By VERNON SMALL
Almost 100 days into its term, the Government has yet to unveil the details and priorities of its flagship economic development policy, a key area of branding for the Alliance.
But after protracted wrangling, it has reached agreement on the institutions that will implement the policy.
Deputy Prime Minister Jim Anderton yesterday announced the Ministry of Commerce would be renamed the Ministry of Economic Development and would oversee Industry New Zealand, a new crown entity that will develop and deliver industry and regional development programmes.
Mr Anderton, as Minister of Economic Development, will oversee the ministry. He said the Government was setting up a "jobs machine."
"The era of hands-off is over. The era of partnership has begun."
An establishment unit would set criteria for its funding and would report to Cabinet by March 28. Options included loans, direct grants and joint venture partnerships.
A largely private-sector board for Industry New Zealand was likely to be in place by the end of this month.
Mr Anderton said that the "Byzantine world of the Government bureaucracy and coalition politics" had slowed implementation, but it was important to get the structures right and to get "ownership."
He said he had favoured a separate ministry and opposed a private sector-dominated board. But Labour wanted to avoid another bureaucracy and it became obvious a relatively large agency like Industry New Zealand needed more than just a small ministry giving policy advice.
The board, rather than ministers, would decide which projects would receive help.
Mr Anderton said the Government would be judged on its success at making inroads into the 200,000 people who were out of work.
In the long term, he would like to see about 100 successful industries established, creating about 1000 jobs each.
Finance Minister Michael Cullen said the Government would provide $100 million to Industry New Zealand by 2002.
The aim was to cut unemployment, boost skills, generate high-quality jobs, reduce the current account deficit and close the gaps between rich and poor, Maori and non-Maori and between regions.
National's Max Bradford said it amounted to tinkering with the bureaucracy.
He said the Government's changes to ACC and $400 million more in taxes more than cancelled out any gains from the package.
Govt sets up structure for 'jobs machine'
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