Thank you for inviting me here today to open the 2009 New Zealand Institute of Food Science and Technology Conference.

First, let me acknowledge the international scientists and business people who have made their way to Christchurch. I wish you well for your stay here and I am sure your New Zealand colleagues will make you feel welcome.

The New Zealand economy is entering a new phase. We have long been heavily dependent on the primary sector. For many years, this meant the export of basic commodities. But in recent years there has been a new wave of innovation.

Our leading food technology companies have understood that the future lies in differentiated products that are attractive in high value markets.

Your guest speaker, Professor Paul Callaghan, will develop this theme more fully. Suffice to say, that his book "Wool to Weta" sets out the direction of this trend, and its potential for the New Zealand economy.

This year's conference theme is "Putting the Pieces Together". Food science is truly multi-disciplinary science, from consumer research to materials technology to process engineering, amongst other fields. Food science needs to take note of health trends, environmental concerns and the changing economic climate.

It also needs to note its role in the domestic economy. Food exports totalled $22.8 billion in 2008. Around 20% of the workforce is involved in food production, and the quality of life of those people is directly tied to the ongoing growth and innovation of this industry.

During my six months as Minister, I have made it my business to talk to as many people in the sector as possible. Right from the start it was obvious there are some fundamental difficulties, which I will be addressing.

There are three themes.

The first was delivering on our pre-election commitments.

The second is simplifying the bureaucratic complexity of research in New Zealand, particularly the application process.

The third, and perhaps the most important, is setting out more clearly the national science priorities.

In last month's Budget, we delivered $28 million of new funding. We increased the CRI capability fund, the Marsden Fund and funding for the Health Research Council. These increases followed our priorities.

The Government currently invests about $123 million in food research each year. Private sector investment in food research is around $212 million.

We have now committed an additional $190 million over four years to the Primary Growth Partnership. In four years' time, PGP will be investing government and matching industry funding of up to $140 million each year. This is an enduring commitment from government to all food-producing sectors.

These increases were delivered under very constrained economic circumstances. The fact that we delivered increases to our research priorities is a show of commitment to science and productivity.

The second theme was to address the complexity of the system. From my conversations with the research sector, it is obvious that too many businesses and research organisations are caught up in constant cycles of applications and reports.

This takes senior scientists away from the lab benches, field trials and workshops where they need to be. By directing the funding agencies to address their complexity, we will get our best minds back onto the big problems.

My third theme is setting the science priorities. This will enable a better allotment of resources and if necessary, structural change. But the latter should only occur once we know the priorities.

The Government wants to clearly state a clear purpose and a clear outcome for all research investment. The Government invests $743 million into research from the RS&T vote - it should be able to say what it wants from that investment.

While we want clear objectives for research, we also want that research to get to businesses and improve wealth and productivity. It is not about business being able do research cheaper because they get a tax credit - it is about boosting New Zealand's growth by business and government together investing in research that will grow the economy. That is the key reason why we need clear priorities for research.

It is self-evident that our exports are built on innovation: new products, more efficiently produced, targeted at global consumers. It sounds simple, and to help achieve it, we need research that delivers to export-focused sectors.

These objectives - developing priorities, focusing on exports - have already posed some interesting questions.

Clearly, we have some excellent stories about research and innovation delivering export success. Excellence in innovative production and marketing has taken the wine industry to a projected $1 billion in exports this year.

Excellence in breeding and branding has led to success with Jazz apples and Zespri Gold kiwifruit. Excellence in identifying and developing uniquely New Zealand products had led to success for companies like Comvita and Vital Foods, and to the development of the green-lipped mussel industry. There is a track record of excellence and success in food industry innovation in New Zealand.

Now researchers are looking at new opportunities - the interaction between food and human health is sure to be a rich source of ideas for our food industry. As consumers demand more ethically-sourced food, or food from a smaller environmental input, more opportunity is created.

We cannot forget that tastes change; traditional foods need re-invention for new markets; environmental change makes new crops possible - or necessary. Within these scenarios lie more business opportunities for the food industry of the future.

Other countries compete with New Zealand. If they begin to make commodity foods cheaper, then our success will come from better efficiency and exporting our food further up the value chain.

New Zealand has the ability to continue earning great wealth from food production. We need to support that with research and innovation. The Government started doing that in the Budget. You shall continue doing that during this year's conference. I wish you all the best for a productive week.