Crown slush fund leaves taxpayers on the hook for bad bets

With more than 50 percent of Crown Regional Holdings’ loan portfolio at risk of default or impairment, the Taxpayers’ Union says the Government is gambling with taxpayers’ money.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“When politicians start sloshing money around to butter up voters, you can guarantee they’re making bad bets on behalf of taxpayers. The Government is taking on risk that private lenders wouldn’t touch through blatant pork-barrel politics.”

“Of Crown Regional Holdings’ $430 million portfolio, more than half is at risk of default. Whether it’s the last Government’s Provincial Growth Fund or this one’s Regional Infrastructure Fund, the results are the same.”

“So far in election year we’ve already seen $950,000 bunged to cowsheds in Taranaki and $10 million to a Bay of Plenty Marae, neither of which will touch the sides of New Zealand’s infrastructure deficit."

"It’s time to wrap up the slush funds.”