Regional NZ left behind

Growth is bypassing regional New Zealand, but the key to change may be found in Dunedin, according to a review of 15 years of statistics.

"By and large things don't look very good anywhere," says Waikato University's Professor Ian Pool, who has been studying published statistics between 1986 and 2001.

He attributes much of the blame to the days of former finance ministers Roger Douglas and Ruth Richardson.

Professor Pool's report will not be released in full until next year.

He says Auckland and Wellington are thriving, but even in parts of those cities the divide between rich and poor is increasing.

New Zealand is splitting three ways between regions doing very well, the ones that are okay and the ones that are increasingly disadvantaged.

His report will not provide solutions but Professor Pool says more emphasis on regional development could be one way to stem the tide of gloom.

He points to Dunedin's tri-party arrangement between its university, big business and the city council, in developing high-tech employers.

"They are not all necessarily huge employers but on the other hand may bring a lot of income because they are low-volume exports but high profit.

"Those would be the sorts of lights at the end of the tunnel but they're pretty faint at the moment."