21 MAY 2018

The decision by Megan Woods to end Callaghan Innovation’s Growth Grants is fantastic news for taxpayers, says the New Zealand Taxpayers’ Union.

Taxpayers’ Union economist Joe Ascroft says “We have regularly called for the new Government to dismantle the grants and replace them with an across-the-board tax credit. If the Government wants to encourage R&D spending, it’s much more efficient to apply a simple subsidy across the board, rather than make guesses on the future prospects of companies and pick winners and losers in the process.”

“Dismantling corporate welfare is politically difficult. The Minister should be applauded for making the best decision for taxpayers.”

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