WORLD TRADE  
ORGANIZATION  G/SCM/N/186/NZL 
10 July 2009 
 (09-3387) 
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 notification, dated 9 July 2009, is being circulated at the request of the 
Delegation of New Zealand.  
_______________ 
 
 
 The following notification covers the 2007/2008 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 notifie d are specific within the meaning of the ASCM.   
 G/SCM/N/186/NZL 
Page 2  
 
  TABLE OF CONTENTS 
 
Page
 
I. ENTERPRISE DEVELOPMENT FUND...............................................................................3  
A. ENTERPRISE DEVELOPMENT FUND – CAPABILITY BUILDING COMPONENT ...............................3  
B. ENTERPRISE DEVELOPMENT FUND – MARKET DEVELOPMENT COMPONENT ............................4  
II. ENTERPRISING AUCKLAND FUND..................................................................................5  
III. ENTERPRISE PARTNERSHIP FUND .................................................................................6  
IV. GROWTH SERVICES FUND.................................................................................................6  
V. STRATEGIC INVESTMENT FUND .....................................................................................7  
VI. GRANTS FOR PRIVATE SECTOR RESEARCH AND DEVELOPMENT 
SCHEME ......................................................................................................................... ..........8  
VII. TECHNOLOGY FOR BUSINE SS GROWTH SCHEME....................................................9  
VIII.  BEACHHEADS PROGRAMME ..........................................................................................10  
IX. SEAFOOD INNOVATIONS..................................................................................................12  
X. MOTOR SPIRITS EXCISE DUTY REFUND.....................................................................12  
XI. BUY KIWI MADE:  SUPPORTING SECTOR AND REGIONAL 
INITIATIVES .................................................................................................................... .....13  
XII. AUSTRALIA / NEW ZEALAND BIOTECHNOLOGY PARTNERSHIP FUND 
(ANZBPF)....................................................................................................................... .........14  
XIII.  FOREST INDUSTRY DEVELOPMENT AGENDA (FIDA).............................................16  
XIV.  EXPORT CREDIT OFFICE PROGRAM ...........................................................................17  
XV. RESEARCH AND DEVELOPMENT TAX CREDIT ........................................................17  
XVI.  RAIL AND SEA TR ANSPORT ............................................................................................18  
 
  G/SCM/N/186/NZL 
 Page 3 
 
 
  I. ENTERPRISE DEVELOPMENT FUND  
A. ENTERPRISE DEVELOPMENT FUND – CAPABILITY BUILDING COMPONENT  
1. Period covered by the notification  
  FY 2007/2008. 
 
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  
3. Background and authority
 
  The New Zealand Cabinet agreed to establis h the Enterprise Development Fund in 2003 as 
part of the foundation services of New Zealand Trade and Enterprise (NZTE).  
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 to a pply for a grant.  Once eligibility criteria are met, 
grants are awarded automatically on a first-come firs t-served basis.  Grants are paid by reimbursement 
of eligible expenses. 
 6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$3,607,527 
 
7. Duration  
  The Enterprise Development Fund - Capab ility Building will be disestablished on 
30 June 2009, with a phasing out period of one year. 
 G/SCM/N/186/NZL 
Page 4  
 
  B. E
NTERPRISE DEVELOPMENT FUND – MARKET DEVELOPMENT COMPONENT  
1. Period covered by the notification  
  FY 2007/2008.  
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 market  development component is to encourage New 
Zealand businesses to increase their international connections through the provision of funding 
assistance for marketing and promotion activities.   Businesses can apply for assistance with th e implementation of significant international 
market development initiatives, in cluding expenditure related to: 
 
 - market visits  - in-market representation  - advertising and promotion  - marketing materials  - trade fairs and events 
 - market research 
 3. Background and authority
 
  Cabinet approved the Market Development Assistance Scheme in November 2004.  The 
scheme has operated under the title of Enterpri se Development Fund – Market Development from 
January 2005.  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.  Fi rms will have a lifetime limit of $500,000.  The 
maximum grant for a collaborativ e group is limited to $500,000 pe r annum and $2.5 million over the 
five year life time.  5. To whom and how assistance is provided
 
