Bridges: Big law firms don’t need subsidy

National Party leader Simon Bridges, who had a career in law before entering Parliament, says major law firms “do not need” the wage subsidy.

Administered by the Ministry of Social Development, the scheme has seen more than $10 billion paid out to New Zealand employers since it was introduced a little over a month ago. But the scheme has started to come under fire since the ministry began allowing the public to search who has applied.

Claimants have included several large NZX-listed companies and some of New Zealand’s largest and most prestigious law firms.

NZME, owner of the Herald, has applied for the wage subsidy.

A search of the MSD website also shows that Bell Gully has claimed $1.81m in wage subsidies, Simpson Grierson has claimed $2.36m, Minter Ellison Rudd Watts has claimed $2.07m, Duncan Cotterill has claimed $1.49m and Meredith Connell has claimed $1.64m.

Bridges, who announced a new policy yesterday to offer tax credits for businesses, told reporters that while it had been crucial to get the scheme up and running, a number

of critics had claimed that it was not sufficiently targeted.

“I’m not critical of that. It had to be done quickly. Let’s give them a bouquet for that.”

But any further assistance for businesses needed to be targeted at the place it was needed, “otherwise we are spending billions of dollars of taxpayers’ money where it doesn’t need to go”, Bridges said.

“Big law firms. . . don’t need this money. Small shopkeepers, tourist operators, some of those players who are not only struggling, but could well go out of business, they need it.”

As well as acting as a Crown prosecutor, Bridges worked in Auckland for Kensington Swan (now named Dentons Kensington Swan), which does not appear to have applied for the wage subsidy.

Bell Gully, Simpson Grierson, MinterEllisonRuddWatts, Duncan Cotterill and Meredith Connell have all been asked for comment on their firm’s need for the subsidy.

Duncan Cotterill said it would not comment. Simpson Grierson and Minter Ellison Rudd Watts declined to be interviewed but said they would issue prepared statements.

Earlier, a report by former Finance Minister Sir Roger Douglas and University of Auckland Professor Robert MacCulloch questioned why major firms needed the money when partners “have enjoyed years of high six (and sometimes even seven)figure salaries”.

The pair added: “Why, when the good times suddenly come to an end, have they gone cap in hand to the Government? There is never someone more socialist than a wealthy capitalist in a time of crisis”.