Single NZTE grant scheme announced

The government has announced that it is combining three of New Zealand Trade and Enterprise’s existing grant schemes into one single flexible fund to assist businesses in growing globally. The government is also reviewing business assistance programmes. 

The announcement follows.

New flexible scheme for business assistance

The government is establishing a single grant scheme to assist businesses growing globally by combining three of New Zealand Trade and Enterprise (NZTE)’s existing grant schemes into one single flexible fund.

Economic Development Minister Gerry Brownlee said the new fund will be targeted at businesses, irrespective of size, with the potential for high growth in new markets, or which already have an established global presence but are seeking to expand or intensify their operations.

New criteria will ensure support for businesses that are most likely to generate significant economic returns for New Zealand.

“Experience and evidence indicates that focusing efforts on a targeted group of businesses generates greater net economic benefits than spreading assistance thinly across many businesses,” Economic Development Minister Gerry Brownlee said.

“The new fund will give much more tailored and flexible services to the businesses that we can add the most value to. This is particularly important in the current economic environment where businesses face challenging trading conditions.”

By 1 July 2010 a total of $30.447 million will be available to businesses through the single flexible fund. Businesses using the fund will need to match NZTE’s funding contribution.

NZTE’s Market Development grant will continue for one more year and then be phased out over the following year. The Capability Building grant will be phased out over the next year.

The Growth Services Fund, which supports firms to develop skills and resources to implement their growth strategy, will be expanded and altered to form the new single flexible fund, resulting in a funding scheme that helps support businesses growing globally.

Businesses that receive support from the new single flexible fund will work closely with NZTE so that NZTE can assess the best package of funding and other support services for those businesses and for New Zealand’s economy.

“NZTE will work more intensively with these businesses to better understand the strategic issues they face. They will develop tailored packages of services (including grants) that address their specific needs and deliver benefits to the wider economy.”

More than half of the budget currently allocated to the various grant programmes run by NZTE is being transferred to the new fund. 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 approximately $9.6 million in the year to 30 June 2010 and approximately $30 million in the year to 30 June 2011.

Businesses that are not eligible for the new fund will still have access to a wide range of assistance from NZTE and third parties. This includes 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.”

Operational details of the fund are being worked through and further details will be announced by 1 July 2009.