Wage subsidy scheme has some gaping holes
YET another major New Zealand company is being gifted a massive wage subsidy by the Government while recording a bumper profit.
The business page (ODT, 6.11.20) reports engineering and civil construction giant Fulton Hogan intends to retain about $33.3 million from the wage subsidy scheme despite recording a bumper $211 million net profit for the year to June 2020.
That profit is up 27.7% on the previous year, allowing it to pay its shareholders a generous final dividend of 33c per share.
The Fulton and Johnstone families being major shareholders, whose net worths are reported as $450 million and $315 million respectively, obviously have no conscience and must be laughing all the way to the bank with this taxpayerfunded gift.
Would it not have been ethical for Fulton Hogan to either pay back the subsidy or reduce its $83.78 million total dividend to $50.48 million?
Companies who have abused the subsidy in this way have contributed significantly to a massive national debt which will compromise the ‘‘average’’ New Zealander for years to come.
It’s good to see that some companies such as Briscoes, whose profits were not affected by Covid19, have repaid the wage subsidy while others have opted not to pay a dividend.
Companies who have abused the subsidy should be publicly listed so consumers, including government departments and local bodies, can make an ethical judgement when considering the purchase of their services or products.
B. Bishop
Roslyn
I READ an article last week outlining the New Zealand companies that had returned the wage subsidy — one of them was Mainfreight (ODT, 2.11.20).
It returned many millions, saying morally it was the right thing to do, even though it was entitled to it.
At the other end of the scale is Fulton Hogan, which received in excess of $33 million. It refused to return that subsidy despite recording a profit of over $210 million — up nearly 28%.
What is most galling is Fulton
Hogan then paid shareholders a dividend, and lo and behold, the major shareholders are the Fulton and Johnstone families whose net worth exceeds $800 million.
A perfect example of when you are wealthy, you don’t need to show a conscience or feel any of the pain the vast majority of New Zealanders have had to and will continue to do so for some time.
Without such a moral compass, I would hope the Dunedin City Council thinks twice about employing such a company. Shame on it.
Graham Bulman
Roslyn
US election
CONGRATULATIONS to Americans living here and in the United States.
You have ended a racist, misogynist, corrupt, angry and, frankly, dumb presidency, which has killed over 200,000 people by its denial of the Covid19 pandemic.
Trump will go down in history as the worst president ever, in my view.
Now the rebuilding can begin and a looming climate catastrophe can be addressed under the direction of a humane and intelligent man and woman.
Ewan McDougall
Broad Bay