whether taxpayers are getting value for money."
The report shows that when assets are sold to private owners and opened to competition, services typically improve and costs fall. It points to the successful sale of Telecom in 1990, which led to dramatically better service and lower prices for consumers.
"This isn't about selling everything," Dr Wilkinson emphasises. "It's about making rational decisions about what the government needs to own and what might work better in private hands."
The report calls for an independent review of government assets to identify where changes in ownership could benefit New Zealanders through better services and freed-up funding for critical infrastructure.
The full report The People's Portfolio: A $571 Billion Question is attached below.
ENDS
Dr Bryce Wilkinson is available for comment:
E: bryce.wilkinson@nzinitiative.org.nz
P: 0274455326
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About The New Zealand Initiative
The New Zealand Initiative is an evidence-based think tank and research institute contributing to public policy discussion.
Supported by the nation’s leading visionaries, business leaders and political thinkers, we are committed to making New Zealand a better country for all its citizens with a world-class education system, affordable housing, a healthy environment, sound public finances and a stable currency.
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