2. Building a more productive and competitive economy
Since its election in 2008, the Government has focused on ensuring New Zealand has the infrastructure, skills and systems to support faster economic growth and better public services.
Budget 2012 steps up these policies, with significant new investments in research and innovation.
Investing in research and innovation:
- $166 million extra over four years (operating and capital) to develop an Advanced Technology Institute, which will help New Zealand's high-tech firms grow, increase exports and ramp up productivity.
- $60 million extra over four years for National Science Challenges, to find innovative solutions to some of the most fundamental issues New Zealand faces.
- $100 million extra over four years to increase the Performance-Based Research Fund, to support excellent research in New Zealand's universities.
- $59 million extra over four years to boost funding for science and engineering tertiary courses, so that New Zealand firms can access the skilled people they need to be innovative and grow.
Science and innovation funding across government will grow to more than $1.3 billion a year by 2015/16...
- Total Government research and innovation funding
Note: includes science funding in Votes Science and Innovation, Foreign Affairs and Trade, Primary Industries, Tertiary Education and Revenue.
...and the initiatives in Budget 2012 continue the Government's work of focusing science funding across government on helping businesses grow.
- Total Government research and innovation funding
Budget 2012 establishes the Future Investment Fund, which will invest proceeds from the partial sale of shares in four SOEs and Air New Zealand in new taxpayer assets over the next few Budgets.
Budget 2012 allocates the first tranche of investments from the Future Investment Fund - $509 million of new capital and $50 million for between-Budget items. This includes:
- $88.1 million for the health sector, most of which will go towards hospital redevelopments.
- $250 million for the third year of KiwiRail's turnaround plan.
- $76 million for the capital costs of establishing the Advanced Technology Institute.
The Government has earmarked the first $1 billion from the Future Investment Fund to invest in 21st Century Schools and classrooms, as signalled at the election. Budget 2012 announces the first investments in schools.
- $34 million to fit out schools so that students and teachers can enjoy the full benefits of ultrafast broadband.
The remaining funding will be released after a review of school property management has been completed.
