New funding balance for PGP programmes reduces Govt share of co-investments

The Crown’s investment share in new Primary Growth Partnership programmes will shift from 50 per cent to 40 per cent from 1 December, but  overall annual funding remaining the same.

Announcing the change, Primary Industries Minister Nathan Guy said the PGP – about five years after being set up – was being aligned to other Government Funds such as the Callaghan Fund.

The Government also believes the commercial benefits of the PGP are higher than the public benefits, “which makes it only fair we tweak the formula”.

Current PGP programmes are not affected by the change. The 40 per cent Crown investment ratio will apply to funding approved for new PGP programmes or for funding extensions of existing programmes approved by the Ministry for Primary Industries (MPI) from 1 December.

The change will not affect the minimum total amount that industry must co-invest in PGP programmes, which will remain at $500,000 over the lifetime of the programme (or $71,500 a year for a seven year programme).

The PGP has 18 programmes under way and a total of $724 million co-invested.

A 2014 report by NZIER estimated that PGP programmes will add at least $6.4 billion per annum to New Zealand’s economy by 2025.

Improvements are also being made to simplify the application process to encourage smaller sectors to apply, including:

• introducing simpler reporting requirements;

• providing assistance to applicants for business case development; and

• exploring opportunities to assist smaller sub-sectors to access the PGP.

The PGP aims to boost the value, productivity and profitability of our primary sector through investment between government and industry.

PGP programmes are generally long-run programmes of five to seven years’ duration and are subject to oversight and monitoring by an independent panel (the Investment Advisory Panel) and MPI.

Monitoring requirements include programme steering groups, quarterly progress reporting, annual plans, financial audits, and progress reviews, along with evaluation of the overall programme. Government funding is only released to programmes on receipt of invoices for work completed in accordance with programme plans.

More information is available at: http://www.mpi.govt.nz/funding-and-programmes/primary-growth-partnership/

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: