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Government Package "Regional Cronyism - ACT

Government Package "Regional Cronyism"

Tuesday 29th Feb 2000 Owen Jennings Media Release -- Economy

The ghosts of Matai industries and the Development Finance Corporation lurked behind the Deputy Prime Minister today as he unveiled another version of failed central Government funding of regional development.

ACT Industry and Regional Development Spokesman Owen Jennings slammed the Government package calling it an insult to every New Zealander who has set up a business without assistance.

"ACT totally opposes the concept of hard working, successful businesses subsidising new businesses that have failed to get capital from traditional sources. We are totally opposed to Jim Anderton picking winners with the hard-earned money of taxpayers.

"This is a "regional cronyism" policy. Money inevitably goes to mates, to where votes can be bought and where genuine, established businesses will feel aggrieved when they don't get to be one of the chosen few.

"If the Government was really genuine in its desire to help businesses it would reduce compliance costs. The increased costs of re-nationalising ACC will alone take more resource away from business than Mr Anderton is offering.

"It is over regulation, high compliance costs and intrusive government that is stifling job growth.

"ACT will be monitoring these grandiose ideas and will report on the failures and the negative affects on existing businesses - issues that the Government will want to bury," said Owen Jennings.

ENDS


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