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Government hands out more corporate welfare

Government hands out more corporate welfare

The Government's handout of $1.5 million to EDS is a bizarre use of taxpayer money, says National's Associate Commerce spokesperson John Key.

"This Government has warped priorities. This deal comes at the same time as hospitals are in deficits, waiting lists are going up and student debt keeps skyrocketing. Yet somehow the Government is able to find $1.5 million to give to one of the world's biggest companies, which earned US $21.5 billion last year.

"The Government could create far more sustainable jobs by reducing compliance costs for all businesses, not just a lucky few. Every extra compliance cost this Government has loaded onto business makes it harder to employ people.

"A system of picking winners is always risky and controversial. It becomes not what you know, but who you know.

"This deal promises a lot - lets just hope it can deliver, unlike other similar projects. After the Sovereign yachts debacle Jim Anderton's credibility is seriously on the line," said Mr Key.

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