8. Hon TREVOR MALLARD (Labour—Hutt South) Link to this
to the Minister of Finance
What was the advice he received over the kinds of businesses and circumstances in which the Government would consider a bail-out?
Hon BILL ENGLISH (Minister of Finance) Link to this
I refer the honourable member to my answer to yesterday’s question No. 4 on substantially the same issue, because this is substantially the same answer. It is not appropriate to speculate on the circumstances of any particular business, particularly listed businesses, in this House. The honourable member is well aware of the requirements of the Cabinet Manual in that regard.
I asked for advice on this matter, I think, before Christmas, simply because it was evident to me that many other Governments were also getting advice—if not setting up schemes—and because we are in a time when the unthinkable seems to happen every week.
Hon Trevor Mallard Link to this
Is the Government considering ensuring that there is a proper return from any funding to firms through, for example, an equity stake on a model similar to Air New Zealand?
I do not intend to speculate on models, as I think I said to the media yesterday. Any Government participation would have to be a last resort. The hurdle would be very high and any company seeking Government assistance would have to pay a high price for it, in the same way as the guarantee provided to banks for their wholesale fund-raising has a high price attached to it.
Hon Trevor Mallard Link to this
Will the Minister release Treasury advice on this matter before next week’s Job Summit?
Hon Trevor Mallard Link to this
Has anyone in Treasury prepared a list of firms that the Government might consider supporting?
John BoscawenWhy would this Government even remotely consider propping up a private company like Fisher and Paykel Appliances when it clearly has the very simple option of making a pro rata cash issue to its existing shareholders to raise any additional capital it might need?