Councils’ funding proposals

Steven Joyce.
Steven Joyce.
Finance Minister Steven Joyce is considering options for cash-strapped local councils wanting to invest in infrastructure in their regions.

The Otago Chamber of Commerce chief executive Dougal McGowan this week suggested the Government should consider options for attracting investment into Otago, particularly around infrastructure supporting tourism.

Mr McGowan suggested the use of private-public partnerships (PPPs) as a way of attracting cash into the region.

Mr Joyce told the Otago Daily Times yesterday he was interested in using PPPs for infrastructure as a way to help councils that were short of money for such investment.

He was working on options now and would make an announcement within four to six weeks.

However, he ruled out the Government getting involved in PPPs to build things such as hotels in the Otago region.

A shortage of accommodation in Otago areas, particularly in Dunedin and the Central Otago, Queenstown Lakes districts, had been raised several times by both the chamber and the Otago-Southland Employers Association.Mr Joyce said the building of hotels was best left to the private sector. The Government’s job, he said, was to provide the right environment for construction investment to grow.

Investors needed confidence the economy would continue to grow and the forecasts in the Budget, Mr Joyce’s first, showed a path of growth ahead, the minister said.

Also concerning people in the region were changes to the immigration rules that could mean  finding staff would be even harder for some employers in the hospitality and construction industries.Mr Joyce said the problem was one affecting the whole South Island.

"Otago, yes, but also the South Island has a skill shortage."

Yesterday, school principals said proposed changes to New Zealand’s essential skills visa could result in some small rural Otago schools closing.

Many parents working in the region’s dairy industry were migrants and their children made up a significant percentage of rural rolls.

Mr Joyce said it was important to ensure people brought the right sort of skills to New Zealand.

The Finance Minister was in Dunedin to talk to the Otago Chamber of Commerce breakfast meeting at Edgar Stadium.

He accused the Labour Party of spreading misinformation about the Budget and said it was important for him to visit chambers around New Zealand to talk about the stability and confidence his first Budget provided.

Asked if National had cut funding to health in the Budget, Mr Joyce said it had not. The Government had put $3.9billion over four years into  health.

Asked if there had been any cuts to spending included in the Budget, Mr Joyce said he did not think so, although some earlier initiatives from previous Budgets had ended.

About $7billion of new spending over four years had been announced in the Budget.

Claims by Opposition parties about funding cuts left them in danger of being "guilty of fabricating stuff", he said.

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