Industry NZ puts cash towards Auckland plan

By CHRIS DANIELS

Regional development money, usually seen flowing to deprived areas such as the Far North and East Cape, is coming to the City of Sails.

The Government's economic development agency, Industry New Zealand, is due to pay about $750,000 to a group known as the Auckland Regional Development Strategy.

Just under $500,000 of the grant is going to the Auckland Strategic Leaders Group to develop an Auckland Regional Economic Development Strategy.

On top of this, about $250,000 has been given for regional "capability building initiatives" in the marine, biotechnology and education sectors.

Economic Development Minister Jim Anderton said the economic performance of Auckland was of national strategic importance, because it generated about a third of New Zealand's income.

The region was falling behind many overseas cities and regions with which it competed, and that had implications for the entire nation.

Businessman Peter Menzies, chairman of the Strategic Leaders Group, which manages the strategy, said Auckland deserved such Government support.

"Auckland has got 30 per cent of the deprived communities of New Zealand within its region," he said.

"So it's got a huge [incentive] to improve its performance. And it's not been performing well."

The overall picture of the region's growth was either close to zero or negative. Most other cities had had strong growth in the past 10 years.

Auckland grew with its population, but was not getting wealthier, concentrating too much on internal activity and having few outputs to improve the region's economy.

The Government grant was being matched by money coming from the councils in the region, making up a total budget of just under $1.5 million.

This money would go to the production of reports detailing what sort of potential Auckland had for these sectors.

"It will be very useful to have a real view on what economic development initiatives can do."

By supporting the regional development strategy, the Government had shown confidence in Auckland's ability to make a difference to the economy across New Zealand, said Mr Menzies.

The $500,000 was going to be spent primarily on the research and production of reports that could be used to help improve the knowledge of councils and business groups in the region.

The group's next forum will be on February 13. Up to four of the forums will be held, culminating in the release of a plan in May.