NZ budget boosts R&D

By Graeme O'Neill
Friday, 20 May, 2005

New Zealand's biotechnology industry has welcomed a "solid incremental improvement" in S&T funding in this week's NZ budget.

Brian Ward, CEO of New Zealand's peak biotech organization NZBio, congratulated the NZ government on making a NZ$41 million (AUD$38.33 million) investment in Technology New Zealand in this week's budget.

Ward said the initiative would support business R&D, while a NZ$16.2 million allocation for industry-based research consortia, a $14.7 million expansion of the Technology for Industry Fellowships Program, and $58.4 million for regional and sectoral development would also strengthen New Zealand's biotechnology industry, and the nation's economic base.

NZ prime minister Helen Clark's Labour administration has followed the lead of Australia's ruling Coalition government in changing the nation's tax laws to exempt new migrants, or New Zealand expatriates returning after more than 10 years overseas, from paying income on their foreign earnings.

The requirement to pay tax on foreign earnings effectively required foreign executives to pay double tax.

Ward said New Zealand's biotechnology industry needed the best international talent available, and the budget measures would go a long way towards encouraging expatriate Kiwis and new migrants to build their careers in NZ.

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