Rail big beneficiary from regional fund
Northland and the East Coast are the big winners from the first tranche of regional development spending announced by the Government yesterday.
Hawke’s Bay will see the Napier-Wairoa rail line return for logging trains while Northland will receive $17.35m for a variety of projects, including a $9m roundabout on State Highway 10.
Regional Economic Development Minister Shane Jones has secured $61.7m from Cabinet for the first round of spending.
Yesterday he announced where more than $40m of that was going – with close to half heading to Northland and almost $10m to Hawke’s Bay.
The West Coast and Whanganui are also receiving millions in funding for bike trails and a port upgrade.
The further $20m will be rolled out over coming weeks.
‘‘Our first regional packages support the regions most neglected by the last government: in Northland, Taira¯whiti-East Coast, Hawke’s Bay and Manawatu¯Whanganui and the West Coast of the South Island,’’ Jones said.
Speaking to a packed War Memorial Hall in Gisborne, Jones told the city’s mayor Meng Foon ‘‘the waiting game is over’’ and the $1 billion fund was under way.
He said the Government was brought into power on a ‘‘momentum of change’’ and as a progressive government it needed to have confidence to go into areas where historically the government had said that if markets could not solve a problem then the problem may be unsolvable.
‘‘A $3 billion fund is a bloody big risk but I’m up for the task,’’ Jones said.
‘‘If all the projects we’re funding realise their full potential, this will equate to more than $344 million of public and private investment for our regional economies.’’
Prime Minister Jacinda Ardern said the fund would be a ‘‘tangible legacy’’ of the Government’s, and it was personal for her.
‘‘I say that not just from having passed through, but from having grown up in places like Murupara and Morrinsville. For all of their diversity as small rural towns they had things in common.
‘‘I’ve seen what job losses, particularly at a large scale, does. I’ve seen what impact an economic cycle can have on a small town. I’ve seen what can happen when you’re solely dependent on a single industry,’’ she said.
These were local communities ‘‘who just saw that no-one else saw they had the potential and opportunity they had’’.
‘‘We’re here to realise that potential and opportunity,’’ she said.
Deputy Prime Minister Winston Peters said ‘‘this was the first change-government since 1984’’.
Jones expects the spending to create at least 700 direct jobs and 80 indirect jobs.
NZ First won the annual $1b Provincial Growth Fund to spend on regional development during coalition talks. Any region can apply for funding other than the three main cities.
‘‘An independent advisory panel has been appointed to assist the decision-making of ministers and officials, supported by a new Regional Economic Development Unit within the Ministry of Business, Innovation and Employment to work directly with regions, ensuring this isn’t a Wellingtondriven fund,’’ Jones said.
Senior officials will be able to green-light projects costing less than $1m. A subcommittee of ministers including Jones and Finance Minister Grant Robertson can green-light projects costing between $1m and $10m. Any projects costing more than that will need full Cabinet approval. REGIONAL RAIL A FOCUS More than $8m of spending is heading to regional rail regeneration.
About $5m will be spent reviving the Napier-Wairoa line for forestry trains.
‘‘The Government is making safety a higher priority when it invests in transport and taking logging trucks off challenging roads contributes to that,’’ Jones said.
‘‘KiwiRail’s financial result released this week showed an 8 per cent revenue increase in its overall forestry business in the six months to December – a result being driven by strong growth in the volume of logs.’’
Hawke’s Bay Regional councillor Alan Dick said reopening the line would improve road safety.
‘‘The re-opening of the line will provide road safety benefits by minimising the number of logging trucks on this difficult and fragile highway, environmental benefits with rail a smaller generator of carbon and finally it will provide opportunity for significant economic and social benefits for northern Hawke’s Bay,’’ Dick said.
Another $3m will be spent on upgrading the Whanganui line. KiwiRail will also receive $750,000 to look at the feasibility of rail projects in Kawerau, Southland, and New Plymouth. KiwiRail welcomed the move. ‘‘This investment is a vote of confidence in our customers and our staff,’’ chief executive Peter Reidy said.
‘‘Moving logs by rail takes pressure off the roads, and reduces greenhouse gases – each tonne of freight carried by rail instead of heavy trucks means 66 per cent fewer carbon emissions.’’
Among other tourism investments in Hawke’s Bay is some money – less than $60,000 – for a historic steam train journey on the ‘‘Chardonnay Express’’.
NORTHLAND RECEIVES THE MOST CASH
Northland – where NZ First leader Winston Peters and Jones both are based – will receive more than $17m.
The largest chunk of that is $9m for upgrading the Waipapa intersection on State Highway 10.
‘‘We desperately need a roundabout at the intersection of SH10 and Waipapa Rd, and this need has been around for quite some time,’’ Jones said.
‘‘SH10 is part of the Twin Coast Discovery Route providing access to significant tourist destinations and a better transport network is essential to improve safety, reduce congestion and support continued economic growth for the region.’’
Another $8m will go to a series of tourism and cultural hubs, including a $4.6m centre in Oponini which will focus on Kupe’s voyage to Hokianga.