Oracle-owned boatbuilder has had two government grants 23 Apr 2015
Fiona Rotherham
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
Oracle-owned boatbuilder has had two government grants in three years
April 23 (BusinessDesk) - Core Builders Composites, the Warkworth-based company owned by Team New Zealand’s arch-rival Oracle Racing, has had two taxpayer subsidies in the past three years.
The most recent was a growth grant from Callaghan Innovation in August last year for an undisclosed sum. Core Builders' financial accounts filed with the Companies Office show it also received a $435,631 grant from New Zealand Trade and Enterprise in 2012.
The Warkworth company built the boats for Oracle’s 2013 defence of the America's Cup and also sub-contracted a number of New Zealand companies to help build the AC45 boats which were used for the primary series of races which took place globally.
The most recent financial accounts filed for the company, for the year ending Dec. 31, 2013, show it received no "other income" in 2013 beyond its $7.8 million revenue, but it had a NZTE grant in 2012 to assist the installation and operating costs of a large dimension milling machine purchased and put into operation the year before. The accounts show it also made a $1 million loss that year.
That grant is repayable to the government if the machine is removed from New Zealand before the end of 2016 or if Core Builders denies access to the machine by another company under reasonable commercial rates, terms, and conditions until that date.
Core Composites said in a statement this afternoon that it had not received a growth grant of $17.25 million as earlier reported. It said the latest grant started in July 2013 and to date it had received just over $250,000. "Our forecast R&D claim is far less than the capped amount of $5 million a year under the three-year grant.
The company said as has been widely reported, it had to go through a painful restructure at the end of the last America's Cup cycle.
"This is not uncommon in the marine industry where much of the work is project based. Subsequent to that we were able to regain a foothold in the market by diversifying into Architectural, Industrial products as well as finding new export customers for our bespoke marine appendages. In this way we have rebuilt our work force. Since July 2014 we have added 26 members of staff," the statement said.
The company’s website lists under the heading recent projects helping manufacture a light weight carbon shell for a solar car in April 2013 and engineering a 1.2 metre disco ball.
When asked how it was spending the grant money, the company said that was proprietary, but in a global sense it was investing in high value, high tech manufacturing in New Zealand that would ensure it remains at the cutting edge through innovation and development.
"We are investing to attract diverse prototyping projects in markets beyond marine and racing yachts to create a more sustainable business beyond this current America's Cup cycle. We are investing in developing techniques and products that will enable other innovative New Zealand Companies with the uptake of composites and digital manufacturing by making these more cost effective options. Such innovative New Zealand projects include the Auckland SkyPath, which we have been fortunate enough to be involved with the design phase and we hope to be a part of the construction (along with other innovative NZ Composite Manufacturers) should it receive Resource Consent."
The company’s website lists under the heading recent projects helping manufacture a light weight carbon shell for a solar car in April 2013 and engineering a 1.2 metre disco ball.
Labour’s sports and recreation spokesperson Trevor Mallard said Kiwis would be horrified to know they are backing a Team Oracle subsidiary owned by US billionaire Larry Ellison.
“National’s current research and development system picks winners. It is ironic that in this case they are picking an off shore-owned competitor of Team New Zealand to be the winner,” Mallard said.
The grant to the Oracle-owned company contrasts with the Government’s decision made earlier this week not to commit any more Government funding to Team New Zealand.
National ended the former R&D tax credits system that operated under Labour, which Mallard said was fairer than picking winners.
“This is yet another example of questionable grants from this organisation. It follows Callaghan’s dubious decisions to fund Chatham Rock Phosphate and Trends Publishing,” Mallard said.
The three-year Callaghan Innovation growth grants enable qualifying companies to claim 20 percent of their research and development expenditure, capped at $5 million a year. To qualify, companies have to commit to at least $300,000 and spend at least 1.5 percent of its revenue on R&D in New Zealand.
So far 152 companies have been granted a total of $356 million under the scheme. Earlier this week Callaghan Innovation terminated one of the grants for the first time, saying Trends Publishing International had breached the terms of its funding agreement by being unable to show the amounts claimed against its $382,911.97 grant were for eligible R&D.
Trends Publishing chairman and publisher David Johnson has called the decision “fundamentally unjust” and that he was seeking advice on Callaghan’s request for repayment of the grant.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more