WORLD TRADE
ORGANIZATIONG/SCM/N/95/NZL
4 August 2003
(03-4109)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement
on Subsidies and Countervailing Measures
NEW ZEALAND
The following communication, dated 31 July 2003, has been received from the Permanent
Mission of New Zealand.
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The following notification covers the 2002/2003 financial year (FY) and has been drawn up
on the basis of the data supplied by the delivery agencies.  The amount of assistance is given in USdollars (based on the trade-weighted average annual exchange rate for the 2002/2003 FY).
The information provided in this report is fo r transparency purposes in order to clarify the
operation of programmes or measures.  In accordance with Article 25.7 of the Agreement on
Subsidies and Countervailing Measures (ASCM), notification does not in any way prejudge the legalstatus, nature or effects of government a ssistance programmes under the ASCM and GATT 1994,
including as to whether or not the programmes notified are specific within the meaning of the ASCM.
TABLE OF CONTENTS
Page
I. BIZ ENTERPRI SE AW ARDS ............................................................................................. 2
II. BUSINESS GROWTH FUND .............................................................................................. 3
III. STRATEGIC INVESTMENT FUND .................................................................................. 4
IV. REGIONAL PARTNE RSHIP PROGRAMME.................................................................. 5
V. GRANTS FOR PRIVATE SECTOR RESEARCH AND DEVELOPMENT
SCHEME ......................................................................................................................... ....... 6
VI. TECHNOLOGY FOR BUSINESS GROWTH SCHEME................................................. 7
VII. BEACHHEADS PROGRAMME......................................................................................... 8G/SCM/N/95/NZL
Page 2
I. BIZ ENTERPRISE AWARDS
1. Period covered by the notification
 
FY 2002/2003
 
2. Policy objective and/or purpose
 
The objective is to assist innovative firms and entrepreneurs to build capability to test and
develop early-stage business concepts and projects, by providing funding to employ expertise and
advice.
The awards are intended to assist businesses, entrepreneurs and start-up companies with the
development of well-defined business projects or concepts.  The project/concept should be advanced
to the stage where its commercial potential has been established.  The project/concept must be
directed at the development of the commercial production of goods or services and must fit in to the
following eligible categories of assistance: business development and financial planning, marketing
strategies, e-commerce or e-business strategies, product design and development, business oroperational excellence or environmental management.
 
3. Background and authority
Ministerial scheme provided for under the Industry New Zealand Act 2000.
4. Form of assistance
Grant funding available for up to 50 per cent of total costs of the qualifying project, up to a
maximum of $10,440 (including GST) per applicant per year.
5. To whom and how assistance is provided
Businesses with less than or equal to 20 full time equivalent staff, or a turnover of less than or
equal to $2,610,000 million per financial year, are eligible.
6. Total expenditure
2002/2003
TOTAL $1,468,386
7. Duration
There is no fixed duration for the programme.G/SCM/N/95/NZL
Page 3
II. BUSINESS GROWTH FUND
1. Period covered by the notification
FY 2002/2003
2. Policy objective and/or purpose
To make specialist expertise and information available to more firms in order to improve their
management capability and lift their potential. The Business Growth Fund is aimed at enhancing the
management and organizational capability of small and medium-sized firms.
The type of costs funded under this programme are for services such as strategic and business
planning, expansion of operational capabilities and activities, design and technical advice, systems
improvements, marketing assistance.
The most common utilised forms of specialist expertise and information are strategic
planning, financial planning, human resource planning, and systems and operations improvement.
3. Background and authority
Provided for under the Industry New Zealand Act 2000
4. Form of assistance
Grant funding of up to 50 per cent of costs of the qualifying project, to a maximum of
$52,200 (including GST) of projects that aim to help businesses implement strategies for business
growth.
5. To whom and how assistance is provided
Businesses (or groups of businesses) with less than  or equal to 100 full time equivalent staff
and/or an annual turnover of less than or equal to $26,100,000 million are eligible.
