2 Mar 2009

$10 billion dollar business fund praised

5:40 am on 2 March 2009

A $10 billion fund to invest in struggling businesses proposed at Friday's jobs summit is being praised as a innovative way of saving jobs.

The Government and the private sector could put $1 billion each into such a fund to prop up businesses with short-term funding difficulties.

KPMG partner Godfrey Boyce says the banks may see it as a way of shoring up industries where they are facing loan losses.

Prime Minister John Key says officials will look into the proposals in more detail and will have further discussions with summit leaders in six weeks.