Hutchison Paul: Questions for Oral Answer — Questions to Ministers 
Hutchison Paul: Questions for Oral Answer — Questions to Ministers 
[Volume:632;Page:3905] 
11.  
Dr PAUL HUTCHISON (National—Port Waikato) 
 to the  
Minister for Crown Research Institutes 
: Does he support the continued ownership of Crown research institutes by the State; if not why not? 
Hon STEVE MAHAREY (Minister for Crown Research Institutes) 
: 
 Yes. 
Dr Paul Hutchison 
: Why did the Minister tell the select committee last Thursday regarding Industrial Research Ltd: “Right now the only thing that is up for sale is a piece of land in Auckland.” when MPT Solutions a business unit of Industrial Research Ltd whose main asset is its intellectual property will be sold to the American company Quest by the end of this week? 
Hon STEVE MAHAREY 
: Because at the time that was a commercial matter. 
Dr Ashraf Choudhary 
: What is the role of Crown research institutes? 
Hon STEVE MAHAREY 
: That is an outstandingly good question. Crown research institutes play a key role in the economic change that is going on in New Zealand. Through their operating framework they are expected to undertake excellent science with sound financial management for the benefit of New Zealand. They are also expected to transfer their knowledge widely and to commercialise their research wherever it is possible for the benefit of the country. 
Hon Brian Donnelly 
: Would the Minister agree that the establishment of Crown research institutes by Simon Upton in the 1990s has by and large been an applaudable success and that the current move to reduce dependency on contestable funding is a step on the route of continuous improvement rather than a restructuring of the Crown research institute structure? 
Hon STEVE MAHAREY 
: I could not have put it better myself. What is happening is that a model that was established in the early 1990s went from being a highly regulated model to quite appropriately going through a period of contestability and competition. Probably I think most observers would have said that by 1996 any value out of that contestability had been gained. Unfortunately the National Party was asleep at the wheel. Until Labour came into Government the appropriate changes were not undertaken. 
Dr Paul Hutchison 
: Does the Minister stand by his written statement of last year regarding the sale of a Crown research unit spin-off company or subsidiary unit: “A key criterion when shareholding Ministers consider any such disposals is ongoing benefit to New Zealand including the continual ownership of intellectual property.” or with MPT Solutions has he conveniently changed his mind? 
Hon STEVE MAHAREY 
: No I have not changed my mind. The whole model for commercialisation is of course benefit to New Zealand. The member might like to take a quiet look at the issue and when he does he will understand that a case-by-case approach means there will be different ways to appropriately capture maximum value to New Zealand. That is exactly what we are doing. 
Dr Paul Hutchison 
: How does the Minister reconcile the sale of a Crown research institute business unit whose strength is intellectual property with his own claim that keeping intellectual property within New Zealand is key and Trevor Mallard’s statement on Tuesday 20June that Labour will not sell off the family silver? 
Hon STEVE MAHAREY 
: Easily. 
Dr Paul Hutchison 
: Should the public believe he is really going to transform the economy through science and innovation or is this just another “Mahareyism” to on the one hand affirm that keeping intellectual property is a key criterion for New Zealand’s benefit but on the other hand flog off a highly successful innovative company when he thinks nobody is looking? 
Hon STEVE MAHAREY 
: No. They should believe it.