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May 16th, 2013 
Peter Nolan
MERIDIAN Energy has been confirmed as the second cab off the rank in the New Zealand government’s asset sales program, but budget documents say nothing about plans for a selldown of Air New Zealand.
The government confirmed plans to sell down its stake in Meridian Energy in the second half of the year. The market expects the sale will be held in October.
Meridian has been valued at $6.5 billion and the government is planning to sell 49 per cent.
The government also detailed what it will do with the $1.7b it made from partially privatising Mighty River Power.
This budget allocates $1.5 billion of capital to be distributed by the Future Investment Fund on top of $569 million allocated last year.
Last year state-owned KiwiRail got nearly half the money. This year it gets another $94 million to fund the fourth year of a turnaround plan.
The budget documents say the government has not decided what to do about another $239 million KiwiRail wants to complete its 10-year recovery strategy.
The fund will ultimately distribute $5 billion to $7 billion from government asset sales.
This year $426 million is allocated for the redevelopment of Christchurch and Burwood hospitals.
The rebuild of Christchurch is estimated to cost $40 billion and hospitals are one of the big items.
State-Owned Enterprises Minister Tony Ryall says that over the life of the fund $1 billion will be allocated to hospitals and health projects.
The new risks section of the budget documents lists the future of the aluminium smelter at Tiwai Point as a risk.
It also notes that troubled state-owned coal miner Solid Energy is working with banks and advisers on options to put the company on a sustainable path.
“The outcome of this process could have an impact on the operating balance or the crown’s balance sheet,” the budget documents say.
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