$320k on PFG pitch that went nowhere
Waharoa’s shot at becoming ‘food bowl’ of the region gone in a puff of smoke
Cash from the Provincial Growth Fund aimed at boosting a small town’s fortunes has gone nowhere except consultants’ pockets.
Back in 2018, the MatamataPiako district was buzzing after Prime Minister Jacinda Ardern announced that $800,000 would be invested into Waharoa becoming a major industrial and food processing hub.
But the stroke of luck ended swiftly when the $326,000 business case was rejected by Government.
While opposition National MP Judith Collins says the move was a waste of Government money, the Matamata-Piako mayor argues the business case will still be useful in the future
The small town of Waharoa – a low-socioeconomic settlement 7km from Matamata – missed out on a slice of the $3 billion PGF pie, after an application for Government funding towards a $21 million underground natural gas pipeline project was declined.
The application, asking Government to contribute $15m towards the costs, was intended to be the start of many opportunities to breathe life into the neglected town.
The business case, published publicly on February 25, showed future plans to invest $60m–$80m over the coming years into infrastructure, industry and employment connections – one of the district’s largest investments.
Information given to Stuff by Matamata-Piako District Council showed the feasibility study and business case by Auckland consultancy firm Resource Coordination Partnership altogether cost taxpayers $326,000. What was not used stayed with the Crown.
This package was anchored on the success of building a gas pipeline from Okoroire, through Matamata to Waharoa. First Gas submitted the ‘‘Shovel ready’’ Infrastructure Project to Crown Infrastructure Partners, agreeing to put $6m towards the project.
The pipeline was expected to attract large businesses into the town, particularly food processing companies, which predominantly use gas to power machinery.
‘‘It seems foolish to me to spend around $400,000 of taxpayers’ money to then say no,’’ National MP Judith Collins said.
Collins, who was born in Walton, 8km from Waharoa, said she knows all too well that Waharoa is the ideal place for an industrial hub.
‘‘It’s got the land, it’s flat, it’s got the people who want to work.
‘‘Natural gas seems to be something this Government has crazy anti-feeling towards, but it’s actually an extremely efficient way for us. It’s less polluting than almost any other fuel we could use other than hydro or solar [produced electricity], and it’s available to New Zealand so you don’t have to import it.
‘‘It just seems crazy to me that this Government wouldn’t take up this particular investment in the golden triangle.’’
Matamata-Piako mayor Ash Tanner, however, doesn’t see it as a complete loss.
‘‘We’ve still got the business case, so there may be things out there that we can take for later on. There could be other avenues to go down, so all that information is not lost.
‘‘Also, who knows what the future will look like, if there’s a change in government and funding becomes available then there’s no reason you can’t put the business case forward again.
‘‘You have to have that business case and information done at some stage anyway . . . so I don’t believe it’s a total loss. Obviously we still believe it stacks up.’’
He refused to comment about whether he thought the PGF money was fairly distributed, but said the project had potential.
‘‘I think Waharoa has a lot going for it. Demographically it sits perfectly,’’ he said. ‘‘It’s close to the port of Tauranga and the cost of the land there is quite favourable to large industries, so I still think it has a lot going for it.’’
He didn’t think the project of a $21m gas pipeline was too ambitious either. ‘‘The gas line was quite pivotal for big industrial growth in Waharoa.
‘‘Gas is a big thing to fire the boilers now, it would be hard to get consent for coal boilers nowadays. It makes business sense.’’