Latest news with #InvestNZ
Newsroom
5 days ago
- Business
- Newsroom
The science sector sounds the alarm
New Zealand's science sector, once hailed for its agility and ingenuity during the pandemic and natural disasters, is now grappling with what researchers say is a crisis of confidence, fuelled by shrinking budgets, unstable funding pathways, and policy decisions that increasingly favour commercial returns over long-term public good. Last month, a total of $212 million was cut from the science sector in this Budget, which reprioritises existing research funding towards commercially focused science and innovation. A sizeable portion goes to Invest NZ and a new gene tech regulator. The Government says it backs the sector and is prioritising industry partnerships, private-sector investment, and 'innovation outcomes with measurable economic impact.' While officials insist the move reflects 'fiscal discipline and real-world alignment,' many in the sector say it amounts to a dismantling of the research base. Newsroom political journalist Fox Meyer tells The Detail 'the scale of the cuts is not great for the sector, but it's also more about the lack of investment'. 'It's one thing to have cuts and reprioritisation, but people have been calling for more of just anything for some time now. Now, there is a lot of frustration. 'Science funding has been stagnant or declining for years now, and a decision to reprioritise stuff is not necessarily going to put money in the Government's pocket like they think.' With a focus on the bottom line, is this the Government pulling off a Sir John Key 'show me the money' moment, with a scientific bent? 'That actually goes both ways,' says Meyer. 'Scientists are looking at the Government saying, 'Show me the money if you want me to produce more money', and the Government is looking back at the scientists and saying, 'Well, you show me the money, what are you bringing in, how are you lifting your weight?'. 'That is going to be a hard one to reconcile unless the Government is willing to pony up and make the investment.' He worries the fall-out will include a 'brain drain' with our country's brightest and best scientists and researchers opting to take up positions overseas. 'My connections in the science world – plenty of them – have moved. 'The chief science adviser for the Department of Conservation has moved to Australia … that's an expert in a cutting-edge field that we have lost to a company in Australia. 'And it's not the only example of this sort of thing. We invest so much in training up these scientists, and they are very skilled scientists, and then to not give them what they are asking for and what they need, I feel it falls short of our own investment.' In fairness, it is not all doom and gloom. 'So, the positives, there is a new funding pool for Māori-related science, that's a good thing. There's the sector-wide report that has come out, which has given us a good look at the sector. We know more now, that's a good thing. And the chief science adviser has been appointed, and the panel around him has been appointed, that's a good thing there.' Meyer says the sector is crucial to all parts of New Zealand. 'The science sector is about answering questions. If you have questions, science is a method, and it is used to answer a lot of those questions … the more money that we put into this sector, the more questions we can answer. And the more questions we can answer, the more answers we can sell. 'If the Government is worried about economic growth, and they want to champion this sector, then you've got to put your money where your mouth is. 'I am going to be curious to see how they can steer the ship of science, when maybe what they are most suited for is selling the fruits of science.' Check out how to listen to and follow The Detail here. You can also stay up-to-date by liking us on Facebook or following us on Twitter.
RNZ News
5 days ago
- Business
- RNZ News
Science sector sounds alarm over funding shake-up
Photo: 123RF New Zealand's science sector, once hailed for its agility and ingenuity during the pandemic and natural disasters, is now grappling with what researchers say is a crisis of confidence, fuelled by shrinking budgets , unstable funding pathways and policy decisions that increasingly favour commercial returns over long-term public good. Last month, a total of $212 million was cut from the science sector in this Budget, which reprioritises existing research funding towards commercially focused science and innovation. A sizeable portion goes to Invest NZ and a new gene tech regulator. The government says it backs the sector and is prioritising industry partnerships, private-sector investment, and "innovation outcomes with measurable economic impact". While officials insist the move reflects "fiscal discipline and real-world alignment", many in the sector say it amounts to a dismantling of the research base. Newsroom political journalist Fox Meyer tells