The Liberal Government is gouging a higher dividend from the Motor Accident Insurance Board despite warnings that the strategy could harm the business.
Shadow Treasurer Scott Bacon said the Liberals are milking MAIB to prop up their own budget.
“This government is recklessly gouging dividends and loading public businesses up with debt to make their own budget look better,” Mr Bacon said.
“The Government is taking a 60 per cent dividend from MAIB, in contravention of a long standing 50 per cent dividend policy.”
“The annual report warns: “Additionally, the business performance could be significantly affected should the dividend payable under the dividend policy be increased above 50%.”
“When asked why the Government is gouging a 60 per cent dividend against the advice of the business, the Chairman Don Challen first indicated it was a typo in the annual report before agreeing that 50 per cent was a more prudent policy,” Mr Bacon said.
“This in on top of the Government demanding a massive one-off $100 million special dividend from MAIB.
“It’s is clear this is a short-term cash grab ahead of the next election.”
Scott Bacon MP Shadow Treasurer
