"Not a success yet”

Press, 31 August 1977, Page 34

"Not a success yet”

OLIVER RIDDELL

The test of the success of | the Government’s regional development programme will be when there are signs of growth in areas where growth has been below the national average or where the area has been shrinking, according to the Minister of Regional development (Mr Gair).

According to this test, provisional results from the 1976 census published by the Statistics Department suggest that regional development has not succeeded yet, even if it may still be too soon to say that it has failed.

The provisional figures have been taken from a 10 per cent random sample of the census returns, but no| major differences in the final figures are expected:: and they do not show the growth regional development is supposed to assist. There are 11 districts eligible for regional development assistance, which are large and diverse so that there are considerable fluctuations between them and within them. But generally speaking, none of the 11 as a whole are showing a growth rate above the national average, although only isolated pockets within them are showing negative growth.

The 11 are Northland (Rodney, County North), East Coast (Opotiki round to Wairoa), King Country (Taumarunui North to Otorohanga). Taranaki, Wanganui (Taihape to Patea), Wairarapa (Phiatua South), West Coast, Otago, Southland, Mid and South Canterbury, and Marlborough (south to Kaikoura).

Different rates of assistance will apply to different areas within these districts — for example, New Plymouth’s rate is lower than that for the rest of Taranaki — and the rate of growth within districts varies greatly. Still, certain patterns emerge.

It has not escaped attention that apart from North Canterbury and Nelson, the whole of the South Island is covered by regional devel-

opment districts, with councils to advise on the requirements for regional development. Because almost the whole South Island is plainly lagging behind the national average, suggestions have been made that the whole island be eligible for assistance. Mr Gair discounts this. In his view the declaration of the entire South Island as a area deserving regional development assistance is not on, although a special case could be made for some activities. I The selection of areas has 1 been arbitrary: some sections of districts do not need (regional development assistlance (such as the Bay of Is- | lands in Northland) while others outside do.

This happened at Waipukurau which. being in Hawke’s Bay, did not qualify when 75 people became jobless with the closure of the ice-cream factory there. The 11 areas were chosen in 1973 on the basis of their economic progress in relation to the national average then, and a formula which was valid then will not hold good indefinitely. Mr Gair is not altogether satisfied with the suitability of the role of the regional development councils “regional maintenance” and wants them to move into “resource development.” For this to work, closer linxs with local authorities in each region are needed, and three officials committees are studying this thorny problem. Mr Gair acknowledged the political implications in regional development by saying that he worked to a three-year cycle, and he hoped to have some profress to show by the end of 978. It was better to have the right answer rather than a quick answer, and better to let the process develop with out the pressure of time on it.

Within the 11 districts are 11 parliamentary seats which changed hands in the 1975 general elections. It is not surprising that Mr Gair hopes to be able to show some progress by the next election.