New Zealand News

Investment in NZ’s regional development projects hit $2B milestone

Eliza Sayon Nov 3, 2021

2 min read

New Zealand Government’s investment in regional economic development projects has passed a $2 billion milestone, greatly boosting the support for local jobs, businesses and infrastructure.

Economic and Regional Development Minister Stuart Nash said the funds administered by the Regional Economic Development & Investment Unit at MBIE (Kānoa-RDU) have now paid over $2.1 billion to projects since 2018.

“From the Provincial Growth Fund to the Infrastructure Reference Group’s shovel-ready projects, as well as other funds, we are backing communities all over the country and giving them the confidence to keep investing,” Minister Nash said.

“It has been a priority to invest in regional infrastructure which had been previously run down. These investments are even more important as we respond to the economic shock caused by the global COVID-19 pandemic.”

Kānoa-RDU was originally established as the Provincial Development Unit within MBIE. Since its establishment, it has created around 13,000 jobs during the lifetime of the contracts.

It currently administers more than 1,700 projects worth $4.2 billion across six investment funds:

Provincial Growth Fund
COVID-19 Response and Recovery Fund (Infrastructure Reference Group)
Regional Investment Opportunities (NZ Upgrade Programme)
Strategic Tourism Assets Protection Programme
Worker Redeployment Package (COVID-19 Response)
Regional Strategic Partnership Fund

Some of the investments into the regional projects have even become central to New Zealand’s COVID-19 vaccination and testing efforts.

Part of the PGF reset in 2020 had the NZ Government invest in smaller community initiatives to deal with the impact of COVID-19 on jobs and businesses, leading to dozens of marae and Pasifika churches being renovated into COVID-19 vaccine and testing centres.

“For example, last year Wharekawa Marae in north Waikato received $252,000 for renovation work on its buildings and grounds. This September, it was the site of a pop-up testing facility that swabbed more than half its community after a local positive case,” Minister Nash said.

Other investments under the Kānoa-RDU are also significant in enabling the development of local infrastructure, securing regional jobs, businesses and economies in the face of global uncertainty.

“This infrastructure investment is well overdue. The momentum of regional economic development is now picking up pace. We reached the $2 billion milestone just ten months after the $1 billion milestone in February 2021, which itself took three years to achieve,” Minister Nash said.

“While the $2 billion achievement is impressive, it is only half the story. There is another $2 billion in investment in the pipeline, as Kānoa-RDU pays funds already allocated to projects, once they meet agreed milestones.”

The Regional Strategic Partnership Fund was also unveiled earlier this year, providing another $200 million as ‘seed funding’ for the regions.

“I am excited to watch the investment of Kānoa funds continue to make a difference, as we build productive, sustainable, inclusive and resilient economies across New Zealand,” Minister Nash said.

Source: Beehive.govt.nz

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.