Kiwi ideas will benefit Canada, not us

The sale of a cutting edge, taxpayer-owned research company to an overseas buyer means that Canada, not New Zealand, will reap the benefits of Sirtrack Limited’s innovation and scientific expertise in the future, says Labour Leader David Shearer.

Havelock North-based Sirtrack, a world-leading wildlife tracking design and manufacturing company, was formerly an independent subsidiary of New Zealand Crown Research Institute Landcare Research, but was sold to Canadian company Lotek Wireless Inc late last year.

“It is currently legitimate for CRIs to sell off subsidiary companies, and to use the funds for future research, but there has to be a better way of doing it so we retain ownership here,” David Shearer said.

“We should be nurturing companies like Sirtrack, not selling off our best ideas to foreign buyers.”

David Shearer said Sirtrack, which last year tracked penguin Happy Feet on its release, had deployed state-of-the-art tracking systems on more than 550 species across 70 countries.

“When New Zealand develops expertise that is in such wide demand internationally, it makes no economic sense long-term to let a foreign company reap the continuing financial benefits of that expertise.

“It is understandable if a CRI doesn’t feel it is best-qualified to continue to lead the development of a company like Sirtrack, but that doesn’t mean it should just be sold off and lost to New Zealand,” David Shearer said

“The issue is not about CRI ownership as such. By all means CRIs should be able to divest themselves of subsidiary companies, but it is important that NZ Inc retains ownership.

“We need to keep our best and most innovative brains working for New Zealand, not for the benefit of other countries,” David Shearer said. “We need to develop the concept of a fund that CRIs can tap into, but that allows our best innovators to flourish in New Zealand’s economic interest.”