The offshore sale of a business receiving up to $25m in taxpayer funds is yet another example of the massive waste incurred from Callaghan Innovation’s corporate welfare spending, says the New Zealand Taxpayers’ Union.
Taxpayers’ Union Executive Director Jordan Williams says, “BBC Technologies is receiving up to $5 million a year in taxpayer-funded R&D grants, across five years. The company has now been sold to a corporate from the other side of the world, taking any taxpayer-funded IP with it.”
“Callaghan Innovation often wastes taxpayer money on companies that end up failing. But this example shows how even when they give money to a successful company like BBC Technologies, the taxpayer still loses. Despite investing millions, taxpayers won’t see a cent of the $67 million the company was sold for, and all the IP, which was to benefit New Zealand, will be emailed offshore.”
“This isn’t even the first time this has happened this month. Snowberry Skincare was soldto multinational corporation Procter & Gamble after also receiving Callaghan funds. It’s a predictable pattern of waste.”