EXPOSED: Palmerston North deal with Toyota costs ratepayers $391,000

The Taxpayers' Union is exposing that the Palmerston North City Council has given an economic grant to Toyota – one of the world’s largest car manufactures - for a local warehouse expansion, costing local ratepayers $391,000.

It’s great to see a business investing in Palmerston North, but they should do so out of their own pocket, not using ratepayers’ hard-earned money.

Toyota is the world’s second largest car manufacturer with posted profits of more than 22 billion US dollars.  Why on earth does the Council think it a good use of local ratepayer money to fund corporate welfare to this giant?

The corporate gift sets a dangerous precedent. Other large companies will eye up Palmerston North City Council for their own subsidies and special favours. In American and Canadian cities we see multi-million-dollar taxpayer-funded corporate welfare campaigns.  Ratepayers will be poorer if we see that here.

If the Council wants to create jobs in Palmerston North, it should look to cut rates and run a more efficient operation. Charging local ratepayers more just to send corporate welfare gifts to multinationals, is economic sabotage. Even if it does create a couple of jobs, it robs poor Peter, to pay rich Paul and is immoral.

This story came about due to a confidential 'tip-off' from one of our supporters. The subsequent official information request is below.