Young JonathanJONATHAN YOUNG (National—New Plymouth): Thank you for the opportunity to speak about this bill. Now we did support this bill at the first reading because obviously we want to be open to ideas that are going to enhance New Zealand's productivity especially in the space of R & D. But we have come to the conclusion that our support will not go ahead for this bill because we do see some flaws in it.I know the previous speaker Michael Wood referred to trying to work out different ratios of support to different types of companies but particularly for those who are in pre-profit situations that are still investing quite heavily in their R & D—and I'm talking about millions of dollars—that don't have a strong profitable income that they can claim a tax credit for. Such a company exists in New Plymouth and I've met a number of them who have literally spent millions of dollars in developing their technology and in fact have received overseas support from the United States Department of Energy. But that support is going to be matched dollar for dollar. So a tax credit doesn't really work for them because they do need substantial grant funding. Now they could go to market they could sell equity but then they would lose their intellectual property. They would lose the opportunity for the workforce and the technologists and the engineers in my electorate to be able to take benefit from this.Another aspect I think that we feel is perhaps being lost in the debate is in fact that R & D investment was and has been increasing in New Zealand for some time. Now I know the Government's intention and aim is to get up to 2 percent of GDP within the next 10 years from a current level of around about 1.25 percent. I was interested to read Business New Zealand's submission where they stated that in order to get to that point of 2 percent of GDP in 10 years' time the increase of investment in R & D needs to be around about 8.3 percent per annum. What they noted was that between the years 2016 and 2018—that year between obviously 2017—the increase in investment at that particular point in time was around about 17 percent. So what they alluded to was the fact that the grants system was working. It was bringing a positive input into investment in R & D.And yes the Government would believe that an R & D tax credit will as they state open up opportunity for a lot more businesses—and there's no denying that or decrying that. But what we asked when the Minister came to our committee was: is this new money or is it going to be replacing the grants system that Callahan Innovation have led for the last four to five years? And it appeared that through discussion and questioning in time the grants system from Callahan Innovation will disappear and it will be purely an R & D tax credit.Look I would see that as disappointing because I do know there are companies where the grants system particularly works and is really needed. We do want to support people right across the business industries and industry and some of the proposals that this bill talks about don't work for everybody. So I would implore the Government to be open-minded and to look at different ways in which they can meet the R & D needs of these companies and industry in our country. Thank you sir. I just finish with that point.