Waitaki electorate candidates were grilled about asset sales at a public meeting in Oamaru on Saturday.

At the meeting, held by Grey Power North Otago, candidates were questioned on their position on the Government's proposal to partially sell energy companies, including Meridian Energy, Mighty River Power and Genesis.

About 60 people attended the meeting.

Eight of the country's power stations are in the Waitaki region.

Members of the public were invited to asked questions of National MP Jacqui Dean, Green Party candidate Sue Coutts, independent David Ford, Labour candidate Barry Monks and Democrats for Social Credit candidate Hessel van Wieren.

The Alliance Party was represented by Norman MacRitchie, who is not a candidate for the Waitaki electorate.

Mrs Dean was forced to defend National's proposal as the five other candidates spoke out against it.

She said it was absolutely critical that the country reduced its debts and returned to surplus.

"The more New Zealand has to borrow offshore, the harder it's going to be to run this economy."

It was a "mixed-mode" proposal, which would provide many benefits, she said.

It would release $4 billion to $7b that could be reinvested into vital sectors, such as health and education.

It also gave New Zealanders the chance to invest in the companies.

"Imagine if you had the opportunity to invest in Meridian," Mrs Dean said.

"[You would be] investing in the future of New Zealand."

The Government would sell only 49 per cent, meaning it would retain full control.

"There can be no other cornerstone shareholder calling the shots."

She cited Air New Zealand as an example of a successful mixed-model ownership.

But other candidates questioned the benefits of the proposal.

Mr MacRitchie said the Alliance Party was against any form of asset sales. Mr Ford said 100 per cent of the people he had spoken to did not want asset sales to go ahead.

"We are a tiny nation and we have very few assets and very little money and we compete with the world on a global scale."

He rejected the notion that sales were needed to pay off the country's debt.

"I believe we should run governments the way we should run households," Mr Ford said.

"If we are spending beyond our means we are not going to survive as a nation. If we get foreign control [of the assets] we have lost the right to them." Mrs Coutts said selling assets was an unnecessary move.

"I believe it is possible to build a strong economy without having to sell the family jewels."

She said the $4 billion to $7 billion could instead be raised by introducing a capital gains tax.

Mr van Wieren said it would be "ludicrous" to sell the assets.

Mr Monks said it would be "foolish, irresponsible and wrong" to sell the assets.

"The Labour Party has learnt from the mistakes of the past," he said.

"Why would you sell it now? It was built by New Zealanders for New Zealanders."

He said the assets had returned $700 million last year.

"We should own our future, not sell it off."

Mrs Dean was asked by a member of the audience if there would be a guarantee in legislation that the Government would retain 51 per cent. She said new governments were able to change legislation.

Other issues put to the candidates were Kiwisaver contributions, animal welfare, methamphetamine and crime, and support for aged care workers.