Govt On Right Track To Lift Economic Performance

The Prime Minister has set the right course for a budget in May which could lift economic performance, according to NZVCA Executive Director Colin McKinnon.

“The Prime Minister’s speech, with the focus on science and innovation, shows a commitment to stimulating innovation and economic growth. While we will have to wait to see the detail on tax and access to capital initiatives, the direction the government is taking is very encouraging.
“The government risks taxpayers’ investment into science and innovation programmes if they don’t also address the access to capital issues adequately. Good science can achieve great economic value if it can be commercialised, but it needs capital to do so.

“Currently the venture capital industry in New Zealand is severely constrained by the lack of investors. That means New Zealand entrepreneurs are heading offshore to find the capital needed to commercialise their ideas.

“We trust that the government will address this issue in their response to the recommendations of the Capital Market Development Taskforce.”

ENDS