Sue Bradford Government Spokesperson on Buy Kiwi Made

16 July 2007

Buy Kiwi Made Fund Opens

The second round of the Buy Kiwi Made Sector and Regional Initiatives Fund opens today, says the Government Spokesperson on Buy Kiwi Made, Sue Bradford.

Up to $2 million is available for projects which support specific sector and regional initiatives that promote the concept of Buy Kiwi Made and the profile of the existing Buy New Zealand Made Campaign.

"I am confident that a range of good projects will be put forward as the momentum of Buy Kiwi Made campaign grows. The timing of the second round was brought forward to coincide with the manufacturer launch of the media campaign, and this will generate greater interest in the Fund", says Ms Bradford.

The deadline for applications is 15 August 2007.

The Fund was established to help sectors and regions develop their business capability, and enable them to engage in projects that will lead to substantial economic benefits by promoting the Buy Kiwi Made objectives.

Information about the Buy Kiwi Made Sector and Regional Initiatives Fund can be found on the Ministry's website www.buykiwimade.govt.nz

Background Information Purpose The Labour-Green Cooperation Agreement sets out very broadly the requirements for Buy Kiwi Made. In 2006 Cabinet decided to establish a fund to support sectoral and regional projects associated with Buy Kiwi Made.

The purpose of the fund is to:

* provide support for sectoral and regionally based initiatives that have demonstrable economic merit and are consistent with promoting the objectives of the agreed policy framework of Buy Kiwi Made, but that do not meet the criteria or timing of other government assistance programmes; and

* Assist sectors and regions to develop business capability and enable them to engage in projects that will lead to substantial economic benefits by promoting the objectives of Buy Kiwi Made. Value of the Fund The total value of the fund is $3 million, to be distributed in three funding rounds.

For the first funding round, $401,870 has been allocated.

The value of the remaining fund is $2 598 130.

The second funding round has up to $2 million available for distribution. Funding Rounds The first of three funding rounds has concluded. The second round opens on 16 July 2007 and closes on 15 August 2007 with funding decisions expected to be made before the end of the year. How the fund is administered The fund is administered by the Ministry of Economic Development. It is a contestable fund, which ensures that the successful projects are those with clearly demonstrated support and with the greatest chance of demonstrating substantial economic benefits for the relevant sector and the local region.

An application form and detail on the funding criteria, agreed to by Cabinet, are made available to potential applicants. Information on the funding rounds and deadlines for submission are also found on the Ministry's website www.buykiwimade.govt.nz

All applications are assessed against the Cabinet criteria by the Ministry and finally by an independent panel. All applicants must meet all criteria to be eligible for funding.

The Ministry of Economic Development makes recommendations to the Minister of Finance, Minister for Industry and Regional Development and the Government Spokesperson on Buy Kiwi Made who make final funding decisions. Once decisions are made and the applicants advised of the outcome, the Ministry proceeds to develop funding contacts for the successful applicants. Funding criteria Funding can only be provided where the applicant makes or obtains an equal financial contribution to the project. This contribution should not include any 'in-kind' contributions but be on a strictly financial basis. This requirement will help to ensure the quality of the project and the buy-in and commitment to the project from the stakeholders. It will also help to reduce incentives for funding to be used for 'business-as-usual' activities.

The full Cabinet criteria and parameters for the fund are that:

1. Projects must lead to substantial economic benefits by promoting the objectives of and the policy framework for Buy Kiwi Made and the profile of the Buy New Zealand Made Campaign Ltd. Projects with benefits that spill over to other sectors or regions will be favoured;

2. Applications will be from a representative group in sectors or regions; or a cross-sector or cross-regional group;

3. The proposed project will have strong industry or regional support such as from industry members, local government, economic development agencies, iwi and community groups;

4. The initiative will not crowd out private sector activity;

5. The initiative is in the form of discrete projects, that have clear milestones that can be monitored and measured;

6. The initiative will be consistent with the government's broader economic, social and environmental objectives or obligations;

7. The initiative will be based on partial project funding, with an equal financial contribution to be made or obtained by the funding applicant ('in-kind' contributions will not be included in this contribution;)

8. The initiative will be financially self-supporting at the completion of government support;

9. Projects must be New Zealand based and focused;

10. A fund recipient must be a legal entity;

11. Projects must be consistent with New Zealand law and international obligations;

12. Proposals must not meet the criteria of existing government assistance programmes; or meet the criteria of existing funds but not the timing of these funds, where a delay would likely lead to a loss of economic opportunity.

ENDS

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