Whanganui port hopes boosted by Labour's regional plan

Andrew Little announcing a new part of Labour's regional development policy in Gisborne./File

Labour's plan to use government funding to build a new sawmill for Gisborne has raised hopes for similar support to revitalise the Whanganui port.

Labour leader Andrew Little announced $20 million in funding for a timber prefabrication plant in Gisborne as part of his party's regional development plan on Friday. The sawmill would be on the cards should Labour form a new government after this September's General Election.

Such a scheme "would and does work for Whanganui", says mayor Hamish McDouall.
The priority for the Whanganui District Council is the revitalisation of the port - which the council owns - following a recent feasibility study, he said.

"We will certainly be looking for government funding to assist the redevelopment of our port."

However, Whanganui MP Chester Borrows is critical of Mr Little's approach to regional development.

"If he's planning on putting money into a private company, I have a few issues with that," the National Party MP said.

"If he wants to start a new SOE, I have a problem with that, too."

Mr Borrows said the Government had already put money into supporting the Whanganui regional economy - and that included $500,000 funding into a feasibility study for the redevelopment of the port.

Mr Borrows said government investment in manufacturing during the 1970s was positive for the region, but it was no longer viable under a "borrower government".

"Whanganui has benefited from government intervention in the past," he said, "but that was a different world."

Mr McDouall said Mr Little's idea was "fantastic", but he also advocated for some government services to be distributed into the regions to boost local economies.

Not surprisingly, both potential Labour candidates for Whanganui support the new Labour policy.

Philippa Baker-Hogan praised the new plan and claimed the current Government had not done enough for the regions.

"This National-led Government is belatedly back-tracking to throw small tasters at provincial New Zealand, like the $500,000 for Whanganui's Port."

Labour's other potential candidate, Steph Lewis, also favoured the idea, and supported more funding for the port redevelopment.

Mr Little said the Gisborne plan would also help with the housing crisis, as the prefabrication plant would improve home affordability.

"Too many logs are being shipped straight offshore without jobs and value being created for locals," he said.

Labour is expected to announce policies for other regions over the next few months.