Southland fares okay under the Provincial Growth Fund

Friday, 25 September 2020

Eastern Southland district curator Jim Geddes, left, and Gore District Council heritage projects officer John Dennison in the Hokonui Moonshine precinct, in Gore, which is being redeveloped.

Southland has done “okay” under Provincial Growth Fund but when compared to other regions the investment is millions of dollars behind in what was given out elsewhere.

In terms of investment, Southland received $72.16m in project funding – slightly less than Otago’s $80.86m. In contrast, Northland received $553.20m in funding.

The biggest winners in Southland were the ICT and digital connectivity sector, which received $22m in funding, and regional projects received slightly less with $21.26m.

In Southland, data shows the scheme created 290 jobs in the three-year term. There are 219 people currently working on PGF-supported projects, 71 had worked in PGD-supported jobs, and 983 are expected to in the future.

* Coronavirus: Some projects dumped as Provincial Growth Fund prioritises quick timing

* Hokonui's Moonshine Museum, distillery and Visitor Centre slightly delayed

* Great South gets $400,000 boost from Provincial Growth Fund

That’s slightly better than Otago, which only gained 280 jobs in three years, with 249 jobs expected in the future, and it’s much better than Canterbury with only 96 jobs created and 146 expected in the future.

The biggest winner in the job stakes was Jones' home province of Northland, where 3074 jobs were created and a further 3231 are expected.

Southland District mayor Gary Tong said the province ‘’did okay’’ in the funding his district.

“I’m reasonably comfortable with the funding that we received. There have been some areas that have been concerned that the funding was population based but any funding applications that haven’t come up to spec have been the fault of the applicant, in my opinion.

“We [the Southland District Council] applied and received funding for projects that would otherwise be funded by ratepayers – things like toilets, which are used by visitors, and upgrades on the Southern Scenic Route.’’

In terms of job creation, Tong said it didn't take long for the numbers of people employed to add up and he predicted projects like the Southern Hydroponics Growth Fund Proposal, which received $2.5m in funding but was yet to begin, would create employment.

That was going to be important in Southland, where there had been job losses because of the Covid-19 pandemic and it would ‘’get people off the couch,’’ he said.

“We did better than some other provinces and when you look at it, we got a pretty good amount down here.’’

Invercargill Labour List MP Dr Liz Craig, Invercargill Mayor Sir Tim Shadbolt, Regional Economic Development Minister Shane Jones, HWCP director Scott O'Donnell and CBD block project manager Geoff Cotton at the Invercargill Inner-City Development site visit in 2019.

In Gore, the council received $900,000 in funding for its Maruawai Centre Development and $730,000 Hokonui Moonshine Museum and Distillery Redevelopment and $2.09m for its Hokonui Highway project, which ensured local young people had the skills to take up jobs.

But it also missed out on funding, twice, for its a $4m indoor equestrian arena and eco-cabins project called Manaaki Eco Village.

Gore District mayor Tracy Hicks said while the funding was good to have, it would always have been nice to have more.

“The big challenge now is getting the work done and getting the projects up and running … as time goes on there will have to be more stimulus funding coming along as people become displaced from their jobs.’’

He said that was definitely more important now as the region rode out the Covid-19 pandemic.

“Any projects that have been approved have gained momentum as their funding has been approved and from a Gore District Council perspective the funding that came from the Hokanui Highway project has really started to show it’s worth and there’s lots of connections being made.’’

Gore District curator Jim Geddes said if it wasn’t for the Provincial Growth Fund, the redesign of the Hokonui Moonshine Museum would have been 'very basic.

'Some of the exhibits would have been refurbished and that would have been about it.''

When it reopens the new venue will have its own distillery and be able to host tastings and corporate events.

'It's just going to be so cool,'' he said.

'We would have had a redeveloped museum but no on-site distillery so it has given it a whole different lease of life.''

The project was running behind schedule because of the Covid-19 pandemic but when it opened it would employ two new full-time distillery staff, would use local caterers and sell locally produced merchandise.

The project was also being built using local tradespeople, Geddes said.

'In terms of jobs, it's provided quite a few already and will provide more as we go on, which is great for the district.''

In Invercargill, the PGF invested in one of the city’s biggest projects in recent years, with funding of $1m for the Inner City Development Feasibility Study. A completed project, the Airport Cargo and Terminal Development, received $500,000 in funding.

Invercargill mayor Tim Shadbolt was unable to be reached for comment.

Data from the Provincial Development Unit shows that as at July 29, 2020, a total of 12,936 people had worked on PGF-supported projects nationwide in the three years the fund was operating.

A further 15,062 people ware expected to work on PGF funded projects in the future, and 11,090 participants have enrolled in He Poutama Rangatahi and Te Ara Mahi projects, which were supported by the fund.