Sector keen to see how new funds will work

EXECUTION will be key.

That is what business leaders had to say about yesterday’s Budget.

Queenstown Chamber of Commerce chief executive Ruth Stokes said she was looking forward to how the Government’s new $54.2 million innovation programme for tourism recovery would ‘‘actually play out’’.

Tourism Minister Stuart Nash said the new programme, subject to ‘‘further detailed design work’’, would prioritise innovation and lowemissions projects, and support tourism recovery.

‘‘We have a strategic priority to reset and rebuild tourism on a more sustainable footing,’’ Mr Nash said.

‘‘We will work alongside tourism businesses to develop new, innovative ideas that improve sustainability and productivity of eligible businesses.’’

The Government would also reallocate funds from previous tourism support programmes which had not been drawn down by eligible businesses, he said.

Ms Stokes said there were many state funds which had not been fully subscribed, including the controversial strategic tourism asset protection programme, the shovelready and regional strategic partnerships funds and the small business loan scheme.

The Government also announced yesterday it was teaming up with retail banks to create a new fund that will invest in small and mediumsized enterprises.

It will invest $100 million, alongside the banks, in a new Business Growth Fund.

The Crown will have a minority shareholding in the fund, which will be ‘‘privately operated’’ and ‘‘independently managed’’.

BusinessNZ welcomed yester

day’s Budget saying execution would be key.

Chief executive Kirk Hope said the fund for small businesses was excellent, but he questioned how it would operate.

Southland Chamber of Commerce president Neil McAra said there was not a great deal in the Budget for businesses.

While the Budget focused on shortterm inflationary pressures, it did not focus on the underlying cost pressures business were facing, he said.

Mr McAra was pleased to see $380 million for research and development in agriculture.

Canterbury Employers’ Chamber of Commerce chief executive Leeann Watson said some of the initiatives announced would go some way towards helping business.

However, the chamber would have liked to see more emphasis on initiatives that would help with longterm economic recovery, she said.