Video: Has Treasury compiled a list of companies to bailout ?

8. Hon TREVOR MALLARD (Labour"”Hutt South) to the Minister of Finance: What was the advice he received over the kinds of businesses and circumstances in which the Government would consider a bail-out? Hon BILL ENGLISH (Minister of Finance) : I refer the honourable member to my answer to yesterday's question No. 4 on substantially the same issue, because this is substantially the same answer. It is not appropriate to speculate on the circumstances of any particular business, particularly listed businesses, in this House. The honourable member is well aware of the requirements of the Cabinet Manual in that regard. Hon Trevor Mallard: When did the Minister ask for advice, and when did he receive it? Hon BILL ENGLISH: I asked for advice on this matter, I think, before Christmas, simply because it was evident to me that many other Governments were also getting advice"”if not setting up schemes"”and because we are in a time when the unthinkable seems to happen every week. Hon Trevor Mallard: Is the Government considering ensuring that there is a proper return from any funding to firms through, for example, an equity stake on a model similar to Air New Zealand? Hon BILL ENGLISH: I do not intend to speculate on models, as I think I said to the media yesterday. Any Government participation would have to be a last resort. The hurdle would be very high and any company seeking Government assistance would have to pay a high price for it, in the same way as the guarantee provided to banks for their wholesale fund-raising has a high price attached to it. Hon Trevor Mallard: Will the Minister release Treasury advice on this matter before next week's Job Summit? Hon BILL ENGLISH: That is unlikely. The advice is under discussion and may well end up being Budget sensitive. Hon Trevor Mallard: Has anyone in Treasury prepared a list of firms that the Government might consider supporting? Hon BILL ENGLISH: To the best of my knowledge, no. I have not seen such a list nor asked for one. John Boscawen: Why would this Government even remotely consider propping up a private company like Fisher and Paykel Appliances when it clearly has the very simple option of making a pro rata cash issue to its existing shareholders to raise any additional capital it might need? Hon BILL ENGLISH: I reiterate a point I made yesterday. Any company would be expected to pursue all its commercial options, and any company out there that is considering seeking Government assistance should take that advice.