Most wage subsidy recipients remain secret

During Wednesday’s leaders debate, both Prime Minister Jacinda Ardern and National leader Judith Collins agreed it was morally wrong for companies to claim the wage subsidy when they didn’t need it.

Collins said the Government should have put stricter rules around the scheme to prevent opportunists. Ardern said the high-trust model was held to account by transparency.

‘‘It did run on a high trust model,’’ she said. ‘‘But you’re able to search the names of every company that drew down that money.’’

But from the beginning, the scheme was never as transparent as the public was led to believe.

While an online search tool allowed people to search for recipients of the subsidy, businesses with fewer than three employees have never appeared on the register.

This is despite the Ministry of Social Development (MSD) telling all applicants their details, including their company name, number of employees, and amount received, would be published as a ‘‘searchable file’’.

In April, Finance Minister Grant Robertson also said even sole traders and the selfemployed would eventually be named.

But MSD said it decided against publishing the names of very small businesses for privacy reasons.

According to the most recent ministry data made available, from May and June, 97 per cent of all businesses who received the subsidy had fewer than 20 employees. By comparing different datasets, Stuff was able to calculate three-quarters had fewer than three employees – all of these recipients remain obscured from the public.

One-quarter is clearly not the same as, or even close to, ‘‘the names of every company that drew down that money,’’ as Ardern claimed.

The redacted companies account for around 20 per cent of the total amount (about $14 billion) paid out so far. More than $400 million has been paid back.

– Stuff is tackling the big debates and key issues of the election campaign in The Whole Truth, a fact-checking project.