AgResearch boss calls for compulsory super

Andrew West says motivating scientists is about engaging them fully with your operation. Photo / Greg Bowker

The Government's boost to science funding is a good start but radical changes are needed to lift the economy, says outgoing AgResearch chief executive Andrew West.

These could include a capital gains tax on property and compulsory superannuation.

The Government this week unveiled plans for $225 million of new funding and $96 million of re-prioritised science spending to support commercially focused research and development, and science.

"What these schemes seem to be designed to do, and I think it's the right thing, is to grow more scientists and research engineers in companies," West said.

But more needed to be done to boost private sector investment, which as a percentage of gross domestic product was about a third of the OECD average, he said.

"There's a huge drive in New Zealand to invest in land ... rather than business which produces things or creates value," he said.

"You ultimately need a neutral environment, probably with something like a capital gains tax. You want to see banks more prepared to lend into productive enterprise rather than bricks and mortar." It was radical not to have capital gains tax or a compulsory superannuation scheme when compared with other economies.

West said there were three fundamental issues which if not fixed would prevent a knowledge-led economy - a neutral investment environment, a compulsory superannuation scheme to generate capital and a review of monetary policy.

"Using interest rates to regulate the temperature of the economy has a negative impact on exporters," he said.

Meaures to boost funding for research, development and science would only be effective if monetary policy was right.

"They're all good and they're all necessary but they're not sufficient."

West, 54, has been the boss of crown research institute AgResearch for six years and will finish his role at the institute on June 30.

"You get to a certain age where you think, 'There's probably only one other roll of the dice here'."

West plans to roll his dice in the private sector and hopes to make an announcement during the next month.

"I've seen how a lot of New Zealand companies, certainly in the pastoral sector, deal with an institute like AgResearch. Many of them could do it better," West said.

"You've just got to understand what motivates scientists and how to get the most out of them and it's not just about putting the dollar on the table," he said.

"It's about getting them fully engaged and understanding why you want certain things done and winning hearts as well as minds."

AgResearch last month disestablished about 35 scientific, engineering and technical positions including in the areas of textiles, wool biology and dairy foods.

"It's brutal," West said. "This has been a nasty redundancy round."

AgResearch was a solid organisation, which was world class in certain areas but scientists were underpaid and the institute still had some tired facilities, he said.

"There's a lot more work to do for the incoming chief executive to restore pay," West said. "I did a brutal downsizing in the last six months to get the place ready to be profitable for the incoming chief executive, they've got work to do to restore morale."