Politik website reports Key/ Joyce gave $17.25 million to Oracle boat builders

CronyismPolitik reports

The Warkworth boat building company which is owned by Larry Ellison’s Americas Cup team Oracle Racing, is refusing to comment on claims that it has received $17.25 million from the New Zealand Government’s Callaghan fund.

The MBIE website makes it pretty clear they received the grant.

The Warkworth company, Core Builders’ Composites built the boats for Oracle’s 2013 defence of the Cup and also sub contracted a number of New Zealand companies to help build the AC45 boats which were used for the primary series of races which took place around the globe.

The company would not discuss the grant today and the statement from the Ministry says the funding was part of Callaghan’s “grow” funding which provides 20 per cent public co-funding for qualifying firms’ eligible R&D expenditure, capped at $5m per annum.

Though some details of the funding has been on the MBIE website since April 13, a statement issued by the Minister of Business Development, Steven Joyce, on April 15 lists 14 companies who have received Grow grants this year but does not mention Core Builders.

Mr Joyce is currently travelling in South America but “Politik” is waiting for a response from his office to questions about the grant.

I just get so sick of this corporate welfare. This funding should have come from private investors. Oracle’s owner, Larry Ellison, is listed by Forbes magazine as the fifth wealthiest person in the world, with a fortune of $56.2 billion US dollars.

6 thoughts on “Politik website reports Key/ Joyce gave $17.25 million to Oracle boat builders

  1. Let’s call a spade a spade. Corporate Welfare could equally be called fascism (the real type, not the usage liberals accord it) just as much as it could be called cronyism.

    NZ still has a great number of small to medium sized businesses who do an honest days work and are the true backbone of the economy. These individuals unfortunately are getting strangled by increasing .gov “compliance” costs and collusion with government by big business. There are only so many 6% rate rises, Kiwisaver role outs, health and safety audits, employment laws, earthquake proofing, min wage increases that a businessman can swallow before it stops becoming worth their time to get up in the morning.

    The Atlas’s in this country are shrugging while the Wesley Mouch’s thrive.


    • Yes you put up the capital, take all the risk, do all the hard work. Generate millions in economic activity.

      And in return.

      You get stung with all the compliance costs, meddling by Councils and Government departments etc. They all have a warrant or act of Parliament that says they have access to you and your property anytime they want.

      Provide Jobs and pay wages.

      Then one day you realize that you generate more income for the Government than you do for yourself.

      But worse you are treated like some social pariah and criminal, I should not say criminal they are treated better, but certainly a third class citizen, by those who (bureaucrats and other assorted beneficiaries) do not actually create any value .

      I reached that point just over 7 years ago, now I earn just enough for me and pay the absolute minimum in TAX, some years thanks to WFF etc I pay no TAX. If I have to employ somebody it is as an independent contractor and I get an invoice.I work as an independent contractor and give an invoice, the ultimate zero hour contract, I choose.

      IRD have just finished looking at me, 10 months, they went away with nothing and I got a bill from my accountant.

      More and more people are opting out, The super wealthy are no longer TAX resident in NZ, a huge percentage at the bottom do not contribute anything in fact they are a net economic loss, more of the middle upper class are realizing that lifestyle is more important than being a third class citizen and picking up the tab for everybody else, paying more than their fair share.

      You need to eliminate the Business risk, no or low fixed costs and the Financial risk, owe no money.

      With no mortgage or rent you need very little to live on. Debt slavery is alive and doing very well for itself.

      It is a great lifestyle I do what I want when I want.


  2. Interesting to know who at MBIE approved this one…..cronyism definitely, but perhaps frank corruption.


    • I see Joyce is claiming the amount is incorrect but it is quite plainly stated on the MBIE site as linked in the story. Here is the screenshot


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