Gerry Brownlee. Pic: NZPA

Wellington, April 20 NZPA - The Government is reviewing assistance it gives to business, Economic Development Minister Gerry Brownlee said today.

He has started by combining three New Zealand Trade and Enterprise (NZTE) schemes into one fund saving the Government about $40 million over two years.

Other programmes under review were provided by the Ministry of Research Science and Technology, the Ministry of Economic Development, and the Foundation for Research, Science and Technology. The review would also cover the work of the New Zealand Venture Investment Fund.

It will be be led by the Department of the Prime Minister and Cabinet and include senior representatives from the providers and Ministry of Foreign Affairs and Trade.

Mr Brownlee said business had called for a revamp of government assistance at its jobs summit earlier this year.

"I want to focus that assistance where it provides greatest value for money and delivers greatest economic benefit,"

The review would be completed by June 1.

Improvements would be run by private sector leaders and PriceWaterhouseCoopers chairman John Shewan and Andy Hamilton from Icehouse had agreed to be involved.

Its terms of reference included removing overlap, confused purpose and a lack of coherence in programmes.

The new NZTE fund would be "smaller but better targeted".

It would focus on businesses with the potential for high growth in new markets, or those which already had established a global presence but were seeking to expand or intensify their operations.

By July 2010, when the other grants will be phased out, $30.5 million would be available through the fund and businesses would have to match NZTE's contribution.

The overall budget allocated for NZTE grants programmes is being reduced in 2009/10 by $10 million and $30.4 million in 2010/11.

The total budget for the new single flexible fund will progressively increase from about $9.6 million in the year to June 30, 2010, and about $30 million in the year to June 30, 2011.

Businesses that are not eligible for the new fund will still have access to assistance from NZTE and third parties, Mr Brownlee said. This included other NZTE programmes, training, offshore services and third-party business support programmes.

"We recognise that many of these businesses also need help surviving in the current economic environment. NZTE is improving its standardised tools and programmes with this in mind."

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