By Ian Llewellyn of NZPA

Wellington, Aug 21 NZPA - A science investment fund scrapped by the incoming Government spent more than $400,000 setting up and then winding down without ever making a grant.

More than a quarter of this went on directors fees who remained on the board until May, six months after they were told to wind the fund up.

Labour set up the Fast Forward Fund last August to act as a joint investment vehicle for private and public funds to boost the pastoral and food industry.

After National won last year's November election, the company set up to run the fund was told to wind up its affairs in December, less than five months after it began operating.

The fund's first and final annual report to the 10 months to May 31, 2009 showed that it spent $412,822 of the $454,000 set up grant it received and returned $38,946 back to the Government.

The report shows the seven company directors remained on the board until May when five retired.

In total the directors were paid $107,645 in fees, with chairman Bill Falconer paid $26,250.

The directors also charged $16,073 in expenses and cost $102,410 in executive support.

A strategy team also cost $115,986 to work out how best to spend the money the fund never got.

There was also another $28,000 spent on other consultant fees, $16,725 on director fees and $7,183 on administration and catering expenses.

Mr Falconer said the company had hired no staff but had completed some tasks following getting a letter of expectation from the Government on October 21.

It had submitted a draft business plan and began forming development plans before it sent a report to the new Government about its work on December 12.

Work had been done compile a stocktake of sector strategies and put together a discussion document.

Board members had engaged with sector stakeholders and conducted workshops.

Labour trumpeted the fund as a $700 million commitment to research that would be boost the economy. National claimed there was no money for the fund when they opened the books.

No money was received or paid out for any innovation projects.

NZPA PAR il dw