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Companies sold before they grow – Labour

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Companies sold before they grow – Labour

3News NZ

Economic Development spokesman David Cunliffe says 32 high-tech companies have been sold offshore in the last decade

Economic Development spokesman David Cunliffe says 32 high-tech companies have been sold offshore in the last decade

New Zealand's "best and brightest" high-tech companies are being snapped up by overseas buyers before they get the chance to grow, Labour says.

Economic Development spokesman David Cunliffe says 32 high-tech companies have been sold offshore in the last decade.

"Some of New Zealand's best and brightest young companies are being sold offshore very early in their life cycle for less than they would be worth if capital and export conditions permitted them to grow further before selling out," he said today.

"Our companies stand ready to be world leaders in eco-technology in the 21st century but this country will only see sustainable growth and jobs if entrepreneurs can more easily access long-term local capital."

Mr Cunliffe says government policies aren't working and changes must be made to help the young companies grow.

Labour is proposing:

  • Tax reform and a universal KiwiSaver scheme to generate savings and create investment capital
  • Monetary reform to create a "stable and realistic" exchange rate
  • Research and development tax credits
  • Export promotion assistance for young companies.

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Comments

24/09/2012 4:46:27 p.m.

Norm wrote:

I love labors politics, nothing like a laugh to help an otherwise dreary Monday.

24/09/2012 4:08:38 p.m.

kemo sabe wrote:

Cunliffe's heart is in the right place but his proposals won't fix the problem. The simple fact is that eg Fisher and Paykel is worth more as a business in the hands of Haier than it is as a standalone NZ firm. So any NZ investor wishing to outbid Haier is going to pay over the odds. Which is why nobody has fronted up.

24/09/2012 3:41:40 p.m.

John Howarth wrote:

Nothing to stop the Labour Party or it's members buying these companies.

24/09/2012 2:21:56 p.m.

Mike B wrote:

Well done Labour. Another 4 proposals that are going to cost money. Please now tell us where this money is coming from? Let the Lefties now come and tell us it must come from the rich! Then why stay here and develop your company only to be taxed to death to pay for the blungers?