3. LESLEY SOPER (Labour) Link to this
to the Minister of Research, Science and Technology
What action is the Government taking to encourage higher levels of private sector investment in research and development?
Hon STEVE MAHAREY (Minister of Research, Science and Technology) Link to this
I have truly excellent news. The Labour-Progressive Government is providing a major tax incentive worth $630 million to boost private sector investment in research and development. Businesses investing in research and development can earn a 15 percent tax credit on that spending. For example, a company spending $100,000 on research would get $15,000 back in a tax rebate. The aim is to help raise the rate of private sector investment in New Zealand, which is currently only a third of the OECD average.
Hon STEVE MAHAREY Link to this
Too many to go right through them, but I will give some headlines. Anthony Scott of the Association of Crown Research Institutes predicted that Budget 2007 will be remembered as “Kickstarting an R&D culture”. Global Positioning System technology firm Rakon says that it may help change the minds of companies considering doing research and development elsewhere. Andy Hamilton of Icehouse said that it was a great thing the Government was doing. The National Business Review’s Paul McPadden said that the Government has clearly signalled it wants to boost New Zealand’s investment in research and development. And Deloitte says that the 15 percent rate compares favourably with those already in existence in other jurisdictions. The only sour note is the absolute failure of the National Party to back what is an excellent policy.
R Doug WoolertonCan the Minister confirm that giving businesses better tax incentives for productivity improvements is contained in the confidence and supply agreement with New Zealand First?
Hon STEVE MAHAREY Link to this
I have great pleasure in confirming that that is part of the confidence and supply agreement with the New Zealand First Party, which has always emphasised the need for New Zealand productivity.