Good news and bad
Hot on the heels of our package for Manawatu¯Whanganui, the last couple of weeks has brought a $140 million injection from the Provincial Growth Fund for the South Island, in particular the West
Coast, rich in resources, both of a scenic nature and those more tangible and practical.
It has also been in the economic doldrums over the last decade, hence it being identified as one of the regions most in need of investment by the PGF.
The announcements I made alongside the Prime Minister and local MP Damien O’Connor play to the existing strengths of the West Coast, while also preparing it for the future. The most significant outlay was $87.46 million for a series of tourism projects, including increasing the capacity of the TranzAlpine rail service, as well as introducing a new premium carriage.
Funding was also granted for work to support existing tourism hot spots, such as Punakaiki Resort, Oparara Arches and Dolomite Point.
A $10 million loan was granted to establish a garnet mine, which will create jobs and benefit the local economy. It will also harness the substantial mining expertise that exists on the West Coast, a proud tradition that I’m happy to see will continue into the future. The package was rounded out with funding in the areas of dairy and digital connectivity.
It was a pleasure to visit the region again as Regional Economic Development Minister, and I look forward to seeing rapid progress on the projects we were able to support.
Unfortunately it hasn’t all been good news over the last two weeks. As some readers may be aware, I’ve taken exception to recent decisions by Fonterra, New Zealand’s largest company and one vitally important to our regional economies. Last week Fonterra announced they would be selling Tip Top, and refused to rule out moving ownership into foreign hands.
This news came on the back of Fonterra posting its first annual loss, of $196 million, in September, a consequence of a number of decisions that have not stacked up from a commercial point of view.
This could see a brand that has been a familiar sight in our shops and dairies for nearly a century hocked off overseas. And you only need to look as far as the demise of Cadbury’s factory in Dunedin, after its foreign owners decided to shift production overseas at the expense of local jobs, to get an idea of what fate could befall the employees of Tip Top should this come to pass.
No institution as consequential as Fonterra is for New Zealand’s economy should be immune from criticism, and given the salaries that their senior executives earn it’s only fair that they should be personally held to account when the decisions they make start to impact ordinary New Zealanders.
Fonterra’s shareholders need to keep a close eye on the actions of its management, and if they are not prepared to speak out when their commercial decisions backfire then I am more than happy to continue doing so — as befits a champion of the provinces.
"It was a pleasure to visit the [West Coast] region again as Regional Economic Development Minister, and I look forward to seeing rapid progress on the projects we were able to support. "