Govt tapped firm for interest-free loan

Published: Wed 18 Oct 2006 10:00 AM
Katherine Rich MP
National Party Economic Development Spokeswoman
18 October 2006
Govt tapped firm on shoulder for interest-free loan
Trevor Mallard has revealed that the Labour Government sought out computer graphics firm Right Hemisphere to offer it taxpayer-funded assistance - not the other way around.
Early last month, Helen Clark announced a US$8 million interest-free loan to the Silicon Valley-based firm, which has a base in Auckland.
National Economic Development spokeswoman Katherine Rich says answers to parliamentary questions reveal Government officials alerted Trevor Mallard to this 'opportunity' to offer taxpayers' money and he personally invited the company to make a formal proposal.
"Many thousands of other Kiwi companies would be delighted to receive a special Government shoulder tap, but aren't so fortunate," says Mrs Rich.
"Not only is Trevor Mallard personally picking winners and side-stepping the processes, but he's obviously determined that only one company should get this special treatment.
"National is concerned by Treasury predictions that this deal with one company could potentially cost the taxpayer $3 million per annum. The Government ignored Treasury advice that the loan had a 'low probability of resulting in net benefit to NZ'.
"And Government officials and ministers shouldn't be searching the country for 'opportunities' to give away taxpayer money, interest free, to companies."

Next in New Zealand politics

PM’s Chatham House Speech
By: New Zealand Government
New Zealand Secures Major Free Trade Deal With European Union
By: New Zealand Government
New Measures To Help Manage COVID-19 As Country Stays At Orange
By: New Zealand Government
New Era For Better Health In Aotearoa New Zealand
By: New Zealand Government
Alcohol Harm Minimisation Bill Pulled From Biscuit Tin
By: Green Party
Wellington’s Rapid Transit Option Progresses To Next Stage
By: New Zealand Government
EU Market Remains Largely Closed To NZ Dairy
By: Dairy Companies Association of New Zealand
Winners And Losers In NZ-EU FTA
By: Business NZ
View as: DESKTOP | MOBILE © Scoop Media