Northland Regional Council chairman Bill Shepherd.
Northland Regional Council chairman Bill Shepherd.
What is the Investment and Growth Reserve?
The head of Northland's regional economic agency wants a beefed-up regional investment fund established by the Government, because a Northland Regional Council commitment to give $1.5 million to the Hundertwasser Art Centre has dried up an investment pot for the next three years.
David Wilson was speaking after a Northland Inc application for $1.5m of Investment and Growth Reserve (IGR) funding towards the Hundertwasser centre was successful yesterday, but has left the NRC investment coffers dry.
Under the NRC agreement, the Prosper Northland Trust can draw down on $150,000 per quarter from the start of construction.
Although it's a big win for the region, the project would leave a balance of about $1m each year until 2019/2020. The NRC pumps $1.7m into the IGR each year and delivers it under the Long Term and Annual Plans.
NRC chairman Bill Shepherd said the money in the IGR came from income from regional council assets, such as Marsden Maritime Holdings, which included Northport. It was specifically for regional investment and projects which would boost the economy.
NRC funds Northland Inc to the tune of $1.2m a year from the Investment and Growth Reserve. It is a Council-Controlled Organisation (CCO) and a subsidiary of the NRC and a limited liability company.
This year, NRC has committed to funding projects under the IGR, such as Better Water Management, the Twin Coast Tourism Discovery and now, the Hundertwasser project.
