Let’s Ensure the $1BN Regional Development Fund Delivers

Monday, 30 October 2017, 8:48 am
Article: Economic Development NZ

Let’s Ensure the $1bn Regional Development Fund Delivers for New Zealand

By Dr David Wilson

Three recent announcements by the new coalition government have been music to the ears of Dr David Wilson, Chair of Economic Development New Zealand (EDNZ).

In our Briefing to Incoming Ministers, EDNZ sought a paradigm shift in the way regional economic development is delivered and three things in particular stand out in that respect; a new minister for regional economic development, a $1Bn regional development fund, and an aspiration for New Zealand to reach R&D investment at 2% of GDP. The combination of these things has the potential to be very powerful for the regions. However, all of these components must be part of a wider national economic development strategy which the regions, building on local strengths and comparative advantages, can support.

The $1Bn fund is in danger of being targeted for large infrastructure projects and Local Government shortfalls in, for example, tourism infrastructure, toilets and carparks. These investments should be a given, and there are lots of different ways we might deliver on those investments, such as bonds, PPPs, asset re-investment and so on, but not from this fund. While infrastructure is absolutely vital, and can be an enabler for economic development it is only the platform. It does very little to change the structure and strategic direction of our economy.

Government’s goal is to re-focus our economy on productive and export-led sectors to create wealth, which we wholeheartedly endorse. The real work must be done on the ground in business development, building deep capability in our productive sectors, taking advantage of our intellectual property and natural assets through smart specialisation, innovation and targeted R@D, and through targeted capital investment to support the growth of internationally competitive NZ businesses that employ New Zealanders. Value-adding and sustainable economic development do not happen because you build a road, rail line or shift a port. We need Economic Development 201 now, not ED 101.

The challenge for the Government will be to develop a robust process and framework to ensure that the fund delivers maximum benefit to our regions and their goal of an export-led economy. Popular political projects are not always strategic, robust or sustainable in the long term. A debt-fuelled housing bubble in Auckland is a sugar hit that benefits NZ, and Auckland, little in the long run. Long term strategic economic development takes effort and political fortitude. This government are showing signs of that fortitude. Let’s make sure we use this fund, and related regional economic development tools, to create increased value in our exports and resilience in our regional economies.

ENDS

About Economic Development NZ

Economic Development NZ is a national not for profit representing economic development practitioners and agencies throughout New Zealand. For more information, click here …

About Dr David Wilson

David is currently the CEO of Northland Inc and Chair of Economic Development NZ. David has been involved with a wide variety of projects in local and regional economic development, metropolitan, business and industry sector development, corporate citizenship, governance, sustainable economic and socio-economic development. David, was previously Director of the Institute of Public Policy at AUT, and took up the role leading the regional economic development agency and tourism organisation Northland Inc in September 2013.

During the last four years Northland has seen significant advances in infrastructure development and regional development projects, including the Hawaiki Submarine cable, digital infrastructure, significant roading projects, and projects in aquaculture, horticulture, forestry, farming and tourism. As director of AUT’s Institute of Public Policy, David designed and lead an academic programme dedicated to economic development professionals and holds a PhD in regional economic development.

Dr Wilson comes from a commercial background including experience in small, medium and corporate businesses in sales, marketing, product management and business unit management and owned and operated his own retail business for 15 years. As an academic he played a key role in the design and implementation of the ‘Metropolitan Auckland Project’ which formed the basis for the Auckland region’s economic development plan 2006-2010. He peer reviewed the Royal Commission’s report on the governance of Auckland, was a member of the Auckland Regional Economic Development Forum overseeing the plan’s implementation and worked on the design of ATEED during amalgamation.

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