Northland Inc's chief executive, David Wilson's interview regarding Economic Development Agencies, (EDAs) last Wednesday was interesting to read and I wish him well in his quest to "Bridge the gap with central Government".
Having spent six years as a councillor on FNDC, 2007-2013, I was dismayed at the amount ofmoney spent on an annual basis in economic development processes and policy developemnt across our Northland councils.
When all costs are tallied, such as, office space, phones, administrative support for staff and meetings, vehicles, travel, staff training and seminars and salaries, etc, in the Far North district alone, the spend was approximately $1 million per year without having any measurable Key Performance Indicators (KPIs) to track the development unit's performance or progress.
It seems to me, this high economic development spend for limited measurable benefit, will be endemic across Local Government New Zealand if critically analysed.
As David Wilson says, EDAs need better tools from central Government, such as a regional investment fund, but EDAs also need better governance and astute financial management.
That elusive Regional Investment Fund may already be sitting in council budgets, on an annual basis, if the funds currently spent on staffing, office, admin support, vehicles, etc, were critically reviewed against key performance indicators and such funding redirected into a contestable investment fund to directly develop entrepreneurs and grow Northland business.
