NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Manufacturing

Budget 2012: $178m for research will boost economy

NZ Herald
24 May, 2012 05:30 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The Ministry of Science and Innovation will receive $833 million. Photo / Thinkstock

The Ministry of Science and Innovation will receive $833 million. Photo / Thinkstock

The high-value manufacturing sector was the clear winner of extra R&D funding in the Budget, a move seen as the country's best bet for boosting short-term economic growth.

The Government yesterday earmarked $178 million for the research and development of new materials, products and services for the manufacturing and technology industry.

This is $17.3 million more than in the 2011 Budget, an increase of 10.8 per cent.

As well as putting money directly into high-value manufacturing and services research, the Ministry of Science and Innovation plans to spend $11.9 million in the 2012-13 year developing the Advanced Technology Institute.

Read all of nzherald.co.nz's Budget coverage here.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

This initiative was flagged before the last election and will increase the size and reach of an existing Crown research institute, Industrial Research, to build up the sector and create new opportunities for high-value manufacturers.

The Government has earmarked $76.1 million of capital funding and $90 million of operating funding for this institute over the next four years.

President of the Association of Scientists Shaun Hendy said the institute should help build stronger links between science and industry.

Advertisement
Advertise with NZME.

"[It] will give New Zealand back the kind of R&D capabilities that led to companies like Fisher & Paykel Healthcare. The kind of R&D that the ATI will undertake has not been possible in the contestable funding environment run [in the past]," Hendy said.

Although putting money into high-value technology and manufacturing was likely to deliver the "most economic growth in the short term", Hendy said it should not come at the expense of other sciences.

"It is important we keep the other areas of our science system strong. The Christchurch earthquake just demonstrated how important those other areas of our sciences are," he said

Finance Minister Bill English has earmarked $833 million for the Ministry of Science and Innovation in the 2012-13 year, $40 million more than in the 2011 Budget.

Discover more

Economy

Graphic: Where Budget 2012 money goes

24 May 02:00 AM
Economy

Budget 2012: The main points

24 May 02:00 AM
New Zealand

Budget 2012: Smokers open wallets wide

24 May 05:30 PM
Tax

Budget 2012: Changes 'could force holiday-home sales'

24 May 05:30 PM

Included in this is $14 million of funding for new "national science challenges", which aim to help find solutions to "fundamental issues New Zealand faces in its future development".

The Government plans to spend $60 million on these challenges over the next four years.

Although the Government claimed it will boost science and innovation by putting in $100 million of new money into the Performance-Based Research Fund by 2016, only $6.3 million extra is earmarked for it next year.

Hendy said that when inflation is taken into account, the Ministry of Science and Innovation's spend has gone up by only 3 per cent.

"This still falls far short of level of investment in science and technology made by other small countries like Singapore or Denmark. Our ongoing unwillingness to invest in science and technology means that Kiwis work harder and earn less than almost any other people in the developed world," he said.

But Catherine Beard, executive director of ManufacturingNZ, said the country was in "catch up mode with the rest of world" and when it came to R&D funding any new spending was welcomed.

Advertisement
Advertise with NZME.

"Not only do we need more government investment in R&D but more private investment," Beard said.

Manufacturers and Exporters Association chief executive John Walley said the research and development spending was a step in the right direction, but R&D tax credits would be more beneficial to businesses.

"The tax credits are a much more effective way of stimulating high technology."

Save

    Share this article

Latest from Manufacturing

Premium
Property

'Pallet hotel' - Foodstuffs South Island boosting frozen storage by more than 200%

22 Jun 09:00 PM
Premium
Manufacturing

Hansells owes $10m to staff, ANZ, IRD and company linked to the Hart family

18 Jun 01:34 AM
Premium
Manufacturing

Hart family business acquires Hansells Masterton out of receivership

17 Jun 04:45 AM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from Manufacturing

Premium
'Pallet hotel' - Foodstuffs South Island boosting frozen storage by more than 200%

'Pallet hotel' - Foodstuffs South Island boosting frozen storage by more than 200%

22 Jun 09:00 PM

Supermarket owner to expand frozen capacity by 222%, strike third-party warehouse deals.

Premium
Hansells owes $10m to staff, ANZ, IRD and company linked to the Hart family

Hansells owes $10m to staff, ANZ, IRD and company linked to the Hart family

18 Jun 01:34 AM
Premium
Hart family business acquires Hansells Masterton out of receivership

Hart family business acquires Hansells Masterton out of receivership

17 Jun 04:45 AM
Premium
NZ manufacturers record strongest quarter in seven years

NZ manufacturers record strongest quarter in seven years

05 Jun 05:00 PM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP