“Labour’s Build Back Broke Budget is more interested in improving the wellbeing of corporates than New Zealanders who are doing it tough,” says ACT Leader David Seymour.
“Not content just giving billions of taxpayer dollars to Hollywood elites through the screen production grant and visual effects grant, Labour is going to start doing the same to video game designers with a 20 per cent rebate for game developers.
“In 2018 Treasury told the Government their film scheme was out of control and equated to a 10c loss for every dollar spent.
“Every dollar spent on subsidies for television and movie productions is a dollar that can’t be spent elsewhere. We would be better off scrapping the Screen Production Grant, the Videogame rebate and other corporate welfare, and allowing taxpayers to keep the money.
“This is all on top of middle-class welfare which is simply giving taxpayers their own money back, creating a false sense of dependence. The Winter Energy Payment makes sense for retirees in real hardship, but not for those whose additional income means they are paying 30 or 33 cents in the dollar. They would be better off paying less tax. ACT’s budget would target that spending at those with a Community Services Card, reducing tax for those with higher income. In the end, every taxpayer is better off.
“We could save $6.2 billion if we cut corporate welfare. Too many schemes take money off businesses making a profit and give it to those making losses. Investing in start-ups is vital, but the Government rarely knows where the best investments are. Businesses would be better off with less tax and red tape than queuing for handouts.
“Successive Labour and National government have used taxpayers’ money to pick winners. The decisions are always political, rather than what’s good policy.
“We would get rid of Corporate Welfare including the Provincial Growth Fund, Callaghan Innovation, the Cultural Sector Regeneration Fund, R&D Tax Credits, and domestic and international film subsidies.
“Kiwis are being squeezed from every direction, they’re tightening their belts and making tough choices, it’s time Government did the same.”