The Government has advised that new legislation will shortly be introduced to remove the Crown guarantee of the Public Trust. The reasoning given is that this is in line with government policy for the last several decades that Crown-owned commercial businesses should not have a competitive advantage through being Crown-owned.
Public Trust currently has an AA credit rating from independent credit rating agency Fitch, which places is just below the Government’s own rating.
Associate Justice Minister Mark Mitchell says the rating gives the Public Trust’s customers certainty that it is a strong, stable, sustainable business.
“Gaining the AA rating is a considerable achievement. It shows customers that they can have confidence in the organisation, and that they will not be disadvantaged by the removal of the guarantee.
“No other business in New Zealand that provides the same services as the Public Trust is underpinned by a Crown guarantee,” he says.
The Crown guarantee will remain in place until the legislation is passed by Parliament. This is likely to be in the second half of 2018.