“Our Government has discussed the proposal with the Reserve Bank of New Zealand and private retail banks. I'm confident a Business Growth Fund will gain the private sector support needed to bring this model to New Zealand.
“The Reserve Bank is planning to carry out a public consultation before making its own decisions, to be satisfied of any changes to the risk-weighted capital treatment of a bank's potential equity investment into a Business Growth Fund.
“The fund involves Crown investment as a minority shareholder alongside private banks, and is intended to fill a gap in the capital markets for SMEs that require growth capital for investments such as advanced technologies and processes to lift productivity and wages.”
The Government was also developing the Forestry and Wood Processing Industry Transformation Plan (ITP).
“This draft will be launched for public consultation in August, and the final plan will be released later in the year.
“I know that forestry plays a key role in Gisborne, and I look forward to hearing feedback from the region on the draft ITP.”
“Industry transformation plans are under way for eight industries in Aotearoa New Zealand, working in partnership between government and industry to drive transformation towards a high-productivity, high-wage and low-emissions economy.”
The Government will provide $148m to fund those plans for the advanced manufacturing, agritech, construction, digital technologies, fisheries, food and beverage, forestry and wood processing, and tourism sectors.
“While sector-focused, the industry transformation plans also support economic development of regions and cities through the delivery of various initiatives to drive industry transformation, for example, those designed to develop skills, lift innovation, and support international connections.”
Mr Nash said these Budget announcements came on top of previous investment into businesses in Tairawhiti.
“It has been a difficult time for businesses and tourism across New Zealand, and although we're increasingly getting back to normal, that doesn't make it any easier on struggling businesses.
“There have been a number of regional business support programmes. In particular, we've invested $320 million in Gisborne across 179 projects through the Kanoa – Regional Economic Development and Investment Unit within MBIE.
“In terms of tourism, our Government has provided extensive support to businesses including billions of dollars through broad-based assistance like the wage subsidy and resurgence support payment. Over the past two years, $600m has been allocated to supporting the tourism sector through the Tourism Recovery Package and Tourism Communities: Support, Recovery and Re-set Plan.
“Gisborne received investment of more than $2 million to support critical tourism infrastructure in the region through the Tourism Infrastructure Fund.”
