Hon Gerry Brownlee
Minister of Economic Development

20 April 2009 Media Statement

Review of business assistance

The government is beginning a wider review of government business assistance programmes while also initially changing the way New Zealand Trade and Enterprise delivers business assistance to high growth firms.

Economic Development Minister Gerry Brownlee said the review was part of the government’s response to private sector calls at the recent Job Summit to revamp business assistance.

“During the Summit there were numerous suggestions for how business assistance could be improved. Reforming business assistance is a priority for me. I want to focus that assistance where it provides greatest value for money and delivers greatest economic benefit.”

The Minister released the review terms of reference (attached) and said that it would be completed by June 1.

“It’s important that any ideas for improvement that the review comes up with are tested with private sector leaders. Job Summit participants John Shewan, chairperson of PricewaterhouseCoopers, and Andy Hamilton from Icehouse have agreed to be part of this process.”

While the review would provide valuable advice for the government to consider changes to business assistance later in the year, there were also some issues that need to be addressed immediately, said Mr Brownlee.

“In particular I have decided we can achieve greater value for money and improved economic benefit by focusing New Zealand Trade and Enterprise’s grants programmes on one smaller, but better targeted, programme.”

“I am sharpening the focus of our economic development spending so that it makes a more tangible and practical contribution to economic recovery and growth.

“We need a strong and resilient domestic economy with New Zealand firms that can prosper internationally. Well targeted and packaged government support for businesses will contribute to that goal.”

Mr Brownlee said good progress was also being made on the five other work streams he has been allocated following the Job Summit::
• Managing regulatory approval process for complex and/or major projects
• Targeting and attracting offshore investment and entrepreneurial migrants
• Improving SME access to working capital
• Accelerating energy, environmental and water initiatives related to job opportunities and productivity improvements and
• Accelerating major infrastructure projects in Auckland

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Questions and Answers

What is the timetable for the review?

The review team is to report to the Ministers for Economic Development, Finance, Research Science and Technology and Trade by June 1 2009.

Ministers will then consider the review recommendations before taking a paper to Cabinet.

What programmes are covered by the Review?

It will cover business assistance provided by the Ministry of Research Science and Technology (MORST), the Ministry of Economic Development (MED), New Zealand Trade and Enterprise (NZTE) and the Foundation for Research, Science and Technology (FRST). It will also cover the work of the New Zealand Venture Investment Fund.
Who is on the Review team?

The review is being led by the Department of Prime Minister and Cabinet (DPMC) and includes senior representatives from DPMC, the Ministry of Economic Development, The Treasury, New Zealand Trade and Enterprise, the Foundation for Research Science and Technology, the Ministry of Research Science and technology and the Ministry of Foreign Affairs and Trade.

ENDS

Terms_of_reference_for_the_review_of_business_assistance_programme1.doc

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