25 June 2002
National To Streamline Economic And Regional Development
"An incoming National Government will undertake a major revamp of current economic and regional development services,"
says National's Economic and Regional Development spokesman Tony Ryall.
Mr Ryall says the current structure is far too bureaucratic with around 32 different government agencies currently
responsible for fostering business innovation.
"National intends reducing this bureaucracy by amalgamating the various government agencies' activities into one
department.
"We will establish a Ministry for Innovation, Economic and Regional Development as the single body responsible for
overall economic development policy and strategy.
"This new Ministry will have a stronger focus on producing results rather than producing consultants."
Meanwhile, Mr Ryall says current regional development lacks strategic purpose and direction, and to function effectively
it needs to be run by the regions.
"Industry New Zealand is too top heavy with almost all its staff based in Auckland or Wellington. National will
decentralise INZ's funding and devolve responsibility to the regions, where it will be much closer to the needs of the
community."
He says National will also attract and welcome foreign direct investment that helps increase employment opportunities
and export earnings for New Zealand by establishing an investment promotion agency.
"New Zealand needs an aggressive economic strategy to improve our economic fortunes. Government must first support
business by lowering taxes, reducing compliance costs and encouraging investment.
"However, it also has another role to play in fostering growth. As a significant investor in the economy, not only
through direct ownership of assets but also as the country's largest funder of both research and development as well as
enterprise assistance, it has a duty to ensure its investments are well targeted," Mr Ryall concluded.
Ends