‘Let’s talk post-Budget’: Stuart Nash hints at funding for high-tech factories

The Government, unions and businesses have created a “transformation plan” to re-energise the country’s manufacturing sector, to create high-tech factories. Now the challenge is how to pay for that plan.

Economic Development Minister Stuart Nash talked up the prospect of high-tech manufacturing, when he launched the “advanced manufacturing industry transformation plan” on Monday. It’s an official Government roadmap, outlining how experts in the field imagine manufacturing could become one of the biggest sectors of the economy.

But it wasn’t immediately clear how industry and Government would realise their plan.

Nash confirmed $30 million, already budgeted last year, would fund immediate actions as a result of the plan.

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“This includes $3.65m for company-specific advice on adopting advanced technologies and processes, $4m to upskill manufacturing workers in digital skills, and $2.9m for company-specific support to achieve circular low-emissions manufacturing,” he said.

But the plan also called for some more expensive actions, to encourage companies to invest more in research and development.

Regarding some of those proposals, such as more grands or tax breaks for research and development, Nash said: “Let’s talk post-Budget.”

He said the $30m announced Monday wouldn’t be the Government’s only investment in advanced manufacturing.

“It’s absolutely not enough. But it’s a first. There’s a Budget process to go through,” he said.

“I have a very clear number in my mind.”

Nash said the recent cyclone would chew up much of that extra Budget spend, but he said these initiatives could fit within a wider cyclone recovery package.

In particular, he said he was interested in how a more high-tech forestry industry could be built in Tairāwhiti and Hawke’s Bay post-cyclone.

As well as easier access to investment and grants, the plan also called for support from diplomats on international trade missions promoting New Zealand manufacturing. It also highlighted staffing issues, calling for a domestic and international recruitment campaign with a particular focus on the Pacific.

The advanced manufacturing roadmap wasn’t the only one of the Government’s “Industry Transformation Plans”. Since 2019, it had developed plans to futureproof agritech, construction, digital technology, fishing, food and wine, forestry and tourism.