Research fund greeted with joy and caution

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Everyone from sheep and beef farmers to kiwifruit growers are full of praise for the Government's newly-announced $700 million boost for agriculture.

Prime Minister Helen Clark unveiled the funding for research, development and innovation projects yesterday, and said the fund would grow to about $1 billion as it earned interest over the next 10 to 15 years.

Industries would be expected to match the government's commitment, taking the fund to about $2 billion.

A cautionary note was sounded by science research institute AgResearch, however. Chief executive Andrew West said the fund was "absolutely brilliant", but added that it would be spread thinly across the sector.

"It's for market development, education and science, and it's going to be spread across fruit and vegetables, arable, seafood and livestock.

"Competing for that money will be a very large number of institutions - there's 23 polytechnics, eight universities, nine crown research institutes, plus the Government's talking about giving to private institutions.

"I wouldn't advise anyone to budget in massive increases."

Dr West expected tensions to arise between what the Government expected from its investment and what the industry wanted to do with the money.

The Government wanted to see value added to food exports, but Dr West said many organisations would want to spend the money on recovering ground lost during 25 years of falling investment.

AgResearch was a case in point. Its flagship science centre, Ruakura, near Hamilton, was based on obsolete buildings.

"When you take the presidents of countries to Ruakura it's an embarrassment. Are we going to be bold and rebuild some of our iconic institutions and capabilities, or have yet more requirements and forms to fill in to get packages of money that are relatively small?"

His views were echoed by Veterinary Association president John Maclachlan, who said that though the funding injection was welcome news, "we just hope it is in time to rescue declining morale and lost capabilities in the scientific community".

Wholehearted support came from Massey University professor of pastoral agriculture Jacqueline Rowarth. She said the fund would be a big help in turning around students' negative impressions of agriculture.

Tony Nowell, former co-chairman of the Food and Beverage Taskforce that in 2006 had recommended action to meet a target of increasing output from pastoral industries by at least 50 per cent by 2016, described the fund as an important step in New Zealand's economic transformation that would help address many of the taskforce's recommendations.

National leader John Key dismissed the fund as a gimmick.

"Labour's model carries a considerable risk, and will be at the mercy of the investment strategy employed. What will happen in a bad year? How will the money be invested? What are the forecast returns?"

National would announce its policy closer to the election, he said.

Business NZ chief executive Phil O'Reilly said the initiative had enormous potential. Industries taking part in the partnership would want to see commercial outcomes for their investment.

- © Fairfax NZ News