Your Daily Ten@10 - 2026/042

This is edition 2026/042 of the Ten@10 newsletter.

Hi all,

This is the Ten@10, where I collate and summarise ten news items you generally won't see in the mainstream media.

Enjoy!

1. How asset recycling can help solve the infrastructure deficit

Roger Partridge

• ⚡ The government confirmed it will spend up to $200 million buying new shares in Genesis Energy , officially citing energy security and stronger assets.
• 📜 The real driver is legislation under the mixed ownership model, which forces the Crown to maintain its 51% stake , meaning taxpayers must buy new shares whenever the company raises capital.
• 💰 Private investors were willing to fund the share issue, but the law left ministers with two choices: buy the shares or prevent Genesis from raising capital.
• 🏥 Critics argue the $200 million could instead fund infrastructure like hospitals or water systems rather than preserving a stake in a listed electricity company.
• 🔌 The success of Contact Energy since full privatisation in 1999 is cited as evidence that electricity firms can operate successfully without government ownership.
• 📊 The Crown’s balance sheet totals nearly $600 billion , including around $24 billion in commercial enterprises alongside essential infrastructure like roads, hospitals, and schools.
• 🏢 These state holdings accumulated over decades without a clear strategy, spanning businesses such as Air New Zealand , Kiwibank , New Zealand Post , Television New Zealand , farms, and even the national weather service.
• ❓ This raises a policy question: should billions remain tied up in commercial assets or be redirected toward urgently needed infrastructure?
• 🧠 Treasury Secretary Iain Rennie has warned that New Zealand cannot grow its way out of fiscal pressure and will need balance-sheet changes , including capital recycling.
• 🔁 The The New Zealand Initiative report Renovating the Nation proposes asset recycling —selling non-essential government assets and reinvesting proceeds into infrastructure.
• 🇦🇺 The model mirrors New South Wales , which has raised over A$50 billion since 2012 and funded major projects like Sydney Metro and WestConnex.
• 🏗 Successful asset recycling requires safeguards: proceeds placed in a protected infrastructure fund , spending that adds to existing budgets , and independent project prioritisation.
• 🧭 New Zealand’s New Zealand Infrastructure Commission has identified infrastructure needs but cannot prioritise projects , leaving decisions vulnerable to political pressure.
• ⚖️ Supporters argue regulation—not ownership—protects consumers, with oversight from the Commerce Commission ensuring fair pricing in regulated industries.
• 📉 Critics worry about losing dividends, but proponents argue the sale price reflects those future earnings , while infrastructure investments generate broader long-term economic returns.
• 🗳 With a November election approaching , voters may need to decide whether the government should keep commercial assets or sell them to fund infrastructure upgrades.

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