Jim Rose

Taxpayers’ Union slams Joyce for his expanded corporate welfare programme

Since the opposition is asleep at the wheel the job of holding a spendthrift government to account falls upon the shoulders of the Taxpayers’ Union.

They are holding Steven Joyce to account for his expanded corporate welfare programme.

Responding to Economic Development Minister Steven Joyce’s defence of corporate welfare, Jim Rose, the author of Monopoly Money, a Taxpayers Union report on corporate welfare since 2008, says:

“Mr Joyce defends over $3 billion in subsidies to KiwiRail and Solid Energy under his watch by saying that they are state owned. Bailouts are not the role of ministers as shareholders. Since 1986, state-owned enterprises have had a statutory duty to operate as a successful business and to be as profitable and efficient as comparable businesses not owned by the Crown. The whole idea of the State Owned Enterprises Act 1986 was to bring an end to bailouts and permanent deficits.”

“Instead of putting a failed business in the hands of receivers, Mr Joyce defends throwing good money after bad by blaming the previous government for buying KiwiRail. That was three elections ago. Elections are supposed to count for something. $3 billion in taxpayers’ money cannot be handed out in subsidies with ministers bobbing and weaving about responsibility for the amount and wisdom involved. The Treasury Benches come with a full ministerial responsibility for every single dollar of taxpayers’ money spent under your watch.”    Read more »

Corporate bludgers costing Kiwi households up to $800 per annum

welfare

Bludging is rampant in NZ society.

But it is corporate bludging that is most outrageous.

And it is costing us a pretty penny. The Taxpayers’ Union has released a new report into corporate welfare and bludging.

The Taxpayers’ Union has launched new a report, Monopoly Money, which examines the cost and case for New Zealand’s extensive corporate welfare programmes. The report follows recent comments by TradeMe founder Sam Morgan, who questioned the Government’s corporate welfare programme, despite having been involved in companies that have received grants in the past.

The report, which examines the cost of corporate welfare examines government spending since the 2007/2008 budget, shows:

  • Since National took office, corporate welfare has cost taxpayers $1-1.4 billion ($600 – $800 per household) per year
  • If corporate welfare was abolished, enough money would be saved to reduce the corporate tax rate from 28% to 22.5%
  • If applied to personal income tax rates, the saving would allow the 30% and 33% income tax rates to be lowered to 29%
  • Alternatively, the 10.5% rate (applicable to the first $14,000 of income) could be reduced to 7%.    Read more »