Address to Lake Taupo Communities Economic Partnership Launch

I am very pleased to have the opportunity to address you today, and I am delighted to be here at the launch of the Taupo District Economic Development Strategy.

The Industry New Zealand's Regional Partnerships Programme has been established to assist communities to work together to identify and develop economic enhancement opportunities in their area.

It offers financial support for development strategies and building local partnerships, and grants for major regional initiatives that are consistent with regional strategies, and contribute to the government’s goal of sustainable development.

Initial funding is available to undertake economic analysis and consultation, to develop a regional economic strategy, and further funding is made available to assist regions to address barriers to economic growth, and develop their capability to progress specific economic growth initiatives.

Late last year, Industry New Zealand confirmed that our district had joined the Regional Partnership Programme and was successful in receiving $92,500 to develop a strategy for economic development.

That funding from Industry New Zealand has been supported by a contribution of $44,000 in kind from Lake Taupo Development Trust and the Taupo District Council. I’d like to congratulate the Lake Taupo Development Trust for its leadership in getting Taupo involved in this Programme.

I know that in Taupo the partnership will provide an incentive for innovative and forward-thinking. The Steering Group that has been established is excellent and represents many if not most of the key stakeholders of our District.

Each regional economic development strategy needs ideas and proposals from local people, committed to making their regional economy work. In Taupo many people have been involved and local groups, councils and iwi have been part of the process. That high level buy in is important to enable the successful economic development of our district.

Industry NZ will maintain a strong involvement in the strategy development work through the Regional Economic Development Advisor, creating a further link between regions and central government.

When the Minister for Economic Development, Hon Jim Anderton, announced the launch of the regional partnerships programme in July 2000 he stated that it was the first programme of its type in many years. It is certainly proving its worth.

So far twenty three regions have secured grants to develop regional plans. That is twenty three areas where New Zealanders are working together, to take seriously the economic development of their region. Twenty three areas where people are discussing innovative and creative ideas, and planning how to take those ideas to the establishment stage.

In November 2001 there was the release of an international survey that says that New Zealand is the second most entrepreneurial nation in the world. We were ranked ahead of other countries we often compare ourselves with such as Australia and the United States.

However, too often in the past those innovative and entrepreneurial people, have had to take their ideas off shore in order to get the funding and recognition needed for development. New Zealand has frequently missed out on the economic gains that development in this country could bring to us all.

So, the challenge for this government has been to encourage regions and industries to work in partnership, to look at their strengths, at the barriers to development, and to work together to create business and industry growth.

By working together, with their communities, innovative people with entrepreneurial ideas can receive the support they need.

Developing each region's business and industry base is essential to the whole New Zealand economy.

Earlier this week the Prime Minister spoke on Growing an Innovative New Zealand - the framework document that draws on the various economic development reports received by government over the past year. This document sets out the direction, which the government intends to follow. From an economic perspective, the objective is to return New Zealand’s per capita income to the top half of the OECD rankings - and maintain that standing.

We need an economy capable of adapting quickly to the changing international environment. We need to be innovative so our relatively small size and distance from markets are compensated for, we need a population committed to working together, and we recognise that innovation must be supported by appropriate government policy and implementation.

There are many signs that this transformation is underway – new industries are emerging and are growing strongly – two of these close to my heart are tourism and winemaking!

There has been an increase in tertiary education participation with rates well above the OECD average.

But there is still a long way to go – we don’t export as much as we could and should, our expenditure on research and development is low, with private expenditure one of the lowest in the OECD, and we are poor at commercialising our ideas.

In the end change needs to come from a variety of sources: individuals, communities, businesses, local and central government working together in partnership.

To this end, initiatives such as the Regional Partnerships Programme provide a useful tool.

Ultimately however, the success of the Taupo District Economic Development Strategy, will depend on the co-operative partnership being recognised here today, and this launch forms an important part of developing the strategy for the future of our region, and realising in full its economic development potential.

Congratulations to you all and as the local Member of Parliament – I look forward to the next stage of the process.