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Anderton's Payout Sets Dangerous Precedent

Jim Anderton's donation of $1.6 million to Ericsson Synergy to invest in New Zealand amounts to little more than a bribe, ACT Finance spokesman Rodney Hide said today.

"When the Government has to pay large companies millions of dollars to invest in our country, we've got a problem.

"Ericsson Synergy is a joint venture company formed by Ericsson New Zealand and Synergy International. Worldwide, Ericsson spends fifteen per cent of its revenue - US $4.3 billion - on research and development. If this Government was making New Zealand 'business-friendly' we wouldn't have to put up extra money to attract any investment locally.

"Rather than squandering scarce taxpayer funds, Mr Anderton should overhaul the RMA, get rid of obstructive labour laws, and lower tax rates.

"Because he finds those measures far too difficult, Mr Anderton has provided every multinational and large company with the message: put your hand out, and we'll shell out the cash," Rodney Hide said.

ENDS


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