The $100 million announced in the budget for a venture capital fund is money that has been pinched from other sectors of the economy, National's Research Science & Technology Spokesperson Maurice Williamson said today.

"$50 million is coming straight off the balance sheets of Crown Research Institutes and the other $50 million is coming from SOEs.

"You have to admire the Minister's chutzpah. After all the hype about the importance of the knowledge economy and the need for economic transformation, its not surprising that he hasn't highlighted this rather major feature of the so-called 'fund'.

"The only new money in research & science spending is the grand sum of $11.6 million. This paltry amount is the lowest increase in years and a clear indicator of the Government's real position on the knowledge economy," Mr Williamson said.

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