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Hon Shane Jones Hon Shane Jones Minister for Regional Economic Development 23 February 2018 MEDIA STATEMENT Provincial Growth Fund open for business The new $1 billion per annum Provincial Growth Fund has been officially launched in Gisborne today by Regional Economic Development Minister Shane Jones. “As of today, the Provincial Growth Fund (PGF) is open for business and has the potential to make a real difference to the people of provincial New Zealand,” Mr Jones says. “We are being bold and we are being a mbitious because this Government is committed to ending the years of neglect. Nearly half of us live outside our main cities. If this country is to do well, then our provinces must thrive. “Our first regional packages support the regions most neglected by the last government: in Northland, Tair āwhiti-East Coast, Hawke’s Bay and Manawat ū- Whanganui and the West Coast of the South Island. “We are providing an immediate boost to these areas by investing $61.7 million into forestry initiatives, tourism ventures, rail and roading projects, and supporting these regions develop their proposals further to help them get off the ground. “The first of many projects the PGF will support will create more than 700 direct jobs, and 80 indirect jobs – an impressive start to what will be an exciting three years for our provinces. “If all the projects we’re funding realise their full potential, this will equate to more than $344 million of public and private investment for our regional economies.” The PGF aims to enhance economic development opportunities, create sustainable jobs, contribute to community well -being, lift the productivity potential of regions, and help meet New Zealand’s climate change targets. “The $3 billion will be fully committed over three years, making investment in the provinces more attractive for private sector investment, which has strongly favoured our main urban centres in recent years. “We will form genuine partnerships up and down the country and provide the capital needed to stop projects languishing in long-term plans and regional action strategies.” All regions are eligible for funding. “An Independent Advisory Panel has been appointed to assist the decision-making of ministers and officials, supported by a new Regional Economic Development Unit within the Ministry of Business, Innovation and Employment to work directly with regions, ensuring this isn’t a Wellington-driven Fund. “Our provinces are full of ideas and proposals. I have been heartened by the aspirations of so many businesses and investors, local councils, iwi, and community groups and I’m pleased to say that we now have a mechanism to see these realised. “The announcements we’re making today are just the beginning and I’m looking forward to building on this momentum over the coming weeks, months and years and realising the untapped potential of our provinces,” Mr Jones says. Media contact: Georgina Stylianou 021 137 0630 Attachments: NZ regional factsheet, PGF factsheet, x2 Cabinet papers and information on the newly-appointed chairperson and members of the Independent Advisory Panel. Rodger John Finlay has been appointed as chairperson of the Provincial Growth Fund’s Independent Advisory Panel. “Chairing this advisory panel is an enormous privilege and responsibility,” Mr Finlay says. “Historically, New Zealand’s economic strength, resilience and innovation has come from our provinces and I look forward to advising on the reinvigorating effects that investment will bring to these communities. “Throughout my career, and on both sides of the fence, I have been involved in evaluating, promoting, implementing and financing capital projects. Hopefully this experience will be of value to our mahi here,” Mr Finlay says. Mr Finlay grew up in Dunedin, graduating from the University of Otago. He is a Fellow of Chartered Accountants Australia & New Zealand and a Chartered Fellow of the Institute of Directors. The majority of his executive career was spent working for global investment banks CS First Boston and Banque Paribas, focusing on funds management and investment banking. For the past ten years, Rodger has been solely engaged in governance. He is currently a Governor of Radio NZ, Deputy Chairman of Rural Equities Limited, Chairman of Mundane Asset Management (UK) and a Director of NZ Thoroughbred Racing. Mr Finlay is married with three children and lives in Canterbury. Hon Shane Jones Minister for Forestry 23 February 2018 MEDIA STATEMENT One billion tree programme under way Collaborative efforts towards the ambitious one billion trees target are well under way with the first areas of land needed for Crown Forestry planting this winter committed, Forestry Minister Shane Jones says. “The tree planting programme will benefit New Zealand’s provinces, our environment and our people – it is a big boost for the forestry sector and will create more jobs and training opportunities to provinces that have been doing it tough for a while now,” Mr Jones says. “Our climate change objectives