Government won't rule out changes to R&D plan

Finance Minister Bill English. Photo / Mark Mitchell

The Government says the $321 million in new science, research and development funding it introduced last year remains a priority, but will not rule out changes to the plan.

Alterations to other areas of state spending have been mooted this week as options for financing the Christchurch rebuild after last week's earthquake, including Working for Families, the student loans scheme and infrastructure projects.

Asked if he could rule out changes to the R&D and science funding plan, a spokesman for Finance Minister Bill English said: "Spending on research and development is a Government priority and that remains the case ... that's about as specific as I can get."

The Government is searching for monetary options in light of the earthquake, and the spokesman said rebuilding Christchurch would take precedence when it came to state expenditure.

"The Government will work through exactly how it pays for the rebuilding of Christchurch over the coming weeks and months."

The largest part of the R&D funding plan is the Technology Development Grant programme, which awarded $92 million to 26 companies in December.

Those firms would be paid in tranches over the next three years.

Another part of the new spending is the tech vouchers scheme, which is worth $20 million over four years and aims to help small companies gain access to public research institutes and universities to do R&D.

The $321 million plan was the third largest allocation of new spending in last year's Budget.

Companies awarded funding through the Technology Development Grant programme at the end of last year included medical device manufacturer Fisher & Paykel Healthcare, which would receive a maximum of $7.2 million and high-tech crystal maker Rakon, set to get up to $7.08 million.