. /.WORLD TRADE
ORGANIZATIONG/SCM/Q2/NZL/9
27 January 2003
(03-0521)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the UNITED STATES Regarding the
New and Full Subsidies Notification of NEW ZEALAND1
The following communication, dated 23 January 2003, has been received from the Permanent
Mission of the United States.
_______________
The following are questions regarding the notification of the New Zealand pursuant to
Article XVI:I of the GATT 1994 and Article 25 of  the Agreement on Subsidies and Countervailing
Measures, in document G/SCM/N/71/NZL.
A. GENERAL QUESTIONS
1. In the September 2001 reply to questions from the United States G/SCM/Q2/NZL/8, you
indicated that neither the Public Good Science Fund (PGSF), nor its successor had been used to
subsidize the New Zealand meat industry.  Howe ver, in a December 1998  PGSF Evaluation Report
No. 84, published by the Mi nistry of Research, Science and Technology (http;//www.morst.govt.nz),
you indicated that sheep and meat farmers were targeted and potential recipients of PGSF funds.  The
report goes on to state that these farmers part icipate in PGSF research funding through groups that
collect levies or belong to a group involved with a research organization.  Please confirm whether thisis still the case and whether Meat New Zealand is eligible for or is receiving PGSF funding?  In
addition, the report goes on to state that PGSF funds have been used to improve technology to chill
meat for export. Please explain, why this was not notified as a subsidy to the New Zealand meat
industry?
2. Can you please provide additional information regarding the Sustainable Farming Fund?
How many projects were funded under this programme?  What agricultural sectors are specifically
targeted for assistance?  Are cattle ranchers or beef processors eligible for assistance under this
programme?
B. BIZ E
NTERPRISE AWARDS
1. How many individual firms received aid under this programme?  What are the principal
industry sectors that receive this aid, and what percentage of total aid do they receive?  Are cattle
ranchers eligible?
2. Please explain what is considered an early-stage business concept and project?
                                                     
1 G/SCM/N/71/NZLG/SCM/Q2/NZL/9
Page 2
C. BUSINESS GROWTH FUND
1. Is assistance under this programme limited to certain industry sectors?  How many individual
firms received aid under this programme?  What are the principal industry sectors that receive this aid,
and what percentage of total aid do they receive?
2. Could you please explain in more detail what types of costs are funded under this programme
in order to “help businesses implement strategies for business growth?”  Please also provide an
example of what is considered “specialist expertise and information”.
D. MAJOR INVESTMENT FUND
1. Please explain how new investment opportunities are identified for support under this
programme.  In particular, what criteria are used to determine eligibility?  Are there any sectoralrequirements, or are all industry sectors eligible?
2. Please explain how access to other government funding programmes is facilitated under this
programme.  Have all of these other programmes been notified to the Subsidies Committee?  If not,
does the Government of New Zealand intend to notify such programmes?
3. How many individual investors received aid under this programme?  What are the principal
industry sectors that these investors represent?
E. R
EGIONAL PARTNERSHIP PROGRAMME
1. Is assistance under this programme granted to individual enterprises or only to “governance
groups” such as local authorities?  Can you please define what is considered a “governance group”?
2. With regard to the form of assistance, please explain what is meant by “strategic audits” and
“capability building”.
F. GRANTS FOR PRIVATE SECTOR RESEARCH AND DEVELOPMENT SCHEME
1. How many individual firms received aid under this programme?  What are the principal
industry sectors that receive aid, and the percentage of total aid they received?
2. Is funding limited to the R&D stage or is funding available throughout the production cycle of
the product in question?
G. TECHNOLOGY FOR BUSINESS GROWTH SCHEME
1. Please explain what criteria must be met for a firm to meet the definition of “technologically
capable”.  Is funding under this programme available to any size firm?  How many firms have
received aid under this programme?  What are the principal industry sectors that receive aid?
__________