Two MED funds cancelled

Two Ministry of Economic Development funds with ambiguous aims are being cancelled, with savings returned to the Government, Economic Development Minister Steven Joyce says.

The Government is focused on investment that supports the business growth agenda of building a more productive and competitive economy.

The Enterprising Partnerships Fund and the Transformational Initiatives Fund, set up by the previous government in 2007 and 2008, are being disestablished. This saves $26.1 million operating over the next four years.

“These funds had ambiguous aims and were established in another time,” Mr Joyce says. “In tight economic times, the Government is focused on investments that create clear, unambiguous benefits. These two funds do not meet that test and the savings will be returned to the Government and reinvested in priority areas.

“Funding applications need to move away from an ad-hoc basis and stand on their own merits when assessed against all other Government priorities.

“Our business growth agenda and 120-point action plan are focused on what matters to business, and companies can more easily access the support they need.

“I am confident the new Ministry of Business, Innovation and Employment will make it easier for entrepreneurs and businesses to engage with the Government.”

The overall decrease in Vote Economic Development for 2012/13 is primarily due to major projects finishing, such as the Rugby World Cup, America’s Cup support, and the establishment of Food Innovation New Zealand.