The Government says it is taking the next step to boost regional economic recovery with the establishment of a new scheme to replace the Provincial Growth Fund (PGF).
Economic and regional development minister Stuart Nash told the annual conference of economic development agencies, local government representatives and chambers of commerce the new fund is a vital part of post-COVID recovery efforts.
The $200 million Regional Strategic Partnership Fund (RSPF) “delivers on a manifesto commitment to keep supporting economic recovery in the regions”, Nash says.
He says the RSPF has three goals over the parliamentary term.
“It will work in local partnerships to enable economic and business development, accelerate Māori economic aspirations, and support sector transformation. Each region will help decide its own priorities,” Nash says.
“Central government will partner with local government, iwi, businesses, community organisations and other agencies to identify priorities and co-funding opportunities.
“Regions will identify priority investments which support the Government’s vision of creating more productive, resilient, inclusive, sustainable and Māori-enabling regional economies.
Year one funding is set aside in Budget 2021, from reprioritised funding administered by the Provincial Development Unit (PDU).
“The $200 million fund will be seed funding for regional priorities, with further funding decided on a case by case basis.
“The investments will be strategically designed to unlock various other sources of capital to get projects underway,” Nash says.
“The PGF invested more than $3.11 billion in regional economic development in its three year life. Existing PGF projects will continue to be progressed.
“Our regions are a vital part of New Zealand’s economic strength but have been neglected in the past, stifling economic growth and living standards in regional communities.
“We are taking a new approach, focussing on building strong partnerships to help regions realise their economic potential. The PDU will work in consultation with other parts of government and the private sector to ensure a more effective all of government regional economic development strategy.
“Creating the Regional Strategic Partnership Fund is a significant move and represents another step toward creating a productive, innovative resilient and sustainable economy,” Nash says.
The PDU will continue to have management and oversight of the new fund. It will adopt a new name to reflect its new focus and will be known as Kānoa, or the Regional Economic Development and Investment Unit. Kānoa has a broad meaning through proverb and whakataukī, with reference to home fires, and to the guardian of the store house who helped others to thrive.
