Hon Pete Hodgson
Minister of Research, Science and Technology

3 November 2008 Media Statement

Wherescape ‘tip of R&D iceberg’

The possibility of rapidly growing ICT company Wherescape pulling its R&D out of New Zealand is just the tip of the R&D iceberg, according to Science Minister Pete Hodgson.

“There are heaps of Wherescapes going through the same uncertainty, and they span the spectrum of economic activity. Even Fonterra is able to locate its R&D elsewhere, despite its production being based in New Zealand.

“Further, there are companies that are considering relocating to New Zealand, or of locating a greater proportion of their R&D to New Zealand.

“On average, companies that undertake R&D are more likely to grow faster, more likely to create high skill jobs and more likely to export a high proportion of their product or service. In other words they are precisely the companies that we need to boost the development of the real economy and pull us through the looming economic downturn.

“These companies would be the only ones to face a tax increase under National, yet the revenue National gathered would be sufficient to give each person a taxbreak of only $1.60 per week. The policy is straightforwardly dumb.”

ENDS

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