Hon David Carter
Minister of Agriculture

Minister of Forestry

28 May 2009

Major boost for primary sector innovation
Significant investment in primary sector growth and innovation is a feature of Budget 2009.

Agriculture and Forestry Minister David Carter today announced funding of $190 million over four years for the new Primary Growth Partnership. When fully operating in 2012/13, the partnership will see the Government investing $70 million annually in primary sector innovation.

The Government’s commitment will be matched dollar-for-dollar by industry, leading to a total investment of up to $140 million a year.

“This initiative is a clear demonstration of the Government’s bid to boost productivity across the economically vital primary sectors,” Mr Carter says.

Investments will be market-driven and focus on delivering economic growth and sustainability across the primary sectors, from producers to consumers. A government-industry partnership will lead the strategy and delivery.

“Innovation in the primary and food sector industries will be essential for New Zealand’s long-term economic growth and improved environmental performance,” Mr Carter says. “This initiative will build world-class expertise in these sectors.”

“The Primary Growth Partnership incorporates a transparent and accountable funding structure that is focused on results, not red tape. It is an enduring commitment by the Government to New Zealand’s primary industries.”

The initiative includes: pastoral (including wool) and arable production; horticulture; seafood (including aquaculture); forestry and wood products; food processing; and climate change initiatives.

Primary Growth Partnership – fact sheet
What is the Primary Growth Partnership?

Primary Growth Partnership (PGP) is a government-industry partnership that will invest in significant programmes of research and innovation to boost the economic growth and sustainability of New Zealand’s primary and food sectors, including forestry.

Major primary industry representatives have been closely involved in the development of the partnership.

How is it funded?

Budget 2009 includes funding for PGP of $30 million for 2009/10; $40 million for 2010/11; $50 million for 2011/12; and $70 million per annum from 2012/13 to be appropriated to Vote: Agriculture and Forestry. This funding will be ongoing.

Investment programmes will be funded 50:50 by industry and government overall.

Which industries are included within PGP?

The industries included within the scope of PGP are:

• pastoral (including wool) and arable production;

• horticulture;

• seafood (including aquaculture);

• forestry and wood products; and

• food processing (including, for example, nutriceuticals).

How will PGP work?

Investments will focus on initiatives that deliver significant economic growth and sustainability across the primary sectors from producer to consumer. Investments will cover the whole of the value chain, including education, research and development, product development, commercialisation, market development and technology transfer.

The process for allocating funding is:
• An independent Investment Advisory Panel (IAP), appointed by the Minister of Agriculture, will call for expressions of interest and assess proposals for investment programmes

• Successful expressions of interest will be developed into full business plans by a Programme Steering Group of co-investors (industry and government) for further consideration by the IAP

• The IAP will assess business plans and make recommendations to the Director-General of the Ministry of Agriculture and Forestry, which may approve programmes for Government investment

• Once approved, Programme Steering Groups will arrange for contracts to be entered into through existing investment mechanisms (such as the Foundation for Research, Science and Technology (FRST)). The Programme Steering Group will also be responsible for oversight of the programme

• The IAP will monitor and evaluate approved programmes on an ongoing basis and may recommend adjustments to investments

What are the benefits?

The primary and food sectors are critical to New Zealand’s economy both in terms of production and the number of people they employ.

PGP will focus on boosting the productivity of these sectors through ongoing investment in innovation, and delivering significant, long term economic growth and sustainability across the primary sectors, from producer to consumer.

ENDS

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