Key John: Questions for Oral Answer — Questions to Ministers 
Key John: Questions for Oral Answer — Questions to Ministers 
[Volume:623;Page:18242] 
10.  
JOHN KEY (National—Helensville) 
 to the  
Minister for Industry and Regional Development 
: Does he stand by the decision of New Zealand Trade and Enterprise to award a third grant of $183600 to Hubbard Foods bringing the total received by the firm from the Government to over $280000; if so why? 
Hon JIM ANDERTON (Minister for Industry and Regional Development) 
: 
 Yes I have confidence in New Zealand Trade and Enterprise which of course determines such grants through its own processes. The grant was awarded under the Growth Services Fund which exists to significantly step up the development of high growth companies with the potential to contribute to growing and strengthening our economy leading to high value sustainable jobs and better living standards for all New Zealanders. This Government is not waiting around for economic growth to happen—we are out there making it happen and it is working. 
John Key 
: To what extent in the last 5 years has Hubbard Foods been the recipient of other Government grants and employment subsidies over and above the three New Zealand Trade and Enterprise grants it has received since 2002 and what did Hubbard Foods chief executive David Irving mean when he said that all that kind of information was “in Dick’s head” but as far as he was aware the company had been “reasonably active”? 
Hon JIM ANDERTON 
: I do not have the answers to the first part of the member’s question as it relates to other ministry responsibilities but I am certainly happy to undertake to get the answers for the member. While Hubbard Foods is a successful company in New Zealand terms if it wants to be successful in the international economy in which it is a very small sized company it has to lift its productivity dramatically. The assistance that New Zealand Trade and Enterprise is giving to Hubbard Foods and other high growth potential companies is aimed at rapidly lifting the growth of those companies to contribute to New Zealand’s export income. The member may not be aware that only 1 percent of New Zealand companies export anything regularly and only one company in 2000 makes any significant contribution to export earnings in New Zealand. This Government is determined to change that base and is doing so. 
Darren Hughes 
: Can the Minister tell the House why the coalition Government has made the decision to invest in our companies via these grants? 
Hon JIM ANDERTON 
: Grants like this are absolutely commonplace for every trading partner that we have anything to do with all around the world. The fact that previous National-led Governments lost the plot on developing New Zealand’s economic position is no reason for this Government to follow them and we do not intend to. 
Kenneth Wang 
: How does the Minister explain this handout of taxpayers’ money to Hubbard Foods especially in light of the fact that the company has stated that it did not need the money to develop its business? 
Hon JIM ANDERTON 
: My understanding of what the chief executive of Hubbard Foods said was that ultimately the company would have done this itself. This Government is aiming to lift the productivity of companies in a rapid way not just wait around for something to happen. In fact the record of New Zealand’s economy in the last 5 years is 5 percent ahead of the Australian economic performance when for 30 years under Governments like the ones I hear about from the Opposition this country sank below the waves in terms of competition with Australia and now we are beating them. It is about time the Opposition learnt to celebrate some success for a change instead of wallowing in misery. 
John Key 
: Would the Minister prefer to see one company like Hubbard Foods get a $183000 grant or would he prefer to see a cut in the company tax rates so that all New Zealand companies could enjoy some extra cash? 
Hon JIM ANDERTON 
: Last time I had the figures for the company tax rate there was a reduction which I supported—it was $500 million not $180000. But this Government does not have blinkers on. It actually has a balanced approach to economic development so we can do a lot of things at once. The National Party seems only to be concentrating on one thing at a time. 
John Key 
: Why did New Zealand Trade and Enterprise make a grant of $183600 to Hubbard Foods when the company’s executive director David Irving has admitted the company might well have funded the expenses involved from its own pocket anyway? 
Hon JIM ANDERTON 
: The chief executive of Hubbard Foods also made it clear that Hubbard Foods was investing about $1.25 million in the same improvement project. I do not wonder why the National Party or ACT cannot get any traction with the business community because this Government is pro-business and every time business gets any assistance National and ACT attack them. No wonder they are not liked and will not be on the Government side in living memory.