The New Zealand Initiative’s Dr Eric Crampton has revealed that the Government is pulling its Provincial Growth Fund job creation numbers out of thin air, says ACT Leader David Seymour.
Dr Crampton asked MBIE and Treasury via Twitter for the analysis underlying claims that 10,000 jobs could be created as a result of grants through the Provincial Growth Fund.
“It turns out no such analysis exists. The job numbers Shane Jones and his department have been promoting have actually been provided by applicants themselves.
“These figures are likely to be highly suspect given applicants want to present their projects in the best possible light.
“This revelation shows how little rigour sits behind the Provincial Growth Fund.
“Jones and his officials aren’t doing any sort of cost-benefit analysis before giving taxpayer money away.
“ACT predicts few sustainable jobs will be created as a result of the Provincial Growth Fund giving billions to marginal projects.
“More importantly, thousands of jobs won’t be created because $3 billion has been taken from productive individuals and businesses.
“The PGF is an ill-thought out slush fund and New Zealand will be poorer as a result of it.”