1. SUE MORONEY (Labour) Link to this
to the Minister for Economic Development
What action has the Government taken to support innovation and regional economic development?
Hon PETE HODGSON (Minister for Economic Development) Link to this
The Government has moved from the 1990s policy of treating innovation with disdain and ignoring it as something that only the market could provide, to a point where innovation is now a vital part of this country’s economic transformation. In recent weeks, for example, I have announced up to $4 million for the Enterprising Partnerships Fund to the Waikato Innovation Park in Hamilton, which is aimed at helping innovative business in agricultural technology, agricultural engineering, and the food-related sectors to become established and to grow in the Waikato, and similarly, up to $1.9 million for the Otago institute of design, aimed at establishing an applied design research centre to provide design services, research, and education to business in that region and across New Zealand.
Up to $2 million of it will be available to support the construction of a new purpose-built building for the park, and a further $2 million will be available for Innovation Waikato’s business development services. This funding will be matched by $2.4 million of cash contribution from the Hamilton City Council. It is an excellent example of how Government can work together in partnership with local communities, even though the National Party, by its interjections, clearly does not like it. I would like to thank the member for her ongoing support and good efforts in bringing this partnership to fruition.
R Doug WoolertonIs the Minister concerned at the steady stream of manufacturers and processing plants closing their New Zealand operations, particularly in rural communities, and has he looked at the influence of our high interest rates and high dollar on these closures; if not, why not?
For the past 20 years or so the number of New Zealanders employed in manufacturing has vacillated between 250,000 and 300,000 jobs. It is currently at about 270,000, I think. That is a level of activity that, although lower than most economies, means that New Zealand has not been subjected to the hollowing out in commodity manufacture that has afflicted the various rust belts around other Western economies.