WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/NZL 
15 July 2011 
 (11-3556) 
Committee on Subsidies 
and Countervailing Measures Original:   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 12 July 2011, is being circulated at the request of the 
Delegation of New Zealand.  
_______________ 
 
 The following notification covers the 2009/2010 fi nancial year (FY) and has been prepared on 
the basis of the data supplied by the delivery agencies.  
 
 The information provided in th is report is for transparency purposes in order to clarify the 
operation of programmes or measures.  In acco rdance with Article 25.7 of the Agreement on 
Subsidies and Countervailing Measures (ASCM), notifi cation does not in any way prejudge the legal 
status, nature or effects of government assistance programmes under the ASCM and GATT 1994, 
including as to whether or not the programmes notifie d are specific within the meaning of the ASCM.  
There have been some changes in the administ ering agencies since 2009/10.  The Ministry of 
Fisheries has been merged with the Ministry of  Agriculture and Forest ry.  The Foundation for 
Research, Science and Technology has been amalga mated into a new Ministry, the Ministry of 
Science and Innovation. 
 
 All dollar amounts referred to in this notification are New Zealand dollars.  G/SCM/N/220/NZL 
Page 2  
 
   
Table of Contents 
 
A.  ENTERPRISING AUCKLAND FUND ............................................................................................... 2  
B.  ENTERPRISING PARTNERSHIPS FUND .......................................................................................... 3  
C.  NEW ZEALAND EXPORT CREDIT OFFICE PROGRAMME  .............................................................. 3  
D.  AUSTRALIA NEW ZEALAND BIOTECHNOLOGY PARTNERSHIP FUND .......................................... 5  
E.  INTERNATIONAL GROWTH FUND ................................................................................................ 6  
F.  RESEARCH CONSORTIA  ............................................................................................................... 7  
G.  BEACHHEADS  ..............................................................................................................................  8 
H.  PRIMARY GROWTH PARTNERSHIP  .............................................................................................. 9  
I.  FOOD INNOVATION NETWORK NEW ZEALAND  ........................................................................ 10  
J.  ENVIRONMENTAL CERTIFICATION FUND .................................................................................. 10  
K.  NEW ZEALAND AQUACULTURE SECTOR , MARKET DEVELOPMENT CONTESTABLE 
FUNDING  .............................................................................................................................. ..... 11 
 
 A. E
NTERPRISING AUCKLAND FUND 
1. Period covered by the notification 
 FY 2009/10. 
 
2. Policy objective and/ or purpose 
 The objective of the Enterprising Auckland Fund is to reinforce the linkages between 
developing Auckland as a world-class internati onally competitive city and regional economic 
development.  
3. Background and authority 
 The programme was authorised by New Zealand Cabinet Minute EDC (07) 3/4 of 
28 February 2007.  The Ministry of Econom ic Development administers this fund. 
 4. Form of assistance 
 Grant funding is available for up to 80 per cent of the costs of the qualifying project. 
 
5. To whom and how assistance is provided 
 The programme is aimed at Auckland-based pr ojects, and may include participation from 
enterprises outside of the region.  
6. Annual budget information 
 $1 million was allocated over a period of thr ee years (2007/08-2009/10), with nil expenditure 
for duration of programme.   G/SCM/N/220/NZL 
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  7. Duration 
 There was no fixed duration for this pr ogramme.  The programme ended in June 2010 . 
 B. E
NTERPRISING PARTNERSHIPS FUND 
1. Period covered by the notification. 
 FY 2009/10. 
 2. Policy objective and/ or purpose 
 The objective of the Enterprising Partnerships Fund is to improve the quality of regional 
business environments by supporting commerciall y driven, collaborative projects between key 
industries and other stakeholders within region(s).   
 3. Background and authority 
 The programme was authorised by New Zealand Cabinet Minute EDC (07) 3/4 of 28 
February 2007.  The Ministry of Economic Development administers this fund. 
 
