11. Question No. 11—Research Science and InnovationDr PARMJEET PARMAR (National) to the Minister of Research Science and InnovationQuestion No. 11—Research Science and Innovation11. Dr PARMJEET PARMAR (National) to the Minister of Research Science and Innovation: Does she stand by all of her statements policies and actions?Hon CHRIS HIPKINS (Minister of Education) on behalf of the Minister of Research Science and Innovation: Yes. I particularly stand by our decision to make the largest ever investment in research and development through the $1 billion R & D tax incentive in Budget 2018 and the additional $132 million investment in science in Budget 2019. I'm also happy to remind the member that we've recently seen R & D spend increase from 1.23 percent to 1.37 percent of GDP.Dr Parmjeet Parmar: Is she aware that her own officials advised her that the Government's policies in Budget 2019 do not reflect the funding needed to increase R & D expenditure to 2 percent of GDP?Hon CHRIS HIPKINS: On behalf of the Minister I've received a range of advice on what it's going to take to reach the target of 2 percent of GDP in the 10-year period that the Government has set. We of course do expect that the private sector is going to play a very large role in getting us to that point and we are going to partner with them to achieve that. On this side of the House we believe in an active role for the private sector around R & D. Although of course I know that with the new-found enthusiasm for communism on the other side of the House they might be rethinking that.SPEAKER: No no no. That line has been consistently ruled out by Speakers and even in a humorous way. I'm going to be consistent with Speakers from the past and say that that is not an approach that is going to be taken by either side of the House.Hon Gerry Brownlee: Should he withdraw?SPEAKER: Yes he should.Hon CHRIS HIPKINS: I withdraw. Dr Parmjeet Parmar: Does she think it's realistic to meet the Government's own target when according to the Ministry of Business Innovation and Employment to reach the target business expenditure on R & D needs to increase by 10 percent per annum and Government expenditure on R & D needs to increase by at least $150 million per annum which she has failed to deliver?Hon CHRIS HIPKINS: In answer to the first part of the question yes. In answer to the second part of the question I do refer the member to my earlier answer where I said that the private sector is going to have to play a significant role here. I'm pleased to tell the member that we need a private sector increase of at least 10 percent—as the member has pointed out—and that in fact between 2016 and 2018 it was 34 percent. So we're seeing larger increases than we need to in order to meet the target.Dr Parmjeet Parmar: Does she really think it's realistic to expect business expenditure on R & D to increase by 10 percent per annum when business confidence is at its lowest level since the global financial crisis?Hon CHRIS HIPKINS: I think as the Minister of Finance has explained on many occasions before we're more interested in what business are doing than what they're saying about how they feel because those two things don't always correlate.Dr Parmjeet Parmar: If as her own officials advise her Government appears unable to meet its own R & D target will she do what she did with KiwiBuild and just get rid of the target?Hon CHRIS HIPKINS: I'm confident that the Government is going to meet the target.