Invercargill CBD big winner from Provincial Growth Fund

Wednesday, 19 December 2018

Fletcher Tabuteau, parliamentary under-secretary for regional economic development, has announced Provincial Growth Fund funding for Southland projects.

The Government has today announced it will pump nearly $2 million from its Provincial Growth Fund into three projects associated with Southland - the Invercargill CBD redevelopment, aquaculture and the sheep and goat milk industry.

The Invercargill CBD redevelopment will receive $995,000 for a business case and feasibility study; an aquaculture project will receive $424,900 for a business case study into a commercial hatchery, and $490,000 will be used to scope further development of the sheep and goat milk industry.

Scott O'Donnell, HWCP managing director, the man behind the Invercargill CBD upgrade.

Parliamentary under-secretary for regional economic development Fletcher Tabuteau said the fund's focus was on projects with potential to spark economic growth and create jobs in the Southland region.

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Mark O'Connor, chair of the Southland Aquaculture Working Group.

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Gary Tong, Southland District Mayor and chair of the Southland Mayoral Forum.

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The $200m CBD development, 'a visionary project', would bring vitality to Invercargill and Southland, he said.

The $995,000 of Government funding would be used for a business case to investigate planning, detailed design, procurement and raising capital to ensure the project was robust enough to attract future investment and deliver sustainable infrastructure.

Scott O'Donnell, managing director of public/private company HWCP Management Limited which is behind the CBD development, said the funding was a great result and showed the Government was keen to support the regions.

The $995,000 was enough to complete the tasks it was intended for, he said.

Tabuteau said the Southland aquaculture hatchery and nursery project had been identified as one of Southland's biggest economic opportunities.

The $424,900 would fund a business case to assess the development of a state of the art, land-based commercial hatchery to produce salmon smolt and mussel spat.

'This has the potential to unlock over $400 million in export earnings and over 500 jobs for the region,' he said.

The business case was a building block to achieve the expansion and future development of the aquaculture industry in Southland.

Mark O'Connor, chair of the Southland Aquaculture Working Group, said Southland needed another engine room to drive growth and enhance its population base.

'Aquaculture has got the attributes to provide that opportunity in a sustainable manner.'

The site of the hatchery had not yet been determined, he said.

'That's what the feasibility study is about, part of it anyway.'

Aquaculture was the world's fastest growth primary industry and Southland had a comparative advantage in sustainable aquaculture with its pristine, cool, deep and sheltered waters.

This was already demonstrated by the existing industry in Bluff and on Stewart Island, producing salmon and mussels – with a supporting industry of engineering and fish processing facilities that was ready to grow.

The business case is expected to be completed by June 30, 2019, O'Connor said.

Gary Tong, Southland District Mayor and chair of the Southland Mayoral Forum said the proposed hatchery aimed to capitalise on the constrained supply of salmon smolt.

New Zealand hatcheries were close to capacity and the sector desperately required additional facilities.

'A new hatchery in Southland is also seen as key to mitigating potential biosecurity risk in other parts of the country.'

Tong said the funding represented a significant boost to the region's drive to attract 10,000 more people to live and work in Southland by 2025.

The Southland Regional Development Strategy (SoRDS) had identified aquaculture, particularly high-value salmon farming, as a leading opportunity to achieve the goal.

Tabuteau said the $490,000 from the provincial growth fund for the sheep and goat milk industry would be invested with FoodSouth to scope further development of the industry.

Sheep and goat dairying was an emerging industry with significant potential driven by high consumer demand for environmentally sustainable, alternative milk products.

'Sheep milk farming exists in pockets around the country, particularly in Southland, but this project will assess the economic viability of developing a nationwide industry.'

FoodSouth would develop a national business case of the industry to identify export opportunities, estimates for goat and sheep milk volumes to meet demand, and consider the best locations for processing plants.

The report would focus on four products - liquids, cheese, butter, and protein powders.

'Southland sheep milk farmers stand to benefit from the information and insights this project will create, including workshops and market research.'

Tong said the three projects could all be progressed in Southland.

'We have to get real here, if we don't step up everyone's going to leave us behind, we have to ride on the coat-tails of some of these great ideas.'