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Home / Hawkes Bay Today

Hopes high for regional benefits in Labour-NZ First coalition deal

By Nicki Harper
Reporter·Hawkes Bay Today·
25 Oct, 2017 05:00 PM4 mins to read

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Napier mayor Bill Dalton warns that increases to the minimum wage will have an impact on council rates. Photo / Paul Taylor

Napier mayor Bill Dalton warns that increases to the minimum wage will have an impact on council rates. Photo / Paul Taylor

Hawke's Bay's local government leaders and industry representatives are eagerly awaiting more detail on what the new coalition Government's policies will deliver to the country's regions.

The Labour, New Zealand First and Green Parties' coalition agreement released this week included a $1 billion-a-year Regional Development (Provincial Growth) Fund, the re-establishment of a NZ Forestry Service, and significant investment in regional rail.

Labour's campaign plan to introduce a water tax had been ditched, but a royalty would be charged on bottled water exports, and existing irrigation subsidies established under the previous Government's Crown Irrigation scheme would be honoured.

The minimum wage would rise progressively to $20 an hour over the next four years, starting with a move to $16.50 next April and reaching $20 by April 2021.

Napier mayor Bill Dalton said he applauded any increase in resources for the regions, but would need to see what the regional development fund covered.

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"Originally in Labour's election campaign there was talk of $200 million in economic development funding, now they are talking $1b but that will include investment for shifting Auckland Port to Northland, and new forestry, we need to see the detail."

He was cautious about the rise in the minimum wage, warning that it would create issues for councils as well as small to medium businesses.

"We are in the process of doing the Long Term Plan and it will have a major impact on that.

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"All of our budget is going to have to be changed - it will be a huge cost to councils and will have a marked effect on rates."

Hastings acting mayor Sandra Hazlehurst said she was pleased to see a focus on regional development, particularly around investment in major infrastructure projects and the relocation of government services.

"This builds on the success we have had with the relocation of Kiwibank to Hastings from Wellington," she said.

Policies around sustainable transport, water and the climate would also benefit Hastings district and she said she was looking forward to seeing the detail behind these policies, particularly around water quality standards, which was a top priority.

"Of particular interest to us will also be the roll-out of employment and social development policies, which are key areas of focus for council.

"Improvements to community safety through additional police and investment in social services will improve the wellbeing of our community."

The new Government's commitment to forestry was welcomed by the Hawke's Bay Regional Council, said chairman Rex Graham.

Reforestation was a target for the regional council, one it had come a long way in creating a capital base for, he said.

"The biggest challenging facing this council is silt coming off the hills carrying phosphates into the rivers and streams - the only way to get clean water is by planting trees and we are very excited this Government wants to come on that journey with us."

Wairoa mayor Craig Little said his district was fortunate to have two enthusiastic representatives in Napier MP Stuart Nash and Ikaroa-Rawhiti MP Meka Whaitiri.

"I believe they will really deliver, and along with the seven Maori electorate MPs it's very exciting for Wairoa."

He added that the National Party had missed out on huge opportunities in regional areas, which was where he believed it was all happening.

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Central Hawke's Bay mayor Alex Walker said the increased focus on the regions was very important, with the potential to be of benefit to Hawke's Bay.

"I'm hoping that the affordability issues for local government in terms of investment in local infrastructure will be recognised."

She said that considering the issues the region had with water supply quantity she hoped investment in water-storage infrastructure would be a key part of any planned regional development.

On the royalty on water-bottling exports, Ms Walker said she would like to see some of that money coming back to the regions.

Reacting to the proposed minimum wage increase, Hawke's Bay Chamber of Commerce chief executive Wayne Walford echoed concerns raised by the business sector nationwide.

He said 11,500 of 18,000 businesses in the regions employed five people or fewer and the move would either push up costs to customers or put extra pressure on these businesses.

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"I'm hoping it's really well thought out, but from the outset it looks like it will be a bit of a struggle."

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