Partial Share Sales
The forecast fiscal impact of the Government share offers remains similar to the Half Year Update. However, it is now assumed that there will be no proceeds from a partial sale of Solid Energy over the forecast period. As Solid Energy was a small component of total forecast proceeds the parameters of the expected proceeds have not changed. Forecast forgone dividends and forecast forgone profits have been updated with the latest forecasts from the companies.
Table 2.9 outlines the fiscal impact of the share offers and further details about the assumptions surrounding the forecasts can be found in the assumptions note on page 42. At the time these assumptions were made the outcome of the Mighty River Power offer was not known.
|
Year ending 30 June $millions |
2013 Forecast |
2014 Forecast |
2015 Forecast |
2016 Forecast |
2017 Forecast |
5-year Total |
|---|---|---|---|---|---|---|
Cash/Debt impact |
||||||
| Forecast cash proceeds | 1,500 | 1,500 | 1,500 | 1,500 | - | 6,000 |
| Forecast forgone dividends | - | (120) | (170) | (230) | (290) | (810) |
| Estimated finance cost savings | 7 | 79 | 158 | 245 | 291 | 780 |
| Reduction in net debt | 1,507 | 1,459 | 1,488 | 1,515 | 1 | 5,970 |
Accrual impact |
||||||
| Forecast forgone profits | (10) | (140) | (200) | (270) | (340) | (960) |
| Estimated finance cost savings | 7 | 79 | 158 | 245 | 291 | 780 |
| Net decrease in OBEGAL | (3) | (61) | (42) | (25) | (49) | (180) |
| Forecast gain on disposal recorded in taxpayers' funds | 175 | 175 | 175 | 175 | - | 700 |
| Increase in net worth attributable to the Crown | 172 | 114 | 133 | 150 | (49) | 520 |
Source: The Treasury
