High-tech group seeks finance for screening

The high-technology sector has asked the Government for $1 million to set up a private-sector board to screen applications for new business grants.

Auckland software developer Trevor Eagle, who chairs the High-Tech Council, said yesterday that leading entrepreneurs were willing to provide free advice, but needed a body to coordinate their input.

"We have to tackle this head-on and get some funding upfront - initially a small group, no more than four people, to be fulltime at it," he said.

"We are looking for $1 million to set it up for the first two years. Then we have to be self-sustaining."

Mr Eagle said the group represented the Electronics Manufacturers' Association, Software Association, the Association of Crown Research Institutes, the Royal Society and Biotenz, a new body representing the biotechnology sector.

The group put the proposal to Science and Technology Minister Pete Hodgson three months ago, but had heard nothing.

Mr Eagle said there was a successful model for the proposed approach in the Technology for Business Growth scheme, run by the Foundation for Research, Science and Technology. He is one of a panel of private-sector representatives on the scheme's board, which meets monthly to assess grant applications.

"We have 30 to 35 projects to evaluate. Each person on the committee does three or four or five or six in detail and writes them up," he said. "Then we vote on them."

Details of the new grant schemes to be run by Industry NZ have yet to be revealed, apart from an initial 250 "enterprise awards" of up to $10,000 each and an Investment Ready Scheme that matches small businesses with investors.

Economic Development Ministry spokesman Michael Pearson said the bill setting up Industry NZ should pass its final reading in Parliament today and would take effect a month after it received the Governor-General's assent.

The High-Tech Council's proposal would be considered by the Industry NZ board, which would be announced within a fortnight.