4. Form of assistance 
 Grants providing co-funding of up to 70 per cent of the costs of the qualifying project.   
 5. To whom and how assistance is provided 
 Individuals or entities can apply, but the intent  is to support partnerships/groups of multiple 
regional stakeholders (rather than individual firm s or sectors).  The projects funded under this 
programme are required to meet a set of cr iteria.  Projects should be related to:   
 
(a) generating significant economic development benefits - nationally and regionally  
(b) promoting knowledge sharing, innovation  and international connections;  and 
(c) developing further regionally b ased networks and partnerships. 
6. Annual budget information 
 2009/10 budget:  $9,250,000 
 7. Duration 
 There was no fixed duration for this progra mme at inception.  The fund concluded in 
June 2011. 
 C. N
EW ZEALAND EXPORT CREDIT OFFICE PROGRAMME  
1. Period covered by the notification 
 FY 2009/10. 
 G/SCM/N/220/NZL 
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  2. Policy Objective and/ or purpose 
 The purpose of the New Zealand Export Credit Office (NZECO) is to assist New Zealand 
businesses access trade finance.  NZECO sells Minister of Finance guarantees covering three types of risks: 
(a) Political / country risks of a buyer’s country; 
(b) Overseas buyer repayment risks; and 
(c) New Zealand exporter technical perform ance and financial capability risks. 
3. Background and authority 
 Export Credit guarantees are Minister of Finance guarantees according to section 65ZD of the 
Public Finance Act 1989.  The New Zealand Treasury administers this fund.  
 
4. Form of assistance 
 NZECO provides the following forms of guarantees:   
 
(a) Export Credit Guarantees:  provides cover against the risk of non-payment under an 
export contract arising from defined political and commercial risks, enabling 
exporters and their banks to  support usual repayment terms from overseas buyers for 
a period of longer than one year.   
(b) US Surety Bond Guarantees:  the NZECO assesses an exporter's ability to deliver on 
the proposed US Federal or State contra ct, and may provide a performance guarantee 
to a US surety company who will issue a bond to the US buyer, on behalf of the 
exporter.  It should be noted that New Zealand banks and bond providers are not 
accredited in the USA. 
(c) In February 2009, the NZECO introduced s hort-term trade credit insurance in the 
context of the Global Financial Crisis.  This is due to be reviewed in 2014. 
5. To whom and how assistance is provided 
 Assistance is provided at premium rates which adequately cover the l ong-term operating costs 
and losses of the programme.    6. Annual budget information 
 2009/10 budget: $2,094,000 (operating costs).  A nnual operating costs are appropriated on the 
basis that this will be fiscally neutral over time as costs are recovered via premium and fee income.  
 
7. Duration 
 This programme has no fixed duration, but is  subject to regular review.  A review was 
undertaken in 2009/10.  The next review is due in 2014.  
 The short term trade credit insura nce is due to be reviewed in 2014. 
  G/SCM/N/220/NZL 
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  D. AUSTRALIA NEW ZEALAND BIOTECHNOLOGY PARTNERSHIP FUND 
1. Period covered by the notification 
 FY 2009/10. 
 2. Policy objective and/ or purpose 
 The purpose of the Australia New Zealand Biotechnology Partnership Fund (ANZBPF) is to 
facilitate and accelerate trans-Tasman biotechnology industry collaboration by developing greater 
regional critical mass to give Australian and New Zealand biotech companies better access to global 
market opportunities.    
 The objective of the fund is to accelerate the rate at which New Zealand biotechnology 
companies (including commercial arms of Crow n Research Institutes and Tertiary Education 
Institutions) build strategic alliances with Austra lian companies or entities to improve sustained 
profitability and global competitiveness of the New Zealand biotechnology sector.    
 Additional objectives are that the ANZBPF will:  
 
(a) improve commercialisation skills and expe rtise within the biotechnology sector; 
(b) increase foreign investment in the sector; and 
(c) increase global recognition of Australasia as  a centre of biotechnology expertise and 
activity. 
3. Background and authority 
 The ANZBPF was established in 2003 in res ponse to recommendations from the Growth and 
Innovation Framework (GIF) Biotechnology Taskforce.  The ANZBPF was agreed by Cabinet in September 2003 (EDC Min (03) 22/4 and EDC Min ( 03) 31/4).  New Zealand Trade and Enterprise 
administers this fund.   
 