The Detail that "the scale of the cuts is not great for the sector, but it's also more about the lack of investment". "It's one thing to have cuts and reprioritisation, but people have been calling for more of just anything for some time now. Now, there is a lot of frustration. "Science funding has been stagnant or declining for years now, and a decision to reprioritise stuff is not necessarily going to put money in the government's pocket like they think." With a focus on the bottom line, is this the government pulling off a Sir John Key "show me the money" moment, with a scientific bent? "That actually goes both ways," says Meyer. "Scientists are looking at the government saying, 'show me the money if you want me to produce more money', and the government is looking back at the scientists and saying, 'well, you show me the money, what are you bringing in, how are you lifting your weight?'. "That is going to be a hard one to reconcile unless the government is willing to pony up and make the investment." He worries the fall-out will include a "brain drain" with our country's brightest and best scientists and researchers opting to take up positions overseas. "My connections in the science world - plenty of them - have moved. "The chief science advisor for the Department of Conservation has moved to Australia ... that's an expert in a cutting-edge field that we have lost to a company in Australia. "And it's not the only example of this sort of thing. We invest so much in training up these scientists, and they are very skilled scientists, and then to not give them what they are asking for and what they need, I feel it falls short of our own investment." In fairness, it is not all doom and gloom. "So, the positives, there is a new funding pool for Māori-related science, that's a good thing. There's the sector-wide report that has come out, which has given us a good look at the sector. We know more now, that's a good thing. And the chief science advisor has been appointed , and the panel around him has been appointed, that's a good thing there." Meyer says the sector is crucial to all parts of New Zealand. "The science sector is about answering questions. If you have questions, science is a method, and it is used to answer a lot of those questions ... the more money that we put into this sector, the more questions we can answer. And the more questions we can answer, the more answers we can sell. "If the government is worried about economic growth, and they want to champion this sector, then you've got to put your money where your mouth is. "I am going to be curious to see how they can steer the ship of science, when maybe what they are most suited for is selling the fruits of science." Check out how to listen to and fol low The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter .
NZ Herald
22-05-2025
- Business
- NZ Herald
Budget 2025: East Coast MP Dana Kirkpatrick highlights $219m for local roads
'Firstly, there is the extra money allocated for fixing local roads – $219 million over three years for councils in Gisborne and the many on our eastern seaboard. 'This is critical because as we know, many of the roads destroyed in the cyclone are still to be fixed, such as those up the Coast and in our rural areas.' Kirkpatrick said the Budget had delivered 'a massive support package' to give children the best opportunity that the power of education could bring, including: Two million additional teacher aide hours each year from 2028. Every school will have support to co-ordinate learning support requirements ranging for 0.2FTE to 1.0 FTE. Extending the early intervention support for children who need speech language therapy beyond the limit of 5-year-olds. Expanding the Ongoing Resourcing Scheme so every child receives the support they need. Record investment had bee made in health – $1.37 billion for Health NZ baseline funding to do more hips, knees, urgent care around the country and telehealth. '$1b for hospitals also helps,' she said. 'This is the biggest issue in our community right now and one that I get more emails and messages about than anything else. 'We are focused on putting the patient at the centre of the health system and we are looking at a record investment in health of more than $30b.' Kirkpatrick said there was much in the Budget for businesses. 'Take the Invest NZ fund, which will allow anyone who buys a new asset to claim a tax rebate of 20% of the cost of that asset off their tax return. 'This is outstanding policy that helps businesspeople get ahead, invest more, hire more people and grow their businesses, which is absolutely necessary in our current environment.' Kirkpatrick said the forecast for getting out of debt had reduced. 'We are using savings to fund new initiatives where we can.' Kirkpatrick said the Budget had a prudent approach that balanced the need for social investment, growing the economy and investing in the core business of health, education and crime reduction.
