Brownlee Gerry: Estimates Debate — In Committee 
Brownlee Gerry: Estimates Debate — In Committee 
[Volume:665;Page:12703] 
Hon GERRY BROWNLEE (Minister for Economic Development) 
: 
 I mentioned in my earlier speech that dreadful company called Sovereign Yachts. It was the flagship of the previous Labour Government’s economic development outreach. What has just been made clear to me— 
Hon Trevor Mallard 
: What rubbish. 
Hon GERRY BROWNLEE 
: Mr Mallard was one of the strongest supporters of a gentleman called Mr Bill Lloyd. Mr Mallard was a senior Minister in the previous Government and he was one of the biggest hand-shakers in that entire Government of anybody who looked flash. One of the most extraordinary things that that Government did in the name of economic development was to take an $11.6 million property on the Auckland waterfront and give it to Mr Lloyd and Sovereign Yachts for a mere $500000. Apparently that was about economic development because it was going to deliver 350 jobs to New Zealanders. Did they ever eventuate? No and what happened to the business? Well eventually it went out of business. In this last year it was finally wound up. When the creditors came along they thought: “Thank goodness the stupid Labour Government sold an $11.6 million property for $500000 because at least there will be enough asset to liquidate to ensure that New Zealanders—hard-working businesses hard-working sub-trades and hard-working people who employ hundreds of New Zealanders—will not be out of pocket.” but they were extremely disappointed. 
On the one hand they were excited to find out that the $500000 property was now worth $36 million and that there was a queue of buyers to get hold of it. But unfortunately that friend of the Labour Government that great mate of Trevor Helen Michael and of course their dear friend Jim was able to shuffle that property out of his business and into his own pocket and he remains the owner of it today. 
We saw “economic development” Labour-style when the previous Government crowed from the rooftops about how clever it was to get a company like Sovereign Yachts into New Zealand. Effectively it said to the company: “Here’s a massive pot of cash”—although the country does not know how much Labour gave out in cash—“and here’s a whopping great gift to Mr Lloyd in the form of a wonderful waterfront property valued at $11.6 million but we’ll sell it to you for $500000.” Labour discounted that property out of the door like some sort of cheap sale. But some time later Mr Lloyd gave the two-fingered sign and walked off and kept that property which had a value of $36 million and rising. 
So that is “economic development” Labour-style. Yet Labour members came into the Chamber today and wanted to know where the plan was and where the strategy was. I am not surprised that they asked because frankly they could not see a plan if it was put in front of them and they would not know a strategy if they fell over the top of it. New Zealanders should be utterly outraged that Labour has learnt so little from the humiliation of the last election that it continues to try to justify deals like that. It continues to try to say that if only the Labour Government had been able to carry on in that vein then New Zealanders would be better off. Well I tell members opposite one thing: New Zealanders would be better off if each and every one of them got a deal that allowed them to put up $500000 to reap $36 million about 10 short years later. 
The National Government is assiduously working through all sectors of the economy but more important it is working with those sectors to see what their opportunities are; to stand alongside them; where it is necessary to get out of their road; to take out the regulatory roadblocks that prevent them from growing; and to encourage them to go out there and make the best of the opportunities that they have in front of them. That is what economic development should be about. The problem with Labour is that it thinks that if Cabinet does not prescribe it particularly then it does not exist. It thinks that if Cabinet does not come up and say: “This is what we’re going to do.” then no one should be doing it. Well our view is that we trust the New Zealand business community to respond to the policies that we are putting in place. I listed them at length earlier and that will see greater economic growth for New Zealanders. 
Vote agreed to.