REGIONAL DEVELOPMENT Research Study Commissioned

Press, Volume CIX, Issue 32030, 3 July 1969, Page 14

REGIONAL DEVELOPMENT Research Study Commissioned

(New Zealand Press Association) WELLINGTON, July 1. The Institute of Economic Research has been commissioned by the Government to undertake a programme of research into regional economic development with special reference to manufacturing.

The Minister of Industries and Commerce (Mr Marshall) said today: “The Government is vitally concerned with regional economic development in New Zealand, particularly as it is manifested in the rapid economic growth of some areas and the slower development of others. “This study will enable a comprehensive and professional study to be carried out for the first time into all aspects of regionalism but with special emphasis on manufacturing. “In the past the general momenttun of the economy has carried regions along with it but the Government has become concerned more recently at the disparate development of some areas. Correct Emphasis

"It is necessary to know why these trends have developed and how regional development can be given the correct emphasis within the guidelines laid down for the economy in the 1970*s by the National Development Conference,” Mr Marshall said.

Preliminary work had started, and the institute was required to report its findings by the end of the year. The terms of reference for the institute’s research programme were:

1. To provide a brief theoretical background on the social and economic aspects of regional development, to highlight the main issues and to give an understanding of the project. Attention would be focused on the distinction between public and private costs and benefits. 2. To examine the present pattern bf activity in New Zealand bn a regional basis with emphasis on manufac. taring, ghd account for long-run trends in outline and trends over the last decade in more detail. 3. To examine the significance of location for manufacturing industries in New Zealand.

4. To examine the social aspect of manufacturing location and development in New Zealand on a regional basis, and to consider the effect of equating throughout the country the cost of locally produced raw materials and of some finished products. 5. To suggest criteria for a regional development policy in New Zealand. 6. To identify regions in which special efforts to encourage economic growth appear worth while and suggest measures that might be taken to encourage the development of industry best suited to these regions. The research would indicate whether any Government intervention might be justified. Mr Marshall said. '