KEY POINTS:
Economic Development Minister Trevor Mallard has announced changes to regional development policy including $1 million a year for Auckland for the next three years.
Mr Mallard said the Government's regional partnerships programme, that started six years ago, was a key factor in stimulating economic growth in the regions.
Under the policy changes today, Mr Mallard said the Government was replacing the Major Regional Initiatives Fund with a contestable Enterprising Partnerships Fund which would focus on substantial regional projects that would have a commercial focus and generate economic benefits for the region.
He said the funding would be about $9 million in 2007/08, $10.5m in each of the following two years, and $11.5m the year after that.
The 26 regions that received government funding would be consolidated to 14 to enable regions to collaborate and tackle large projects.
Under a new Regional Strategy Fund, each of the 14 regions would get access to a maximum of $750,000 over three years to develop and implement regional economic development strategies.
New Zealand Trade and Enterprise would work with regions to help this work.
Mr Mallard said $1m a year was being ring-fenced for Auckland for the next three years, which was on top of the two new funds.
"The Auckland funding recognises that the city's regional economic development is a key part of the Government's economic transformation agenda," Mr Mallard said.
"What helps Auckland will help the whole country grow."
He also said that in 2007/08 only, each of the existing Regional Partnership Programme regions would need to join together to be eligible for up to $50,000 to meet one-off costs associated with the consolidation process.
Mr Mallard said the Government was reshaping its regional economic development policy six years on because the environment that industries and firms were working in had changed substantially.
- NZPA
