“While Kiwis are tightening their belts and making tough choices, the Government is spending more and more taxpayer money to keep the corporate welfare gravy train chugging along,” says ACT Leader David Seymour.

“This week there have been at least four examples of corporate welfare:

• Air New Zealand was given $765,000 to study biofuels, even though the production of biofuels in New Zealand is known to be impractical after Z closed their biofuel refinery and the Government scrapped its policy of a biofuels mandate.
• More details were released about subsidies for videogame developers, with $40 million a year in handouts put aside.
• The Government gave $52.21 million to developing a hot pools tourist attraction in Rotorua.
• A leaked email showed that the Government is set to lose millions keeping ski fields in Ruapehu afloat. That includes a $15 million MBIE loan-write off, up to $25 million in maintenance costs and the risk of a $100m bill to restore the mountain if the skifields fail in the future.

“This is just wasted taxpayer money. When the Government tries to pick winners, taxpayers are the losers.

“Every dollar spent on subsidies for videogames, airlines, and tourism companies is a dollar that can’t be spent elsewhere. We would be better off scrapping corporate welfare altogether and allowing taxpayers to keep the money.

“The best way the Government can help businesses is to lower taxes and get rid of unnecessary regulations, so businesses can keep more of their money to invest themselves, and have more time to spend on productive matters rather than compliance.

“After all, a successful economy is one in which resources flow to their most valuable uses. Taxing successful businesses and giving it to unsuccessful businesses only makes us poorer.

“It’s easy to be kind when you’re spending other people’s money. But ultimately everything the government spends needs to be taxed from productive Kiwis. Giving billions in corporate welfare has meant that we can’t get taxes under control.

“ACT would eliminate Corporate Welfare including the Provincial Growth Fund, Callaghan Innovation, the Cultural Sector Regeneration Fund, R&D Tax Credits, and domestic and international film subsidies.

“Kiwis are being squeezed from every direction, they’re tightening their belts and making tough choices, it’s time Government did the same.”

ENDS

Media Contact: Matt Ball | Communications Director

021 495 645 | matthew.ball@parliament.govt.nz