Agriculture Minister David Carter has again chosen unwise words, this time in over the Government’s drawn out process to approve Primary Growth Partnership funding, Labour’s Research, Science and Technology spokesperson David Shearer said today.

“For David Carter to say he makes ‘no apology’ for the lengthy time it took to approve projects for PGP funding is a slap in the face to those who have been desperately waiting for funding,” David Shearer said.

“For more than 18 months firms in the primary sector have waited with their money for the PGP’s matching funding to be available. Many are still waiting.

“After National scrapped Labour’s $700 million Fast Forward Fund the primary sector was relying on the PGP to fund crucial research and development.

“More than 18 months later and not one dollar has been paid out.

“The lengthy wait was a contributing factor in 36 scientists and technicians being laid off at AgResearch. Most of those were in the wool and textile division that was a world leader in adding value to New Zealand wool.

“I agree that the process around funding approvals needs to robust and the successful firms look like worthy recipients.

“But David Carter saying he ‘makes no apologies’ for his inaction is a bit rich and will grate with those who are still waiting to see the cash.”

Now that the dust has settled on National’s slashing of funding for innovation, it’s timely to ask which areas the Government plans to cut in the science sector, Labour’s Research Science and Development spokesperson David Shearer said today.

“New Zealand says it’s behind Research and Development, but contrast that to Australia. They realise that their future economic growth and prosperity is about innovation and science.

“How does John Key expect to catch up when he puts up much less than the Australians and half of what Labour already had in place?

“Earlier this week John Key announced he needed to slash $96 million out of current science sector spending to pay for his new ‘innovative’ grants and voucher systems,” David Shearer said.

“So what is being considered for the chop?

“We already know Research Science and Technology Minister Wayne Mapp has cut over 30 scientists and technicians at AgResearch and is considering slashing around a dozen scientists at Environmental Science and Research (ESR). But what other cuts does he now have planned?

“While the Prime Minister was smiling and waving earlier this week announcing National would halve the funding commitment Labour made in R&D, many scientists and researchers were wondering what future lay in store for them and their work.

“National scrapped Labour’s R&D tax credits, $700 million Fast Forward Fund and is now playing catch up. Unfortunately that catch up means $96 million of current activity is going to be axed.

“This week National committed $225m over 4 years to R&D. Any new funding is welcome news, but on an annualised basis that is just half of what was promised in election year ($315 over 3 years).

“The Government is trying to paint a picture that it’s right behind our scientists and innovators. Unfortunately the reality doesn’t match the rhetoric.

“The reality is that soon Wayne Mapp will have to announce $96 million of cuts. That is going to have a profound effect on our science sector,” David Shearer said.

Key announced the budget’s R&D package today. The fact that it was done a week out and Mapp was pushed out of the limelight signals that this is the good news of the budget. If this is the good news it doesn’t give us much hope for what’s coming.
The bottom line: there is $56 million a year in new money for science and R&D. On the face of it good news and I welcome any support we can give to our scientists and innovators. Read the rest on Red Alert.

I’m keen to hear your views.

Labour’s Research, Science and Technology spokesperson David Shearer says today’s Research and Development announcement by John Key is an admission that this government has dropped the ball on innovation.
 
“Any new funding for R&D is welcome. But today’s announcement is less than half of what the Labour Government was spending through the R&D tax credit and Fast Forward Fund,” David Shearer said.
 
“One of National’s first actions in Government was to scrap these initiatives. But businesses have seen nothing on R&D for the past 18 months and it’s likely to be another six months before they see real action.
 
“This is not step change. It’s John Key scrambling to save face. The $700 million Fast Forward Fund, for example, was replaced with the $190 million Primary Growth Partnership which is yet to pay out one dollar.

“This is another smoke and mirrors exercise by John Key and Research Science and Technology Minister Wayne Mapp. Their ‘grant’ and ‘voucher’ systems are simply a tax credit in drag.

“National simply hasn’t called it that because to do so would be an admission that they’ve failed to support innovative Kiwi businesses for the past year and a half.

“New Zealand’s private sector R&D spend is one-third of the OECD average. This will increase our public spend, but there is no guarantee it will lift business R&D.”
 
David Shearer said National’s broken its election promise to the science sector.
 
“In 2008, John Key promised $315 million dollars in new spending over three years for R&D. The Prime Minister has delivered $225 million over four years,” David Shearer said.
 
