WORLD TRADE  
ORGANIZATION  G/SCM/N/123/NZL 
13 March 2006 
 
 (06-1112) 
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 1 March 2006, is being circulated at the request of the 
Delegation of New Zealand. 
_______________ 
   The following notification covers the 2004/2005 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 
New Zealand dollars.   
  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 notif ied are specific within the meaning of the ASCM. 
  
TABLE OF CONTENTS
 
 
Page   
I. ENTERPRISE DEVELOPMENT FUND............................................................................ 2 
II. GROWTH SERVICES FUND.............................................................................................. 4 
III. STRATEGIC INVESTMENT FUND .................................................................................. 5 
IV. REGIONAL PARTNERSHIP PROGRAMME.................................................................. 6 V. GRANTS FOR PRIVATE SECTOR RESEARCH AND DEVELOPMENT   SCHEME ........................................................................................................................ ........ 7 
VI. TECHNOLOGY FOR BUSI NESS GROWTH SCHEME................................................. 8 
VII. BEACHHEADS PROGRAMME ....................................................................................... 10 
VIII. SEAFOOD INNOVATIONS ……………………………………………………………...11 IX. MOTOR SPIRITS EXCISE DUTY REFUND.…………………………………………..11 
 G/SCM/N/123/NZL 
Page 2  
 
  I.  ENTERPRISE DEVELOPMENT FUND  
A. ENTERPRISE
 DEVELOPMENT  FUND  – CAPABILITY  BUILDING  COMPONENT 
1. Period covered by the notification  
  FY 2004/2005 
 
2. Policy objective and/or purpose
 
  The Enterprise Development F und aims to assist New Zeala nd companies to increase their 
capabilities and to grow their business by providing funding to employ expertise and advice.  The 
objective of the Enterprise Development Fund cap ability building component is to assist businesses 
and entrepreneurs to access external expertise in a wide range of areas in order to improve 
management capability and business performance.   Funding is available to New Zealand companies or firms to: 
• engage a business mentor 
• undertake more advanced management and technology based training 
• employ specialised external advice and expertise in a management area 
• undertake some market development activities  
 
The Capability Component of the Enterprise Deve lopment Fund also includes Enterprise Network 
Grants. The objective of the Enterprise Network Grants  is to provide funding to networks of three or 
more companies to enable them to build capabilities and develop specific overseas business 
opportunities. Enterprise Networks can receive f unding, advice and access to New Zealand Trade and 
Enterprise’s (NZTE) global network to assist them with international market development and the 
transfer of international business skills. 
 
 The focus of the Enterprise Networks Programme is to: 
• support and assist in the funding of organi sations that have grouped together as a 
network to increase business revenue thr ough building capabilities or targeting 
specific commercial opportunities 
• provide appropriate mentoring and commercial counselling 
• facilitate access to specialist services and funding  
 3. Background and authority
 
  Ministerial scheme provided for under the New Zealand Trade and Enterprise Act 2003.  
 
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 NZ$20,000 (including GST) per applicant per year, paid by reimbursement on receipt of 
invoices or receipts.  
 
5. To whom and how assistance is provided
 
  Businesses with less than  twenty full time equivalent staff, or a turnover of less than or equal 
to NZ$5,000,000 per financial year, are eligible. Firms must apply for a grant.  Once eligibility 
criteria are met, grants are awarded automatically on a first-come first-served basis.  Grants are paid 
by reimbursement of eligible expenses.   G/SCM/N/123/NZL 
 Page 3 
 
 
   For the Enterprise Networks: Businesses with less th an twenty full time equivalent staff, or a 
turnover of less than or equal to NZ$5,000,000 per fi nancial year, are eligible.  Entrepreneurs must be 
a New Zealand citizen or have permanent residen ce.  For collaborative groupings, companies must 
retain their own identity within the network.  No  co-ownership of compan ies within a collaborative 
grouping is allowed. 
 
