Regional development plans criticised as all talk

The government has defended its Gisborne regional development plans from accusations it needs to intervene more.

The Tairawhiti Economic Action Plan, which sets out the economic blueprint for the region over the next five years, was released yesterday.

It aims to boost the region's economy by a fifth by 2022 and create more than 1200 jobs, halving the unemployment rate.

But Northland MP and NZ First leader Winston Peters said the aims in other regional initiatives had failed to materialise, while exporters said the government needed to intervene more directly to help them.

The Gisborne region lags its counterparts in most measures of living standards.

Incomes are among the lowest in the country, the proportion of 18-year-olds with at least NCEA level 2 is the second-lowest in the country, and 16 percent of Māori are unemployed.

Through the new development plan, the government will put about $10 million into the region over the next five years.

That includes $2m to help fund a new wood processing facility, and $1.5m on toilets and better roads for tourists on the East Cape.

It will also invest $1.8m in jobs and skills training, put more money into drug and alcohol counselling, and licensing for cars and heavy trucks.

Other government promises failed to materialise - Winston Peters

But Winston Peters lambasted the government's efforts, and said the regional development initiatives had done little for other provinces.

He cited the Tai Tokerau Northland Economic Action Plan unveiled last year.

Mr Peters said an earlier promise to establish a global standard for mānuka honey that foreign buyers could rely on had not materialised, which had frustrated business in the far north.

"[Former economic development minister Steven] Joyce came up here ... made a big story about [mānuka honey] as one of the great futures for the north and the Māori people," Mr Peters said.

"And the very thing that required work - that is, the standard - has been utterly neglected, and I can show you that picture over and over and over again."

Exporters needed policies that lowered the dollar to make them more competitive internationally, while regions should receive a portion of GST to help fund the infrastructure needed to cope with the influx of tourists, Mr Peters said.

"The regions are export creating wealth provinces, but it's not reflected in the returns to themselves," Mr Peters said.

Others argued the government needed to intervene more to get the outcomes it wanted.

Only four percent of logs are milled locally in Gisborne, despite processed wood fetching three to four times the value of the raw material.

Wood Processors and Manufacturers Association chief executive Jon Tanner said its overseas competitors were heavily subsidised.

If New Zealand was serious about developing the industry the government must fight fire with fire, Dr Tanner said.

"How do you create that level playing field for regions like Gisborne to get those products fairly into a market so you can compete?

"[The] government has to prioritise the subsidy situation we're up against now."

But economic development minister Simon Bridges said the plan was more than just government lip service.

"The plans are about identifying what those opportunities are, and then finding tangible ways between government, local government, businesses and others as well, to make them a reality."

He rejected claims the government's plans would not work and said the local people who helped develop the plan know what was best for their province.

"Ultimately economic growth leads to more jobs and higher paying jobs in the regions, which means better living standards and more material wealth and gain."

The plan was only the start, and now the hard part of implementing it begins, he said.

Gisborne mayor Meng Foon agreed.

"If you look at the stats, then definitely, we've come from rock bottom, so to speak, but we aim to climb. We're the ones that have to do it at the end of the day."