By KEVIN TAYLOR
Two Government grants given to Auckland Mayor Dick Hubbard's cereal company have been re-assessed and found to meet the criteria, says New Zealand Trade and Enterprise.
Act leader Rodney Hide has questioned how Hubbard Foods met the criteria for nearly $100,000 in business assistance grants, and has threatened to
go to the Auditor-General.
The first grant, for $75,000, was made in October 2002 from Industry NZ's "business growth fund", and was for the "establishment of strategic alliances and development of IT systems".
The second was approved in June this year by NZTE - Industry NZ's successor - for $22,921 from its "growth services fund" and was for "completion of initial scoping project and provision of draft report, project management".
NZTE chief executive Tim Gibson said the files on the two grants were re-examined yesterday and the criteria were found to have been correctly applied.
Economic Development Minister Jim Anderton accused Mr Hide of being anti-business.
"Government support for business growth, through the growth services fund, is essential for New Zealand to expand our economy and lift living standards for all New Zealanders," he said.
"Act need to get a grip on themselves and start supporting business growth instead of attacking good Kiwi businesses."
But Mr Hide said he had previously challenged Government grants to businesses on the basis that the criteria were not correctly applied. Following a probe, The Warehouse was asked in July last year to pay back $21,000 of a $75,000 grant from the business growth fund.