4. Form of assistance 
 Grant for up to 25% of the costs of eligible activities. 
 5. To whom and how assistance is provided 
 The fund is available to New Zealand public and private companies, and commercial entities 
from within Tertiary Education Institutions (TEI) a nd Crown Research Institutions (CRI).  Applicants 
must be operating in the biotechnology industry a nd have a clear objective to establish commercial 
trans-Tasman partnerships.     Applicants must demonstrate how funding will lead to a net benefit to the wider economy 
(i.e. beyond private benefits to the applying firm alone) that will primarily be in the form of 
"spillover" benefits (e.g. introduce new tec hnologies;  increase management skills;  increase 
R&D capabilities and ability to commercialise innovati ons).  In all grant categories, projects must 
clearly contribute to growth of the biotechnology sector and be an expansion of the applicant company's horizons, rather than "business as usual".    
 Applicant companies must be resident in Ne w Zealand and registered for tax purposes.   G/SCM/N/220/NZL 
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  6. Annual budget information 
 2009/10 budget:  $4, 000,000.  
 7. Duration 
 There was no fixed duration at inception of the programme.  The programme was suspended 
after the 2009/10 financial year and formally closed in November 2010. 
 E. I
NTERNATIONAL GROWTH FUND 
1. Period covered by the notification 
 FY 2009/10. 
 
2. Policy objective and/ or purpose 
 The International Growth Fund helps firm s acquire the capabilities, and facilitates the 
following enablers, for business growth:   
(a) Gaining knowledge of new markets; 
(b) Business and management capability; 
(c) Ability to innovate and manage the comme rcialisation of research and development; 
and 
(d) Ability to access and raise finance for future opportunities.  
3. Background and authority 
 The New Zealand Cabinet approved the Growth Services Fund on 14 April 2003 [CAB 
Minute (03) 13/5].  The New Zealand Cabinet appr oved changes to this fund (including the name 
change from the Growth Services Fund as notified in 2007/08) on 6 April 2009 [EGI min (09) 5/1], amended in June 2009.  New Zealand Trade and Enterprise administers this fund.    
4. Form of assistance 
 Grant funding of up to 50 per cent of costs of an approved activity may be provided up to a 
maximum of NZ$1m (GST exclusive), over 5 years.     5. To whom and how assistance is provided 
 Businesses (or groups of businesses) that have  been identified as having clear and significant 
high growth potential and that demonstrate potentia l to deliver indirect economic benefits to 
New Zealand (e.g. new technology, managerial e xpertise) may be accepted onto the programme.   
 6. Annual budget information 
 2009/10 budget:  $9,600,000. 
 
7. Duration  G/SCM/N/220/NZL 
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   There is no fixed duration for the programme. 
 F. R
ESEARCH CONSORTIA  
1. Period covered by the notification 
 FY 2009/10. 
 
2. Policy objective and/or purpose 
 The Research Consortia scheme funds significan t, longer–term research contracts between the 
government and businesses and research organisations. Its aim is to encourage research that is 
industry-led and that has the broad objective of transforming sectors where there is no existing 
consortium.  The scheme encourages organisations to work together on research and development 
activities to foster cooperation and efficiency.  3. Background and authority 
 Provided for under the Foundation for Resear ch, Science and Technology Act 1990.  The 
Ministry of Science and Innovation administers th is programme.  The programme was previously 
administered by the Foundation for Research, Science and Technology.   4. Form of assistance 
 Grant.  Consortia must invest a minimum of $500,000 which is matc hed on a dollar-for-dollar 
basis.  Above $2.5 million per annum, the governme nt investment may decline from this ratio. 
 
5. To whom and how assistance is provided 
 Assistance is available to private organisations and research organisations, New Zealand-
based or off-shore (where the latter can demonstrat e a benefit to New Zealand).  Organisations must 
meet a set of standard criteria to be eligible for funding. 
 
 Consortia must include at least two organisa tions or an industry representative body and may 
include research organisations. A research organisati on may partner with the other participants or be 
contracted by them.   Seafood Innovations Ltd, a consortium comprising the New Zealand Seafood Industry 
Council and the Crown Research Institute Plant & F ood Research, is funded under this programme.   
 6. Annual budget information 
 2009/10 budget:  $19,561,000. 
 
