Provinces missing millions from fund

Steven Joyce
Steven Joyce
Provincial New Zealand is a driver of New Zealand's economic growth, of that there is little doubt.

For the past nine years, the same provinces have been complaining about the lack of interest from the National Party in their future.

Government departments and operations were downgraded, reduced in size or simply shifted to another centre.

Christchurch, for the South Island, remained a key focus for former finance minister Steven Joyce and former prime minister Bill English. It was not hard to understand why. The provinces were expected to continue voting for National and votes were up for grabs in the main cities.

Dunedin is, and probably always will be, seen as a Labour city, particularly after the thrashing National received in the party vote in September.

Remember too, Labour campaigned on bringing life and services back to the region. Former economic development spokesman, with a responsibility for regional development, David Clark, was highly critical of how the south of the South Island was neglected by National. The demise of Invermay was a rallying call for action.

So now, Regional Economic Development Minister Shane Jones has made the first allocation from the $1 billion regional development fund. Apart from a $1.45 million funding boost for Punakaiki and two West Coast cycle trails, there is nothing more so far for the South Island.

Yet Northland received $17million and $9.2million went to Gisborne and Hawke's Bay.

The launch of the Provincial Growth Fund has the potential to boost the performance of the regions, as economic opportunities are generated through investment, BusinessNZ chief executive Kirk Hope says.

Lifting productivity and growing jobs in regional New Zealand and strengthening local communities will be positive for the economy as a whole.

Mr Hope added it was comforting to see a robust process in place for distribution of the fund as disbursements over $20 million need Cabinet approval.

Northland and Gisborne are areas needing significant funding from any government to create jobs and provide education and further training for a young workforce. Every closure in the north brings misery. Roading and other infrastructure is in dire need of improvement.

A note from Mr Jones says the majority of New Zealand's goods exports are in the primary sector - 62% of all exports in the year to May 2017. Resources located and extracted in regions play a significant role in the economy.

On a positive note, the lack of interest by another government in the fate of the South Island may be seen as confidence in the resilience so far displayed. The South Island has a different set of problems, some of which will not be solved by cycle trails.

There is a shortage of skilled labour to fill booming construction and hospitality industries. Dairying continues to soak up a lot of workers, many from overseas because Kiwis are not willing to fill those jobs.

Perhaps Mr Jones sees the South in a far different light to those actually living here.

There is a real danger with any government prepared to spread largesse around to favoured regions. Northland was held by NZ First until the election. Whether this has swayed the thinking of Mr Jones is already being debated.

Dr Clark now has other priorities, such as the rebuild of the Dunedin Hospital and ensuring New Zealanders have access to timely medical care. NZ First list MP Mark Patterson, from Lawrence, should be pressed for an answer on whether any funding is available for the South. After all, a billion trees need to go somewhere, and the South has ideal growing conditions for Pinus radiata.

Otago and Southland have much going for them.

With $1billion at stake, the region cannot afford to miss out again.

 

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