A Key Issue for 2026
The debate over asset sales in New Zealand is gaining momentum once again, with Prime Minister Christopher Luxon hinting that National will campaign on the issue in the 2026 general election. While no immediate asset sales are planned, the discussion has reignited political divisions, with coalition partner New Zealand First opposing the move, and Act leader David Seymour pushing for more privatisation.
National Signals Intent for 2026
Luxon has made it clear that National sees electoral victory in 2026 as a sufficient mandate to proceed with asset sales. He has ruled out selling state houses but remains open to selling other government-owned assets. Finance Minister Nicola Willis and State-Owned Enterprises Minister Simeon Brown have also raised questions about whether state ownership of certain assets, such as Quotable Value (QV), is necessary.
Willis has discussed the need to assess whether billions of dollars in government-owned assets are being used effectively. “When I travel around the country people say to me, we’d love to see more investment in hospitals and schools and transport infrastructure, but I haven’t had many people say to me recently, I’d like to see a lot more investment in QV,” she said.
Brown, meanwhile, has pointed to the potential role of public-private partnerships, particularly in healthcare infrastructure, though he insists New Zealand will maintain its publicly funded health system.
Act Party Pushes for Privatisation
David Seymour has taken a stronger stance, arguing that the country needs to be more open to discussing asset sales. In his recent State of the Nation speech, he suggested healthcare could be a starting point for privatisation. Seymour has also questioned why the government remains involved in businesses such as QV, stating that taxpayers should not be funding assets that could be better managed by the private sector.
Strong Opposition from Labour, Greens, and New Zealand First
Labour leader Chris Hipkins has accused National of following a “typical right-wing government playbook” by underfunding public services, declaring them broken, and then selling them off. He has ruled out any asset sales under a Labour government.
Green Party co-leader Chlöe Swarbrick has also expressed strong opposition, arguing that privatisation could lead to higher costs for ordinary New Zealanders. “The mask is slipping off,” she said, accusing the government of planning a widespread privatisation agenda.
New Zealand First leader Winston Peters has reiterated his long-standing opposition to asset sales, stating he has spent his career ensuring public assets remain in New Zealand’s hands. Peters has cited the 1992 sale of NZ Rail as a cautionary tale, arguing that privatisation often leads to economic mismanagement.
Key Assets Under Discussion
While no specific list of assets has been confirmed, several have been raised as potential candidates for sale:
Kiwibank: A partial sale has been floated to inject capital into the bank and help it compete with Australian-owned banks.
Quotable Value (QV): Finance Minister Willis has questioned the rationale for government ownership of the property valuation firm.
TVNZ: The state broadcaster has long been discussed as a possible sale target.
Local Government-Owned Airports and Ports: With councils struggling financially, investment analysts argue that selling stakes in assets like Christchurch Airport and Lyttelton Port could be an “elegant solution” to funding infrastructure.
John Key’s Skepticism
Former Prime Minister Sir John Key has voiced doubts about the economic benefits of asset sales, stating, “Frankly, there is not a hell of a lot to sell.” Key, who oversaw the partial privatisation of power companies in 2013, believes there are better ways to boost the economy, such as cutting bureaucracy and attracting foreign investment.
Public and Union Backlash
The Public Service Association has urged Luxon to rule out privatisation altogether, warning that selling public assets could erode national identity and weaken government services. There is also concern that privatisation could result in job losses and increased costs for consumers.
Economic and Political Implications
Supporters of asset sales argue that privatisation can provide much-needed capital for infrastructure projects and reduce government debt. Investment analysts have pointed to successful mixed-ownership models, such as Meridian Energy and Port of Tauranga, as examples of how public-private partnerships can benefit both taxpayers and investors.
Conversely, opponents argue that asset sales often result in long-term losses for the public, as seen in past privatisations where assets had to be bought back by the government after failing under private ownership.
For now, Luxon remains firm in his stance: no sales this term, but the conversation will continue.