Scheme boon for inventive entrepreneur

By SIMON COLLINS

Nathan Balasingham has just endured the hardest four hours of his life - but he's beaming with pleasure.

The Pukekohe inventor is one of the first entrepreneurs to use the Investment Ready Scheme, one of three new business programmes created by Deputy Prime Minister Jim Anderton's new Ministry of Economic Development.

After the four-hour grilling by ministry consultant Ralph Smale, Mr Balasingham reckons he is ready to approach potential partners to market a magnetic device which cuts petrol use in cars by between 10 and 30 per cent.

The scheme, touted around Auckland by Mr Anderton yesterday, doesn't actually hand out money.

But Mr Balasingham said Mr Smale's detailed free appraisal of his project was something he could never have afforded to buy.

The Investment Ready Scheme is a brokering service managed by local economic development agencies and Wellington-based venture capital advisers I Grow NZ.

It aims to help people with business ideas to develop their business plans and raise the capital they need for viable projects.

Mr Balasingham is a freelance inventor. In 1992, he won New Zealand's premier food award for a kiwifruit juice which keeps its colour and flavour.

But the fuel-saving device is an American invention. He has bought the NZ and Australian rights, hopes to get the Asian rights, and needs a partner to market the device using New Zealand's image of environmental soundness.

"New Zealand is known for its clean, green image. Sustainability has become the mantra, so let's take advantage of that," he said.

The owner of Pukekohe's Brougham Bus Co, "Beatle" Brougham, said his fuel costs had been cut 30 per cent since he fitted the device to his three buses several months ago. He had also bought one of the $250 devices for his car.

Mr Anderton said 3000 people applied for appraisals within three weeks of the launch of the $1.3 million Investment Ready Scheme and the two other schemes last month.

One of the others, the $5 million Enterprise Awards Scheme, offers grants of up to $10,000 to small businesses and entrepreneurs to do feasibility studies, market research and appraisals of their business plans.

The Budget also allowed $5.6 million for the third scheme, Regional Partnerships, which provides support of up to $2 million each to regional economic projects such as a soil and climate study of Southland.

Mr Anderton told the Auckland Chamber of Commerce that the rest of his $33.75 million economic development budget this year would be allocated by the largely private sector board of the proposed Industry NZ, which has yet to be appointed.

* Giles Parkinson's column from Sydney has been held over.