6. Total expenditure  
 
 2004/2005 Appropriation 
TOTAL NZ$7,230,000 
 
7. Duration  
 
 There is no fixed duration for the programme. 
  B. ENTERPRISE
 DEVELOPMENT  FUND  – MARKET  DEVELOPMENT  COMPONENT 
1. Period covered by the notification  
 
 FY 2004/2005  2. Policy objective and/or purpose
 
 The Enterprise Development Fund aims to assist New Zealand companies to increase their capabilities 
and to grow their business by providing funding to employ expertise and advice.  The objective of the 
Enterprise Development Fund market developmen t component is to encourage New Zealand 
businesses to increase their international connecti ons through the provision of funding assistance 
for marketing and promotion activities.   
Businesses can apply for assistance with the impl ementation of significant international market 
development initiatives, includi ng expenditure related to: 
• market visits 
• in-market representation 
• advertising and promotion 
• marketing materials 
• trade fairs and events 
• market research  
3. Background and authority  
  Ministerial scheme provided for under the New Zealand Trade and Enterprise Act 2003.  
 
4. Form of assistance
 
  Grant providing funding of 50 per cent of total eligible costs with a minimum grant of $20,000 and a maximum of $100,000 per-annum.  Firms will have a lifetime limit of $500,000.   
 G/SCM/N/123/NZL 
Page 4  
 
  5. To whom and how assistance is provided
 
  Firms have a turnover of no greater than $20 million. Grants are paid by reimbursement of eligible expenses. Once eligibility criteria are met,  grants are awarded on automatically on a first-
come first-served basis .   
 
6. Total expenditure
 
 
 2004/2005 Appropriation 
TOTAL NZ$7,500,000 
 
7. Duration  
 
 There is no fixed duration for the programme. 
  
II. GROWTH SERVICES FUND 
1. Period covered by the notification
 
 
 FY 2004/2005  2. Policy objective and/or purpose
 
  The Growth Services Fund supersedes the pr eviously notified Business Growth Fund.  The 
Growth Services Fund offers support for high growth potential firms and groups of firms, to facilitate 
access to the following enablers of business growth: 
- New business opportunities 
- Skills and expertise 
- Innovation and new technologies 
- Finance 
 
3. Background and authority
 
  The authority for this programme came from New Zealand Cabinet Minute (03) 13/5 of 
14 April 2003.   
 4. Form of assistance
 
  Grant funding of up to 50 per cent of costs of the qualifying project, to a maximum of NZ$500,000 (including GST) over three 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..  High growth potential is defined as the potentia l to generate either 20 per cent 
revenue growth, sustainable for five years, or reve nue growth of NZ$5,000,000 within five years. As 
an indicative measure, individual businesses will have  less than or equal to 100 full time equivalent 
employees and/or annual turnover of less than NZ$50 million.   G/SCM/N/123/NZL 
 Page 5 
 
 
  6. Total expenditure  
 
 2004/2005 Appropriation 
TOTAL NZ$10,605,000 
 
7. Duration  
 
 There is no fixed duration for the programme. 
 
 III. STRATEGIC INVESTMENT FUND 
 
1. Period covered by the notification
 
 
 FY 2004/2005  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 Invest ment Fund are that the potential investment: 
 
- Involves net new investment of at least NZ$50, 000,000 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 spillover benefits.   
 The Fund provides grants for pre-feasibility and feasibility studies so that potential investors 
can quantify substantial investment opportun ities.  The criteria for eligibility are: 
  - Assessment of the commercial vi ability 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 proj ects.  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 wh ere the programmes do not fit with the project’s 
requirements.  The criteria for e ligibility for cash grants is th e same as for pre-feasibility and 
feasibility studies outlined above. G/SCM/N/123/NZL 
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3. Background and authority
 
  This was authorised by New Zealand Cabinet Minute (02) 12/8 (49) of 22 April 2002.  This was mandated by Parliament in the 2002/03 Estimates of Appropriation. 
 
