Banks Pull Plug On Job Summit’s $2b fund
May 15th, 2009
John Key says the banks “pulled the pin” on the job summit’s proposed $2 billion equity fund. It was to have been co-sponsored by the banks and the Govt to take shareholdings in struggling companies. The banks are blaming the Govt for the collapse, saying Treasury officials got cold feet worrying the scheme could have over-extended banks when banking sector stability is crucial.
The other two big summit ideas are also producing less-than-dramatic results. Only three companies have taken a subsidy to save jobs by cutting back to a nine-day fortnight, and a proposed bike track from Cape Reinga to Bluff has become a network of smaller-scale bike tracks.
But all is not lost - work is still being done on a further six initiatives:
1. Fast-tracking regulatory approvals for major projects.
2. Extending the export credit guarantee scheme to troubled businesses needing working capital for domestic production.
3. Allowing more tax deductions for the costs of raising capital.
4. New tax rules for employee share purchase schemes.
5. New tax rules for immigrants starting new businesses here.
6. Tax changes for managed funds and other portfolio investment entities to make foreign investment in New Zealand more attractive.
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