Scoop
22-05-2025
- Business
- Scoop
No Big Bang For Infrastructure In Budget 2025
The 2025 Budget further incentivises private sector investment but doesn't deliver the nation-building infrastructure that can lift New Zealand's productivity and deliver the public services New Zealanders need. 'This is a cautious Budget in tight fiscal times. There's no big bang for infrastructure, instead it signals further moves to support private sector capital investment and promises that need to be backed by future investment,' says Infrastructure New Zealand's Michelle McCormick. 'The Investment Boost tax incentive, providing businesses with an immediate 20% tax deduction on new asset purchases, will be welcomed by the infrastructure industry and enable it to invest in the plant and machinery necessary to deliver future assets.' 'Another useful tweak is the change to capitalisation rules that will allow foreign owned companies to fund a higher proportion of their investment in New Zealand through debt. Again, this sends a signal that New Zealand is a good place to invest in infrastructure.' 'We also welcome the funding allocated to establish Invest NZ as the shop front for foreign investment in infrastructure projects.' The headline infrastructure funding commitment is a $1 billion allocation to health facility upgrades and maintenance, including the Nelson Hospital redevelopment and Wellington Regional Hospital Emergency Department refurbishment. 'Asset management and renewal in our health system is overdue, but we know that our health infrastructure requires a lot more investment over the long-term,' says McCormick. 'Today's allocation is a good start but with no contingency funding allocated to these projects there is a lack of transparency as to where the money will go.' Infrastructure New Zealand also welcomes the following initiatives: The $219 million for the recovery of local roads in regions affected by Cyclone Gabrielle. The upgrades for Wellington and Auckland commuter rail and the investment in our rail freight network. The small allocation of funding to push along regional deals that could be a game changer in how local infrastructure is delivered. 'Budget 2025 confirms the Government is prioritising fiscal restraint and bringing the Government's books back under control. But New Zealanders want to see shovels in the ground and progress towards delivery of the projects that will help grow our economy and enhance their communities.' Note: Infrastructure New Zealand is Aotearoa's peak membership organisation for the infrastructure sector. We promote best practice in national infrastructure development through research, advocacy, and public and private sector collaboration. We promote public and media discussion on issues of importance to the infrastructure sector. Our membership is comprised of around 140 organisations, including government agencies, consultants, contractors, financiers, utilities, and academics. These organisations employ approximately 150,000 people in infrastructure-related roles and are united in their commitment to creating a better New Zealand through outstanding infrastructure.
Otago Daily Times
08-05-2025
- Business
- Otago Daily Times
Capital spend to get boost in Budget
By Jo Moir of RNZ Capital expenditure - new money set aside in the Budget to maintain or upgrade assets - will be higher than originally forecast when the government delivers its Budget in two weeks' time. In a speech to Business New Zealand on Thursday, the prime minister said the money, which would be split mostly across health, education, defence, and transport, would total $6.8 billion. It means the net capital allowance, once savings identified in the Budget have been accounted for, will increase from the $3.6b previously signalled, to $4b. Last week Finance Minister Nicola Willis cut the operating allowance by half to $1.3b. Christopher Luxon told the business audience the smaller operating allowance was the "right call because keeping our word matters". "I know there are some commentators calling for larger allowances and more spending. "They need to be honest that those decisions will mean more debt, more deficits, and an indefinite delay to New Zealand's return to surplus," Luxon said. Luxon said capital expenditure, including for frontline services like health and education, would be a priority in the May 22 Budget. "In health, education, law and order, defence, and transport my government is prioritising significant new investments. "Each of those areas are a priority for New Zealanders and they require more funding to deliver the quality services Kiwis expect. "But that comes with trade-offs," he said. "Spending more on everything, as some commentators have called for, would mean larger deficits, more debt, and ultimately fewer choices in future budgets as the cost of servicing our debt grows even larger and the prospect of returning to surplus evaporates." Luxon said capital investment would be critical to the country's "growth journey", but he noted that would not happen if "we invest more but continue to lag behind the global technological frontier". "In Budget 2025, we will be allocating the funding we need to give effect to the changes I announced earlier this year, including the establishment of three new Public Research Organisations. "I also know that following a review of the Research and Development Tax Incentive that kicked off last year, the business community has been looking for some certainty on the future of the programme. "That review was required in law, and the final report has not yet been tabled in Parliament," he said. "However, I can confirm today that we are retaining the RDTI in this year's Budget so businesses have the certainty they need to keep investing and keep going for growth." Luxon also announced funding would be provided in the Budget for the government's new Invest NZ agency, which was set up earlier this year to support foreigners wanting to invest here. Luxon said this month's Budget comes alongside a "challenging international backdrop". "Trade tensions overseas have seen growth forecasts revised down across the world, as exporters and consumers come under sustained pressure. "The sharp deterioration of financial markets in early April have somewhat recovered in recent days and weeks, but markets remain volatile." There were greenshoots too though, he said, with ANZ's initial estimate last week that "the smaller operating allowance would support interest rates being 5-10 basis points lower than otherwise." "Meanwhile, Treasury has estimated that with a tighter budget package, interest rates would be up to 30 basis points lower by the end of the forecast period. "For a family with a mortgage, or a farmer or entrepreneur taking on debt to grow their business, that means real financial relief and more opportunity to get ahead," Luxon said.
