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Govt should not play Rio Tinto’s bidding game

Govt should not play Rio Tinto’s bidding game

Press Release by ACT Leader John Banks

Thursday, April 4 2013

The ACT Party is fundamentally opposed to corporate welfare and does not want any subsidies given to Rio Tinto to keep the Bluff smelter operating, ACT Leader John Banks said today.

"Rio Tinto is essentially running an international auction to see which Governments around the world will bid the most to obtain or retain a smelter in their region.

“No New Zealand government should get sucked into this game,” Mr Banks said.

"If the smelter cannot afford to pay Meridian a commercial price for its electricity, it is better that the electricity is sold to those who can. That is how free enterprise is meant to reallocate resources.

"We all sympathise with the workers and related businesses that face disruption costs when businesses fail, but free enterprise is about success and failure. No business can expect to operate in an unchanging environment. |


"Governments should not disrupt this competitive process by propping up struggling firms,” Mr Banks said.

ENDS

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