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 »

Corporate Bludgers tell Government to sort out Super

NZ Herald

Don’t you just love it when corporate bludgers think they get to say how the government spend money…of course they want super sorted…so they can avail themselves of more corporate welfare:

But the CEOs are looking to the Key Government to stake out a bolder vision for New Zealand and tackle big issues, including the eligibility age.

“The only real negative is the failure to address the superannuation debate when the public clearly gets it that something needs to change to maintain affordability,” said a CEO speaking under anonymity.
Jade Software chairman Ruth Richardson – a former National Party finance minister – said “New Zealand had flunked the Super debate”.

Navman chief executive Andrew Blakey said the post-election period “has been disappointing from Key”. He said there had been numerous examples of poor political management pointing to “the complete head-in-the-sand approach to superannuation”.

One chief executive suggested the country should introduce a voluntary “opt out” for New Zealand Super. “If the Government doesn’t have the balls, let’s see if the people do.”

Zespri chief executive Lain Jager said he was “disappointed the Government was not fronting up to the age of entitlement”.

Oh right…Navman was heavily subsidised by the previous Government…

In 2001 they got $1m in corporate welfare.

In 2005 they got another $1m, adding to the corporate bludger reputation.

But despite this corporate welfare Navman has been moving operations offshore…

Zespri of course is the beneficiary of a legislative monopoly, protected from any competition by statute protecting their single desk selling status. The ultimate form of government legislative welfare.

Jade Software is a corporate bludger  as well, booking losses despite millions in government cash:

Jade Software recognised $1.2m in government grants in the year, and was awarded $3.2m over three years from the government’s Technology Development Grant Programme in 2010.

If they want to have a crack at the government and superannuation then best they wean themselves from the corporate welfare.

Corporate Bludgers sell out


More corporate welfare bludgers have sold out offshore despite millions in taxpayer cash which off shore owners will now benefit from. How come there is outrage from The Greens and Labour over some clapped out rubbish farms in the Central North Island being sold to off shore owners but nary a squeak about corporate welfare beneficiaries selling to offshore interests?

Selling companies to Americans is fine but farms to the Chinee is outrage?

What perplexes me is why these corporate tech “entrepreneurs prefer to risk taxpayers money rather than their own as they expand their businesses, and then they have the cheek to pocket the coin lie they are genius investors.

Telephony software maker Zeacom has been sold to Canada’s Enghouse Systems for $US30 million

Zeacom says its fiscal 2012 revenue was $US29million.

Founder and CEO Miles Valentine would not give specific numbers, but Friday afternoon he told NBR ONLINE the company, which he founded in 1994, “Is nicely profitable and has been for years.”

A sale to offshore buyers can mean disappearing local jobs, whatever promises are initially made (Navman’s consumer business being a classic example).

Offshore investment can help a New Zealand-founded company expand globally and increase the number of local jobs.

But the annoying thing here is that, again, we’re looking at a company that’s received millions in government grants – which a North American owner will now benefit from.

Right Hemisphere, which received an interest-free loan of more than $10 million among other government backing, is another prime example. It is now owned by Germany’s SAP.