Bill English Max Bradford Opposition Finance Economic Development Spokesperson Spokesperson

Monday 12 June 2000

Business initiatives re-wrap National's package

Since it has broken its own promises to business, the Budget's business initiative will be a creative repackaging of part of National's Bright Future package, National's Bill English and Max Bradford said today.

"Labour has dumped its own ideas to help business and to expand the knowledge economy.

"Business expected tax breaks for research and development and the export guarantee scheme in the Budget. But they're not getting them.

"They've had to contend with higher taxes, new fringe benefit taxes, the ACC and Employment Relations Bill and plummeting business confidence.

"The Government faces a test of credibility towards business and the knowledge economy. So far the so-called bridge to business is built on broken promises.

"Initiatives for business in the Budget should be measured against the National Government's commitment in the Bright Future package which helped business be innovative and expanded the skills of New Zealanders.

"National committed more than $220million over four years - including $47 million new funding for new programmes that drew on extensive consultation with individuals and businesses.

"This Budget must deliver an integrated package for business that builds on the Bright Future ideas and investment, and not just fork out cash to pressure groups."

Attached: summary of Bright Future package released in August 1999

Ends

Bright Future Package The package is worth around $223 million over 4 years. This includes $47 million of new spending, up to $137 million reallocated from the Public Good Science Fund, and $39 million from contingencies and savings.

Area Initiative Cost Labour-Alliance commitment? Tertiary Education/ Research and Development Initiatives Scholarships - 1500 Enterprise Scholarships a year, to be co-funded with industry; and - 80 doctoral scholarships a year, worth around $40,000 each per annum - Post-doctoral Fellowships

- Higher Learning Sector Taskforce to develop shared vision for structure - New Economy Research Fund - Review of factors affecting investment in research and development, including tax deductibility of R & D, to report by March 2000 - Enterprise Education Taskforce - $20milion/year by 2004

- $10 million/year new

- $7.25million/year

- $36 million/year

Area Initiative Cost Labour-Alliance commitment? Secondary Education Initiatives - teacher fellowships and study awards in maths, science, enterprise and technology - Up to 1200 awards a year off $500 for the top maths, science and technology bursary students, providing they continue their study at tertiary level - Up to 90 awards each year for all round top bursary students, ranging from $2,500 to $8,000 - raise entrepreneurial skills in school children. - $10.2 million/ 3 years

- $1 million/year

- $1 million/3 years Access to Capital Initiatives - Support for small business stock exchange - New 'ideas' incubators to help get ideas to market - Changes to Securities Act to cut cost of raising capital - Targeted promotion of NZ to overseas investors - $169,000

- $2 million/ year

Area Initiative Cost Labour-Alliance commitment? Initiatives to Reduce Regulation - Small Business test panels to review and reduce the costs of regulation - Government Departments to cut regulations by 12 - 25% - Initiatives to reduce the costs of paying tax - Simple on-line guides to laws to be added to BIZinfo web site

Initiatives to Promote Success - Prime Minister's Awards targeting science, technology, innovation and enterprise; - Innovate New Zealand Council to develop a shared view of New Zealand's future - Website and newsletter to be launched to build links with New Zealanders overseas

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