Biotech to get $17m Government boost

By LIAM DANN primary industries editor

The Government yesterday unveiled plans to inject $16.8 million of new funding into the biotechnology sector over the next four years.

In a speech to the industry's conference in Wellington, Science Minister Pete Hodgson outlined the Government response to recommendations made by the Biotechnology Taskforce in May.

The biggest initiative is a $12 million fund to support transtasman joint ventures.

To be managed by New Zealand Trade and Enterprise, it will offer partnership funding to New Zealand and Australian companies working together on biotech development, manufacturing and marketing.

The fund will be allocated $3 million a year over the next four years.

Other new initiatives include funding for the creation of a single industry body called New Zealand Bio.

It will be formed by the merger of BIOTENZ and the NZ Biotechnology Association.

Further funding will be used to gather more statistical data about the sector and to develop a programme to promote the commercialisation of science.

The Biotechnology Taskforce set four targets for the next decade.

These included increasing the numbers employed in the sector, lifting the number of biotech companies, boosting export earnings from $250 million to $1 billion a year and trebling the number of biotech organisations to more than 1000.

Among its 28 recommendations were calls for a $200 million investment fund and a review of tax issues.

Taskforce chairman Bill Falconer said yesterday's announcements were a positive first step.

"Often Governments receive these reports and we never hear from them again." He said this latest response had been early and direct.

The new transtasman initiative filled a gap in the local funding structure, he said.

Recommendations like the $200 million fund required action from the industry before the Government got involved.

"You have to see it as the start of the process," he said.

Hodgson said that some taskforce recommendations were already being addressed by the Government's growth and innovation framework.

Some would be addressed as part of cross-sectoral funding by the Economic Development Ministry and some had already been addressed in the last Budget.

Stephen Hall, the head of corporate services for Genesis Research and Development - New Zealand's largest listed biotech - welcomed the Government's new initiative.

But he warned that without a serious review of tax issues the taskforce goals would not be achievable.

"Additional funding is helpful," he said.

"But while there are structural inequalities on an international basis, we're never going to make it."

New money

The Government's biotech initiatives:

* $12 million for a fund to support transtasman joint ventures.

* $1.3 million for a new amalgamated industry body called New Zealand Bio

* $2.3 million for a programme to help scientists commercialise their work.

* $1.2 million to gather more statistical information on the developing biotech sector.