Regional economic development minister Shane Jones announced two more large Government investments in the Southland region this morning: $25 million for the Homer Tunnel upgrade and $5.3 million for primary producers.

That’s on top of $30 million worth of investments announced yesterday: $25 million for Southland flood protection, $3 million for the Gore library, $1 million for the Gore Multisports Complex and approximately $1 million for a shearing industry training programme.

Mr Jones, a New Zealand First MP, is a member of the coalition Government and was in Invercargill with Prime Minister Jacinda Ardern and other Government representatives.

Homer Tunnel

Mr Jones said the Government investment of $25 million into the Homer Tunnel upgrade would create 180 jobs.

It would also improve the safety and resilience of the tunnel on the crucial State Highway 94 (The Milford Road) tourist route linking Te Anau and Piopiotahi Milford Sound.

The multimillion-dollar investment from the Government’s rejuvenation package aimed at kick-starting the post COVID-19 economic rebuild will provide a much-needed boost for the Southland region and significantly improve the safety of the remote Homer Tunnel for all road users.

“Improving infrastructure is a key component of our economic recovery plan. This funding is an investment in the future of a critical piece of infrastructure for the region, improving safety for tourists, creating jobs and providing much-needed economic stimulus,” Mr Jones said.

The Homer Tunnel safety improvements comprise a package of critical tunnel upgrade projects including:

• ‘Fire life’ safety systems, including the installation of radar and incident detection cameras, remote tunnel monitoring from Te Anau, active lighting, barrier arms, and a power systems upgrade 

• The construction of new emergency refuges inside the tunnel for people potentially caught during an emergency (a fire or an earthquake) 

• The installation of a new forced ventilation system 

• A deluge system to control/limit a fire

• An upgrade to the Eastern tunnel portal area, a new viewing area, an avalanche mitigation system and rockfall protection above the tunnel portal, and dual-laning for winter traffic management

The ‘fire life’ works for the tunnel will begin immediately, along with some components of the Eastern tunnel portal area upgrade. Work on the remaining safety improvements will be progressed over the next 18 months.

“The tunnel’s remote location also means the benefits from construction will be enjoyed more across the region, with the need for supplies and support for workers increasing demand for food, accommodation, and project materials.

“As well as the opportunity to progress some very important safety works, this project will also support the Southland region in terms of employment, and the work will benefit Te Anau and district in terms of ‘multiplier-effects’ from the actual project. 

“This ‘flow-on multiplier-effect’ from funding should not be under-estimated for its wider financial return to the region. The Milford Rd storm damage reconstruction works currently underway have shown the flow-on benefits of funding for the local community and for the wider region,” Mr Jones said.

Primary production

Meanwhile, two Southland businesses will receive loans from the Provincial Growth Fund (PGF) to boost production and take on more local workers

Up to $5.3 million will go to Alliance Group Limited’s meat processing facility and Drysdale Hydroponics’ vegetable growing business.

“These businesses are in line with Southland’s priority to diversify its economic base, and will create new jobs during construction and in the longer-term,” Mr Jones said.

“Alliance Group Limited (AGL), a farmer owned co-operative meat processing company, will receive a $2.8 million loan to assist with the conversion of its Lorneville venison processing plant to include beef processing. This will provide its workers with a 10–12 week longer work season and will also create up to 20 new jobs.

“This expansion brings several benefits to the region, including more jobs, upskilling of new and existing staff and increased beef processing capacity in Southland during the peak season which will increase staff earnings through enabling a longer processing season.

“The conversion of AGL’s plant will start in a few months and will create jobs for approximately 100 people on the construction site, including jobs for designers and engineers over an eight-month construction period.

“Drysdale Hydroponics will receive a loan of up to $2.5 million towards the expansion of its existing hydroponic vegetable growing operation into producing a more diverse range of hydroponically grown produce, which includes tomatoes, capsicums, strawberries and micro-greens.

“The 16-year old horticulture business supplies local wholesalers, supermarkets, as well as businesses preparing food for sale, such as cafes and caterers.

“Two new greenhouses, a pack house and staff amenities will be built, with work starting within the next two months. A total of 30 new jobs will be created at the business, 17 of which will be added in the first six months of operation.

“Southland needs a wider variety of food production other than beef and dairy, sheep and root-stock vegetables for commercial supply. Drysdale Hydroponics has proven it can commercially produce lettuce and other leafy greens in Southland. 

“This will be a great asset to the region where demand for fresh, locally grown produce can often outstrip supply. Produce not produced in Southland needs to be airfreighted from the top of the North Island, at considerable extra economic and environmental cost to both growers and consumers.

“Both businesses we’re supporting today are proud Southland entities and their respective expansions will quite rightly benefit locals,” Mr Jones said.