One of the difficulties of debunking myths about privatisation is that some people do not get basic factual or economic points even when they are clearly explained.
Thus in a recent letter to the Dominion Post, investment analyst Garth Ireland wrote:
Labour leader Phil Goff says that, under Labour, there will be no asset sales (May 2). He says: “It is economic madness. The power companies return $700 million in dividends every year – that is lost forever”. But is it?
Surely the sale price received today is equivalent to the future expected dividends? Nothing is lost. Dividends of $700m a year at a rate of return of, say, 10 per cent are equivalent to $7 billion today.
Mr Goff claims that the dividends “pay for 10,300 teachers, 12,600 new police officers or 33,000 hip replacements”. He can still spend the $7b sale proceeds or the $700m each year forever…
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Utopia, you are standing in it! 
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