 
 Eligible firms must have a turnover of no great er than $50 million.  Grants are paid by 
reimbursement of eligible expenses.  Once eligibility  criteria are met, grants are awarded on a first-
come, first-served basis.   Since April 2006, groups of firms have been able to apply for funding for collaborative 
market development activities.  Such firms must meet the following additional criteria: 
 
- all collaborative groups must have at least two firms with turnover of less than 
NZ$50 million for every firm with a turnover of NZ$50 million or more 
 
- all firms involved in a collaborative group mu st be unrelated to each other both in 
terms of significant shareholding, linked director ship or other inappropr iate relationships (as 
determined by NZTE) 
  G/SCM/N/186/NZL 
 Page 5 
 
 
  - all firms involved in a collaborative group must adhere to the other standard grant 
eligibility criteria individually 
 6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$45,000,000 
 
7. Duration  
 
 The Enterprise Development Fund – Market  Development will be disestablished on 
30 June 2010, with a phasing out period of one year . 
 II. ENTERPRISING AUCKLAND FUND 
1. Period covered by the notification
 
  FY 2007/2008.  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.  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. Total expenditure
 
 
 2007/2008 
TOTAL NZ$ Nil 
 
7. Duration  
  There is no fixed duration for the programme. G/SCM/N/186/NZL 
Page 6  
 
  III. ENTERPRISE PARTNERSHIP FUND  
1. Period covered by the notification
 
  FY 2007/2008.    
2. Policy objective and/or purpose
 
  The objective of the Enterprising Partnershi ps Fund aims to improve the quality of the 
regional business environment by supporting commerc ially driven, collaborative projects between key 
industries and other stakeholders within region(s).   
 
3. Background and authority
 
  The New Zealand Cabinet agreed to establish th e Enterprising Partnerships Fund in 2007.   
 
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 firms or sectors).  Th e Projects for the programme are 
required to meet the following criteria.     They should be related to:   
 
- generating significant economic developmen t benefits - nationally and regionally  
- promoting knowledge sharing, innovation  and international connections;  and 
- developing further regionally b ased networks and partnerships. 
 6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$ 5,900,000 
 
7. Duration  
 
 There is no fixed duration for the programme.    
IV. GROWTH SERVICES FUND  
1. Period covered by the notification
 
 
 FY 2007/2008.   
 2. Policy objective and/or purpose
 
  The Growth Services Fund offers support for high growth potential firms and groups of firms, 
to facilitate access to the follo wing enablers of business growth: 
  - New business opportunities  G/SCM/N/186/NZL 
 Page 7 
 
 
   - Skills and expertise 
 - Innovation and new technologies  - Assistance to raise finance  3. Background and authority
 
 
 The New Zealand Cabinet approved this pr ogramme on 14 April 2003 [CAB Minute (03) 
13/5].    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 can apply for grants.  High growth potential is defined as the potential to 
generate either 20 per cent reve nue growth, sustainable for five years, or revenue growth of 
NZ$5,000,000 within five years.  As an indica tive 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.   
 
6. Total expenditure  
 
 2007/2008 
TOTAL NZ$5,800,000 
 
7. Duration  
  There is no fixed duration for the programme.    
V. STRATEGIC INVESTMENT FUND 
1. Period covered by the notification
 
  FY 2007/2008.    2. Policy objective and/or purpose
 
 
 The objective of the fund is to identify and fac ilitate particular investment and foreign direct 
investment opportunities in New Z ealand that involve spillover bene fits for the wider economy not 
captured by the primary investors.     The fund provides grants for pre-feasibility and feasibility studies so that potential investors 
can quantify substantial investment opportunities.   
 3. Background and authority
 
  This was authorised by the New Zealand Cabinet on 23 July 2007 [CAB Min (07) 26/5].   G/SCM/N/186/NZL 
Page 8  
 
  4. Form of assistance
 
  Grants for up to 50 per cent of costs of pre-feasibility or feasibility studies up to a maximum of NZ$250,000 (GST included).   
 
