Cullen says business initiatives valued at $500m over 4 years

3.00pm

Finance Minister Michael Cullen announced today's Government Budget included $500 million of spending devoted to economic development initiatives over four years.

This figure includes a number of spending initiatives already announced, the largest of which is the $212 million for research, science and technology over the next four years.

The largest increase within the latter goes to Research for Industry, whose funding rises $17.3 million in 2004/5 and $19.2 million in each of the following three years.

The Government's Growth and Innovation Package is allocated $151 million in 2004/5 and some $621 million over five years but this includes a number of initiatives already announced.

The Ministry of Research Science and Technology gets big chunks of that and also gets $15 million in each of the next four years.

The 2004 budget provides for $35 million over four years to Trade and Enterprise to assist exporters.

Dr Cullen said Trade and Enterprise's funding had doubled since Labour came to power in 1999 and he was considering a further increase next year.

Funding is also provided for the 2005 Aichi Trade Expo in Japan.

There is $26 million funding over four years for "sector focussed development". Some $42.6 million over four years is allocated to fund offshore companies to partner New Zealand companies, by deepening Investment New Zealand's offshore representation and expanding the Strategic Development Fund.

The education sector gets $40 million over four years to promote New Zealand education overseas.

Dr Cullen said that other initiatives planned included a review of the Resource Management Act, the development of a package to promote oil exploration, refinement to the wholesale electricity market and further mechanisms to support both new business and the growth of existing businesses.

- NZPA