Some projects dumped as PGF prioritises quick timing in wake of virus
A host of Provincial Growth Fund projects are set to be scrapped this week as the Government sets out the parameters for its repurposed fund.
In the wake of Covid-19, Cabinet has ordered decisions to be based on job creation, quick timing and visibility, and will use changes to the Resource Management powers to do so.
It comes as Regional Economic Development Minister Shane Jones announced the first tranche of new projects to be funded.
This included up to $100m for waterway fencing, riparian planting and stock water reticulation, $60m for road and rail investments and up to $70m for upgrades of marae, town halls, Pasifika churches and war memorials.
He expected the funding would create hundreds of jobs throughout the country. The PGF would create jobs in shorter time frames through at least $600m being refocused on projects with more immediate economic benefits, Jones said.
The funding consists of repurposed
PGF money and unallocated funding from the Shane Jones Regional Investment Opportunities Contingency.
Dumped projects
Jones told Stuff yesterday that his staff were sending letters to failed applicants this week, but he would not say who they were or how many had been scrapped.
After the formal notifications were made he would ‘‘front up and speak about the reasons’’. He expected they would reach out to express their disillusionment or that they believed they deserved another crack.
Any projects that did not meet the deadlines and deliverables would be terminated, so funds could be freed up for other projects.
Inhibitors included the difficulty for some projects to build momentum after getting a decision in principle and then not being able to navigate the necessary co-funding arrangements or statutory consents, he said.
New road and rail funding
The funding for new projects, which he announced yesterday, included $60m for local roads and rail projects spread across Bay of Plenty, Manawatu-Whanganui, West Coast, Wairarapa, Taranaki, and top of the South and Waikato, he said.
Projects involved constructing footpaths, cycleways, playgrounds, vegetation management and roadside clearing and would create at least 600 jobs. The rail projects would fund deferred maintenance like culvert cleaning and drainage improvements in regional New Zealand, which would create 200 jobs.
Waterways
The $100m for waterway improvement would encourage more farmers to fence off sensitive waterways from stock, Jones said.
‘‘Some farmers wish to protect their waterways but find the costs of fencing prohibitive in the short term. Regional councils provide some support for fencing which the PGF can augment by contracting local firms to redeploy workers to undertake the work.’’
Business and community boost
PGF funding of $7.5m would also go to another four projects for regions recovering from the impacts of Covid-19, he said.
Apollo Foods in Hawke’s Bay will get $2.9m for new technology and to upskill workers, while an upgrade to Raglan Wharf will get $2.5m to increase berth numbers and improve access.
About $1.86m will go to redevelop the Westport waterfront with a pedestrian and cycle bridge from the town centre to the riverfront.
Otago engineering firm Te Pari Products will get $209,500 to buy livestock-handling equipment.
The PGF will also provide funding for the renovation of town halls, war memorials, marae and Pasifika churches all over the country. Funding of $70m would cover salaries and construction costs for those projects, Jones said.
Post-Covid-19 recovery
In April, Jones announced the Provincial Development Unit was working through applications and projects to see where PGF money could be repurposed for initiatives deemed critical to fighting the economic impacts of the Covid-19 pandemic.
‘‘The refocused PGF has three clear objectives that will drive every decision from now on,’’ he said.
PGF investments would need to create immediate redeployment and new employment opportunities for communities and sectors most affected by the crisis, he said.
Funds would be pumped into skills programmes, sectors and infrastructure in regional economies for ‘‘enduring change’’.
‘‘Our focus is on the next two to six months but projects that provide longer term economic benefits, support productivity and strengthen critical infrastructure in the surge regions will remain a priority for investment,’’ Jones said.