Tuesday, June 30, 2009

Ross Munro - hero of the week

It is sad that clothing firm Line 7 is going into receivership.

What was more sad was the wearisome offer by John Key that he was "prepared to look at offering assistance if an approach was made", although he preferred a commercial solution. In other words, your money might be used to bail out any business that curried sufficient favour with the government. It's what you expected with Helen Clark, and Barack Obama has shown he is quite willing to prop up failed companies, but John Key? Why is he listening to the philosophy of Jim Anderton, or is it just to grab the middle New Zealand pablum approach that "guv'mint" should always be there to help.

However, Line 7 Chief Executive Ross Munro has shown himself to be a businessman, entrepreneur and indeed a man of principle above any MP (not that hard really) by refusing government help.

On Radio NZ I heard him say "it is not the role of the Government or the taxpayer to prop up the company after its own mistakes. Mr Munro says the company, which was founded in 1963, has made its own bed and needs to lie in it."

Kudos to him, of course he does already get some support indirectly, through tariffs on imported clothing, low though they are, but still it is a welcoming statement that he is saying a flat no to your money.

Meanwhile, the Labour Party is saying not enough is being done (borrowing from your children's taxes and spending more of your money) to fight the recession. It might have been more productive had Labour not frittered money away on flights of fancy like Kiwirail, which has cost hundreds of millions of dollars. $690 million for a business that is worth $388 million (which is actually worth far less because it needs subsidies every year worth nearly $100 million to just operate) - that's how the Labour Party creates wealth, by subsidising foreign owners of businesses it wants to play with.

So today go out and buy something from Line 7 - you'll know you're supporting a brand and company that doesn't put its unwanted hands in your wallet.

1 comment:

Sally said...

John key is proving to be extremely wearisome. A wolf in sheep's clothing he is.