Barclay Todd: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeBarclay Todd: Oral Questions — Questions to Ministers[Sitting date: 26 March 2015. Volume:704;Page:2661. Text is incorporated into the Bound Volume.]11.TODD BARCLAY (National—Clutha-Southland) to the Minister for Small Business: How are small businesses benefiting from the innovation initiatives of the Business Growth Agenda?Hon CRAIG FOSS (Minister for Small Business): The Government’s Business Growth Agenda contains more than 100 specific initiatives across the six keys inputs that small businesses need in order to be successful. The innovation strand of the Business Growth Agenda is assisting small businesses in a number of ways such as the increased support for business research and development that Callaghan Innovation is leading and changes to New Zealand’s patent settings enabling businesses to have greater certainly of their intellectual property enforceable by world standards. These initiatives and many more support innovation and show why this Government is better for business.Todd Barclay: What reports has the Minister seen on small and medium businesses benefiting from these innovation initiatives?Hon CRAIG FOSS: I have seen a report that because of the Callaghan Innovation’s Better By Lean service the Ashburton company Ashford Handicrafts was able to innovate and introduce changes to be more responsive to customer demand. The innovations that they achieved in their manufacturing processes will free up time and resources to put into new product innovations this year. Innovations benefit small businesses improving their costs customer satisfaction revenues and margins.Tracey Martin: In light of those answers can the Minister explain why small businesses in rural Northland such as in Wellsford and small rural townships such as Wellsford and Te Hana are closing or continuing to struggle under his Government?Hon CRAIG FOSS: I note recent growth of 7.8 percent I think it was in Northland and so obviously many businesses are benefiting from innovation and this Government’s ongoing strong commitment to Northland.Todd Barclay: What could have a negative impact on innovation in small and medium businesses?Hon CRAIG FOSS: Small and medium sized businesses need time money and support to be able to innovate and grow their opportunities. If small and medium sized enterprises were burdened with new and complex taxes such as a capital gains tax it would greatly reduce their ability to innovate. If small businesses were also faced with much higher wage costs such as an increase in the minimum wage to $16.25 it would greatly reduce their ability to innovate. New taxes and higher wage costs have a negative impact on innovation for small and medium enterprises.Dr David Clark: Does the Business Growth Agenda aim to be innovative in cutting unnecessary overheads for business; if so why does he not accept advice from ACC and Treasury that the Government should immediately stop overcharging businesses for ACC by $350 million?Hon CRAIG FOSS: I think the member’s colleague presents that question a lot better—Mr SPEAKER: Order! Just answer the question.Hon CRAIG FOSS: For small businesses overheads have decreased by $1.5 billion per annum in reduction in ACC levies by this Government. Small businesses’ overheads are reduced by this Government given the new certainty that we have—and they now have—in a sustainable ACC system.Dr David Clark: I raise a point of order Mr Speaker.Mr SPEAKER: If the member is asking whether the question was addressed it certainly was.Dr David Clark: I see you have read my mind. Clearly it was not addressed to my satisfaction.Mr SPEAKER: Does the member have a supplementary question?Dr David Clark: No.