Vibrant Capital Market Vital to NZ Bioeconomy

Vibrant Capital Market Vital to NZ Bioeconomy

“A vibrant New Zealand capital market is required to support this country’s high value, bio-based industries,” NZBIO Chief Executive Bronwyn Dilley said today.

“NZBIO is pleased to see the Government’s action plan in response to the Capital Market Development Taskforce report.

“Acknowledgement of the Taskforce’s view that capital markets are key to improving the financial wellbeing of all New Zealanders and are a vital source of finance for business is important to the economic future of New Zealand.

“A vibrant capital market is also the key to ensuring that New Zealand will be able to take advantage of the vast potential we currently have to grow New Zealand’s Bioeconomy.

“Existing gaps in New Zealand’s investment ecosystem are forcing high tech industries to sell out to offshore interests. The exit-market for Angel and venture capital investors is also limited. These are exactly the companies and individuals New Zealand needs to ensure long term economic prosperity.

“The CMDT recommendations to establish an Asia Pacific Financial hub in New Zealand and build opportunities for people to invest are two positive steps towards improving the environment for high technology companies.

“Saliently, access to capital was the most frequently reported constraint by core, active and research groups in the Statistics New Zealand Bioscience Survey released this week.

“NZBIO’s Driving Economic Growth through Bio-Based Industries: The 2009 Bioeconomy Industry Summit Report highlighted six key actions that could be undertaken to develop a stronger and more vibrant bioeconomy in New Zealand. Recommended actions included taking a focused approach to maximise value capture from areas of competitive strength, improving access to capital for R&D and commercialisation, streamlining legal, tax and regulatory systems and improving commercialisation outcomes.

“NZBIO fully supports Government recognition that New Zealand’s future economic performance is dependent on harnessing science and innovation. However these companies also require an adequate supply of capital in order to grow and boost this country’s long term prosperity and economic security.”

ENDS

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