More scrutiny urged over 'jobs machine' grants

Better assessment of the results of taxpayer-funded grants for firms such as multi-million-dollar cereal company Hubbard Foods is needed, a parliamentary committee says.

Parliament's foreign affairs, defence and trade committee yesterday issued its report on the financial review of New Zealand Trade and Enterprise - known as Progressive leader Jim Anderton's "jobs machine".

Members had questioned the trade group over its grants to Hubbard Foods, owned by Auckland Mayor Dick Hubbard.

The latest grant was for $183,600. It followed previous grants of $75,000 and $22,921. "Trade and Enterprise informed us that, while Hubbards Foods' need for Government assistance was only assessed at two on a scale of 10, the money granted is aimed at accelerating the company's path into the international market, lifting productivity dramatically," the report said.

"While the benefits of this programme appear positive, Trade and Enterprise acknowledged that it is difficult to measure outcomes in this area and is working towards better qualitative assessments.

"We would like to see improvements in this area when we conduct our next financial review."

- NZPA