"The budgets are all held by different departments with differing policies and there's no coordinated approach specific to the regions.
"Isn't it about time that New Zealand had a national economic development strategy with an equal emphasis on metropolitan and provincial development? I believe it is."
Local Government New Zealand president Lawrence Yule also supported the proposal to give more power to local government as it would allow for better management of significant issues such as regional economic development, demographic shifts, climate change and rapid technological advancement.
"This innovative report ... outlines the way forward for regions to address location-specific policies and regulations, and provides the right tools and incentives to meet environmental and economic goals, and minimise barriers to growth," he said.
"Providing an environment that supports local government's ability to partner with others to efficiently achieve shared goals, and the incentives for all parties to encourage local economic growth, are vital parts of the conversation."