9 September 2008

Giant leap backwards

National’s leaked Research, Science and Technology policy will cause considerable damage to innovation in New Zealand and is a giant leap backwards, says Research, Science and Technology Minister Pete Hodgson.

“Their decision to abandon Fast Forward: New Zealand is bad enough, but they have also slashed the R&D Tax Credit which will make our most innovative businesses and exporters less competitive internationally,” he said.

“This is a disastrous policy. The main feature of R&D in New Zealand is that private sector investment is very low by international standards. That is precisely why the R&D Tax Credit was introduced. By cutting that tax credit National would ensure that innovation took a giant step backwards.

“Those businesses that are R&D intensive are very often the same ones that drive transformational change and high growth. Yet it is these same businesses that have been singled out by National for higher taxation,” he said.

“Furthermore the money taken from those businesses is the only money available for universities and CRIs over the next three years. In other words, National has proudly announced that new funding for R&D in New Zealand over the next three years is precisely zero.

“That is an honest admission, but a shameful one.”

ENDS

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