SpeechDr PARMJEET PARMAR (National): Thank you Madam Chair for the opportunity to take this call. As the spokesperson for research science and innovation I feel quite frustrated to see that the Government doesn't understand how to increase business spending on research and development. So they campaigned on their R & D tax credit policy and yes they have implemented their R & D tax credit policy and that's a different story that actually the bill passed after the policy was already implemented. That clearly shows how inefficient this Government is because they couldn't even stick to their own time line.So they believe this policy is going to do that big magic of increasing business spending on research and development to 2 percent of GDP. Last year we heard that this is going to be achieved in 10 years. Again this year we hear that this is a long-term goal and this is a 10-year policy that will be achieved in 10 years. I really hope they understand that it started in 2018—their 10 years—and the countdown has already begun. So this year it should be nine years not 10 years. Maybe the Government realised that they are not going to be able to achieve this target as in this Budget the Ministry of Business Innovation and Employment (MBIE) officials have clearly stated that the Government of the day needs to invest around $150 million a year to reach that target of increasing business spending on research and development to 2 percent of GDP. The Government has failed in this very second Budget to meet that goal—that is of public investment to reach the target of 2 percent of GDP.It's really appalling to see that this is their very second Budget and in their very second Budget they can't keep up with what they should be doing to reach that goal. During the select committee process the Minister very conveniently said that It's a long-term goal so we are looking at long-term objectives." That's fine because any Minister can sit here and set goals for the 10 15 or 20 years when the Minister is not able to deliver in just one term in their second Budget. So clearly the Minister has failed in delivering in their very second Budget on what should have been delivered to reach to that goal.During the select committee process during the Estimates hearing process of course we talked about business confidence which is sliding down. We talked about GDP growth which is sliding down. As this is linked to GDP as it is done internationally—that is how business spending on R & D is measured—I asked if the Minister is feeling quite relaxed about her goal of increasing business spending to R & D to 2 percent of GDP given that GDP growth is sliding. Of course the Minister felt agitated but that is the reality. So every Government member stands up and talks as if this is a big goal when they haven't delivered in their very second Budget what they should have. MBIE officials clearly told the Minister in March—this is well before the Budget—that this is the minimum appropriation that is needed under the research science and innovation portfolio which the Minister couldn't deliver.The other interesting point which I hear again and again from Government members is that growth should not be measured in terms of GDP. So I'm really glad that business spending on R & D is still being measured in terms of GDP because that is how internationally it is measured. I hope that the Minister doesn't change that measure also because GDP growth is not working in their favour as other members very conveniently keep changing their argument saying that GDP growth is not the measure of growth or wellbeing.Not just that the Minister put forward 15 initiatives for research science and innovation. Out of those 15 initiatives only six were within the scope. Six were in line to achieve that long-term goal of increasing business spending on research and development to 2 percent of GDP. So that clearly shows me that the Minister is out of her depth. She doesn't understand what kinds of initiatives are needed to reach to that goal. So through this what they have done in their very second Budget is they have sent a very wrong very negative signal to the business community and to the scientific community as well because sadly we know that research and development investment is seen to be high-risk investment.The Government has a very important role to play here. MBIE officials said clearly that $150 million per annum is needed and Government didn't invest that kind of money in this Budget which has sent a negative signal to the business community and scientific community because if they see that the Government is not willing to invest their share then why will they invest? That creates that impression that there is something not very good in the environment for investment in research and development. So I don't have any confidence in this Minister of Government's ability to increase business spending on research and development."