5. To whom and how assistance is provided
 
  New Zealand and overseas companies intending to set up projects in New Zealand are eligible to apply.    
6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$448,296 
 
7. Duration  
  There is no fixed duration for the programme, but it is subject to regular review.  The last took place in July 2007.    
VI. GRANTS FOR PRIVATE SECTOR RESEARCH AND DEVELOPMENT SCHEME 
1. Period covered by the notification
 
  FY 2007/2008.    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 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 ma ximum 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 sophistication or risk that takes the firm beyond its 
ordinary course of business.  Proposals likely to be undertaken regardless of the success of the 
application would not meet the apprai sal criteria for this programme.   
 6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$7,038,000 
  G/SCM/N/186/NZL 
 Page 9 
 
 
  7. Duration  
  There is no fixed duration for the programme.  Most projects are completed within one year of approval.    VII. TECHNOLOGY FOR BUSINESS GROWTH SCHEME 
1. Period covered by the notification
 
  FY 2007/2008.    
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.  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.    
3. Background and authority
 
  Provided for in the Foundation for Resear ch, Science and Technology Act 1990.   
 4. Form of assistance
 
 
 Successful applicants receive funding in grant form.  A single firm can receive a maximum of 
five per cent of the total annual TBG funds.    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  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 commercial 
potential;   
  (ii)  be unlikely to proceed without the scheme's support;    G/SCM/N/186/NZL 
Page 10  
 
   (iii)  be technology-based projects undertaken in a "learning by doing" model;   
  (iv) have the potential to create an enduring increase in technological capability in the 
firm;   
 
 (v) the firm demonstrates an idea that requires further significant research to turn it into a 
marketable product or service;   
  (vi) the firm has the potential to genera te revenue in excess of NZ$50 million per annum 
within a reasonable period (5 to 10 years) , or the investment will support the growth 
of the firm towards the NZ$50 million per annum revenue target;   
  (vii) there is potential contribution to wide r sector strategies and / or spillovers from the 
proposed project;  and 
 
 (viii) there exists a credible case that FRST i nvestment is likely to improve the speed of 
project delivery and / or improve the outcome significantly.   
 6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$36,924,000 
 
7. Duration  
  There is no fixed duration for the programme.  The focus is on shorter-term projects, i.e. less 
than one - three years, although longer-term projects may be approved.   
 
VIII.  BEACHHEADS PROGRAMME 
1. Period covered by the notification
 
  FY 2007/2008.   
 
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 do es this by encouraging the sharing of the costs of 
office space and in-market sales/marketing staff acr oss a number of businesses, either through co-
location (with businesses located in the same bu ilding) or through distributed offices.   
 3. Background and authority
 
  The New Zealand Cabinet authorised this  programme on 14 April 2003 [CAB MIN (03) 
13/9 (17)].   
 4. Form of assistance
 
  The Beachheads Programme offers qualifying Ne w Zealand companies the following 3 levels 
of services:   
  G/SCM/N/186/NZL 
 Page 11 
 
 
   1. Mentoring, advice and business connections  provided by the Beachheads Advisory 
Boards in New Zealand and offshore.   
  2. On the ground assistance  from the local Beachheads NZTE Project Manager with 
business set-up and expansion.    
 
 3. Networking, Information and Advice Services  such as strategic sector and market 
specific in market networking, information a nd advice services for existing participants and 
graduating firms.   
 
 Under the co-location model, businesses can access shared, lower-c ost office facilities, 
including hot-desking (internet access and meeting rooms when visiting the market) at a beachheads 
site.  From 2003 - 2006 companies that participat ed in the Programme were  eligible for a rent 
reduction which equated to a maximum of NZ$30,000 pe r annum for two years.  As a result of the 
June 2006 evaluation of the Beachhead programme, fi nancial support in the form of rent reduction 
was removed as a category of assistance for new companies operating under the distributed model 
entering the programme from 1 January 2007.    
Under the distributed model, participating businesses  are able to tap into the expertise of in-
market staff and leverage on their business networks.    
5. To whom and how assistance is provided
 
 
New Zealand registered companies that typically have:   
 
- a detailed business plan 
- an experienced management team 
- revenues of at least NZ$5 million and are aiming for NZ$100 million* 
- an in-depth understanding of their target market 
- at least one senior manager 'on the ground'  in the region they are applying for 
- independent governance.  
 
