Boat builders are upset that the government has awarded an $8 million ferry contract to a Bangladesh company rather than locals.
Economic development minister Steven Joyce told the Herald the difference between the New Zealand tenders and the successful Bangladesh bid was around $14 million.
“The numbers here were just too big to bridge, whatever way you want to cut it. If we were to prefer New Zealand suppliers at any cost, it would be a recipe for economic disaster,” Joyce said.
Saving that many cents make good sense but Labour still doesn’t care about that:
Over at Keeping Stock, Gosman points out that the boat building industry is doing well without public subsidies:
. . . The turnover in the industry as in 2012 was around 1.7 billion dollars. Just to put it in to perspective for you if this contract had been awarded for 23 million dollars it would have been worth around one percent of total turnover. The industry doesn’t need government money to survive so why demand they get special treatment than firms from other nations? . . .
Labour wants subsidies for an industry that’s doing very well without them.
Once more it shows it’s not learned from its mistakes and still isn’t concerned about wasting taxpayers’ money.