Minister wants SOEs to work closer together
Minister for State Owned Enterprises (SOEs) Hon Mark Brown wants State Owned Enterprises to achieve a closer and more cooperative working relationship.
The Times has learnt that on Wednesday at 2pm, Brown met with the Chair, Board members and CEOs of the State Owned Enterprises (SOEs), (Te Aponga Uira, BCI, Airport Authority and Ports Authority), at the Office of the DPM to outline government’s expectations of the SOEs.
Finance Secretary Richard Neves also attended the meeting along with CIIC Chair Julian Dashwood.
Issues discussed included; a dividend policy, appointment process for Board CEOs, linkages between SOEs, a medium term strategic plan for CIIC and the upcoming Budget process.
Back in May, Brown discussed with the Chair and Board of CIIC (Cook Islands Investment Corporation)the need for CIIC to set strategic directions, plans and related policies for its dual responsibilities relating to Crown properties and other assets of the Crown as well as CIIC’s oversight responsibilities towards it subsidiaries.
The Times spoke to the Minister on Thursday afternoon about the meeting and some of the issues discussed.
He advised of the need for the CIIC to ensure the operations of the SOEs were consistent with government’s policies.
He is looking to CIIC to develop a dividend policy for the SOEs. This policy needed to take a long term view. (Previous governments have generally expected a dividend of around 5% from each SOE although some are not able to meet that threshold, Te Aponga’s return to government of about 12% helps to make up for that. SOEs also have social responsibilities).
In respect of the SOEs, Brown said government would be looking for Te Aponga to increase its uptake of renewable energy. It would be looking into how the BCI can reduce the cost of capital to bring interest rates down. This will be done in conjunction with the banking sector. There is the proposed development of a commercial hub at the port and consideration is being given to bringing outer island airports under the Airport Authority.
Brown said government is considering making the appointment process for SOE CEOs consistent with those for the HOMs. Harmonizing the legislating applying to each SOE in relation to administration and policies is also being looked at.
Brown said there will be a further meeting with the SOEs next week regarding their statements of corporate intent which must be completed by November in time for the Budget Policy Statement. -Charles Pitt

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