* Occasionally smaller companies with exceptional opportunities and an experienced 
management team are accepted.     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 the programme
.  Subject to this requirement, the 
programme is available to all sectors on a first-come first-served basis.   
 6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$3,200,000 
 
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/186/NZL 
Page 12  
 
  IX. SEAFOOD INNOVATIONS  
1. Period covered by the notification
 
  FY 2007/2008.    
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 Council (SEAFIC, 80 per cent) and Crop & Food 
Research (CFR, 20 per cent).  The consortium was established to focus on three general research 
objectives:     - improved returns from edible seafood products;    - improved returns from industrial marine 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
 
  Grants are provided to consortia made up of  both research organisations and firms.   
 6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$2,500,000 
 
7. Duration  
 
 The planned duration of the programme is seven years, with funding terminating in 2010/11.   
 
X. MOTOR SPIRITS EXCISE DUTY REFUND  
1. Period covered by the notification  
  FY 2007/2008.    G/SCM/N/186/NZL 
 Page 13 
 
 
  2. Policy objective and/or purpose  
  Refund of the excise duty and the goods and services tax charged on motor spirits that is used:   
  - as fuel in an exempted vehicle 
 - as fuel in a road user charges-licensed vehicle  
 - as fuel in a commercial vessel   - for commercial purposes other than as fuel in  any motor vehicle, vessel, or aircraft  
  An "exempted vehicle" is defined as "a motor vehicle that is not required to be registered 
under section 5 of the Transport (Vehicle and Driv er Registration and Licensing) Act 1986 and is 
used for commercial purposes, or a vehicle liste d in the schedule to the Regulations".   
  "Commercial vessel" is defined under the La nd Transport Management (Apportionment and 
Refund of Excise Duty and Excise-Equivalent Duty) Regulations 2004 as a vessel "used only or 
mainly for commercial purposes".   
 3. Background and authority
 
  Provided for under the Land Transport Ma nagement Act 2003 and the Land Transport 
Management (Apportionment and Refund of Ex cise Duty and Excise-Equivalent Duty) 
Regulations 2004.   
 4. Form of assistance
 
  The current refund rates (including goods and services tax) are:   
 
- Petrol:  34.122 cents per litre (1 July 2007 to 30 June 2008).  This includes 6.500 cents 
per litre Accident Compensation Corporation (ACC) levy refund;   
- LPG:  11.7 cents per litre;   
- CNG:  $3.5775 per gigajoule.   
 
5. To whom and how assistance is provided
 
  Refunds are applied for and verified by the Economic Compliance Unit of Land Transport New Zealand.  Only those applicants meeting le gislative and regulative requirements have their 
refund applications approved.   
 
6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$34,525,000 
 
7. Duration  
  There is no fixed date for this programme.    
XI. BUY KIWI MADE:  SUPPORTING SECTOR AND REGIONAL INITIATIVES 
1. Period covered by the notification
 
  FY 2007/2008.   G/SCM/N/186/NZL 
Page 14  
 
  2. Policy objective and/or purpose
 
  The purpose of the fund is to provide s upport for sector and regional initiatives that are 
consistent with the policy framework for Buy Kiwi Made, which is intended to help raise the profile 
of New Zealand-made products.   
 
3. Background and authority
 
  The Buy Kiwi Made initiative is a product of the co-operation agreement between the 
previous Government and the Green Party followin g the 2005 election.  Cabinet made a series of 
decisions in 2006 that agreed the overall initiative funding of $11.5m over three years (New Zealand 
Cabinet Minute (06) 11/7(17)) including the establishment of a $3m fund and $8.5m was used for media marketing campaign.  (New Zealand Cabinet Minute (06) 41/1).    
Following a substantial under-spend in the fi rst two funding rounds the fund was capped 
at $0.975 million with the remaining money transfer red to extend the media campaign.  (New Zealand 
Cabinet Minute (08) 4/2).    4. Form of assistance
 
 
Funding is available for up to 50 per cent of the cost of a project.  The remaining 50 per cent 
must be met by the project proposals in the form of  cash (not "in kind").  Proposals must not meet the 
criteria for other existing government assistance programmes.    5. To whom and how assistance is provided
 
 
 Buy Kiwi Made is available to representative groups within sectors or regions or to cross-
sectoral and cross-regional groupings, but not to indivi dual firms.  Applications to the fund must be 
for projects that support sector and regional initiatives that promote Buy Kiwi Made, and assist sectors and regions to fund projects leading to su bstantive economic benefits, by promoting the 
objectives of Buy Kiwi Made.    
6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$415,871 
 
7. Duration  
 
The Buy Kiwi Made program was disestablished in June 2009 .   
 