7. Duration 
 Each contract term is for a maximum of seven years.  There is no fixed duration for the 
programme.   G/SCM/N/220/NZL 
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  G. B
EACHHEADS  
1. Period covered by the notification. 
 FY 2009/10. 
 2. Policy objective and/ or purpose 
 The purpose of the Beachheads programme is to provide access for participating businesses to 
the advice and networks of established business-peopl e in overseas markets in order to help improve 
international connections.      3. Background and authority 
 New Zealand Cabinet authorised this progr amme on 14 April 2003 [CAB MIN (03) 13/9 
(17)].  Following a review in 2006 changes were made to the programme, including the nature of 
assistance provided.  These changes were implemente d in stages and were not finalised in 2008/09 
when the programme was last notified.    
4. Form of assistance 
 Qualifying New Zealand companie s are offered the following services: 
 
(a) Mentoring, advice and business connections provided by the Beachheads Advisory 
Boards in New Zealand and offshore 
(b) On the ground assistance from the local Beachheads NZTE Project Manager with 
business set-up and expansion 
(c) Networking, information and advisory services such as strategic sector and market 
specific networking 
(d) Co-location Services in the Middle East (Dubai) and Japan (Tokyo), which were 
provided on a cost recovery basis.   The To kyo Beachhead closed in December 2010.   
5. To whom and how assistance is provided 
 Assistance is provided to New Zealand regi stered companies that typically have:   
 
(a) a detailed business plan 
(b) an experienced management team 
(c) revenues of at least NZ$5 million and are aiming for NZ$100 million
1 
(d) an in-depth understanding of their target market 
(e) at least one senior manager 'on the ground'  in the region they are applying for 
(f) independent governance.   
                                                      
1 Occasionally smaller companies with exceptional o pportunities and an experienced management team 
are accepted.    G/SCM/N/220/NZL 
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 Companies need to present an application fo r the programme to the New Zealand Advisory 
Board which will make provide feedback and s uggestions on the application and recommend to 
NZTE whether the company should be accepted into th e programme.  Subject to this requirement, the 
programme is available to all sectors on a first-come first-served basis.   
 
6. Annual budget information 
 2009/10 budget: $4,718,816.  
 7. Duration 
 There is no fixed duration for the programme.  Support provided to each participant is for a 
maximum of 2 years.    H. P
RIMARY GROWTH PARTNERSHIP  
1. Period covered by the notification 
 FY 2009/10. 
 2. Policy objective and/ or purpose 
 The Primary Growth Partnership is a govern ment-industry initiative that will invest in 
significant programmes of research and innovation to boost economic growth and the sustainability of 
New Zealand's primary, forestry and food sectors.  The focus of the initiative is on boosting 
productivity through ongoing investment in innovation.  
  Research initiatives under the programme may invol ve any stage of the value chain, including 
education and skills development, research and development, and tec hnology transfer.    
 
 The Primary Growth Partnership has also b een notified under Article 18:3 of the Agreement 
on Agriculture (G/AG/N/NZL/61).    3. Background and authority 
 New Zealand Cabinet approved the Primary Gr owth Partnership on 18 May 2009 [CAB MIN 
(09) 17/11).  The programme is administered by the Ministry of Agriculture and Forestry.  
 
4. Form of assistance 
 Grant for a maximum of 50% of eligible costs.    
 5. To whom and how assistance is provided 
 Companies or consortia from the primary, forestry and food sector industries are eligible to 
participate in the initiative. Each programme funded under this initiative is a joint investment between 
the Crown and industry, with industry investment equal to or greater than Crown funding.    6. Annual budget information 
 A budget of $30,000,000 was approved under the initiative in 2009/10, with nil actual 
expenditure. G/SCM/N/220/NZL 
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  7. Duration 
 There is no fixed duration for the initiativ e.  Individual research programmes undertaken 
under the Primary Growth Partnership may not exceed seven years.  I. F
OOD INNOVATION NETWORK NEW ZEALAND  
1. Period covered by the notification 
 FY 2009/10. 
 2. Policy objective and/ or purpose 
 Once established, the Food Innovation Network New Zealand (FINNZ) will be a network of 
fully-certified food development and pilot-scale co mmercialisation facilities for food and beverage 
consumer products and ingredients.  New Zeala nd has an absence of open- access pilot-scale facilities 
which can enable research, including product testing,  due to the small size of the food and beverage 
industry and the high initial cost of setting up such facilities.    
 The New Zealand government ha s approved funding assistance to help create what will be a 
self-sustaining network of four facilities around th e country for food industry research and product 
testing.      3. Background and authority 
 New Zealand Cabinet approved funding fo r FINNZ in November 2009 [CAB MIN (09) 
41/10].  The programme is administered by the Ministry of Economic Development.  
 4. Form of assistance 
 Grant.  
 
