Growing a smart and innovative economy

Labour has yesterday announced it will introduce a research and development tax credit at a rate of 12.5% to help get our country moving again and to grow a smart and innovative economy.

“It’s estimated that areas like health and clean technology could boost our economy by up to $22 billion a year. That kind of potential must be nurtured and encouraged,” said Labour Leader Phil Goff.

The policy to boost investment in R&D will cost an average of $160 million a year – a total of about $800 million over five years.

Labour will pay for the R&D tax credit policy by bringing agriculture back into the Emissions Trading Scheme by 2013 as originally intended. That means agriculture will pay $800 million towards its emissions over the period of 2013-17.

“It is essentially a straight swap. Today’s announcements are an example of exactly how Labour will show how it will pay for every promise it makes. We will not leave a list of broken promises littered behind us like John Key and National have.

“Agriculture is vital to our economy but the sector should pay its fair share. National’s decision to delay agriculture’s admission to the ETS costs around $800 million over five years. We, as taxpayers, and other industries are paying for this.

“The move will also encourage the agriculture sector to move quickly to reduce global warming gasses which account for 48% of New Zealand’s greenhouse gas emissions.

“Both the R&D investment and bringing agriculture into the ETS as originally intended in 2013 will enhance New Zealand’s clean green brand.”