“On an annual basis, that’s half of what National promised to invest. John Key’s commitment to innovation should be treated with scepticism. The Government has neglected R&D since it came to power. Today’s sudden enthusiasm is little comfort for Kiwi firms who needed help 18 months ago when times were tough.

“Just think where our economy and businesses could be now, coming out a recession, if tax credits and the Fast Forward Fund had been retained,” David Shearer said.

The Government’s lack of leadership to support wool research could put the long term survival of the half billion dollar industry at serious risk, Labour’s Research Science and Technology spokesperson David Shearer said today.

“The decision by AgResearch to lay off scientists and technicians from its biology of wool department is a real blow for an industry already feeling the pain from the economic downturn,” David Shearer said.

“One of the key findings of the Government’s own wool taskforce was that R&D, and the development of new, value-added products, is critical to the long term survival of the industry.

“Yet the Government has stayed silent as scientists and technicians who are specialists in that very field are being laid off from a CRI.

“Research Science and Technology Minister Wayne Mapp needs to act to prevent the wool industry from falling further behind. It is important that we don’t lose sight of the long-term survival of the industry.”

David Shearer said while farmers may have voted against a proposal for a ‘wool levy’ to fund research, that should not mean the much needed R&D is neglected.

“The value of annual wool exports fell by 7% in 2009. The industry is hurting and the Government should show some leadership to get it back on its feet,” David Shearer said.

“National’s current approach to sit back and do nothing is short-sighted and leaves a half billion dollar industry at risk. In a period of down-turn, investment in R&D is what is needed to support a struggling industry.

“The appointment of the Government’s hatchet man Dr Murray Horn is a sad signal of the Government’s direction for the wool industry. Dr Horn’s reputation for slashing not supporting is well known.

“Our wool industry needs the Government to step up and ensure the critical recommendations of the wool taskforce are acted on. And that means ensuring the R&D needed to make our wool products the best in the world gets done.

“National’s talked a big game on R&D being a key part of New Zealand’s economic growth. But this is another example of rhetoric not matching reality,” David Shearer said.

Labour’s Research Science and Technology spokesperson David Shearer today congratulated Television New Zealand and the Royal Society of New Zealand for their push to promote science on Kiwi screens.

TVNZ and the Society recently announced a partnership to produce a TV series showcasing the value of science to New Zealand on the state broadcaster’s digital channel TVNZ7.

“Encouraging more and more Kiwis to get interested in science and aspire to a career in science is invaluable for New Zealand,” David Shearer said.

“Innovations born from research and development developed here in New Zealand will be a key driver of New Zealand’s future economic and social prosperity.

“Through this partnership Kiwis, both young and old, will see the commitment and successes of our scientists. Many are leaders in their field working on projects with the potential to create jobs and wealth for New Zealand.

“Showcasing our scientists is a step in the right direction to encourage science and technology in schools, in industry and in society.

“I’m excited about the series becoming a reality on screens,” David Shearer said.

National’s plans for a merger in the Research Science and Technology sector show it lacks a clear strategy on making innovation a driver of economic growth, Labour’s Research Science and technology spokesperson David Shearer said today.

It’s been reported the Government intends to merge the Foundation for Research Science and technology with the Ministry of Research, Science and Technology.

“National needs to explain to the sector and to Kiwis how this merger will have a major positive effect on innovation in New Zealand,” David Shearer said.

“How will a merger benefit New Zealand? Will it allow us to compete with Australia, which has made a major commitment to innovation?

“A review of the structure of the sector by MoRST last year concluded the foundation should be retained as a separate entity.

“We should always strive to find efficiencies but my sources are telling me that any savings from merger of MoRST and FRST would be negligible.

“So what is this talk of a merger really about?

“I suspect it’s false activity by the Research Science and Technology Minister Wayne Mapp, desperately trying to make up for a lack of a plan.

David Shearer says the proposed merger is not the grand plan the sector is calling for and which New Zealand needs.

“New Zealand needs vision for its innovations to be international commercial success stories, not the tinkering we’re seeing from National with talk of mergers,” David Shearer said.

“The Government has talked a big game on R&D but it’s showing little sign of how its sees the industry becoming a wealth creator for New Zealand.

“National needs to set out its direction for innovation.

“It needs to tell New Zealand how a merger will fit into the Government’s overall plan, because at the moment, I don’t see one.”