News
Working with regions for economic transformation
Today the Government announced a new regional economic development policy and the establishment of two new regional funds for regions to support the growth of more internationally competitive firms.
The changes, effective from July 2007, will see the disestablishment of the Regional Partnerships Programme and the following new initiatives:
- Replacing the Major Regional Initiatives Fund with a contestable Enterprising Partnerships Fund focusing on substantial regional projects that are commercially driven, generate substantial economic benefits for the region and align with national economic transformation goals. Funding under this programme will be approximately $9 million in 2007-08, $10.5 million in each of the following two years and $11.5 million a year after that
- Consolidation of the 26 regions currently funded to about 14, to make the regions bigger and therefore more capable of collaborating and tackling large economic development projects and issues.
- A new Regional Strategy Fund that will give each of the 14 regions access to a maximum of $750,000 over three years to develop and implement regional economic development strategies. The aim is to encourage a medium-long term view so that regions focus on key projects for growth rather than less important, short term activities
- $1 million a year will be ring fenced for Auckland for the next three years in addition to the two new funds. This will contribute to initiatives in Auckland that reinforce linkages between the economic transformation agenda and the region's regional economic development strategy
- In 2007/08 only, each of the existing Regional Partnerships Programme regions that will need to join together are eligible for up to $50,000 to meet one off costs associated with this consolidation process.
Click here for further informaiton and to see a copy of the Minister's press release. A copy of the Cabinet Paper can be viewed here.
4 April 2007
