[BUDGET 2009] Primary Growth Partnership replaces Fast Forward Fund

Thursday 28th May 2009

The government earmarked $321 million for research and development, including $190 million over the next four years to replace the previous administration’s $700 million Fast Forward Fund.

The Primary Growth Partnership will receive $30 million this year as part of ongoing funding for programmes to lift research in New Zealand’s primary and food sectors, including pastoral and arable production, horticulture, seafood, forestry and wood products, food processing, and climate change initiatives.

The PGP puts “hard cash on the table and we’ll be giving it out if primary sectors can match it dollar-for-dollar,” said Finance Minister Bill English to a media conference. “We’ve made it quite clear it’s not about some $700 million or $2 billion fairy tale.”

The government has been criticised by industry for cutting the previous administration’s Fast Forward Fund, and for removing research and development tax credits.

The PGP will focus on boosting productivity to deliver economic growth and sustainability across the primary sector from the producer to the consumer. Funding will be allocated by an Investment Advisory Panel appointed by the Agriculture Minister.

Successful applicants will have full business plans developed by a steering group of co-investors, and the IAP will monitor the applicant on an ongoing basis.

The government also lifted investment in Crown Research Institute Capability and Marsden Funds, along with extra funding for health research, and the Prime Minister’s $1 million science prize. English told reporters the government would “continue to invest in science and technology” as a means to improve the country’s long-term economic performance.

Businesswire.co.nz

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