KEY POINTS:
Mike Riley couldn't believe the irony as he looked around Endace's brand new, state-of-the-art research and development facility yesterday. The high-technology company moved into its new premises over the weekend.
Chief executive Riley was still unpacking boxes when he heard of National's plans to scrap the current government's research and development tax credit yesterday.
That policy had cemented Endace's decision to invest so heavily in New Zealand the company is enjoying 50 per cent growth and has a global presence, so it could choose to conduct research and development anywhere in the world, Riley said.
This year it expanded its Hamilton research centre, employed 30 staff and is looking to take on another 30.
The new offices in the Millennium Centre in Greenlane houses 10 engineers, the regional sales, marketing and finance team and will be the company's corporate headquarters for Asia.
Because the tax credit scheme has only been running six months, Riley said he was unable to say how much Endace had benefited from the tax credit in terms of money until it completed an audit, but confirmed the incentive was a major reason the company built its centre here.
National's policy would not stop Endace growing, but it could stop the company growing from home, he said.
If the tax-credits were cut, Endace would be forced to revisit opportunities in other parts of the world where there were much greater incentives.
"There are plenty of talented people in other places where we could be doing it. But we're a kiwi company, we want to do it here," he said.
Riley said National's announcement seemed a knee-jerk reaction to poor financial figures released by Labour.
"I'm sure this is just National's way of scrambling to try to pay for the tax cuts they had promised the average kiwi - I think it's short-sighted."
He said it was surprising National, traditionally considered pro-business, would make such an announcement.