4. Form of assistance
 
  Assistance can take three forms:   
− grants for up to 50 per cent of costs of feasibility studies up to a maximum of 
NZ$100,000 (GST included);  
− guarantees of assistance considered on a c ase by case basis but facilitating access to 
other government funding programmes to a maximum of NZ$5,000,000 per project, 
not to exceed NZ$1,000,000 per annum; 
− grants for significant projects, where funding from other gov ernment programmes 
is inappropriate or where other programmes do not fit with the project’s 
requirements. Grants may be given up to  a maximum of NZ$5,000,000 per project, 
but shall not exceed NZ$1,000,000 per annum. 
5. To whom and how assistance is provided  
  Potential investors from New Zealand and ove rseas are eligible as are New Zealand and 
overseas companies intending to set up projects in New Zealand.   
 
6. Total expenditure
 
 
 Actual expenditure, year ending 30 June 2005 
TOTAL NZ$1,937,000 
 
7. Duration  
 
 There is no fixed duration for the programme. 
 
 
IV. REGIONAL PARTNERSHIPS PROGRAMME 
 1. Period covered by the notification
 
  FY 2004/2005  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
 
 
 This programme was authorised by New Zealand Cabinet Minute (00) M19/3 (49) of 
12 June 2000.  This was mandated by Parliame nt in the 2000/01 Supplementary Estimates.   G/SCM/N/123/NZL 
 Page 7 
 
 
   
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:  
 Regional strategic planning
 
Funding is available to groups of partners of up to 70 per cent of total costs to a maximum of 
NZ$100,000. This is available to a group of part ners within the region once every three years.  
 For the Auckland region only: Funding is availabl e to groups of partners of up to 40 per cent 
of total costs to a maximum of NZ$500,000. This is  available to a group of partners within the 
region once every three years.  
 
Regional capacity building
 
Funding is available to groups of partners of up to 70 per cent of total costs to a maximum of 
NZ$300,000. This is available to a region once per annum.  
 
For the Auckland region: Funding is available to groups of partners of up to 40 per cent of 
total costs to a maximum of NZ$500,000. This is available to a region once per annum.  
  Major Regional Initiatives
 
Funding of up to and, in exceptional circumst ances (where Ministeria l approval is required), 
over NZ$2,000,000 is available for a Major Re gional Initiative in a region per strategic 
planning cycle (3-5 years). 
 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 groups ), business and industry leaders and community 
organizations.  6. Total expenditure
 
 
 2004/2005 Appropriation 
TOTAL NZ$14,875,000 
 
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 2004/2005 
 G/SCM/N/123/NZL 
Page 8  
 
  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 undertak en by firms in the ordinary course of business. 
 
3. Background and authority
 
  Provided for in the Foundation for Resear ch, Science and Technology Act 1990.   
 4. Form of assistance
 
 
 Grant of up to 33 per cent of the costs in curred in undertaking an approved research and 
experimental development project, to a maximum of NZ$100,000 (including GST). 
 5. To whom and how assistance is provided
 
 
 Small and medium sized firms with an annual turnover of less than $50,000,000 per year.  
Proposals must involve a level of technological soph istication 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
 
 
 Appropriation for year ending 30 June 2005  
TOTAL NZ$9,800,000 
 
7. Duration  
  There is no fixed duration for the programme. Mo st projects are completed within one year of 
approval. 
  
VI. TECHNOLOGY FOR BUSINESS GROWTH SCHEME 
 1. Period covered by the notification
 
  FY 2004/2005  2. Policy objective and/or purpose
 
 
 The scheme is intended to foster research and development, technological learning and 
technological innovation in technologically capable fi rms 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 Resear ch, Science and Technology Act 1990.   
 4. Form of assistance
 
  A single firm can receive a maximum of five per cent of the total annual TBG funds. 
  G/SCM/N/123/NZL 
 Page 9 
 
 
  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 is 
fundamental to sustained competitive advantage.  
 
− Research and Development projects for this schem e 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 commercial 
potential; 
 
 (ii)  be unlikely to proceed without the scheme's support; 
  (iii)  be technology-based projects undertaken in a “learning by doing” model;  and  
(iv)  have the potential to create an enduring 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 mon itoring and accountability reports 
that show the extent of progress towards objectives. 
 
