$500m for growth, innovation

By IRENE CHAPPLE

Almost $500 million over four years will be drip-fed to business as a booster for economic growth and innovation.

Of that, $155 million is tagged for research, science and technology.

A further amount of almost $60 million will be spent outside the growth and innovation package, which aims to build international connections and pay for research into new products.

Economic Development Minister Jim Anderton said the money was to help move New Zealand's economy from being commodity-based to high-technology, "which is really the 21st-century type of economy we have to be".

The splurge was met with glee by the Association of Crown Research Institutes, the HiGrowth Project and the Growth and Innovation Advisory Board.

Bryce Heard, president of the association, said the amount of money budgeted was meaningful.

"It is literally a vote of confidence in the ability of science enterprises and scientists to help transform New Zealand.

"It comes on top of increasing investment by the private sector in the last few years.

"The Government's step change this year challenges industry to continue with its increasing investment."

Catherine Calarco, executive director of the HiGrowth Project, said the money was a huge step in the right direction.

A spokesman for Growth and Innovation Advisory Board chairman Rick Christie, who is overseas, said it was pleasing to see the focus on strengthening the capabilities to compete globally.

Anderton said the package would focus on strengthening New Zealand's connections with the world economy.

It would promote international connections such as Brunswick Corporation's investment in electronics firm Navman, he said.

A Market Development Assistance Scheme will get $35 million over four years, and $6 million will be contributed towards New Zealand's participation in the Aichi Expo in Japan next year.

The bulk of the $212 million budgeted for research, science and technology will be invested in exploring new products and services.

Research for Industry funding will increase by $75 million over four years, and the Research Consortia programme gained an extra $17 million.

The Minister for Research, Science and Technology, Pete Hodgson, said the Government was committed to fostering growth through innovation.

"We have delivered on that commitment by increased research, science and technology funding by $190 million - almost 45 per cent - since we took office in 1999."

Hodgson said the Budget would "continue to strengthen New Zealand's innovation system by supporting a high-quality science and technology sector with vibrant and national and global connections".

Infrastructure for small local authorities also benefited to the tune of $11 million over four years and a "Major Events Fund" picked up $12 million over the same period.

Anderton said events such as the America's Cup and the World Rally Championship generated millions in economic activity and promoted New Zealand overseas.

"The returns to New Zealand from these events are well worth working for."