5. To whom and how assistance is provided 
 Assistance is provided to three companies ow ned by regional economic development agencies 
and one university on the basis of approved business plans.   Funding will be used to upgrade existi ng facilities or to develop new facilities. 
 
6. Annual budget information 
 There was no budget or expenditure attached to the programme in 2009/10.   
 7. Duration 
 The programme was initiated in 2009/ 10 and is set to end in 2013/14. 
   
J. E
NVIRONMENTAL CERTIFICATION FUND 
1. Period covered by the notification 
 FY 2009/10. 
  G/SCM/N/220/NZL 
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  2. Policy objective and/ or purpose 
 The purpose of the fund is to assist the seafood industry with the costs of seeking an 
independent environmental certification or assessment for their fisheries or aquaculture activities.  
The objective is to promote environmental certi fication and other independent sustainability 
assessments as a tool to:  
 
(a) Enable the New Zealand seafood industry to respond to growing pressure for 
environmental sustainability; 
(b) Promote and improve the management a nd environmental performance of New 
Zealand fishing and aquaculture, including impacts of fishing and aquaculture on the 
aquatic environment; and 
(c) Build public confidence in the management  of New Zealand fishing and aquaculture. 
3. Background and authority 
 The fund was established in FY 2008/09 on the authority of the Minister of Fisheries.  The 
Ministry of Agriculture and Forestry administers th is fund.  The fund was previously administered by 
the Ministry of Fisheries.   
 4. Form of assistance 
 Grant for up to 75% of the costs of seeki ng independent environm ental certification or 
assessment of fisheries or aquaculture activities.   
 
5. To whom and how assistance is provided 
 Individuals, organisations or groups of organisations which are seeking independent 
environmental certification or assessment of a Ne w Zealand aquaculture activity or New Zealand 
fishery within the EEZ or High Seas may apply.  A cceptance is subject to meeting set criteria and 
grants can be made to cover up to 75% of the e nvironmental certification or assessment fee.    
  
6. Annual budget information 
 2009/10 budget:  $1,937,000. 
 7. Duration 
 The fund was established in 2008/09, and funding is due to terminate in 2010/11. 
 
K. N
EW ZEALAND AQUACULTURE SECTOR , MARKET DEVELOPMENT CONTESTABLE FUNDING  
1. Period covered by the notification 
 FY 2009/10. 
 
2. Policy objective and/ or purpose 
 The purpose of the initiative is to: G/SCM/N/220/NZL 
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  (a) Encourage innovative market development projects that lead to growth for the 
aquaculture industry; and 
(b) Further the strategic priorities identified in the New Zealand Aquaculture Market 
Development Strategy 2008. 
3. Background and authority 
 New Zealand Cabinet approved this programme as part of a broader strategy in 2008 [CAB 
MIN (07) 14/3].  The programme is administer ed by New Zealand Trade and Enterprise.   
 4. Form of assistance 
 Grant for up to 50% of costs of eligible expenditure. 
 
5. To whom and how assistance is provided 
 Assistance is provided to companies or grou ps of companies operating in the Aquaculture 
Industry which are carrying out market development projects that are transformative, drive industry 
growth and align with the New Zealand Aquaculture Industry Strategy.  Recipients must be resident 
in New Zealand. 
 6. Annual budget information 
 2009/10 budget:  $550,000. 
 7. Duration 
 This programme commenced on 1 July 2008, and funding is due to terminate on 
30 June 2011.    
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