FAQ's - Primary Growth Partnership

What is the Primary Growth Partnership (PGP)?

The Primary Growth Partnership (PGP) is a government-industry initiative that will invest in significant programmes of research and innovation to boost the economic growth and sustainability of New Zealand’s primary, forestry and food sectors.

How much funding is available?

In Budget 2009, the Government allocated funding of $30 million for 2009/10; $40 million for 2010/11; $50 million for 2011/12; and $70 million per annum from 2012/13 to be appropriated to Vote: Agriculture and Forestry. This funding will be ongoing..

Each programme will be a joint investment between the Crown and industry. Qualifying contributions by the co-investors must be equal to or greater than the Crown Primary Growth Partnership funding.

Which industries are included?

Co-investment programmes must relate to one or more of the following New Zealand primary and food sectors:

  • pastoral (including wool) and arable production
  • horticulture
  • seafood (including aquaculture)
  • forestry and wood products
  • food processing (including nutriceuticals and bioactives)

What sort of projects will the scheme invest in?

Investments will focus on initiatives that deliver significant economic growth and sustainability across the primary sectors from producer to consumer. Investments can cover the whole of the value chain, including education and skills development, research and development, product development, commercialisation, commercial development and technology transfer.

Who can access the Primary Growth Partnership?

PGP is a government-industry initiative. Almost any type of non-Crown funded industry entity, or group of investors, can apply for co-investment. All investment programmes are subject to assessment against criteria to determine if funding will be provided.

However contributions, whether cash or in-kind, that are funded from government or rate-payer sources, including Crown research institutes, tertiary education institutions or territorial authorities, cannot be included as part of the investment to be matched by Crown funding.

These organisations can be service providers for co-investment programme projects, or be part of a wider industry initiative that the Primary Growth Partnership co-investment programme is contributing to.

What makes up an industry co-investor group?

An industry co-investor group can be a single entity or it may comprise several entities that come together for the purpose of the investment. Entities can be firms or industry-good bodies, other organisations or individuals. Crown funded entities such as Crown research institutes and universities may be invited to participate in a co-investor group.

However contributions, whether cash or in-kind, that are funded from government or rate-payer sources, including Crown research institutes, tertiary education institutions or territorial authorities, cannot be included as part of the investment to be matched by Crown funding.

What is the process for applying?

  • An independent Investment Advisory Panel (IAP) will open a funding round, call for and assess proposals for investment programmes. There may be multiple funding rounds in each financial year.
  • Successful proposals will be developed into full business plans by a Programme Steering Group of co-investors (industry and government) for further consideration by the IAP.
  • The IAP will assess business plans and make recommendations to the Director-General of the Ministry of Agriculture and Forestry (MAF), who decides on programmes for Government investment.
  • • Once approved, contracts will be entered into for provision of the programme. The Programme Steering Group will also be responsible for oversight of the programme.
  • The IAP will monitor and evaluate approved programmes on an ongoing basis and may recommend adjustments to investments.

More information on the application process is available under How to take part.

Is there a limit on the duration of a co-investment programme that can receive funding?

Primary Growth Partnership funding of a co-investment programme will be for a maximum of seven years.

How does the Centre for Greenhouse Gas Research fit within the Primary Growth Partnership?

Five million dollars of the PGP funding has been allocated each year to the Centre for Agricultural Greenhouse Gas Research and these funds are not available for other programmes.

Funding

How will funding rounds be notified?

When a round is opened, it will be announced on the MAF PGP website. The frequency of the rounds may vary but is likely to be two or three times per year.

How will funding be allocated?

To encourage investment to begin flowing, initial allocations of $2 million for each of the five sectors will be set aside for each of the first two years. The remainder of the PGP appropriation (excluding funding set aside for the Centre for Agricultural Greenhouse Gas Research) will be fully contestable between all sectors and programmes.

Sectors may apply for more than $2 million in each of these years; the first $2 million successfully sought for each sector will come from this separate allocation and the rest will be allocated from the remaining non-sector funds.

After the first two years, the entire PGP funding (excluding funding set aside for the Centre for Agricultural Greenhouse Gas Research) will be fully contestable

Is there a minimum funding level that co-investment programmes must meet?

The minimum amount that the Primary Growth Partnership will co-invest, and which must be matched by industry co-investors, is $500,000 excluding GST over the lifetime of the co-investment programme.

However, contributions, whether cash or in-kind, that are funded from government or rate payer sources, such as crown research institutes, tertiary education institutions or territorial authorities, cannot be included as part of the investment to be matched by PGP funding.

Is there a maximum funding level?

There is no set limit and the maximum amount that PGP can co-invest in a given programme is constrained only by the total amount of funding available to PGP.

