Air NZ jobs can't be subsidised, says Cullen

The Government is concerned it would set a precedent if it chose to subsidise jobs at Air New Zealand.

The airline's plan to lay off 600 mainly Auckland-based maintenance staff as it shifts its heavy aircraft maintenance overseas came up at the first question-time of the new Parliament yesterday.

Finance Minister Michael Cullen again ruled out intervening in the airline's decision to lay off the staff, despite the Government having an 82 per cent stake in the airline.

"If the Government gets into the business of subsidising jobs in order to keep them when a company wants to restructure, there would be an awful lot of New Zealand companies lining up to restructure," he said.

Green MP Sue Bradford asked Dr Cullen why the Government did not take a smaller dividend and demonstrate that it really did have a commitment to keeping highly skilled, high-wage jobs in New Zealand.

He replied that the Government had received only one dividend from Air New Zealand as dividends were an "unusual thing" in the airline industry. "To forego a dividend would not have a great deal of effect."

He also pointed out there were minority shareholder interests to be considered.

NZ First deputy leader Peter Brown tackled Dr Cullen on how it could not intervene when Labour had signed a deal for a Buy NZ Made campaign with minor parties as part of the governing arrangements.

Dr Cullen said the Government would look at additional help beyond the standard assistance, such as retraining. But it would not get into the position of subsidising on a large scale New Zealand employers.

"Contrary to what has often been said in the public arena over the last couple of weeks, the fact that the Government is a majority shareholder - but not by any means a 100 per cent shareholder - is a strong reason for not intervening in a case such as this, rather than a reason for intervening."

Mr Brown called for an assurance from the Government the "aircraft engineer" skill would be deleted from the list of immediate skill shortages produced by the Immigration Service.

"Continuing to allow preferential entry to New Zealand for foreign aircraft engineers while scores of New Zealand aircraft engineers are being made redundant would be nonsensical," he said.

The Government is concerned it would set a precedent if it chose to subsidise jobs at Air New Zealand.

The airline's plan to lay off 600 mainly Auckland-based maintenance staff as it shifts its heavy aircraft maintenance overseas came up at the first question-time of the new Parliament yesterday.

Finance Minister Michael Cullen again ruled out intervening in the airline's decision to lay off the staff, despite the Government having an 82 per cent stake in the airline.

"If the Government gets into the business of subsidising jobs in order to keep them when a company wants to restructure, there would be an awful lot of New Zealand companies lining up to restructure," he said.

Green MP Sue Bradford asked Dr Cullen why the Government did not take a smaller dividend and demonstrate that it really did have a commitment to keeping highly skilled, high-wage jobs in New Zealand.

He replied that the Government had received only one dividend from Air New Zealand as dividends were an "unusual thing" in the airline industry. "To forego a dividend would not have a great deal of effect."

He also pointed out there were minority shareholder interests to be considered.

NZ First deputy leader Peter Brown tackled Dr Cullen on how it could not intervene when Labour had signed a deal for a Buy NZ Made campaign with minor parties as part of the governing arrangements.

Dr Cullen said the Government would look at additional help beyond the standard assistance, such as retraining. But it would not get into the position of subsidising on a large scale New Zealand employers.

"Contrary to what has often been said in the public arena over the last couple of weeks, the fact that the Government is a majority shareholder - but not by any means a 100 per cent shareholder - is a strong reason for not intervening in a case such as this, rather than a reason for intervening."

Mr Brown called for an assurance from the Government the "aircraft engineer" skill would be deleted from the list of immediate skill shortages produced by the Immigration Service.

"Continuing to allow preferential entry to New Zealand for foreign aircraft engineers while scores of New Zealand aircraft engineers are being made redundant would be nonsensical," he said.