WORLD TRADE  
ORGANIZATION  G/SCM/N/95/NZL/Suppl.1 
7 December 2004 
 (04-5380) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Updating Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
NEW ZEALAND 
 
Supplement  
 
 
 The following communication, dated 26 November 2004, is being circulated at the request of 
the Delegation of New Zealand.  
_______________ 
  
 The following notification covers the 2003/2004 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.............................................................................................. 3 III. STRATEGIC INVESTMENT FUND .................................................................................. 4 IV. REGIONAL PARTNERSHIP PROGRAMME.................................................................. 5 V. GRANTS FOR PRIVATE SECTOR RESEARCH AND DEVELOPMENT  
 SCHEME ........................................................................................................................ ........ 6 
VI. TECHNOLOGY FOR BUSI NESS GROWTH SCHEME................................................. 7 
VII. BEACHHEADS PROGRAMME ......................................................................................... 9 
 G/SCM/N/95/NZL/Suppl.1 
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 I.  ENTERPRISE DEVELOPMENT FUND 
1. Period covered by the notification
 
  FY 2003/2004  
2. Policy objective and/or purpose
 
  The Enterprise Development Fund (EDF) combin es funding for the previous BIZ Enterprise 
Awards into a criteria-based grants scheme along w ith the Enterprise Networks Programme and the 
World Class New Zealanders Missions.  The EDF aims to assist New Zealand companies to increase 
their capabilities and to grow their business by prov iding funding to employ expertise and advice.  
The EDF is implemented under two separate proces ses: the Enterprise Development Grant (EDG) and 
the Enterprise Network Grant (ENG). While EDGs are for individual companies, ENGs provide 
funding to networks of three or more companies to enable them to build capabilities and develop 
specific overseas business opportunities.  
 
 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  
  This programme was authorised by New Zealand Cabinet Minute (03) 13/5 of 14 April 2003.  This was mandated by Parliame nt in the 2003/04 Estimates of Appropriation. 
 
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 or equa l to 20 full time equivalent staff, or a turnover of less than or 
equal to NZ$5,000,000 per financial year, are eligib le.  Entrepreneurs must be a New Zealand citizen 
or have permanent residence.  For collaborative gr oupings, companies must retain their own identity 
within the network.  No co-ownership of comp anies within a collaborative grouping is allowed. 
 6. Total expenditure
 
 
 2003/2004 Appropriation 
TOTAL NZ$8,613,000 
 
7. Duration  
  There is no fixed duration for the programme.   G/SCM/N/95/NZL/Suppl.1 
 Page 3 
 
 
 II.  GROWTH SERVICES FUND 
1. Period covered by the notification  
  FY 2003/2004  
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.  This was mandated by New Zeal and Parliament in the 2003/04 Estimates of 
Appropriation.  
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 
growth potential and that have less than or equal to 100 full time equivalent  staff and/or an annual 
turnover of less than or equal to NZ$50,000,000 are e ligible.  Significant growth potential is defined 
as the potential to generate either 20 per cent revenue  growth, sustainable for five years, or revenue 
growth of NZ$5,000,000 within five years. 
 6. Total expenditure
 
 
 2003/2004 Appropriation 
TOTAL NZ$10,125,000 
 
7. Duration  
 
 There is no fixed duration for the programme.  G/SCM/N/95/NZL/Suppl.1 
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 III. STRATEGIC INVESTMENT FUND 
 
1. Period covered by the notification
 
  FY 2003/2004 
 
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$50,00 0,000 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 viab ility of the proposed investment; 
 - Outline of how the investment will be funded; and  - Demonstration that the proposed study woul d be unlikely to proceed without government 
support.  
  The Strategic Investment Fund can also underwrite assistance provided through other 
government programmes for significant investment pr ojects.  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.  
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.   G/SCM/N/95/NZL/Suppl.1 
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 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 case 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 government 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
 
 
 Year ending 30 June 2004 
TOTAL NZ$873,823 
 
7. Duration  
 
 There is no fixed duration for the programme.  
 
IV. REGIONAL PARTNERSHIPS PROGRAMME 
 1. Period covered by the notification
 
  FY 2003/2004  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.  
 4. Form of assistance
 
 
 Financial support through the provision of  grant funding, facilitation support through 
administrative engagement. 
 G/SCM/N/95/NZL/Suppl.1 
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  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
 
 
 2003/2004 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 2003/2004 
 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. 
  G/SCM/N/95/NZL/Suppl.1 
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 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 2004  
TOTAL NZ$10,900,000 
 
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 2003/2004  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
 
 
 Funding is available for up to 50 per cent of the research and experimental development costs 
incurred by a firm undertaking an appr oved 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 G/SCM/N/95/NZL/Suppl.1 
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 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.  
 
 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 tec hnological 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 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 2004 
TOTAL NZ$24,787,000 
 
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/95/NZL/Suppl.1 
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 VII. BEACHHEADS PROGRAMME 
 
1. Period covered by the notification  
  FY 2003/2004 
 
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 Minu te (03)  13/9 (17) of 14 April 2003.  This 
was mandated by Parliament in the 20 03/04 Estimates of Appropriation.   
 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  
 
 2003/2004 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.   
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