Outrage at $183,600 for Hubbard

Dick Hubbard

Opposition parties have slammed a third Government grant to Auckland Mayor Dick Hubbard's company.

New Zealand Trade and Enterprise and Hubbard Foods yesterday announced the $183,600 grant to fund consultancy services for various projects.

The grant follows two others to the firm by NZTE - totalling almost $98,000 - that opposition parties slammed in November. Hubbard Foods received $75,000 in October 2002 and $22,921 in June last year.

National's finance spokesman, John Key, said the grant was another example of the Government's policy of corporate welfare to the "Labour-leaning" Mr Hubbard.

"Some New Zealanders may have sympathy for young entrepreneurs who are looking to get enough equity to develop a new idea," Mr Key said.

"New Zealanders struggling to make ends meet will be flabbergasted to find they are being asked to continue to fund a flawed corporate welfare policy which sees a company with the resources of Hubbard Foods being given another handout."

Act leader Rodney Hide called for the Government to consider tax cuts for every business rather than hand-outs to a favoured few.

He he did not blame the company. Instead he blamed Economic Development Minister Jim Anderton for distributing "taxpayers' money at every photo opportunity".

Any money given to the likes of Hubbard Foods was money taken from other businesses, he said.

Mr Hubbard was in Africa and could not be contacted. Hubbard Foods executive director David Irving said the company had a high cost structure. The grant would help it become more internationally competitive by lowering operating costs.

"Hubbards might have been able to pay the costs, but the Government is deliberately looking to ensure that the best can be made of New Zealand export opportunities," he said.

Mr Anderton said Hubbard Foods had to front up with half the money itself so the Government was not throwing money away.

He said New Zealand's export base was "abysmally bad" with only about 160 firms producing 80 per cent of the country's foreign exchange earnings, and the Government was trying to change that situation.

NZTE handed out $40 million in grants in the 2003-04 financial year.

Grants 2003-04

* Regional partnership grants: $16.991 million

* Incubator awards: $3.1 million

* Clusters fund: $1.039 million

* Major events support fund: $1.119 million

* Strategic investment fund: $874,000

* Growth services fund: $9.691 million

* Enterprise development fund: $7.188 m

* TOTAL: $40.002 million