'Absolutely Positively' Money Down the Drain

TUESDAY 1 DECEMBER 2015

Wellington City Council should learn its lesson from the failure of CallActive and ditch its corporate welfare mentality, says the Taxpayers’ Union. This morning’s Dominion Post reports that the Council loaned the failed Australian-owned company $300,000 in 2013, with the expectation the company would bring jobs to Wellington. Of that $150,000 was still owed and with the company now in liquidation it is unclear whether ratepayers will see any of the money back.

Jordan Williams, Executive Director of the Taxpayers’ Union, says, "Wellington City Council should stop using ratepayer money to try to pick winners and subsidise favoured businesses. If corporate welfare was the solution, Wellington would be thriving. But ask any property owner — it’s not.”

Responding to the reported comments by the Council’s CEO, Kevin Lavery, who said that the council was doing everything it could including 'innovative initiatives' to boost Wellington's economy, Mr Williams says:

“What Mr Lavery calls ‘innovation’ is in fact code for more corporate welfare for overseas owned businesses. Charging Wellington businesses more in rates, for Council officers to pick and choose who to award grants to, is not economic development.”

"Instead of awarding dollops of other people’s cash, the Council would be better off running a tight ship and ensuring the costs of doing business in Wellington remain competitive."

ENDS

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