I’m a little surprised that its the government doing this. We have a number of large companies involved in these sectors, and under competent managers, they’d already be making these investments themselves. Unfortunately, corporate management in New Zealand is notable for its short-term thinking and reluctance to invest for the future; they’d rather just clip tickets than innovate, and run things down rather than build them up. If the government has to put up effectively a $700 million subsidy before they’ll get off their arses, then it suggests they’re not doing their jobs properly.
Once again the government has to step in to make up for the short-term thinking of New Zealand business.