Parliament

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

 

Ad hoc loan to firm sets poor precedent

Katherine Rich MP
National Party Economic Development Spokeswoman

7 September 2006

Ad hoc loan to firm sets poor precedent

The Labour Government ignored Treasury advice in giving an ad hoc interest-free US$8 million loan to a Silicon Valley-based firm with a base in Auckland, says National Economic Development spokeswoman Katherine Rich.

"This US$8 million interest-free loan, announced by Helen Clark, sets a very poor precedent.

"Cabinet, in agreeing to this deal, rides roughshod over Treasury's advice that the loan has a 'low probability of resulting in net benefit to NZ'.

"It also begs the question how many other firms will now go cap in hand to the Government for such loans? Many other Kiwi firms could put an equally compelling case.

"This loan is also bad process. This direct intervention by Cabinet cuts across all other funding processes overseen by the likes of the Foundation for Research, Science and Technology, NZTE grants schemes, and the NZ Venture Investment Fund.

"We are concerned by Treasury predictions that this deal with one New Zealand company could potentially cost taxpayers $3 million per annum.

"The issue in the minds of many other Kiwi businesses is fairness.

"There are many hundreds of New Zealand companies that would like interest-free loans and cash subsidies. Most companies have to go a bank for a loan - and they get charged interest.

"The Government needs to explain why the needs of just one company were so unique that it required a direct funding decision from Cabinet."

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Decision Day: Peters Chooses Labour

Winston Peters says he will form a Government in coalition with Labour and the Greens giving confidence and supply.

Peters said he had been offered the position of Deputy Prime Minister and a number of other ministerial posts would go to his colleagues

He said economic and monetary policy changes were needed to face a coming economic downturn.>>>More

Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…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