Parliament

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

 

‘No economic justification’ for Tiwai subsidy

Clayton

COSGROVE

SOE Spokesperson
12 September 2013 MEDIA STATEMENT
‘No economic justification’ for Tiwai subsidy

The Government was so desperate to stitch up a deal with Rio Tinto over the Tiwai Point smelter before it sold Meridian that it ignored Treasury’s advice and made the subsidy tax free, says Labour’s SOEs spokesperson Clayton Cosgrove.

“This was a huge stitch up – all so that the Government could sell off its assets. Even Treasury didn’t want the deal to go ahead and said there was ‘no economic justification’ for the subsidy.

“We already knew Rio Tinto was the winner in this deal but it gets worse. Rio Tinto gets $30 million, its notice period halved, and cheaper electricity. Now we find out the multinational doesn’t even pay tax on the subsidy.

“And what did the Government get in return? Within days of the deal Rio Tinto said it was looking at cutting jobs. Bill English admitted he didn’t even ask for a jobs guarantee. His inept negotiations mean that Rio Tinto can announce it is walking away in mid-2015. That’s no guarantee of jobs at all.

“This was short term thinking and a rushed job. The Government was desperate to get a deal over the line before Meridian was sold. They didn’t even have time to get the tax sorted with IRD, so Rio Tinto got a tax indemnity.

“This is corporate welfare pure and simple and desperation to get their assets sold, no matter what the cost,” says Clayton Cosgrove.

ENDS




© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Fair Pay Agreements Good: CTU Releases Report On Sector Bargaining

The Council of Trade Unions has today released an independent report conducted by economic research company BERL into the validity of sector bargaining.

And the findings are clear - there is no economic reason not to implement sector bargaining but many social and individual wellbeing reasons to do so. More>>

 

Goldsmith New National Finance Spokesperson: Amy Adams To Leave Politics In 2020

Amy Adams has announced she will retire from politics at the 2020 election and as a consequence of that decision she has chosen to stand down from the spokesperson roles she holds in the Party. More>>

ALSO:

IPCA: Offensive Language, Misuse Of Pepper Spray

The Independent Police Conduct Authority has found that, following a pursuit in Auckland, a man was dealt with inappropriately and unprofessionally by a Police officer during his arrest. More>>

ALSO:

Stats NZ: Gender Inclusive Questions Introduced

More than 28,000 New Zealand households will be asked to take part in the upcoming Household Economic Survey. Starting this year, the survey will ask people to describe their gender – whether that is male, female, or if they see themselves another way, such as one of many non-binary genders. More>>

New Report: Are We Listening To Children?

A report released today is a sharp reminder that what children and young people say makes a difference, and that it’s time we paid more attention to their views, says Children’s Commissioner Andrew Becroft. More>>

ALSO:

The Nation: Canadian Euthanasia Practitioner Stefanie Green

The euthanasia debate is progressing, with the End of Life Choice Bill expected to have its second reading in Parliament on Wednesday. A similar bill was passed in Canada in 2016 ... More>>

ALSO:

Gordon Campbell: On The Gun Buy-Back Scheme

Do gun amnesties and buy-backs save lives? Since it’s always difficult to exclude all of the socio-economic factors that may be operating in parallel, the die-hard denialists in the gun lobby will always be able to find a bit of wiggle room. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels