The Beehive is Not an Incubator
9 JULY 2014
FOR IMMEDIATE RELEASE
The Taxpayers’ Union is attacking Government grants to companies resident in technology-focused incubators. Executive Director Jordan Williams says:
“This is an example of politicians thinking they know more than IT entrepeneurs.”
“Minister Steven Joyce’s decision to risk $450,000 on these companies is a poor one. With a 3:1 funding ratio, the taxpayer is taking on 75% of the risk. If the technology-focused incubators are such a good investment then why aren’t the banks lining up to lend to these businesses? Why should taxpayers be underwriting the investments of private businesses just because it’s a sexy industry?”
“It appears that these loans are interest free. Politicians espouse the virtue of creating new industry, but ignore the cost of the taxes they’ve used to subsidies pet businesses.”
“The Government should not be risking tens of millions of taxpayer money subsidising privately owned businesses, even if they expect the money to be repaid eventually."