Regional Economic Development Minister Shane Jones told Southland leaders today that while he “fervently believed’’ in aquaculture, he was not prepared to back investment in that industry without support from the tangata whenua, Kai Tahu.

Mr Jones made Southland investment announcements this morning totalling more than $60 million, and noted that the total post-Covid-19 investment in Otago and Southland now reached $500 million.

Aquaculture has been touted as a key economic development opportunity for the region, which is still reeling from the announcement last week that Rio Tinto would close its Tiwai Point aluminium smelter in August next year, threatening thousands of jobs and removing $406 million from Southland’s economy.

Government investments this week include the Homer Tunnel upgrade, flood protection works, Alliance Group’s venison processing plant and other projects and businesses around the region. Funding for the Invercargill City Centre redevelopment was announced several weeks ago.

The challenge was now to turn the funding into jobs, Mr Jones told an assembly of mayors, business people, civic leaders and media at the Kelvin Hotel.

He confirmed aquaculture was definitely an economic development opportunity for Southland the Government wanted to invest in, and he was prepared to change the law to make it happen.

The Government wanted to ensure there was not a “precipitous damaging exodus” from Southland in the wake of Rio Tinto’s decision to close the Tiwai Point smelter, he said.

That was why the Provincial Growth Fund was investing in several opportunities to create jobs and future proof Southland, he said.

The funding had been made available because of Southland’s advocacy for those projects and businesses, he said.

Mr Jones said politicians “have to be prepared to go right to the edge of the envelope [supporting businesses]. . . and I am up for it’’.

He said he was aware of an applicant for a $10 million investment in aquaculture.

However, he had to give fair warning. If they were not working on an integrated plan with the tangata whenua, he would not back them.

The former chairman of the Maori Fisheries Trust, he wanted to be plain: “I fervently, fervently believe in it but . . . [without Kai Tahu support] I guarantee it will end up in the Treaty of Waitangi Tribunal.’’

Mr Jones said he saw the development of an “world beating’’ aquaculture industry off the coast in Southland as a medium to long term project that would require – and get – a law change, and it would be something the Government would want to invest in.

Everyone on the same page about facing the challenges posed by Tiwai Point smelter, says Tracy Hicks. PHOTO: Supplied

Southland Mayoral Forum chairman Tracy Hicks, of Gore District Council, spoke optimistically about the morning’s talks with Government representatives about getting the district back on its feet after the shock of last week’s Tiwai Point smelter announcement.

“Thank you, Minister Jones, for spreading your star dust or fairy dust in this part of the world, the way you have. We look forward to you arriving at any point in time but I do know the investment you have made through the PGF will generate a lot of jobs and certainty and wealth in this part of the world and I know it will spread far and wide,” he said.

Prime Minister Jacinda Ardern (centre) speaks to media after meeting with Southland civic leaders and business people this morning. PHOTO: Lucy Henry

Regarding the forum’s earlier meeting with the Prime Minister: “In my experience, and I have been around Local Government for a long time now, I have never been in a room in Southland where there was people with influence the way [it was] this morning, from the Prime Minister down, from a number of ministers, from mayors, from chairs, from iwi. Everyone who was there has an influence in this part of the world. Without a shadow of doubt, everyone was on exactly the same page when we are talking about the challenge we have with Tiwai and the smelter and way forward,’’ Mr Hicks said.

Mr Hicks said there would be challenges over the coming months and it could take “a little while to make sure everyone is on the same page, in the same room, talking to each other not and not talking about each other’’.

However, there was a desire and will to make things happen. he said.

“Southland will come of this in a very positive and strengthened way. From a mayoral perspective we think there was some good progress made this morning and we will certainly be engaging in a very strong way into the future,’’ Mr Hicks said.

In a phone interview with the Southland App after the meeting, Mr Hicks said the meeting definitely met his expectations.

He also confirmed an aquaculture proposal existed and was being worked on.

Mr Hicks agreed the economic turmoil being experienced by Southlanders was probably the most significant during his time in office and the voting public would have felt neglected if the parties did not work together.

“To a degree you are right. You have to go back to the 80s and early 90s when things were pretty grim. But for Southland to have that level of Cabinet buy-in, in my time anyway, is unprecedented. I take that as a sign of encouragement.

"The tenor of the meeting was incredibly positive and we’ve come away feeling we are all working towards the same goal . . . It doesn’t mean everything will happen tomorrow. The challenge of Tiwai will take us a wee while to work through," Mr Hicks said.

He acknowledged investment was unlikely if people did not talk to each other. He also agreed Southlanders and the mayoral forum would be holding the Government to account if its commitment changed.