Millions goto regional projects
Northland and the East Coast are the big winners from the first tranche of regional development spending announced by the Government.
Hawke’s Bay will have the Napier-Wairoa rail line return for logging trains while Northland will receive $17.35 million 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.
‘‘If all the projects we’re funding realise their full potential, this will equate to more than $344m of public and private investment for our regional economies.’’
Jones expects the spending to create at least 700 direct jobs and 80 indirect jobs – that’s close to $80,000 a job.
NZ First won the annual $1b Provincial Growth Fund fund to spend on regional development during coalition talks.
Any region can apply for funds, 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 Wellington-driven 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 approve projects costing between $1m and $10m. Any projects costing more than that will need full cabinet approval.