Budget 2004: Big budget boost for Investment NZ
10 May 2004 Media Statement
Big budget boost for Investment New Zealand
Budget 2004 includes a significant financial boost of $26.5 million over the next four years to Investment New Zealand, Industry & Regional Development Minister Jim Anderton said today.
The additional funding is designed to further bolster the agency's efforts to attract the critical new investment that the country needs to underpin ongoing high quality job opportunities for Kiwis.
"New Zealand is involved in an epic contest to attract high-value investment to our country.
"Investment attraction is a very competitive business with more than 2,500 investment promotion agencies around the world all seeking to attract the attention of potential investors," Jim Anderton said at a press conference announcing the funding initiative.
"These agencies are typically government funded and often offer investors generous incentive packages. New Zealand is not in the game of offering large-scale incentives because that just gets us into a bidding war, but New Zealand does need to be active in investment promotion in a smart and targeted way," Mr Anderton said.
The Progressive leader said there is no doubt that new investment is needed in order to help New Zealand-based companies expand their sales and thereby create high quality jobs for New Zealanders in their own country.
"Access to these investors is absolutely vital if we are going to continue to raise New Zealand’s income and New Zealanders' job and life opportunities in their own country. This is done through adding to the country's capital stock, creating new and better quality jobs and increased productivity through technology transfers to New Zealand and enhanced global distribution channels for New Zealand-based companies," Mr Anderton said.
The Progressive leader was speaking at a news conference with Trade Minister Jim Sutton in which Mr Anderton announced that Investment New Zealand will receive additional operational funding of $6.632 million a year, GST inclusive, commencing in the new 2004-2005 financial year that begins on July 1. That represents an increase of more than 50 per cent over current funding.