Debate over Govt bailout gets fiery
Business leaders are hitting back at calls from one of the country’s most successful entrepreneurs for the Government to not bail out doomed startups.
Rocket Lab chief executive Peter Beck told Newstalk ZB the Government shouldn’t be taking the role of venture capitalist, supporting businesses that are likely to fail.
But a technology industry leader says the situation is not that simple.
NZ Tech chief executive Graeme Muller said New Zealand doesn’t want to lose businesses that have already been invested in, because they have been caught short at the wrong time.
“The Government should take a targeted, strategic approach to sorting these problems out, rather than throwing money around.”
Canterbury Chamber of Commerce chief executive Leeann Watson said it was important to remember most businesses were startups at some point.
“We have to recognise, through no fault of their own, these businesses have started up and need some support . . . start-up businesses often don’t have a lot of equity.”
Auckland Business Chamber chief executive Michael Barnett has been advising businesses through the crisis, and said business owners generally won’t seek help if their business doesn’t have a future.
“You probably shouldn’t be bailing out business where there is no hope.
“I think the businesses themselves [know] whether there’s hope and whether a little bit of Government money will allow them to recover and to rebuild.”
Beck said the Government should focus on long-term spending on things like infrastructure, rather than short-term bailouts.
“You have to let nature take its course in respects, because when you artificially inflate or create markets, it never ends well.”
Small Business Voice chief executive Max Whitehead said he agreed the Government shouldn’t be providing support for businesses, only to delay their eventual and likely demise.
Rocket Lab has received almost $2.9 million in wage subsidies from the Government for 412 staff.