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ACC Savings Help Research And Development

Savings from the ACC changes introduced by National were contributing to research and development advances necessary for the knowledge economy, Prime Minister Jenny Shipley said today.

During visits to Hamilton's Ruakura Research Centre and the Livestock Improvement Corporation Ltd, Mrs Shipley was told the organisations were saving hundreds of thousands of dollars through the changes to ACC.

"In the case of Ruakura, which employs 1000 people, they are saving $200,000 from the introduction of competition in ACC. They have also saved a further $200,000 through competition in the telecommunications industry which enabled the Crown Research Institute to tender out its telecommunications contract.

"As for Livestock Improvement, the corporation is saving $161,000 through the ACC reforms and that's making a huge difference to the organisation's bottom line. It means the Dairy Board subsidiary can reinvest in its research into milk production, livestock breeding, and on-farm consultancy work.

"The knowledge economy of the future is based on new ideas and more research and development which requires more resources and more money. The ACC savings are helping with this."

Mrs Shipley said National's policy of more competition across all sectors was driving prices down and giving companies opportunities for reinvestment and expansion, which included job growth.

"I congratulate Ruakura for its tremendous work in the area of improving meat quality and also Livestock Improvement Corporation for helping our agricultural industry to take advantage of new technologies to improve the quality and prosperity of the industry.

"This is what the Bright Future is all about and the National Party is doing everything in its power to implement policies that make a tangible difference to those involved in science, research and development," Mrs Shipley said.


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