Provincial growth Fund another ‘Think Big’ dud?

A New Zealand think tank is claiming the Government’s Provincial Growth Fund (PGF) needs a course correction to ensure it isn’t wasting money.

The Maxim Institute released a report on Tuesday which suggests the Government’s “big” thinking with the $3 billion PGF comes with too much risk, and it needs to start making “smart” investments to generate the best outcomes for the regions.

“The temptation when you are under that kind of pressure is to pick the low hanging fruit, to grab the thing that is investment ready, even if it isn’t necessarily the best investment in the big scheme of things” said chief executive Alex Penk.

The report says that the PGF has “great potential” but introduces the risk of “misallocating resources, creating dependency culture and favouring rent-seekers over innovators”.

The institute’s five key concerns include a lack of evaluation and little co-ordination across the overall regional development strategy. It also said a “sector-based investment strategy that picks certain sectors over others introduces undue risk”.

 

Splashing cash at Waitangi

So far one of the biggest stories of the lead up to Waitangi Day is the splashing of Government cash.

It looks more like a political pork barrel campaign than a dignified marking of New Zealand’s most important historical event.

And it’s not just the PR use and abuse of being in the national spotlight that is raising questions.

Newshub can reveal the Government’s Provincial Growth Fund (PGF), designed to create jobs and boost the regions, has only created 54 jobs and spent just $26.6 million of its $3 billion.

Even with just 3.4 percent of the funding paid out, each job is costing the Government about $484,000.

Minister in charge of ther Money Machine, Shane Jones:

“I accept that the projects are going to take a while to fully establish…The Regional Economic Development Minister find himself tangled up in the Government’s own red tape. Despite my heroic rhetoric, it is quite a red tape process”.