New Zealand First MP
The research and development statistics released last week are great news for New Zealand.
They showed that research and development spending across the country grew by $758 million to $3.9 billion, or 1.37 percent of GDP. It was especially pleasing to see business spending up by $548 million.
New Zealand First has long known that too little was being spent on research and development in this country. We recognised that we need to encourage a commitment to new ideas, innovation, and new ways of looking at the world if our businesses are to build an economy that is stronger and more productive.
Our coalition agreement with Labour committed to raising our national investment in research and development to two per cent of GDP.
The latest figures show we are making headway on that, but still have a way to go. The research and development tax credit, which becomes available from April 1, will see the pace pick up.
The government has allocated $1 billion over four years to finance the tax incentive. Businesses spending a minimum of $50,000 on eligible research and development will receive a 15 per cent tax credit.
An estimated 2000-3000 businesses will be able to benefit from the new research and development tax incentive.
This initiative will help diversify our economy and deliver higher wages for Kiwis. Investment also holds potential benefits for our environment as we strive to find alternative methods of pest control that are sustainable and environmentally friendly, allowing us to phase out the use of 1080 altogether.
The implementation of the research and development tax incentive is to be welcomed for the wide range of benefits it will ultimately offer to New Zealanders.