The Government will soon make an announcement about research and development tax incentives that will benefit Northland.
That is a teaser Minister of Finance Grant Robertson made during an address to Northland members of the Employers and Manufacturers Association (EMA) in Whangārei yesterday.''The benefits might include tax credits for bigger business and grant-based schemes for those that are still pre-profit,'' he said.
Northland was considered a ''surge'' region, one of five in the country which for various reasons needed extra support to raise its developmental and economic standards and potential.
That is what input from the Provincial Growth Fund (PGF) was intended to do, too, Robertson said.
''This is a government where Northland is close to our hearts.
''In this region, potential and development of infrastructure is vital. We see massive potential for development in Northland.''
He listed digital industry, road and even rail as examples of future R&D projects. But a ''tax-neutral'' situation the government was proposing would also offer Northland major benefits, he said.
Tax-neutral meant the entire amount of tax the government took would be the same, but administered differently.
Research and development (R&D) would be tagged to the tax incentives which were announced in Budget 2018 — $1 billion over four years.
And while more development would grow on the back of new R&D and incentives, Northland was already showing signs of growth, not least people wanting to move here.
''And why wouldn't they? It's a great place.''
Major challenges for the economy included the need to fill ''skills gaps''.
Those gaps could be filled by targeted immigration and by tertiary education and trades training such as apprenticeships.
''They are absolutely critical to New Zealand's growth.''
Also critical to the future were changes to the Holidays Act, employment relations and raising the minimum wage (to $20 by 2021).
In reply to concerns raised from the floor about the latter, Robertson said the Tax working Group set up by the government was looking at ways to lift the burden on small businesses.
Even closing the tax loopholes on Amazon sales in New Zealand would help retail business and keep the money going round.
Robertson's address in Northland came on the heels of last week's ringing endorsement for his economic policies after New Zealand was again granted a Moody's Triple A international credit rating.