4. COLIN KING (National—Kaikōura) Link to this
to the Minister of Research, Science and Technology
What recent announcements has he made that help businesses to undertake research and development?
Hon Dr WAYNE MAPP (Minister of Research, Science and Technology) Link to this
Last Wednesday I announced further steps in the Government’s innovation strategy. This is one of the six elements of the Government’s economic growth strategy. Six research institutions have been approved to undertake research and development for the voucher scheme. This is a scheme for small to medium enterprises, under which they can essentially get a voucher worth around $100,000 and perhaps up to $1,000,000, matched one-for-one by the businesses, and they get their research done by these institutions. The initial six institutions are the University of Auckland, Otago University, the University of Canterbury, Auckland University of Technology, WelTec, and Industrial Research Ltd, covering, of course, polytechnics, universities, and Crown research institutes in order to cover the full range of participating research institutions. There will be more announcements down the track.
Hon Dr WAYNE MAPP Link to this
On 6 October I also announced a TechNZ grant of $3.7 million to Compac Sorting Equipment, an excellent company in Auckland—in Maungakiekie, in fact. It is a niche producer that has 40 percent of the global market in its sector and exports to 30 countries. It increased its revenue by 20 percent. It is that kind of commitment that really drives growth. I should also mention the grant of $5.8 million to Weta Digital, which was announced in July 2009. That was to be matched 2:1 by Weta Digital. Of course, that kind of grant only matters if films can actually be made in New Zealand.
David ShearerHow has the Minister explained to businesses that the amount of money for research and development under his grants scheme is less than half of what they would have received under the 15 percent tax credit, and that they now need to apply to a Government bureaucracy that will decide whether their research and development is worthy of funding?
Hon Dr WAYNE MAPP Link to this
The very first thing businesses say to me is how pleased they are to have a National Government in office because of the responsible fiscal management that we undertake, rather than the wasteful expenditure of the previous Government. They are very pleased to have the more targeted approach that the Government has announced, rather than the discredited tax credit scheme of the previous Government. The system is seen as effective, focused, and driving innovation.