XII. AUSTRALIA / NEW ZEALAND BIOTECHNOLOGY PARTNERSHIP FUND 
(ANZBPF) 
1. Period covered by the notification  
  FY 2007/2008.    G/SCM/N/186/NZL 
 Page 15 
 
 
  2. Policy objective and/or purpose  
  The purpose of the ANZBPF is to facilitate  and accelerate trans-Tasman biotechnology 
industry collaboration by developing greater re gional critical mass to give Australian and 
New Zealand biotech companies better acce ss to global market opportunities.   
 
 The objective of the ANZBPF is to accelerate the rate at which NZ biotechnology companies 
(including commercial arms of Crown Research Ins titutes and Tertiary Educa tion Institutions) build 
strategic alliances with Australian companies or en tities to improve sustained profitability and global 
competitiveness of the NZ biotechnology sector.   
 
Additional objectives are that the ANZBPF will:   
 
- improve commercialisation skills and expe rtise within the biotechnology sector 
- increase foreign investment in the sector 
- 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).    4. Form of assistance
 
 
 Assistance by way of a grant is offered.  Gran ts are limited to 25 per cent of the costs of 
eligible activity under a portfolio of 4 grant schemes:     1. Collaborative Large-scale:  up to a maximum of NZ$1,000,000.00 (GST incl) 
 2. Large Scale Market acceptance:  up to a maximum of NZ$125,000.00 (GST incl)  3. Bio-market Development:  up to a maximum of NZ$50,000.00 (GST incl)  
 4. People and skill development:  to a maximum of NZ$10,000.00 (GST incl) 
  The fund will also support marketing and in vestment promotion activities under the Australia 
and New Zealand Biotechnology Alliance.    
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".     New Zealand applicant companies must be resident in New Zealand and registered for tax purposes.   G/SCM/N/186/NZL 
Page 16  
 
  6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$3,881,250 
 
7. Duration  
  The operation of the ANZBPF was reviewed in 2007 and is scheduled to be next reviewed 
by 2012.  The fund will also be included in  a 2009 review of business assistance.   
 XIII.  FOREST INDUSTRY DEVELOPMENT AGENDA (FIDA) 
1. Period covered by the notification
 
  FY 2007/2008.    
2. Policy objective and/or purpose
 
  The objectives of the Forest Industry Development Agenda (FIDA) are to ensure that forestry 
(a) can make its optimal contribution to New Zealand' s sustainable development;  and (b) continues to 
make a key contribution to New Zealand's response to climate change.    
3. Background and authority
 
  In 2005, the New Zealand Cabinet agreed to a funding package of NZ$9.2 million over 
five years (June 2005 – June 2009) to help enga ge with the forest industry on a joint industry 
development process (EDC Minute (05) 6/5).   
 
4. Form of assistance
 
  Assistance by way of a grant is offered to su ccessful project applications.  Access to this 
funding is dependent on the forest industry contribu ting at least 25 per cent of costs for the eligible 
activity.   
 
5. To whom and how assistance is provided
 
  The fund is available to the New Zealand for estry industry, with the assistance provided in 
grant form.   
 
 Applicants must demonstrate overall value for money and how the project will progress the 
Government's high-level objectives for the FIDA.    6. Total expenditure
 
 
 2007/2008 Estimated 
TOTAL NZ$1,640,000 
 
7. Duration  
  The Forestry Industry Development Ag enda will be disestablished on 30 June 2009 .   
   G/SCM/N/186/NZL 
 Page 17 
 
 
  XIV.  EXPORT CREDIT OFFICE PROGRAM 
1. Period covered by the notification  
  FY 2007/2008.    
2. Policy objective and/or purpose
 
  The purpose of the New Zealand Export Cred it Office is to address market gap in the 
provision of business finance by:    
- providing export credit insurance to exporters and banks against risk of non-payment 
under an export contact arising from defined political and commercial risks.   
 
