BUDGET 2012: MED funds scrapped, saving $26m
Two funds created by Labour had "ambiguous aims", Economic Development Minister Steven Joyce says.
Two funds created by Labour had "ambiguous aims", Economic Development Minister Steven Joyce says.
The Ministry of Economic Development has canned two funds set up by the previous government, saving $26.1 million over four years.
Economic Development Minister Steven Joyce says the enterprising partnerships fund and transformational initiatives fund, established in 2007 and 2008, had "ambiguous aims", and would be cancelled.
"In tight economic times, the government is focused on investments that create clear,unambiguous benefits. These two funds do not meet that test.
"Funding applications need to move away from an ad-hoc basis and stand on their own merits when assessed against all other government priorities."
Mr Joyce says it will be easier for entrepreneurs and businesses to engage with the government through the new Ministry of Business, Innovation and Employment.
An overall decrease in economic development spending is largely because of the end of major projects, such as the rugby world cup, America's Cup support and the establishment of Food Innovation New Zealand.