Axing of corporate welfare scheme welcome, Government must go further

The Taxpayers’ Union is welcoming the sensible decision by Minister Judith Collins to discontinue $11.2 million taxpayer funding for KiwiSaaS, a tech industry lobby group, but calls on the Government to go further and axe film and video game subsidies too.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“Big tech companies putting their hands out and lobbying for taxpayer-funded corporate welfare is nothing more than crony capitalism. Whether it’s tech, film or video games, it seems if your industry is flavour of the month anyone can get a handout with the help of well-connected lobbyists.

“It’s good to see corporate welfare to the tech sector axed, but other Ministers must follow the lead of Minister Collins end all other corporate welfare too.

“Cutting the roughly $100 million spent lining the pockets of Hollywood bigwigs and video game executives would go a significant way to plugging the gap created by the recent Pharmac funding announcement. It’s time the Government fronted up and explained the case for these handouts, rather than playing the quiet game and hoping no one notices. We have noticed."