Development Corporation ‘needed’

Press, 26 May 1984, Page 5

Development Corporation ‘needed’

Critics who said the Canterbury Development Corporation was not needed were wrong, the Minister of Regional Development, Mr Birch, has said in Christchurch. There were strong links between the new corporation and the Canterbury Regional Development Council and the two groups would be complementary, he said. Three elements were needed to encourage growth in a region. They were: 0 A strong local government structure to provide for planning and growth as provided by the local bodies and the Canterbury United Council. © A strong private sector commitment to economic growth and inves tmen t

which the Canterbury Regional Development Council did by co-ordinating private groups. • A vigorous financial group to co-ordinate and provide investment funds which was where the Canterbury Development Corporation had a part to play. The Government looked favourably on the establishment of the corporation because it was an expression of confidence in the future. "It provides a new and dynamic vehicle for the private sector in Canterbury to ensure that funds are available for new investment,” Mr Birch said. The recent trend to set up develpment corporations was to be applauded because it showed that the regions were determined to help themselves.

The Government had also changed its policy to encourage the setting up of regional development councils because they helped create a climate for economic growth, he said. "It is my view that growth in the national economy is the aggregate of growth in the regions. If the country is doing well as a totality, it is because the regions are doing well in their economic growth." said Mr Birch. Canterbury as a region had “a lot going for it," Mr Birch said. It was the biggest population centre in the South Island, it had a strong manufacturing base, its businesses were in the forefront of new technology, it had excellent educational facilities, a stable workforce, a port, and the onlyinternational airport in the

South Island. It also had some of the finest agricultural land in the country which with irrigation would lead to diversification. Canterbury was well placed to take advantage of new opportunities provided by closer economic relations with Australia. It also had an electricity price concession and new freight benefits to help competition with North Island businesses. Mr Birch was speaking to a gathering of city business people in the CanterburyCentre for the first big public presentation of the aims of the Canterbury Development Corporation. The corporation was founded last year with a $500,000 grant from the Christchurch City Council. Nearly 50 other local bodies,

businesses, and private individuals have contributed to it. A video film made to promote the corporation said that Canterbury had 9000 people unemployed and a further 4000 people in special work creation programmes. Yet Canterbury could be the fastest developing region in New Zealand. The corporation aimed to raise $1 million from local businesses so it could offer expert consulting services, advice on market research and development, and funds or guarantees for new ventures. It hoped to attract overseas investors to the province and encourage innovation. The $55,000 interest on money already given had been spent on running expenses: