Industry, infrastructure and housing
Long-term plans are being run through the Ministry of Business, Innovation and Employment, to increase productivity across 7 areas of the economy. So far, Industry Transformation Plans (ITPs) have been developed for the agritech and construction sectors, and are currently being developed for digital technologies, advanced manufacturing, food and beverage and forestry and wood processing sectors.
Investment in research and development and increasing our effectiveness as exporters will be critical here. Research and development tax incentives to promote business innovation are quantified in Budget papers as $40m for 2018/19, $213m for 2019/20 and $313m for 2020/21 in taxation foregone. The presumption is of a continuing trend at least for now.
SMEs in the tourism sector are promised $200m to drive recovery in the sector, with focus on the hardest hit regions of Kaikoura, Mackenzie District, Queenstown Lakes, Fiordland and South Westland. The package also commits $15m deployed by New Zealand Māori Tourism to support Māori Tourism operators.
A new Regional Strategic Partnership Fund is being established with $66.11m, reprioritised from existing commitments, funded through the Provincial Growth Fund. It supports regional recovery and development priorities, including creating more productive, resilient, and sustainable regional economies.
A $57.3b programme of infrastructure spending is planned from 2021 to 2025, including $10b in roads and public transport projects, and $810m on rail.
A new Housing Acceleration Fund commits $3.8b over four years to fund infrastructure and delivery of large-scale projects, providing a mix of public, affordable and market housing.
$380m is allocated for Māori housing solutions, including building new houses in areas with high rates of Māori housing deprivation and repairs to existing stock. $350m from the Housing Acceleration Fund has been ring-fenced for infrastructure to support the new builds.
Several initiatives relating to tenancies are being introduced, totalling around $100m, including $16m for enforcement of Healthy Homes Standards.