The Government spends and loans $113m to the East Coast businesses to cushion Covid-19 blow

Economic Development Minister Phil Twyford. Photo / Mark Mitchell

Covid-19 impacted workers in the Gisborne-Tairāwhiti will receive a $113 million shot in the arm from the Government, as it attempts to cushion the pandemic's blow to the East Coast.

Some $100m has been made available to help redeploy workers in the hard-hit Gisborne-Tairāwhiti region – the money comes as part of the Government's $12.1 billion Covid-19 support package.

Of this funding, $28m will go to Tairāwhiti to help redeploy almost 300 workers.

A further $12.1m, through a Provincial Growth Fund (PGF) loan has been earmarked for the WET Gisborne wood-processing production line, which makes laminated structural wood.

And another almost $1m has been signed off for a loan to a Gisborne-based wood-cluster heat plant.

Economic Development Minister Phil Twyford said nowhere in New Zealand is Covid-19 having more of any impact on workers than in Tairāwhiti.

In fact, according to Regional Economic Development Minister Shane Jones, forestry accounts for almost 7 per cent of Tairāwhiti's economy.

"Forestry was one of the first industries to be seriously impacted by Covid-19 but by keeping the infrastructure and workforce of the sector intact, we hope it will be one of the first to recover," Twyford said.

The $100m will see workers redeployed into local alternative employment for the next three to six months.

The alternative work for the forestry workers includes:

• Local roading work, including road maintenance.

• Hazardous tree removal.

• Fast-tracked One Billion Trees projects.

• Conservation activities.

• Retraining and educational opportunities.

Jones said: "The future for the forestry sector is extremely bright and we want to ensure it is in a position to recover from the economic impacts of Covid-19 as quickly as possible."

VirusFacts2

By redeploying workers to short-term projects, Jones said the Government can ensure workers are available to go back to the forestry sector once it returns to normal.

Meanwhile, the $12.1m PGF loan will go towards the construction of a production line which, along with other initiatives, is expected to create 74 new jobs in coming months.

On top of this, a $980,000 PGF loan towards the Wood Cluster Heat Plant has also been approved.

"While New Zealand and the world is experiencing an economic shock, PGF projects are primed to help place the country on an excellent footing post–virus," Jones said.