Labour attacks Collins’ wage subsidy comments

WELLINGTON: Labour has warned National leader Judith Collins’ talk about changing the law to claw back the wage subsidy from some big companies will ‘‘inject an enormous amount of uncertainty into businesses at a time when they are craving certainty’’.

However, Ms Collins was not backing away from the comments yesterday, even joking she could play the role of debt collector to doorknock those companies that took taxpayer money and then laid off staff while making big profits.

‘‘Sometimes you get people — particularly in big business — behaving better when they know there is a possibility of somebody coming down very hard on them,’’ she said during a tour of Northland.

‘‘We may have to change a law. ‘‘I would have thought we would have a lot of support in Parliament to do that.’’

Labour leader Jacinda Ardern condemned such companies, but would not commit to changing the law to get money back.

‘‘But we are also pursuing those who may have acted outside the law.

‘‘It’s a moral issue. Some of these companies followed the rules, they just didn’t follow the spirit of fairness.’’

BusinessNZ warned any retrospective change would create a large amount of uncertainty for businesses, comments echoed by finance spokesman Grant Robertson, who was in Nelson yesterday with Ms Ardern.

‘‘What Judith Collins is proposing would inject an enormous amount of uncertainty into businesses at a time when they are craving certainty,’’ Mr Robertson said.

‘‘And for someone who represents a party that purports to understand business, to inject that lack of confidence, I think is extraordinary.’’

The Ministry of Social Development had the power to demand repayment if audits showed businesses did not meet the criteria for the subsidy.

Mr Robertson said nearly $450 million had been repaid, including by businesses who voluntarily gave money back. — The New Zealand Herald