National playing catch up on R&D

Labour’s Research, Science and Technology spokesperson David Shearer says today’s Research and Development announcement by John Key is an admission that this government has dropped the ball on innovation.

“Any new funding for R&D is welcome. But today’s announcement is less than half of what the Labour Government was spending through the R&D tax credit and Fast Forward Fund,” David Shearer said.

"One of National’s first actions in Government was to scrap these initiatives. But businesses have seen nothing on R&D for the past 18 months and it's likely to be another six months before they see real action.

“This is not step change. It’s John Key scrambling to save face. The $700 million Fast Forward Fund, for example, was replaced with the $190 million Primary Growth Partnership which is yet to pay out one dollar.

"This is another smoke and mirrors exercise by John Key and Research Science and Technology Minister Wayne Mapp. Their ‘grant’ and ‘voucher’ systems are simply a tax credit in drag.
"National simply hasn’t called it that because to do so would be an admission that they’ve failed to support innovative Kiwi businesses for the past year and a half.
“New Zealand’s private sector R&D spend is one-third of the OECD average. This will increase our public spend, but there is no guarantee it will lift business R&D.”

David Shearer said National’s broken its election promise to the science sector.

"In 2008, John Key promised $315 million dollars in new spending over three years for R&D. The Prime Minister has delivered $225 million over four years," David Shearer said.

"On an annual basis, that’s half of what National promised to invest. John Key’s commitment to innovation should be treated with scepticism. The Government has neglected R&D since it came to power. Today’s sudden enthusiasm is little comfort for Kiwi firms who needed help 18 months ago when times were tough.
“Just think where our economy and businesses could be now, coming out a recession, if tax credits and the Fast Forward Fund had been retained,” David Shearer said.

ENDS

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