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Source: ONE News -
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Agriculture Minister David Carter says the Primary Growth Partnership announced in the government's Budget on Thursday will help New Zealand stay ahead of its competitors.
Speaking to the Canterbury Employers' Chamber of Commerce on Tuesday, Carter said the government would put $190 million over the next four years towards the fund, starting at $30 million this year and rising to $70 million each year from 2012-2013.
The funding is expected to be matched by the private sector.
New Zealand is the world's largest dairy and sheep meat exporter and is also a major producer of horticultural products.
Carter says the these sectors generate 64% of New Zealand's merchandise export earnings and are the only major sectors in which New Zealand is truly competitive at a global level.
However, he says New Zealand is no longer one of the world's lowest cost producers and is at risk of being outpaced by competitors.
In an attempt to boost New Zealand's competitiveness, the government will distribute $2 million each to five different sectors: pastoral (including wool), horticulture, seafood, forestry and wood products, and food processing.
Any funds not used will be added to a $15 million contestable fund.
Carter says the partnered fund supersedes the Fast Forward Fund initiated by the former Labour-led government.
"Fast Forward was funded through a nebulous capital fund that was to be drawn down over a period of 15 years. The Primary Growth Partnership is funded through an ongoing, annual government appropriation that will be matched by industry," Carter told the chamber of commerce.
He says the priorities and strategic direction of the partnership will be led by those industries that get involved.
It will be managed by an Industry Advisory Panel chaired by former Fast Forward Fund chairman, Bill Falconer.
The fund will also set aside $5 million for research into technologies that reduce on-farm greenhouse gas emissions and improve on-farm efficiency and productivity.
