Corporate Welfare Comes First?!

Thursday, October 4 2001 Rodney Hide Press Releases -- Economy

ACT Finance Spokesman MP Rodney Hide said today that the government's policy of corporate welfare for Air New Zealand dwarves the extra spending in the 2001 Budget.

"The 2001 Budget trumpeted total extra spending of $532 million. The bail-out of Air New Zealand is to cost taxpayers 1.6 times that amount.

"The directors of Air New Zealand in a stroke have gone from being some of New Zealand's biggest businessmen to being our biggest welfare beneficiaries.

The table below compares the cost of the bailout with the key spending initiatives trumpeted in this year's budget.

Expense Initiative

Cost

Air NZ Bailout

Health

$246 million

3.6 times!

Education

$76 million

11.6 times!

Defence

$45 million

19.7 times!

Welfare

$87 million

10.2 times!

Police

$33 million

26.8 times!

Maori empowerment

$3 million

295.0 times!

"The government's policy of corporate welfare, business naivety and dithering has blown the government's budget and starved the very areas Labour and the Alliance promised to fund.

"The government would have been better-off to help every business. $885 million would fund a five cent cut in the company rate of tax for every business in the country for a year," Mr Hide said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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