6. Total expenditure
 
 
 Appropriation for year ending 30 June 2005 
TOTAL NZ$27,000,000 
 
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.    G/SCM/N/123/NZL 
Page 10  
 
  VII. BEACHHEADS PROGRAMME 
 
1. Period covered by the notification
 
  FY 2004/2005 
 
2. Policy objective and/or purpose
 
  The Beachheads programme aims to lower so me 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
 
 
 This programme was authorised by Cabinet Minute (03) 13/9 (17) of 14 April 2003.   
 
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;  or 
 (b)  shared office facilities at a beachheads s ite with a Business Development Manager (BDM) 
providing sales and marketing support.  Comp anies 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 sector s on a first-come first-served basis.  Companies 
pay an annual subscription, covering up to 50 per ce nt of the running costs and some services of the 
beachheads facility, with NZTE covering the balance.  Additional services are charged for at a cost.  
 
6. Total expenditure  
 
 2004/2005 Appropriation 
TOTAL NZ$3,000,000  
 
 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.     G/SCM/N/123/NZL 
 Page 11 
 
 
  VIII. SEAFOOD INNOVATIONS  
 
1. Period covered by the notification  
  FY 2004/2005 
 
2. Policy objective and/or purpose
 
  Research and development (R&D) funding is provided to Seafood Innovations Ltd (SIL) for 
partial funding of seafood R&D programmes. SIL is  a collaborative research consortium with two 
shareholders; the New Zealand Seafood Industry C ouncil (SEAFIC, 80%) and Crop & Food Research 
(CFR, 20%).  The consortium was established to  focus on three general research objectives:  
 
• improved returns from edible seafood products; 
• improved returns from industrial ma rine or aquatic products; and 
• improved marine or aquatic harvesti ng, production and processing technologies. 
 3. Background and authority
 
 
 Provided for in the Foundation for Resear ch, Science and Technology Act 1990.   
 
4. Form of assistance  
  To be considered for funding, each R&D project  must have a company willing to pay at least 
50 per cent of the total R&D costs.  
5. To whom and how assistance is provided
 
  n/a  6. Total expenditure
 
 
 2004/2005 Appropriation 
TOTAL NZ$1,300,000  
 
 
7. Duration  
  The planned duration of the programme is seven years, with funding terminating in 2010/11.  
 
 
IX.  MOTOR SPIRITS EXCISE DUTY REFUND  
 
1. Period covered by the notification
 
 
 FY 2004/2005 
 2. Policy objective and/or purpose
 
  Refund of the excise duty and the goods and servi ces tax charged on motor spirits that is used: 
 
• as fuel in an exempted vehicle G/SCM/N/123/NZL 
Page 12  
 
   
• as fuel in a road user charges-licensed vehicle  
• as fuel in a commercial vessel  
• for commercial purposes other than as fu el in any motor vehicle, vessel, or 
aircraft.  
 
An “exempted vehicle” is defined as “a motor vehi cle that is not required to be registered under 
section 5 of the Transport (Vehicle and Driver Re gistration and Licensing) Act 1986 and is used for 
commercial purposes, or a vehicle liste d in the schedule to the Regulations.”  
 
“Commercial vessels” are defined as vessels that are operated exclusively or principally for 
commercial purposes, and which are issued with a Maritime Safety Authority (MSA) number.  If a vessel does not have a MSA number, it must operate  under an approved Maritime Safety Authority 
safety plan.   
3. Background and authority
 
 Provided for under the Land Transport Mana gement Act 2003 and the Land Transport 
Management (Apportionment and Refund of Excise Du ty and Excise-Equivalent Duty) Regulations 
2004.  
 
4. Form of assistance
 
 
The current refund rates (including goods and services tax) are: 
• Petrol: 31.019 cents per litre (includes 5.715 cents Accident Compensation 
Corporation levy refund);  
• LPG: 11.7 cents per litre;  
• CNG: $3.57 per gigajoule. 
 
5. To whom and how assistance is provided  
  n/a  
6. Total expenditure
 
  The take-up rate is. For commercial vessels, only   
 2004/2005  
TOTAL NZ$ 226,266 
 
 7. Duration
 
 
 There is no fixed date for this programme.    
__________