SOE performance 'mediocre' - Treasury

HAMISH RUTHERFORD
Last updated 15:04 18/12/2013

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State-owned enterprises' performance has been "mediocre" in the last year, the Treasury says.

The Crown Ownership Monitoring Unit (Comu) today released the annual report of its portfolio, which reviews the performance of 49 government-owned enterprises that have full or partial commercial objectives.

All up, the enterprises employ more than 40,000 people, holding $125 billion in assets and $52b in investment funds at the end of June.

While the performance of the investment funds, mainly ACC and NZ Superannuation was strong, returning over 25 per cent in the year to June 30, the report was less kind about the other companies.

"While some State-owned enterprises have performed well, overall performance of the Crown's commercial portfolio has been mediocre, with poor performance by Solid Energy, KiwiRail and Learning Media," the Treasury said in a statement.

"Total shareholder return across the wholly owned commercial priority companies was 3 per cent," the Treasury said, adding that this did not include KiwiRail because of the change in its structure at the start of 2013.

Comu deputy secretary Andrew Turner said: "Getting better value from the Crown's assets is a priority - there is scope for most entities to improve their performance. In 2014, we'll be looking to improve how we support ministers in seeking better results across the portfolio."

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