A broad spectrum of reactions has met the government's $1 billion-a-year Provincial Growth Fund launched today, with about $62m slated in initial projects for Northland, Hawke's Bay, Gisborne, Whanganui and the West Coast.
National leader Bill English has been critical of the fund saying regional New Zealand will be feeling let down about all the hoopla as it is a re-branding of what his party had already put in place.
"Labour and New Zealand First spent years slamming National for 'neglecting the regions' but the first thing they do when they get into Government is re-announce largely the same projects," Mr English said.
Furthermore, he said, the new policy doesn't compensate for "bad employment aw, bad immigration policy and restricting foreign investement".
Taxpayers' Union economist Joe Ascroft also questions the real cost the fund will have: "With so many different projects funded so quickly, there is no indication in the announcements that the government has conducted any real cost-benefit analysis of this spending."
Others have been less critical and have praised the billion dollar plan.
Local Government NZ president Dave Culls said "the approach the government is taking, with a genuine intent to partner with local agencies, is the right one. To successfully tackle the challenge of regional development we need to involve communities in the decision-making".
The announcement of the fund made by Minister for Regional Economic Development, Shane Jones will focus on money going into forestry initiatives, tourism ventures, rail and roading projects.
KiwiRail chief Peter Reidy welcomes the rail contribution.
"We welcome this recognition of the contribution rail is making in adding value to New Zealand ... This investment is a vote of confidence in our customers and our staff," Mr Reidy said.
According to the government, the projects will create more than 700 direct jobs, and 80 indirect jobs.
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