Budget fails technology sector, say experts

The Government’s Budget does not provide for necessary investment in New Zealand’s technological future, say research and development advocates.

A total of $321 million in new money has been set aside for research, science and technology initiatives, including increased money for research support programmes such as the Marsden Fund.

But Victoria University professor of physicalsciences Paul Callaghan says the new funding is not enough to increase New Zealand’s competitive advantage on the world stage.

“We are lagging behind the rest of the OECD.

“There needs to be a significant paradigm shift in terms of research and development funding,” he says.

Callaghan says that with the scrapping of the $700 million Fast Forward Fund for developing primary industries and the abolishment of the Research and Development Tax Credit earlier this year, the increase in budget funds is negligible.

He says there needs to be more of a focus on funding for knowledge science and technology in order to boost productivity.

Tim Davin, director of policy for the Institution of Professional Engineers of New Zealand, says the Government should be investing in high-technology industries as well as primary sector innovation.

He says encouraging investment in high-tech industries within the manufacturing, design and ICT sectors will put New Zealand in good stead for climbing out of the recession.

“In essence, what New Zealand is looking for is a steep change in productivity.

“We need a lot more funding in high-tech industry in order to boost productivity,” says Davin.

Minister of Research, Science and Technology Wayne Mapp says in a press release the funding will build strength in research and support innovation in the New Zealand economy.

He says the budget recognises the important role science and technology will play in the economic recovery.