WORLD TRADE  
ORGANIZATION  G/SCM/Q2/NZL/17 
8 March 2007 
 (07-0951) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
  
SUBSIDIES 
 
 
Response to Questions from the UNITED STATES
1 
Regarding the New and Full Notification of NEW ZEALAND2 
   The following communication, dated 6 March 2007, is being circulated at the request of the 
Delegation of New Zealand
. 
                                                      
1 G/SCM/Q2/NZL/16.   
2 G/SCM/N/123/NZL.   G/SCM/Q2/NZL/17 
Page 2  
 
  Technology for Business Growth Scheme 
 
 
Question 
 
 With reference to the development of ex port-oriented products under this Scheme, 
could New Zealand please explain how the export -oriented nature of the business and product is 
factored into the decision of approving grant applications under the Technology for Business Growth Scheme? 
Answer
 
 
 The Technology for Business Growth (TBG) schem e is available to all firms, from start-ups 
to established firms, who are interested in seeki ng grant support for R&D activities (consistent with 
the OECD Frascarti Manual). 
 The export-orientation of a product or business is not a relevant consideration in grant 
applications.  Funding for R&D activities is offered under TBG to any firm, but there is a particular 
focus on sectors where the Government’s investment will contribute to the objectives in its Economic 
Transformation Agenda, which focu ses on globally competitive firms. 
 
Other Programs  
1. Biotechnology Sector Strategy 
Question 
  It appears that New Zealand Trade & Enterprise has developed a ten-year 
biotechnology sector strategy and one of the aims of this strategy is to provide a cohesive 
package of government support for New Zeal and’s star performers in this industry. 
Answer
 
  New Zealand Trade & Enterprise (NZTE) works w ith high growth potential clients, including 
biotechnology firms, to bring together in a cohesive package the tools available to government agencies, such as the Foundation for Research, Scie nce and Technology and the Tertiary Education 
Commission. 
 In addition, the Australia–New Zealand Bi otechnology Partnership Fund was announced in 
September 2003 and the grant scheme component opened on 1 July 2004.  The Fund provides co-
funding for New Zealand biotechnology firms estab lishing joint projects with an Australian partner 
company.  In Financial Year 2004/05, NZTE disbursed NZ$2.19m in grant funding.  Four firms 
benefited from the grant scheme in 2004/05.  Grants are limited to 25 per cent of the costs of eligible 
activity;  in this case, collaborative research a nd development in the biotechnology field with 
Australian partner firms. 
2. Assistance to the Forestry and Wood Processing Industry 
Question 
 
 It appears that New Zealand Trade & Ent erprise has created a priority initiative to 
provide assistance to the forestry and wood pro cessing industry.  In addition, the New Zealand  G/SCM/Q2/NZL/17 
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  government recently announced that it would infuse $18.1 million into the Forest Industry 
Development Agenda (FIDA).  It appears that th e creation of FIDA has replaced the initiatives 
of the Wood Processing Strategy.  
Answer  
 
As noted above, NZTE works with high growth potential clients, including forestry and wood 
processing firms, to bring together the tools availa ble in government agencies in a cohesive package 
that best fits the individual company’s needs. 
The New Zealand Government decided in Ma rch 2005 to establish the Forestry Industry 
Development Agenda (FIDA) as a mechanism to e ngage with the industry in a joint development 
process.  The objectives of FIDA are:   
(1) to ensure that forestry can make its  contribution to New Zealand’s sustainable 
development;  and 
(2) ensure that forestry continues to make  a key contribution to New Zealand’s response 
to climate change. 
 
As part of the FIDA, the Government agr eed to provide NZ$9.2m (excluding Goods and 
Services Tax - GST) over five years (June 2005 – J une 2009) in funding for market-related initiatives, 
which require at least 25 per cent co-funding from industry.  Payments totaling NZ$35,887 (excluding 
GST) were made in Financial Year 2005/6.  This amount was disbursed to two projects, one covering 
27 firms, the other providing support to the peak industry body, the Wood Council of New Zealand.  
No payments were made from FIDA in 2004/05;  an d therefore this programme was not mentioned in 
G/SCM/N/123/NZL of 13 March 2006, whic h covered only that Financial Year. 
 
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