Newly announced Provincial Growth Fund (PGF) investments will spend more than $1.5 million into four Southland economic projects.

Regional Economic Development Minister Shane Jones announced today at Invercargill Airport that the PGF would spend $500,000 to upgrade Invercargill Airport, $550,000 to establish a regional business start-up network, $593,481 for an aquifer recharge pilot, and $100,000 to the Stewart Island / Rakiura economic development plan.

“These projects have been selected for funding because we know that they will help drive Southland’s economic growth. These projects will help turn the region’s strategy into action,” Mr Jones said.

Mr Jones said the half million dollars in funding would help Invercargill Airport make necessary upgrades to prepare it for the first direct jet connection between Auckland and Invercargill since 1995.

The new Auckland to Invercargill jet service begins in August this year.

“Through this investment, we’re preparing Invercargill for the growth generated by direct flights to and from Auckland. It will make it easier for Southland-based industries, especially aquaculture, to export their perishable goods to key domestic and international markets,” Mr Jones said. 

The upgrade will require a range of jobs, including electrical, fibre, geotechnical engineering, design and fabrication work. Invercargill Airport Limited is forecast to increase their full-time equivalent jobs from nine to 16 during the 12-month trial of scheduled jet services from Auckland.

PGF funding will allow Invest South to develop COIN South, which will equip Southland entrepreneurs with the skills, networks and funding they need to grow sustainable and successful high growth businesses in the region.

COIN South will focus on retaining and growing early stage businesses that would have otherwise likely relocated in order to attract capital. The investment network that COIN will catalyse has the potential to result in business growth and job creation in the region.

The Oreti Managed Aquifer Recharge (MAR) testing project will explore options to improve the management of groundwater storage.

“Water storage is a major issue in Southland, with water shortages being a key barrier to growth. This investment has the potential to bring environmental, social and economic benefits to the region and help to grow a sustainable primary sector," Mr Jones said.

The MAR will use a set of physical tools designed to capture available clean water and use this water to replenish groundwater resources. The MAR tools improve the management of groundwater resources, particularly where they are under pressure from usage or becoming degraded due to changing climate patterns.

The PGF is also funding the Stewart Island Future Opportunities project to assist in the planning of its economic future. This project will leverage on tourism opportunities and contribute to the regional goal of doubling tourism revenue to $1 billion by 2025.

“Stewart Island / Rakiura only has around 400 residents, but attracts close to 40,000 visitors per year. The PGF is proud to be helping Rakiura leverage its economic opportunities so that it continues to punch above its weight."