Tuesday, July 16, 2019

WHO NEEDS BANKS

with the revelation by St Jacinda that Shane Jones' Provincial Growth Fund is now lending capital to business that the banks (including the gummit owned Kiwibank) won't lend to because of the risk.

So the taxpayer is now a lender of last resort and if the venture goes belly-up its the taxpayer that's left holding the can.   Sounds like a good deal for those with the ear of the Minister but not so much for the taxpayer.

Gummit has never been great at picking winners and picking winners where the banks and second tier lending institutions fear to tread is a recipe for disaster.   Meanwhile the pork-barrelling which characterises the PGF continues apace.

.... thought.   Perhaps Matai Industries (that was) might want to reapply (under a new name of course).     Whoops, no, that wuz a West Coast timber firm and timber on the West Coast is off limits per courtesy of the Greens. 

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