Share
- Release Date: 26/03/13 11:59
- Summary: GENERAL: MRP: Shareholder Notifies Removal of ECNZ Indemnities
- Price Sensitive: No
- Download Document 1.97KB
MRP
26/03/2013 09:59
GENERAL
REL: 0959 HRS Mighty River Power Limited
GENERAL: MRP: Shareholder Notifies Removal of ECNZ Indemnities
Mighty River Power was advised today that the Company's Shareholders had
taken steps to remove historical Crown indemnities that had been in place
since the formation of Mighty River Power in 1999.
Mighty River Power Chair, Joan Withers, said the Shareholding Ministers
confirmed with the Board that the indemnity provisions in the 1988 ECNZ Crown
Sale Deed which had transferred to Mighty River Power - providing
compensation rights in certain circumstances - were to be removed.
The Crown also confirmed with Mighty River Power that it has taken the same
approach in relation to the other proposed mixed ownership model companies
with similar rights.
Mrs Withers said that the scope of these compensation rights had not been
tested. However, the removal of the indemnities means the Company did not now
have the protection of those specific indemnities. The first of the
indemnities removed relates to the Company's use of water and geothermal
fluid, where (to the extent they are not otherwise recoverable), any tax,
royalty, levy or impost affecting power stations which were in existence in
1988 could now no longer be recovered from the Crown. These effects could
arise as a result of statutory and regulatory action giving effect to
policies introduced by the Crown or as a result of Court decisions.
The second of the indemnities relates to circumstances where, pursuant to a
Waitangi Tribunal recommendation, ownership is transferred to Maori of former
Crown owned land. Compensation to the Company for the loss of this land,
which could include land beneath the Waikato hydro system, would now be
limited to statutory compensation under the Public Works Act. The now-removed
indemnities provided additional compensation in the event that the Public
Works Act did not fully compensate the Company.
End CA:00234542 For:MRP Type:GENERAL Time:2013-03-26 09:59:46