will be advanced and our use of natural resources will be more sustainable and productive. We face a $36 billion potential liability by 2030 and planting trees is a sustainable and effective contribution towards our transition to a zero carbon economy. “We have a strong base to build on, with the commercial forestry sector projected to plant half a billion trees in the next 10 years. We’re already seeing private landowners, government agencies, NGO’s, iwi, regional councils, nurseries and the private sector working hard to plant the other half a billion. “Planting will be lower in the initial years due to natural seedling and land constraints, but will then ramp up quickly. “Policies are being developed to avoid unintended environmental or economic outcomes, land is being secured, seedlings are being grown, private investment is being stimulated and infrastructure is being developed. “All of this combined will see us go from 55 million trees this year, to 70 million in 2019, to 90 million in 2020. From there we will be aiming for 110 million a year over the next seven years of the programme. “This year, almost 7.3 million trees will be planted through various Ministry for Primary Industries schemes – about half of which will be indigenous species. “Planting will include both exotics and natives. We want to enable planting of a mix of permanent and harvestable forestry, using both exotic and native tree species on private, public and Maori-owned land. Species include radiata pine, red wood, totara, eucalyptus, Douglas fir and m ānuka. “This is certainly about commercial crops, but it is also about environmental, regional and other gains as well. “We are finalising an agreement with Landcorp to plant 1 million trees this winter and another million trees next year – about 2,000 hectares in total – and a review of its portfolio to identify any other potential land for planting. “Landcorp are progressive land managers and have long seen the commercial and environmental benefits of forestry, with 10,000 hectares planted already. “We expect to be able to make more announcements about where trees will be planted this year in the coming months. “Today, we’re also opening applications for the Afforestation Grants Scheme (AGS), which provides $1,300 of Government funding per hectare for new forests between five and 300 hectares. “I encourage landowners thinking about forestry to apply for grants through the AGS and we want to exhaust the full $6.5 million of available funding. “Forestry is a great choice. It will help landowners to diversify their income, invest in their family’s future and improve productivity – as well as help to play their part in economic development and meeting environmental goals, such as tackling erosion,” Mr Jones says. Applications for the AGS must be r eceived by MPI by 14 May 2018. For further information visit www.mpi.govt.nz/ags . Media contact: Georgina Stylianou 021 137 0630 Attached: A4 overview of one billion tree planting programme Hon Shane Jones Minister for Regional Economic Development Associate Minister of Transport 23 February 2018 MEDIA STATEMENT Rail: $8m injection to reboot regional rail Regional Economic Development Minister and Associate Transport Minister Shane Jones has today announced the first of many regional rail initiatives the Government is looking to support. The Provincial Growth Fund (PGF) will provide $8.75 million to reopen the Wairoa- Napier line for logging trains, upgrade the Whanganui line for mainline locomotives carrying exports and fund feasibility studies for three further regional rail projects. “These are just the initial shovel-ready rail projects that are ready to go and have been in the pipeline for some time,” Mr Jones says. “The Government has signalled its strong commitment to using rail to drive regional growth and I expect more projects will be funded over time from the PGF. “These are relatively modest investments in dollar terms, but we expect them to deliver good value and to support regional businesses. “The Government is making safety a higher priority when it invests in transport and taking logging trucks off challenging roads contributes to that. “KiwiRail’s financial result released this week showed an 8 per cent revenu e increase in its overall forestry business in the six months to December – a result being driven by strong growth in the volume of logs. “Rail generates 66 per cent fewer carbon emissions compared to heavy trucks – the sort of reduction we need to meet our country’s ambitious climate change targets. “We’re providing $250,000 for three feasibility studies on KiwiRail projects in Kawerau, Southland and New Plymouth – $750,000 in total. “The Kawerau study will look at options for creating an inland hub to connect exports from Murupara and Kawerau to rail. “In Southland, KiwiRail will work with local forestry interests and ports to determine the best export flows for forestry and containers and the New Plymouth study will also focus mainly on opportunities for forestry exports.
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