— $331.8 million (over four years) for industry and regional development through the Ministry of Economic Development (MED) Jim Anderton's "jobs machine" initiatives (see The Jobs Letter No.120)

—An extra $30 million for research, science and technology ... including a record $20.8 million allocation to encourage R&D in the private sector.

—$42.2 million (over four years) for the Modern Apprenticeships programme (announced earlier this year, see The Jobs Letter No.121).

— New funding of $42 million (over four years) for Maori and Pacific community organisations to "improve their capacity to promote economic and employment activity".

—$8.5 million (over three years) to establish Community Employment Organisations (CEOs). This new programme aims to assist the development of community-based organisations which are "creating employment for disadvantaged individuals".

—an Artworks programme, worth $585,000 (over three years) to "create employment in the creative industries".

—an Activity in the Community programme which will replace the Community Work scheme. This new programme expects to work with up to 13,000 participants in its first year. The government will be reallocating $33.6 million of existing funding together with investing a further $24.9 million "...to refocus the scheme and better tailor it to the needs of individual job seekers".

—$330,000 (over the next year) to trial specific programmes aimed at meeting the needs of the recent migrants to New Zealand and the growing number of unemployed mature job seekers.

— An increase of $23 million (over four years) in the Industry Training Fund, taking this fund to $281.8 million, over four years).

— $32 million extra (over four years) for the Training Incentive Allowance.

—A variety of measures "to help lower the cost of tertiary education".

— $3 million extra (over four years) to Student Job Search.

—$8 million (over four years) to adult education and community learning services to help improve basic literacy skills.

—an extra $6.2 million (over four years) to enable the Careers Service to expand the careers education it provides to schools and parents, including the development of information on the KiwiCareers website.

— a commitment to permanently fund the CareerPoint 0800 information line which provides free and impartial advice on career and training options, and is aimed at all age groups.

— $4 million to pilot a new Gateway programme designed to improve the transition from secondary school into the workforce.

— $1.7 million (over three years) to "undertake action research into new employment initiatives".

— $2 million (over four years) for the Department of Labour to produce advice on "future work trends".

How do you qualify? A proposal must involve a number of community groups; have emerged from an inclusive regional development consultative process; have local funding of at least 25% of the total cost; and, "be sustainable and consistent with the Government's policies".

How much is available? Up to $100,000 for any single strategic planning or audit initiative in any single region. Up to $2 million for major regional or community initiatives.

How do you qualify? A proposal must come from New Zealand resident individuals and businesses with well-developed early stage project proposals that are committed to growth. Grant applications need to show a minimum contribution of 50% from non-government sources.

How much is available? The grants will be limited to $10,000 in any one year.

The government plans to fund a national programme of workshops and seminars which will provide information and training to small businesses about obtaining investment capital. It also will support a national network of "ideas brokers" who will act as a focal point for innovative entrepreneurs and companies and help them obtain investment funding.

Source Backgrounder 15 June 2000 "Industry and Regional Development" Jim Anderton

Anderton defines sustainable development as "meeting the needs of the present generation without compromising the ability of future generations to meet their own needs". He says that the Budget announcements represent the first time that the government has taken environmental and social factors into account alongside purely economic ones.

Anderton: "Sustainable development means a major shift in government policy. Previous governments have only worried about short-term economic gain which has often been at the expense of the environment or jobs. This new approach realises that the benefits of growth do not always trickle down, and sustainable development must address human needs directly..."

Source Press Release 14 June 2000 "Sustainable Development, key to new industries" Jim Anderton and Phillida Bunkle.

Steve Maharey defines these community enterprises as providing services of benefit to the economy or the environment ... but they should not be in direct competition with the private sector. His examples: foreshore beautification programmes, or providing clerical and financial services to community organisations. His goal: that Winz will start referring job seekers to CEOs later this year.

How will CEOs be funded? The final policies are still being worked out. The preliminary information available suggests that the CEOs will be eligible for partial wage subsidies to employ disadvantaged job seekers, with the CEO topping up the subsidy to at least the minimum wage. There is also the expectation that CEOs should be trying to become independent of wage subsidies over time and looking to take on some of their workers on an unsubsidised basis once the subsidy ceases.

Source Press Release 20 June 2000 "Maharey announces plans for Community Employment organisations" Steve Maharey

Steve Maharey says that an immediate priority for this funding will be a project to determine how we can close the "digital divide" between those with and without skills and access to information technology "...so that all New Zealanders can better take advantage of the world-wide growth in the knowledge industries."

Source Budget 2000 Press Release 15 June 2000 "Creating New Jobs Opportunities" Steve Maharey and Parekura Horomia

Specifically, this new work will involve:
— Increasing the area of high conservation-value habitat under possum control.
— Goat control to improve natural habitats and prevent expansion of goat populations into currently goat-free areas.
— Managing deer farm escapes and illegal releases to prevent new deer populations establishing.
— Investigating the impacts and distribution of noxious fish, including Gambusia and Koi carp, and putting in place measures to contain their spread.
— Actively searching for new weed invasions while they are still manageable.

