National must start listening to the growing calls for increased investment in Research and Development, Labour’s Research Science and Technology spokesperson David Shearer said today.

“The Manufacturers and Exporters Association is the latest to call on the Government to take action to increase the earning potential of our economy,” David Shearer said.

“The NZMEA has called on the Government to front up and restore Labour’s R&D tax credits so New Zealand can at least be in step with other nations, such as Australia.

“Tax credits stimulate our companies to invest in R&D. Australia has just increased its Research and Development spending by a whopping 25%. Yes, it has rich, easily accessible mineral wealth, but it realises that it must diversify – and maximize the benefit from its greatest resource, its brains.

“It also just announced tax credits of 45% for R&D for its most innovative companies. It sees this as a key means to reach the top quarter of the OECD. It’s time for National to listen. Investment in innovation will be a key factor in ensuring an export led recovery gets New Zealand’s economy humming again.

“We need a step change towards science and innovation – the very elements that underpin our current wealth. Sadly, National to date has shown no sign of delivering that.

“One of National’s first acts of Government was scrapping Labour’s $700 million Fast Forward Fund and R&D tax credits. Treasury measured the tax loss of Labour’s tax credits at $350 million but predicted it would stimulate a potential spend on business R&D of around $2 billion – more than twice what we do now.

“We have the most innovative and imaginative scientists in the world. And with a small community of scientists we can also cross fertilise ideas – from engineering to physics to biology.”

David Shearer says our manufacturers, exporters and researchers must be given the policy settings to drive economic growth.

“Research Science and Technology Minister Wayne Mapp must deliver the change that is needed to transform New Zealand’s economy.”