The Provincial Development Unit expects 10,000 jobs to be created because of the PGF

Minister for Regional Economic Development, Shane Jones said in December last year that he expected 9000 jobs would be created because of the PGF

The Government department which oversees the $3 billion Provincial Growth Fund appears to be hitting back at National's claims the fund has been sluggish when it comes to job creation.

The head of the Ministry of Business, Innovation and Employment's Provincial Development Unit, Robert Pigou, said the Provincial Growth Fund (PGF) was on track to create 10,000 jobs.

This comes after National said the fund had created just 54 jobs since it was established.

In a statement this morning, Pigou did not address the numbers cited by National – but he did stress that job creation "does not happen overnight".

"An expectation otherwise fails to appreciate and understand the fundamentals of project delivery and the fact that work takes time to scale-up."

He said he welcomed any scrutiny of the PGF.

He added that initial work done by applicants revealed more than 10,000 jobs may be created as a result of PGF investment.

These include jobs created in the construction and delivery of projects and across the wider economy.

The 10,000 job figure is a shade higher than the number Regional Economic Development Minister Shane Jones cited in the House in late December.

"I have to report that the New Zealand Institute of Economic Research (NZIER) has provided our officials with additional information: the figure is now 9000. But I can confirm that these figures are reflective of what the officials are advising our Government."

As well as revealing the expected job-creation figure this morning, Pigou also said the Provincial Development Unit would proactively release information about its work.

This would include measures such as job creation.

"These figures are updated as we receive new information and analysis – for example, as projects ramp up delivery.

"We caution against the selective interpretation of this data without taking into account wider context," he said.

In response to Pigou's statement, National's economic and regional development spokesman Paul Goldsmith said nothing he said actually contradicted National's claims just 54 jobs had been created so far.

"There are lots of predictions down the line and statements about jobs that may be created. But it remains to be seen. One year into the fund, the results have been meagre," he said.