Joyce & Guy Back from Holiday: New Splurging on Corporate Welfare

29 January 2015

Responding to the announcement that Primary Industries Minister, Nathan Guy, has approved two more Primary Growth Partnership programmes for the deer and lamb industries, and the subsequent $5m for the Food Innovation Network announced by Steven Joyce, Taxpayers’ Union Executive Director Jordan Williams says:

“Doling out another $20 million of taxpayers’ money for corporate welfare might win the National Party some supporters in its favoured industries, but it’s taxpayers’ who pay for the pleasure.”

“This Government’s corporate welfare programmes cost New Zealand between $600 and $800 per year. Since 2009/10 the cost of the Primary Growth Partnership alone has ballooned from $250,000 to $77.5 million."

Economist Jim Rose, who authored the report, Monopoly Money, the cost of corporate welfare since 2008, says:

“R&D grants for primary industries are particularly risky because this sector is highly decentralised. That is because they tend to enjoy limited gains from specialisation and economies of scale and means a good return to the taxpayer is unlikely.”

The New Zealand Taxpayers’ Union is an independent activist group, dedicated to being the voice for Kiwi taxpayers in the corridors of power. It’s here to fight government waste and make sure New Zealanders get value for money from their tax dollar.

ENDS

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