National must show it is committed to Research and Development in May’s Budget, Labour’s Research Science and Technology spokesperson David Shearer said today.

“John Key has been talking a big game on R&D but he and Research Science and Technology Minister Wayne Mapp are showing little sign of how the industry will become a key driver in New Zealand’s economic growth,” David Shearer said.

“Why was there no mention of how R&D could tie in with the lowering of corporate tax rates in last week’s speech from the Prime Minister? Why was there no talk of tax breaks for businesses investing in R&D?

“John Key though did make a commitment to new spending in the Budget. We will have to wait to see how substantial that might be, but any new funding needs to go hand in hand with the culture change that those in the R&D sector are calling for. We must maximise the value of our innovations and new ideas.

“R&D has to be a key element of all businesses both large and small. All Kiwi enterprises whether they’re owner operated or billion dollar businesses need to have a link to technology that can help get more and better Kiwi products and services being sold around the world.

“That will require commitment and co-ordination by Government to ensure our science and innovations become commercial successes.”

David Shearer says a report due out later this week into Crown Research Institutes will give an indication of the approach National is taking.

“It must initiate a culture change, it must take a step towards greater collaboration,” David Shearer said.

“We just need to look across the Tasman to see how the commitment to innovation from Australia’s Government is driving growth and getting Aussies back into jobs. Late last year the Rudd Government introduced a R&D tax credit of up to 45% aimed at start up businesses to have confidence in investment.

“New Zealand must take up the challenge to make our ideas, products and services the best in the world,” David Shearer said.