Kaye Nikki: Callaghan Innovation Bill — Third Reading 
Text is incorporated into the Bound Volume 
Kaye Nikki: Callaghan Innovation Bill — Third Reading 
[Sitting date: 04 December 2012. Volume:686;Page:7013. Text is incorporated into the Bound Volume.] 
NIKKI KAYE (National—Auckland Central) 
: 
 I am pleased to speak today at the third reading of the Callaghan Innovation Bill. I would like to acknowledge again Sir Paul Callaghan whom this institute is named after. I would also like to acknowledge members of the Education and Science Committee. I do believe that we worked in a collaborative process throughout the committee. We did have a tight time frame in which to turn this bill round but I was very pleased that we made a huge effort as a committee to not only write to stakeholders but also provide a very lengthy commentary on the bill. I think it is pleasing that nearly all of the submitters supported this legislation. I also want to acknowledge that this is part of our wider plan and agenda to ensure that New Zealand stays ahead of our global competition. The bill helps to unlock the world-class potential of our scientists and helps them to plug into businesses in the global market place. 
But the major purpose is to ensure that we get the best ideas out of the lab and into the market place more quickly. It will have operations in Auckland Wellington and Christchurch and the reason for this is that these operations will be close to clusters of likely business clients making them as accessible as possible especially to smaller firms. 
I want to also acknowledge the general approach of the select committee. As has already been said by a number of members we decided purposely not to take an overly prescriptive approach. The reason for that was to give the institute the maximum ability to not only move with technology but also be not overly prescriptive in terms of the people it appoints to the organisation. 
A point that I would like to raise in this third reading is that collaboration was a very important point raised by a number of submitters. So Callaghan Innovation will exist within a flexible framework that will encourage innovation but also collaboration. We all know that silos have existed in the past and that they lead to greater compliance costs and time wasted for business. A key feature of Callaghan Innovation is to foster better connections between innovation expertise and facilities that will already exist within Callaghan Innovation but additionally to link up Callaghan Innovation with New Zealand Crown research institutes polytechnics and other research organisations. During the select committee process we made a key change to the legislation to strengthen that collaboration. 
I think it is important to also acknowledge the dual function of Callaghan Innovation. The first function will be to fulfil a range of things such as helping build industry-led innovation consortia—acting as a portal through which businesses can access appropriate research and development and technical expertise being a gateway to firms to access business research and development grants and commercialisation support fostering the mobility of experts by for example sponsoring secondments between universities and developing links with international research organisations to ensure local firms can connect with worldwide experience. 
The second key role of Callaghan Innovation is to be a service provider that is going to be offering businesses technology testing applied research and development work on a contractual basis business development and technology and knowledge transfer. 
I want to briefly finish with some of the select committee changes. As I have already mentioned there was a key change in the bill in terms of strengthening collaboration. We also made a change around the term “net benefit” to be clear that Callaghan Innovation must operate for the benefit of New Zealand. Thirdly a number of issues were raised regarding the establishment board. I think it is very important at this point to acknowledge that the select committee made a lengthy commentary on the internal framework for research capacity. We outlined the issues that had been raised as a result of submissions. The Government has appointed a seven-member establishment board. The establishment board will play a critical role in making initial decisions relating to not only staffing requirements but also the exact location of the innovation centres in Auckland Hutt Valley and Christchurch. 
I think it is also important to note that this legislative framework must have funding and that is why in 2012 our Budget delivered $250 million of new operating funding and $76.1 million in capital funding for science innovation and research. This reflects our belief that science and technological innovation are major drivers of growth. I think it is important to acknowledge that we are now spending $1.24 billion which is a 17 percent increase over the last 4 years in direct cross-portfolio funding for science and innovation. There is $166 million going towards Callaghan Innovation. That is a huge amount of money. 
In summary I am very pleased to have chaired the select committee on this bill. I believe that Callaghan Innovation will help firms from a range of backgrounds be more competitive grow faster and connect them with the scientific support that they need to develop and commercialise their ideas for the betterment of our country. That is good in terms of ensuring that New Zealanders have a higher standard of living. Callaghan Innovation will support firms at different stages of development from start-ups to established research and development firms. Our Government wants to see more Kiwi businesses succeeding. We want to create a bridge between business science engineering and design. We want to help our world-class scientists and businesses turn their great ideas into valuable products more jobs and higher incomes for Kiwis. 
I want to finish by thanking the members of the Education and Science Committee for their swift consideration of this very important bill. I feel privileged to be part of a process that will help see Callaghan Innovation up and running in early 2013. I want to acknowledge the man whom this is named after because I do believe that this institute will be a great thing for New Zealand. Thank you.