Ruapehu bailout throwing good money after bad, after bad, after bad, after bad

The Taxpayers’ Union is slamming the Government’s announcement to give Ruapehu Alpine Lifts (RAL) another $7 million in corporate welfare bringing the total value of taxpayer-funded handouts they have received to $27.35 million in just the past two years.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“This is the fifth time the Government has given this company millions of taxpayer money under the illusion that it will magically turn around this failing company. They are quite literally throwing good money after bad, after bad, after bad, after bad.

“Claiming this will save jobs and generate tourism revenue misses the point entirely. The money used for this handout has been taxed away from other productive sectors of the economy, destroying jobs there, and moving it to less a productive area.

“What does the Government have to say to people in Queenstown and Wanaka who will no longer be employed due to the Government propping up an unviable competitor? Just because a job is less visible, doesn’t mean an impact doesn’t occur. The Government should kick the habit of picking winners and instead allow the market to sort itself out.

“Taxpayers struggling with the cost of living should not be forced to dig into their pockets to ensure that people wealthier than them are able to go skiing at their first preference location. Ministers meddling in markets is bad, providing corporate welfare is inexcusable.”