- offering guarantees of an exporters' performa nce to US Surety Bond providers because 
New Zealand banks/bond providers are not accredited in the US.   
 
3. Background and authority
 
  Export Credit guarantees are Minister of Finance guarantees according to section 65ZD of the Public Finance Act 2004.   
4. Form of assistance
 
  NZECO provides two forms of guarantees:     Export Credit Guarantees:  provides trade credit insurance product enabling exporters and 
their banks to support usual repayment terms from overseas buyers' longer than one year.   
  US Surety Bond Guarantees:  assess an e xporter's ability to deliver on the proposed US 
Federal or State contract and provide a perform ance guarantee to a US surety company who will 
issues a bond to the US buyer, on behalf of the exporter.    
5. To whom and how assistance is provided
 
  Assistance is provided at premium rates which cover the long-term operating costs and losses of the programme.    
6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$2,350,000 
 
7. Duration  
 
 There is no fixed duration for the programme.    
XV. RESEARCH AND DEVELOPMENT TAX CREDIT 
1. Period covered by the notification
 
 
 FY 2007/2008.    G/SCM/N/186/NZL 
Page 18  
 
  2. Policy objective and/or purpose
 
  The credit is intended to encourage New Zeala nd business to invest more in R&D, to innovate 
and develop improved products and process.  This is expected to have wider benefits for the 
New Zealand economy and boost productivity.   
 
3. Background and authority
 
  The Research and Development Tax Credit w as announced as part of the Business Tax 
Reform in Budget 2007.  It was gran ted under the Income Tax Act 2007.   
 
4. Form of assistance
 
  The credit will be 15 per cent of the claimant's  total eligible expenditure for the year.   
 
5. To whom and how assistance is provided
 
  Business undertaking R&D on their own account or outsourcing it will be eligible.  Business will have to incur at least NZ$20,000 of eligible e xpenditure in the year a claim is made unless the 
R&D is outsourced to a listed research provider.    
 Eligible expenditure includes the cost of employee remuneration, depreciation of tangible 
assets used primarily in conducting R&D.    6. Total expenditure
 
 
 2007/2008 Estimated 
TOTAL NZ $37,000,000 
 
7. Duration  
  The Research and Development Tax Credit was disestablished on 1 April 2009.   
 
XVI.  RAIL AND SEA TRANSPORT 
1. Period covered by the notification
 
  FY 2007/2008.   
 
2. Policy objective and/or purpose
 
  The objective of the National Land Transport Pr ogramme is to encourage the movement of 
freight by rail and coastal shipping.    
 Funding is provided based on a validated business case that demonstrates:   
 
- Improvements in the efficiency of commercial transport 
- Improvements in the connections betw een commercial transport networks 
- Improved reliability, safety a nd effectiveness of networks 
- Improved value for money in operati on and development of networks 
   G/SCM/N/186/NZL 
 Page 19 
 
 
  3. Background and authority  
  Provided for under the Land Transport Ma nagement Act 2003 and the Land Transport 
Management (Apportionment and Refund of Ex cise Duty and Excise-Equivalent Duty) 
Regulations 2004.   
 
4. Form of assistance
 
  Grants are provided based on tonnage rate of freight removed from two specific road 
journeys:   
 
- Kopu Aggregate Barging – NZ$0.65 per tonne to remove road freight journey equivalent 
to 125 kilometres by road in 29 tonne loads.   
- Port Underwood Log Barging – NZ$1.67 per tonne  to remove road journeys over a local 
road of 27 kilometres.   
 
5. To whom and how assistance is provided
 
  Grants are limited to the approved organisati ons that are defined under the Land Transport 
Management Act 2003, effectively regional c ouncils and territorial local authorities.   
  
6. Total expenditure
 
 
 2007/2008 
TOTAL NZ$81,528 
 
7. Duration  
  There is no fixed date for this programme.      
__________