The total amount available to PGP at any time is determined by:

  • the total amount of money made available by the Crown
  • the amount of PGP funding already committed
  • the amount required to run PGP
  • the amount of money allocated to the Greenhouse Gas Research Programme

NB: In the first two years (2009/2010; 2010/2011), the amount available is also affected by individual sector allocations.

When do funds get allocated?

When a proposal is successful and asked to progress to a full business plan, the Crown portion of the proposed co-investment programme is held in reserve until the business plan process is completed and a final decision on whether to allocate funds is made. This means that there is no risk that funds will be allocated to another party during the development of a business plan.

Is there funding available for the development of a business plan?

In some cases, funding may be made available.

Submissions Process

What is MAF's preliminary comment?

Once you have submitted your proposal, the Secretariat will pass it to a MAF specialist who will complete a preliminary written comment regarding the proposal, based on PGP rules and criteria.

How is my proposal assessed?

There are two elements to the Panel’s assessment of proposals:

  • Eligibility - the Panel must be satisfied that a proposal meets eligibility rules.
  • Assessment - proposals will be assessed against a number of criteria.

When making this decision, the Panel will take into account:.

  • How well your proposal performed against the assessment criteria, its merit
  • How well your proposal performed compared to other proposals submitted
  • The amount of funds available

What are the eligibility and assessment criteria?

There are seven eligibility requirements which all co-investment programmes must meet. Proposals that meet the eligibility rules will be assessed by the Investment Advisory Panel against the nine assessment criteria which are designed to assist the Panel to reach a decision on each proposal or business plan. More detail is available in the Guidelines for Co-investors.

If my proposal is refused, do I get a second chance?

The Panel will make one of three decisions regarding your proposal: Decline; Approve for development into a business plan, or Request resubmission.

The Panel will request resubmission with further information or changes, for reconsideration at its next assessment meeting, if it feels the proposal shows potential but needs more work.

There is no limit to how many funding rounds a proposal can be submitted to.

How is my business plan assessed?

There are two elements to the Panel's assessment of business plans:

  • Eligibility - the Panel must be satisfied that a business plan meets eligibility rules.
  • Assessment - business plan will be assessed against a number of criteria.

The rules and criteria used to assess your business plan are the same as for your proposal, but you will be expected to provide more detail or a more robust analysis in your business plan. More detail is available in the Guidelines for co-investors.

What will the outcome of assessment look like?

The Panel will make one of three conclusions regarding your business plan: Recommend approval; Recommend decline or Request resubmission.

The Panel may ask you to resubmit your business plan for reconsideration with further information or changes if it considers that there is not yet enough information for them to make a recommendation to MAF. .

Following the Panel's recommendation to MAF, a decision will be made by MAF’s Director General.

Can I withdraw from the process?

Yes, at any stage. Contact the Secretariat and let them know your intent. Any funds held in reserve for you will be released.

Will results and outcomes be made public?

MAF will make public all PGP co-investments, including who the co-investors are, the amounts invested and a brief description of each programme, upon the completion of the approval and successful contracting.

People

What is the role of the Secretariat?

The Secretariat is employed within MAF to administer PGP and assist the Investment Advisory Panel. They should be your first point of contact for any questions or help you need with PGP.

They will:

  • help with information on dates, deadlines, meetings
  • help with information on the requirements and process for completing and submitting proposals and business plans
  • put you in touch with additional people to help answer any specialist questions you have
  • act as a central coordination and communication point for all your dealings about PGP.

What is the role of the MAF specialists?

You may be put in touch with MAF specialists who can provide you with advice about your proposal.

MAF specialists are also responsible for completing the preliminary MAF comment which will be provided to the Panel after you have submitted your proposal.

What is the role of the Investment Advisory Panel?

The Panel is responsible for using their expertise and judgement to advise on decisions about the allocation of PGP co-investments, to help ensure that PGP investments are able to achieve the aims of economic growth and sustainability.

In addition, you will also be reporting to the Panel (if successful at each stage) on the development of your business plan and the progress on your co-investment programme.

What is the role of the Programme Steering Group?

Once your proposal has been approved for development into a full business plan, you will need to form a Programme Steering Group (Steering Group). The Steering Group has two roles:

  • To develop a business plan
  • To oversee the implementation of the business plan if it is approved, ensuring that the programme is tracking on time, on budget and is achieving its expected outcomes.

It is up to your co-investor group to decide the industry make-up of your Steering Group, but MAF expects that it should have at least one representative of each co-investor.

There will be at least one Crown representative on your Steering Group. When your proposal is approved, MAF will let you know who that will be.

 

Last Updated: 15 December 2010

Contact MPI

for general enquiries phone

0800 00 83 33