The Provincial Growth Fund
In 2018, the New Zealand government created the Provincial Growth Fund (PGF), allocating $3 billion to Kānoa – Regional Economic Development & Investment Unit to invest in the economies of our regions.
Our country’s economy is built on the successes of our regions and their communities. Tourism, forestry and primary industries continue to lead New Zealand’s export economy, while the regions are home to some of our most creative and innovative people. However, each region faces different economic challenges and opportunities depending on a range of factors including the businesses and industries already established and operating there.
Through the PGF, the government seeks to ensure that people living all over New Zealand can reach their full potential by helping build a regional economy that is sustainable, inclusive and productive.
The PGF is administered by Kānoa – Regional Economic Development & Investment Unit, part of the Ministry of Business, Innovation and Employment.
The PGF's objectives were to:
- Create jobs, leading to sustainable economic growth
- Increase social inclusion and participation
- Enable Māori to realise aspirations in all aspects of the economy
- Encourage environmental sustainability and help New Zealand meet climate change commitments alongside the productive use of land, water and other resources
- Improve resilience, particularly of critical infrastructure, and diversify our economy
An announcement made in May 2020 outlined how the PGF would play a vital role in New Zealand's economic recovery from COVID-19 by providing opportunities to support worker redeployment and regional skills and training, improve and enable infrastructure and support capital investments, joint ventures and Māori and Pasifika businesses.
PGF reset helps regional economies — Beehive.govt.nz
In addition to the underlying objectives of the PGF, proposals were required to meet COVID-19 response objectives:
- Jobs – creating immediate redeployment opportunities and/or new employment opportunities
- Timelines – projects could commence as soon as possible
- Visibility – projects were visible to the community, boosting confidence in New Zealand's social and economic recovery.
Status of Provincial Growth Fund Appropriations and Funds Committed to date by Agencies
The PGF reports on the status of appropriations bi-annually.
How we have invested
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Regional
The Provincial Growth Fund (PGF) invested in a range of regional projects, often supporting community wellbeing while helping drive economic development and creating work and training opportunities.
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Sector-based
The Provincial Growth Fund (PGF) invested in projects across key sectors to support growth in the regions and attract business and private investment.
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Infrastructure
New Zealand needs robust and up to date infrastructure to provide the foundation of economic growth. The Provincial Growth Fund (PGF) has supported a range of projects to help our regions grow and thrive.
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Te Ara Mahi – Pathways to Work
Te Ara Mahi (TAM) was established to support people into employment opportunities and equip them with the skills and experience to find work and build a career.
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Māori economic development
The Provincial Growth Fund (PGF) has supported a range of Māori economic development projects in the regions.
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How we made decisions
Applications were open to all individuals, non-government organisations, iwi and charities, as well as New Zealand companies. This included those companies which are foreign owned but would be investing the money in the New Zealand economy.