Corporate welfare for wood processing leaves Taxpayers’ Union stumped

The Taxpayers’ Union is questioning the Government’s decision to provide corporate welfare to the wood processing sector, both in the form of direct hand-outs and the Government playing bank manager by providing loans when this could easily be left to private sector banks.

Taxpayers’ Union Deputy Campaigns Manager, Connor Molloy, said:

“Too often we see the Government branching out into areas that are not core government functions and where Ministers and bureaucrats have little to no expertise. What does the Government know that banks don’t when it comes to making sensible investment decisions? This is simply more corporate welfare providing handouts to business at a time when Kiwis are struggling with the cost of living.

“Not only are these spending decisions distortionary by arbitrarily encouraging more investment in some sectors to the detriment of others but they also unnecessarily place private risk on taxpayers who are left out of pocket if things go wrong.

“If the Government is concerned about the lack of investment in growing industries, perhaps they should look at the root causes of the problem – high interest rates made necessary by out-of-control government spending and overly-restrictive overseas investment rules that make it so difficult to get foreign capital into the country.

“The only tree that the Government should be focused on is the self-proclaimed ‘Tāne Mahuta’, Adrian Orr, who has consistently failed to keep inflation in the target range and whose Large Scale Asset Purchase programme has seen taxpayers foot the bill for billions of dollars in losses."