More cash needed in regions
The head of South Canterbury’s economic development agency has echoed a new report, calling for more central government funding for regional development.
On Thursday, Economic Development New Zealand (EDNZ) released a report titled ‘‘Regional development needs a fresh approach’’.
In it, EDNZ chairman, Dr David Wilson, called for greater funding of regional development agencies from central government.
Wilson said all 20 Regional Development Agencies (RDAs) had a combined operating revenue of approximately $200 million, that accounted for 0.007 per cent of total GDP.
In comparison, the Ministry for Business Innovation and Employment (MBIE) had an operational revenue of around $28 billion, close to 11 percent of GDP, Wilson said.
‘‘The real problem is that RDAs are and have been underresourced for a long time given the task they are confronted with ... this imbalance is stark.
‘‘Local government struggles with what is, for all intents and purposes, a national issue.’’
Aoraki Development chief executive Nigel Davenport said government needed to pay its fair share when it came to development in the regions.
‘‘It shouldn’t be left to local government, as in local district councils, to fund economic development.
Davenport agreed with another of Wilson’s recommendations for the creation of a new cabinet post, a Minister for Regional Economic Development.
However, such a role needed to be locked in to local infrastructure, Davenport said.
‘‘It would be important the right structure was under that [Minister] right down to the coalface ... because there are varying different models around the country of what regional development agencies look like, and also different briefs.’’
Timaru Mayor Damon Odey agreed that from roading to digital connectivity, more funding was needed for the region from central government.
However, he was cautious of the caveats that could come with such cash.
‘‘If the government gives us some money, I’ll have my hand out for some.
‘‘But you have to be very conscious that government money comes with minders and a lot of hoops to jump through, that can slow you down rather than you rolling your sleeves up and doing what you know needs to be done for your district.’’
Odey said this year the district had already been allocated $2 million towards economic development, over the next three year period.
Another proposal from Wilson was for the government to create a ten-year, national economic development strategy.
Odey said every government economic development plan should cover 10 years, if not 30 years, because ‘‘governments change’’.
‘‘But I don’t think a government strategy could cover so many different [local] strategies ... it’s horses for courses.’’
Odey said the Canterbury Mayoral Forum was the ‘‘main thing’’ the region needed, to be able to drive economic development, as opposed to more intervention from further up the chain.
‘‘I don’t think the national government can really set a strategy that drills right down to the needs of how you build on your local strengths.’’
Economic Development Minister Simon Bridges and Labour Party economic development spokesman Stuart Nash were both unavailable for comment on the report, given current negotiations on the formation of a new government.