Corporate bludgers should hand the cash back, including Selwyn Pellett

Selwyn Pellett is rightly kicking Steven Joyce in the shins for corporate bludgers NextWindow trousering cash then selling out and winding down.

Pellett, an outspoken critic of R&D grants being awarded to foreign-owned firms, said the Government should ask Smart to return the grant funding that NextWindow had received.

“I think they’re already in a position to do that if I’ve read correctly some of the stuff [Minister for Economic Development] Steven Joyce has said,” Pellett said.

Joyce has previously said the Government could request repayment of grants in some cases, but only within three years of a funding round’s completion.

Smart did not respond to an emailed request for comment before last night’s deadline.

Pellett said the impending closure of NextWindow was part of a “continuous story” of New Zealand technology companies being sold to overseas buyers and then wound down.

Pellett might be an outspoken critic but he is also a massive hypocriteRead more »

Why corporate welfare must end

Corporate welfare is as evil as normal wlefare…it creates bludgers who get use to taking but it is worse for corporate welfare, because those bludging ratbags then inevitably sell the company offshore and the corporate welfare is all gone into the bulging pockets of the former owners.

Chris Keall explains about another corporate bludger who has sold out.

For staff of companies like Navman and The Hyperfactory it’s a familiar story. A hot NZ technology company is sold to offshore buyers, with its founder pledging jobs will stay in New Zealand – only for that promise to melt away as the new owners take control.

The latest casualty is NextWindow, a company whose revenue hit $60 million+ as it supplied touchscreen technology to PC makers like HP, Asus and Lenovo.

The recipient of a $6 million, no-strings government grant is gutting its local office, a source close to the situation tells NBR ONLINE.

Layoffs will see 11 staff left in NextWindow’s Auckland office, which at the time of its 2010 takeover by Canadian company Smart Technologies housed around seven times that number.

Powerbyproxi leases space in the same building. CEO Greg Cross tells NBR his company has already taken over space vacated by NextWindow.  Read more »

The Shield of Sanctimony, Ctd

I noted the story in NBR yesterday about Selwyn Pellet’s business being sold to some Americans.

Another tech company that has received millions in government grants seems set to fall into overseas ownership.

California-based, NYSE-listed Emulex has made a £80.7 million ($NZ156) cash offer to takeover Endace, the network security company founded by entrepreneur Selwyn Pellett (who resigned from the board in 2010 and sold most of his shares at the same time).

Endace – which was born out of research at Waikato University – has received more than $11 million in direct government grants, and the move is sure to reignite debate over no-strings-attached taxpayer handouts.

How come we haven’t heard Labour coming out threatening to intervene (as they did in the Haier takeover)?

Given that business and Pellett have trousered millions in Government subsidies you’d think they’d be very vocal.

So is their silence because :

A) He is a ‘critical’ friend of Labour
B) It’s just the Chinese they don’t like?