6. Total expenditure
2002/2003
TOTAL $5,285,250
7. Duration
There is no fixed duration for the programme.G/SCM/N/95/NZL
Page 4
III. STRATEGIC INVESTMENT FUND
1. Period covered by the notification
FY 2002/2003
2. Policy objective and/or purpose
The objective is to identify and facilitate major investment opportunities in relation to
business expansion or the location of new business in New Zealand.
The criteria applying to the Strategic Investment Fund are that the potential investment:
- Involves net new investment of at least $26,100,000 over five years, and/or is able to create
200 new jobs in five years;
- Would not occur in New Zealand without support from the Fund;- Complements New Zealand’s areas of competitive advantage;- Has no negative competitive consequences domestically;  and
- Would involve a high level of clear spill-over benefits.
The Fund provides grants for pre-feasibility and feasibility studies so that potential investors
can quantify substantial investment opportunities.  The criteria for eligibility are:
- Assessment of the commercial viability of the proposed investment;
- Outline of how the investment will be funded; and- Demonstration that the proposed study would be unlikely to proceed without government
support.
The Strategic Investment Fund can also underwrite assistance provided through other
government programmes for significant investment projects.  In effect this acts as a guarantee of
funding for significant projects where this funding  is sought from other government programmes.
In addition, the Fund can provide cash grants for significant projects where funding from
other government programmes is inappropriate or where the programmes do not fit with the project’s
requirements.  The criteria for eligibility for cash grants is the same as for pre-feasibility and
feasibility studies outlined above.
3. Background and authority
Provided for under the Industry New Zealand Act 2000.
4. Form of assistance
Assistance can take two forms:
− grants for up to 50 per cent of costs of feasibility studies up to a maximum of $52,200 (GST
included);G/SCM/N/95/NZL
Page 5
− guarantees of assistance considered on a case by case basis but facilitating access to other
government funding programmes to a maximum of $2,610,000 per project but not exceeding
$522,000 per annum.
5. To whom and how assistance is provided
Potential investors from New Zealand and overseas are eligible as are New Zealand and
overseas companies intending to set up projects in New Zealand.
6. Total expenditure
2002/2003
TOTAL $2,074,950
7. Duration
There is no fixed duration for the programme.
IV. REGIONAL PARTNERSHIPS PROGRAMME
1. Period covered by the notification
FY 2002/2003
2. Policy objective and/or purpose
To work in partnership with local authorities and other representative local groups to support
regional development efforts.
3. Background and authority
Provided for in the Industry New Zealand Act 2000
4. Form of assistance
Financial support through the provision of grant funding, facilitation support through
administrative engagement.
Funding is provided in three components for regions:
− up to $52,200 for the development of local and regional economic development strategies and
for undertaking strategic audits (these identify  valuable local resources from which regions
can develop sustainable local competitive advantage), including pre-engagement support for
building local partnerships;
− up to $52,200 per year for assisting capability building (i.e. building local capacity to
implement the regional economic development strategy) at the regional level in developingand implementing the strategies, including pre-engagement support for building leadership
capability;  andG/SCM/N/95/NZL
Page 6
− up to 75 per cent of costs to a maximum of $1,044,000 per initiative per region per strategy
cycle for major regional initiatives linked to the strategy for growth.
5. To whom and how assistance is provided
Grants are available to governance groups only (not to individual enterprises). Governance
groups are established by regions to drive economic development.  They include representation from
local authorities, iwi (indigenous tribal gr oups), business and industry leaders and community
organizations.
6. Total expenditure
2002/2003
TOTAL $8,755,700
7. Duration
There is no fixed duration for the programme.  Strategy cycles must be at least 3 years
duration.
V. GRANTS FOR PRIVATE SECTOR RESEARCH AND DEVELOPMENT SCHEME
1. Period covered by the notification
FY 2002/2003
2. Policy objective and/or purpose
The scheme’s objective is to increase the level of new private sector research and
development investment above that already undertaken by firms in the ordinary course of business.
3. Background and authority
Provided for in the Foundation for Research, Science and Technology Act 1990.
4. Form of assistance
Grant of up to 33 per cent of the costs incurred in undertaking an approved research and
experimental development project, to a maximum of $52,200 (including GST).
5. To whom and how assistance is provided
Small and medium sized firms with an annual turnover of less than $26,100,000 per year.
