By: Mike Hosking | Wednesday, June 27, 2012 8:26 AM

So the legislation for the asset float has passed. It would be nice to think those who don’t like it accept it as being part of the process of democracy. The Government has a right to do this - they campaigned on it, the won an election on it, they have the numbers in the house. That’s how democracy works. And perhaps we need to see some of the opposition for what it is. I watched on the news last night some of the protest. Did you see it? How many were there? 12? 15? 20? That’s not a protest and it’s not really opposition. It’s bored people looking for attention.

If there is a failure on the Government’s part in this it’s their inability to sell the concept, to gain broad support. There is not a poll that says a majority of us back the idea but ironically in the polls that tell us the bulk don’t like it, they also show that the majority are keen to buy a stake. So the reality is if we had a choice we wouldn’t sell but if we’re going to, we don’t want to miss out on a slice of the action.

Trouble too in dealing with Maori. No shares should be put aside for Treaty settlements. Treaty settlements are about cash and apologies. What if the shares rocket and other tribes come back and argue given the value has risen dramatically that they want a better deal? As for the Maori Council and their argument over owning the water, that should be treated with the contempt it deserves.

Having got through all that, the Government then has the problem of performance. In theory businesses that are partially privatised, and they cite Air New Zealand as a good example, do better. As a result of that in theory the returns go up, the shareholders are happy and the whole thing turns out to be a success.

But, and it’s a massive but, what if the theory is wrong? There’s a lot of what if - what if some of the companies don’t perform as well as others, what if a lot of shares end up offshore, what if there isn’t enough capital to soak up the $7 billion the Government needs to float all these companies? They are all questions for a pending election campaign. Selling these things is just part of the equation. Making them successful sales is a major bridge yet to be crossed.

Are you happy or disappointed with the result? Will you be buying a slice of the SOEs? Leave a comment below...

Photo: NZ Herald