Source Press Release 8 June 2000 "Biodiversity Funding - Animal Pests And Weeds" Sandra Lee

This funding is part of Green leader Jeanette Fitzsimons' long-held view that until we change the way the government and business accounts its environmental costs the green "bottom line" then the environment will continue to bear the brunt of economic development.

Fitzsimons: "Accounting can seem a bit dry at times, but the profit and loss figures at the bottom affect every decision that businesses and government make. GDP currently includes many negative costs such as pollution and biosecurity invasions in its measure of economic activity, and excludes constructive voluntary activities such as parenting and skill-learning. Modified national accounts would measure progress in a more sensible way, by including positive activities such as voluntary work and unpaid childcare, and deducting negatives such as pollution and biosecurity clean-ups. This programme is a crucial first step towards measuring genuine progress and ensuring that economic activity is sustainable rather than destructive..."

Source Press Release 14 June 2000 "Green Package far reaching" Green Party; and "Green Accounting counts the environment" Jeanette Fitzsimons

The Topoclimate South project involves the intensive surveying of 805,000 hectares of Southland and Otago to map their soils and microclimates, taking the guess-work out of developing more intensive land-use opportunities in the region. The trust is working closely with another economic development trust, Crops for Southland, which has been set up by commercial interests, farmers, growers, and scientists in conjunction with the regional and local authorities. Crops for Southland has been researching the alternative crops that can be grown in the region (such as Meadowfoam, Boronia, Cranberry, Gentians, Paeony, Valerian and Wasabi) and developing the markets for these crops which will make new enterprises viable. The job opportunities inherent in this strategy will be considerable.

In April, the Southland Times reported that there were just five flower and bulb growers in Southland five years ago, but now this number has increased to more than 90. Topoclimate South quotes research by the Dutch government which says that one extra job is created for every hectare converted to intensive horticulture and, in addition to this, an extra eight positions are created downstream.

Source vivian Hutchinson; and Press Releases from Topoclimate South 15 June 2000 "Government allocates $1.8m to Topoclimate south mapping project" Murray Ballantyne; "government allocates $1.8m for Topoclimate mapping for Southland" Helen Clark and Jim Anderton;

The report, by economist and statistician Des O'Dea, shows that the incomes of the richest 10% of households rose significantly between 1982 and 1996 (allowing for inflation) while incomes of households in the lower- and middle-income bands fell.

When similar statistics were produced last year by Statistics NZ (based on their household economic survey) the results were criticised, in some quarters, because the survey was based on a relatively small sample of the population. But O'Dea points out that further research work has been done since then, based on tax and census data ... and it tells the same story of a widening income gap. O'Dea: "This conclusion is reached regardless of how income is measured: individual or household incomes, before and after tax, from different data sources and after adjusting for changes in household size and composition..."

O'Dea reports that some (10%-25%) of the increase in income inequality can be put down to changes in the make-up of households, especially in the higher proportion of sole-parent homes and of pensioners. About another 25% can be explained by changes in the age mix, employment status and educational qualifications of the population.

But at least half of the increase in inequality cannot be explained by any of these factors, and more research will be needed to pinpoint the fuller reasons for the widening gaps. O'Dea: "There have been winners and losers, but the overall picture, combined with only modest increases in average incomes over the period, should be a source of concern for policy-makers..."

Source New Zealand Herald 10 June 2000 "Widening income gap opens further" by Brian Fallow; The Dominion 10 June 2000 "Gap between rich and others now wider study" by Craig Howie Other Sources: Press Releases National Business Review 9 June 2000 "No More Dr Nice Guy" Cullen interview with David Cohen; 14 June 2000 "Link between tertiary institutions and business promised" Steve Maharey; "Maharey must reveal welfare plan in Budget" Dr Muriel Newman; 15 June 2000 "Another Budget that puts the cart before the horse" Manufacturers Federation; "Budget dislocated from econiomic growth" Employers Federation; "Budget responsible, unimaginative" Employers and Manufacturers Association; "Comment on Budget" Aotearoa Polytechnic Students Association; "Better economics but socially racial aparthied" Winston Peters; "Maori must take control of their own positive development" Donna Awatere Huata; "Budget Speech" Richard Prebble; "Government creates more gaps in social areas" Wyatt Creech; "Budget targets carers, school leavers with disabilities" Ruth Dyson; "Supporting at-risk children and families" Steve Maharey; "Budget focus on Maori Education" Parekura Horomia; "Budget speech notes" Jim Anderton; "Work for the Dole will be compulsory" Dr Muriel Newman; "Rebels reject Red Budget" Prebble's Rebels; "What a lot to spend on a boring Budget" Bill English; "Maharey big loser in the Budget" Dr Muriel Newman; 16 June 2000 Budget feature coverage and editorials in National Business Review, The Daily News, New Zealand Herald, and The Dominion. 17 June 2000 New Zealand Herald "Cullen playing to overseas gallery in Budget speech" by Brian Gaynor; "Why the Alliance is Green with Envy" by Vernon Small; 18 June 2000 Budget feature coverage and editorials in Sunday Star Times "The changes in NZ's Income Distribution" by Des O'Dea, Treasury Working Paper 0/13