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Budget 2012 delivers on the Government’s commitment to building a more competitive and productive economy, with $250 million of new operating funding and $76.1 million in capital funding over four years for science, innovation, and research.

“Science and technological innovation are major drivers of growth and international competitiveness, which is why we have continued to increase funding for them despite tight fiscal constraints,” Science and Innovation Minister Steven Joyce says.

Budget 2012 rebalances the Government’s $4.3 billion investment in tertiary education between expenditure on student support and investment in tuition and research, says Tertiary Education, Skills and Employment Minister Steven Joyce.

“We have one of the most generous student support systems in the world. Rebalancing it allows us to free up money we can reinvest in improving the quality of tertiary education we provide, and help our overall fiscal position,” Mr Joyce says.

Key changes include:

Budget 2012 commits $158.9 million over four years to invest in engineering, science, and research-led learning in our tertiary institutions, Tertiary Education, Skills and Employment Minister Steven Joyce says.

“New Zealand has an under-supply of engineers and we are training about only half the number we require,” he says.

Budget 2012 continues the Government’s support for foundation training for young people, with 3,000 more places funded over the next four years under the Youth Guarantee Scheme.

“With these extra fees-free places, there will be 8,750 tertiary-based Youth Guarantee places in 2013,” Tertiary Education, Skills and Employment Minister Steven Joyce says.

Budget 2012 commits $29.5 million operating spending over four years for Private Training Establishments (PTEs), to create a fairer funding system that rewards competitive innovation across the tertiary sector.

The Government is committing the funding to close the gap between the historical differential funding rates of PTEs and public providers of the same service, Tertiary Education, Skills and Employment Minister Steven Joyce says.

Two Ministry of Economic Development funds with ambiguous aims are being cancelled, with savings returned to the Government, Economic Development Minister Steven Joyce says.

The Government is focused on investment that supports the business growth agenda of building a more productive and competitive economy.

The Enterprising Partnerships Fund and the Transformational Initiatives Fund, set up by the previous government in 2007 and 2008, are being disestablished. This saves $26.1 million operating over the next four years.