Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Government gambling with taxpayer money

John Luxton

National Trade Negotiations Spokesperson

8 November 2000

Government gambling with taxpayer money

The Government is effectively betting taxpayers' money on long-shots with its newly announced export credit guarantee scheme, National's John Luxton said today.

"By its very nature such a scheme risks public money on deals which are too shaky for private sector financial institutions. A similar Government venture, the Export Guarantee Office operated from 1964 until 1990, when it was sold off by the Labour Government of the time.

"In 1994 the idea reared its head again when a Coopers and Lybrand report suggested it might be worthwhile. However the Ministry of Commerce investigated the idea, and in 1997 recommended it should not proceed, a view fully endorsed by Treasury.

"The Ministry rejected the idea because it put taxpayers money at an unacceptable level of risk, and because similar exercises in other OECD countries resulted in considerable losses.

"It doesn't surprise me that this Government has revived an idea which has already been repeatedly branded a loser. The one relief is that they have made a very half-hearted effort with the scheme announced today.

"The scheme will put up to 350 million dollars of Government money at risk for a suggested possible gain of 100 million dollars in export gains. A third of a billion dollars is a big risk to taxpayers, but is small potatoes as far as our export sector is concerned, especially with the Government saying just 4 or 5 businesses a year would be involved in the scheme.

"Using taxpayer money for high-risk investments is a dubious endeavour. Fiscal responsibility has certainly been shifted to the back-burner by this Government," John Luxton said.

Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>

 

Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>

ALSO:

Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election