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The Labor Party would eliminate the Provincial Growth Fund if it wins a second term, replacing it with a $ 200 million fund, a policy that the Labor Party describes as a “more focused evolution” of the PGF.
The money that the Government has not been able to spend from the PGF of $ 3 billion will be reallocated to other projects.
The Fund was a key achievement for NZ First and Regional Development Minister Shane Jones. Prime Minister Jacinda Ardern said the fund helped fuel regional growth.
“The Coalition Government allocated more than $ 3 billion through the PGF to drive growth in our regions.
“Approved projects are in a variety of stages of implementation and it will take some time for them to fully materialize. We are committed to getting individually approved projects completed, ”Ardern said.
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“Investing in our regions has been a priority for our government for the past three years and will be a feature of our recovery from Covid,” Ardern said.
In place of the PGF, Labor would give $ 200 million to a new Regional Strategic Partnership Fund. The funding is one-fifteenth of what was given to the PGF. The new fund would create regional economic development plans that would guide where the remaining unallocated funds from the PGF would be spent and would link with regional development agencies to decide where future government investments would go.
The Provincial Development Unit, the bureaucracy that sits on the PGF, will survive.
It will collaborate with regional economic development agencies in identifying the parts of the plan that may need support from the central government and will help to establish a financing arrangement that best suits the project.
Labor describes the $ 200 million awarded to these plans as “seed funding,” suggesting there could be more.
MARK TAYLOR / Stuff
Prime Minister Jacinda Ardern returns to her old school, Morrinsville College, before relaunching the Labor Party election campaign.
“The PGF has provided significant support to our regions, but the fund only had resources for three years.
“Now we want to draw on the lessons of this support and work to develop a new approach to regional development. We want this to be driven by the regions from the ground up, ”Ardern said.
Labor economic development spokesman Phil Twyford said Labor would continue to support the regions.
“Supporting our regions for recovery is part of our plan to keep New Zealand moving, complementing our long-term infrastructure plan to provide a portfolio of projects in state housing, transportation, schools, hospitals, waste and water, and our free apprenticeships and trades. training to build a workforce for the future, ”Twyford said.
Ardern made the announcement during a busy day at Wairarapa, a seat Labor hope they can remove from National.
Businessmen in the area mentioned the government’s help when they met them, but in general the wage subsidy, not the PGF.
Ardern said she often felt like a “Johnny-come-lately” when cutting the tapes at high-priced developments, as they usually took years of local work. “Then I just come and discover a plaque.
