What precedent, if any, does the Minister consider the $60 million grant to Fletcher Building to save the Golden Bay Cement establishes for future Government assistance to private companies?

Answer

None. This decision does not establish a general precedent or new industry support programme. Markets remain the best way to allocate resources, and in most cases, the government will not intervene in commercial decisions. Golden Bay Cement presented a unique economic resilience and security of supply issue – if the plant closed, then most of New Zealand’s cement would be imported, and New Zealand would be vulnerable to international supply disruptions which could have a significant impact on the economy.