I would've hoped Key and Joyce be sophisticated enough to know governments can't do any of these things other than by getting out of the way of innovating entrepreneurs. And $1 of my money to give to such an entrepreneur is still immoral.

Mr Joyce is just saying this so as to show that govt cares. He knows full well that govt just wastes money doing this. Mind you if my company was to be in receipt of some govt money(taxpayer) I may vigorously advocate such measures.

“Labour introduced significant 15% R&D tax credits in 2007 as well as the $700 million Fast Forward fund for research-led growth. Business responded and there was a notable jump in private-sector R&D activities in the 2009 financial year.

“As soon as it came to power, National scrapped both programmes and John Key effectively added to the tax burden on those businesses that were investing in New Zealand’s future.

“It’s little wonder that private-sector R&D activities fell back before National was forced to restore a comparatively paltry $50m of annual credits.

“Today’s Statistics New Zealand Business Operations Survey shows just 9% of firms undertook R&D in 2011. While this is positive, it still leaves New Zealand’s total R&D spend as a percentage of GDP ranking below India, Brazil, Turkey, Poland, Mexico and Iran.

“R&D tax credits were welcomed by a wide range of businesses as a positive element of any credible growth plan. National wasn’t listening then and its recent backtracking has been half-hearted.

“We need a high-value research-led future. Brutal and arbitrary changes to the R&D tax regime do nothing to get us there,” said David Cunliffe.

Cheap electricity for businesses to make us competitive against the rest of the world would be a good. Everyone else is doing it - just look at China, Korea and Japan, all economic miracles built on cheap (mostly nuclear) power. It's the dirty little secret of their success.

Sorry Terence

While some politicians may be useless at business you can't say they all are.

The two politician's quoted in the story, John Key and Steven Joyce, have both had very successful business careers before becoming politicians. They both have plenty of clues and I doubt they smoke any cigars.

All around the world R&D necessarily involves partnerships between the public and private sectors. The company I work for has developed innovative technologies with government support and is a great example of how it can work successfully.

If the government really wanted to help the majority of NZ business’s – read SME’s with less than 10 staff – then fix our employment legislation!

Labour foisted a skewed employment landscape upon SME’s, skewed with many, many loopholes, uncertainties, and plenty of fish hooks should a single, small step in the HR process minefield go astray – employers are then forced into lengthy, costly and highly stressful ERA process’s.

To avoid those costly, stressful hassles – just don’t employ anyone – unless they are on a “contract for services” and operate through a contracted Ltd Co – to avoid all the red tape employment/taxation/ACC liabilities that come with employees. Why take on the risk if you can avoid it?

Employment is not a function of any government! (Although you’d think otherwise in the public service with a Labour government) The government’s role is to create the environment for the productive sector to be more productive, nimble and innovative.

Employment should be on a true meritocracy basis - gained on skills and abilities brought into the relationship from the employees side of the equation. Employment is kept through the productive and effective manner those skills are delivered for the employer and their business. Employment “security” can only come from an individuals ability to keep themselves in employment, up-skilling themselves with continuous learning and development. (Something teacher unions don’t like at all!) Employment security can never come from union in-put or legislation – because regardless of any of these, if the business goes broke, everyone in that company is back on the job market – no security at all. Job security can ONLY come from an individual’s ability to provide the skills an employer needs.

Most Kiwi’s I know of are tired of prostituting NZ’s well being and productivity at the expense of subsidising someone who is not capable of performing a job to the required standard. NZ’s wonky and skewed employment legislation actually stops business’s from performing to their capacity – especially where there’s union flotsam in the mix. The union-manufactured fiasco at PoAL is a prime example.

Remove the risks and liabilities SME employers face – and NZ’s productivity will skyrocket bringing unemployment levels down with it…

…and whilst sorting employment legislation – please change the law to make unions collect their own membership fees directly from their members – not having employers do it for the unions and then the unions spitefully attempt to sabotage business to the tune of millions is a slap in the face of sensible outcomes. Yep PoAL is a prime example again…

Erode the income of these union parasites and blights on NZ productivity by forcing them to collect and administer their own entities' income fees. The unions will need to demonstrate their worth to their members and the members will flock off even quicker than they have been – further eroding the unions ability to offer “related party” funding and donations to their political wing – the Labour Party.