BUILDING A BRIGHT FUTURE

The Bright Future Package announced today is the Government's action plan to meet the challenges of the knowledge age, Enterprise and Commerce Minister Max Bradford says.

"The world is changing into a global market place as we go through a revolution in information and communications technology. Things we used to dream of are becoming possible at an amazing rate.

"Increasingly, what's in our heads is becoming as valuable as what's in our paddocks, our forests and oceans. In this environment, New Zealand needs to step up a gear to ensure it continues to prosper.

"Bright Future is the Government's considered response to this challenge. The package totals $223 million over four years and includes $47 million of new spending, up to $137 million of reallocated funds and $39 million from contingencies and savings.

"It draws on the ideas raised by more than 2000 people at 25 forums around the country earlier this year. The Government listened and today it is acting," Mr Bradford said.

"Bright Future is about giving New Zealanders the skills to excel in the knowledge era, building the capability of our workforce and generating and funding good ideas.

"The wide range of initiatives has been carefully designed to improve our ability to innovate. The Government is helping businesses to get the skills they need. It is up to businesses to decide what skills they want.

"The scholarship programme and the enterprise education review will engage industry more actively in education. The post-graduate scholarships and the review of higher learning will focus resources on the creation of more world-class centres of academic excellence.

"The New Economy Research Fund will complement these centres of academic excellence with centres of research excellence.

"The redirection of CRIs, the incubator programme and the expansion of Technology NZ, coupled with improvements in access to finance, will all help to build high technology clusters of firms feeding off the centres of research excellence.

"The general reduction in compliance costs and the promotion of the spirit of success will provide a more conducive environment for innovation," Mr Bradford said.

"The changes are essential to the future of rural industries. We must increase the level of high value added produce from the land through biotechnology and other research. The New Economy Research Fund is designed to do just that."

Mr Bradford said the Government would consider changes to the taxation of research and development.

"Research costs can currently be expensed in the year they are incurred. We are looking at whether it is appropriate to extend this tax treatment to development, however, we do not want to create large tax loopholes or perverse incentives in the process. We have therefore decided to have a good hard look at factors affecting R&D, rather than rushing it," he said.

"Bright Future will spearhead our efforts to make New Zealand the best country to live and do business in. It's an investment in our future. We are aiming high - but we'll not break the bank.

"These initiatives show how the Government is prepared to provide leadership and to play its part. We invite all New Zealanders to join us," Mr Bradford said.