Proposals must involve a level of technological sophistication or risk that take the firm beyond its
ordinary course of business.  Proposals likely to be undertaken regardless of the success of the
application would not meet the appraisal criteria for this programme.
6. Total expenditure
2002/2003
TOTAL $7,725,600G/SCM/N/95/NZL
Page 7
7. Duration
There is no fixed duration for the programme. Most projects are completed within one year of
approval.
VI. TECHNOLOGY FOR BUSINESS GROWTH SCHEME
1. Period covered by the notification
FY 2002/2003
2. Policy objective and/or purpose
The scheme is intended to foster research and development, technological learning and
technological innovation in technologically capable firms by encouraging the undertaking of projects
beyond those that would be initiated in the ordinary course of business.
3. Background and authority
Provided for in the Foundation for Research, Science and Technology Act 1990.
4. Form of assistance
Funding is available for up to 50 per cent of the research and experimental development costs,
up to a maximum of $1,044,000, (funding ranged from $13,050 upwards) incurred by a firm
undertaking an approved research and development project.
5. To whom and how assistance is provided
The scheme is intended to foster research and development, technological learning and
technological innovation in technologically capable firms. Technologically capable firms are those
firms that, in the foundation’s view, have developed a comprehensive set of competencies in the area
of technological innovation and recognise that research, science and technology capability isfundamental to sustained competitive advantage.
The scheme’s objectives are to:
− foster research and development, technological learning and technological innovation within
firms; and
− support projects that may enhance a firm's technological capability and may enable firms to
move towards high-tech, high-value markets.
Research and Development projects for this scheme are required to meet the following
criteria.  They should:
(i) have a clear link to a business strategy focused on developing new markets for high-
value, technology-based products, processes or services with reasonable commercialpotential;
(ii) be unlikely to proceed without the scheme's support;G/SCM/N/95/NZL
Page 8
(iii) be technology-based projects undertaken in a “learning by doing” model;  and
(iv) have the potential to create an endurin g increase in technological capability in the
firm.
The objectives of the scheme are:
(i) to foster research and development, technological learning and technological
innovation within firms;  and
(ii) to support projects that may enhance a firm's technological capability and may enable
firms to move towards high-tech, high-value markets.
Achievement of the objectives is assessed with annual monitoring and accountability reports
that show the extent of progress towards objectives.
6. Total expenditure
2002/2003
TOTAL $13,676,400
7. Duration
There is no fixed duration for the programme. The focus is on shorter-term projects, i.e. less
than one year, although longer-term projects may be approved.
VII. BEACHHEADS PROGRAMME
1. Period covered by the notification
November 2002 – end of FY 2003
2. Policy objective and/or purpose
The Beachheads programme aims to lower some of the initial fixed costs for companies
looking at establishing a local presence abroad. It does this by encouraging the sharing of the costs of
office space and in-market sales/marketing staff across a number of businesses.
3. Background and authority
Provided for in the New Zealand Trade Development Board Act 1988.
4. Form of assistance
The Beachheads Programme offers qualifying New Zealand companies access to two
business models:
(a) shared lower-cost office facilities, including hot-desking (internet access and meeting rooms
when visiting the market) at a beachheads site.  Assistance is available up to 50 per cent rental
subsidy for up to one year;  orG/SCM/N/95/NZL
Page 9
(b) shared office facilities at a beachheads site with a Business Development Manager (BDM)
providing sales and marketing support.  Companies subscribe annually for hours of BDM
time, hot-desking and business networking support.  Assistance is available up to 50 per cent
of the subscription cost for up to two years.
5. To whom and how assistance is provided
Access is dependent on at least five companies agreeing to share the facility, subject to this
requirement, the programme is available to all sect ors on a first-come first-served basis.  Companies
pay an annual subscription, covering up to 50 per cent of the running costs and some services of the
beachheads facility, with Trade and Enterprise coveri ng the balance.  Additional services are charged
for at a cost.
6. Total expenditure
2002/2003
TOTAL $1,044,000
(Total budget per annum
Note: project commenced Nov 02)
7. Duration
There is no fixed duration for the programme as a whole but support provided to each
participant is for a maximum of 2 years.
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