Commentators want boost for regions

<p style="margin-bottom: 0cm" class="western">
Dougal McGowan.
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<p style="margin-bottom: 0cm" class="western"> Dougal McGowan. </p>
Expectations are high the Government should be making a more concerted effort recognising the regions beyond Auckland, when the Budget is delivered tomorrow.

The importance of meaningful regional development was highlighted by the Government's belated attempt to woo Northland voters in a unforeseen by-election with a bundle of bridge upgrades.

Subsequently, New Zealand First leader Winston Peters embarrassingly carried away the decades-old, formerly safe National seat.

Labour leader Andrew Little has since said National has been underfunding regional infrastructure, with a focus on highways of national significance, shifting labour-intensive jobs to Auckland, to the detriment of most regions.

''It shows a tale of two realities, where regions outside the main cities have not only failed to create and grow jobs, but incomes are below average and there are high rates of benefit dependency,'' Mr Little said.

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John Scandrett.
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<p style="margin-bottom: 0cm" class="western"> John Scandrett. </p>
Otago Chamber of Commerce chief executive Dougal McGowan picked education and health, and provision for rural communities, as key elements of southern regional concern.

He wants the Government to anticipate, in case of another drought next summer on top of the lower dairy payouts, making provision for greater assistance.

''In the coming year, it would be nice to see some relief [available] for those rural communities,'' he said.

Around Dunedin, he said the Government needed to look at working more closely with all local government, rural and urban, in forming long-term plans and funding, such as schooling, tertiary education and the health system.

''Spending in those areas is very important part of Dunedin. A healthy community contributes more to a healthy country,'' he said of Dunedin hospital's need for redevelopment and health board debt.

The strength of the New Zealand dollar remained a concern, both for importers and exporters, and Mr McGowan said there should be more emphasis on expanding international trade to more countries, rather than relying on just countries with free trade agreements.

Otago Southland Employers Association chief executive John Scandrett says regional policy and research and development, both by Government and for business, are the two main issues.

''Many of us see that we have a `two-speed economy', that is the growth spurts evident in the Auckland region and in Christchurch against the generally sluggish economic performance in the shoulder regions.

''Government incentives and investment, in any form, to stimulate regional growth would be helpful,'' Mr Scandrett said.

He said lowering the corporate tax rate would help.

He advocated change in the Resource Management Act, hoping to see a review, possibly including the separation of urban planning and environmental protection aspects.

He backed ''less red tape'', highlighting that while health and safety ''definitely came first'', compliance costs had to be addressed.

On ACC, both Mr Scandrett and Mr McGowan wanted levies to reflect and align with the relevant risk in respective sectors, and wanted savings passed on to employers.

simon.hartley@odt.co.nz

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