Provincial Growth Fund officials front after criticism swirls

May 13, 2019

There has been a lack of accurate detail on just where the $3 billion is going. (Source: Other)

A 1 NEWS story questioning the lack of accurate detail available on the $3 billion Provincial Growth Fund has led to officials fronting for the first time.

This was prompted by the minister in charge, Shane Jones, so officials can explain how the fund is being spent and who's checking up on them.

Criticism about the process, the checks and balances and the speed of creating jobs have been swirling.

Robert Pigou of the Provincial Development Unit said the unit ,"ramped up very, very quickly from probably about July last year to the point where we have got $1.77 million committed". 

National's Economic and Regional Development spokesperson Paul Goldsmith said it's clear the Regional Economic Development Minister Shane Jones feels under pressure.

"There's all sorts of criticism of the fund, so he's trying to get the officials to bail him out."

1 NEWS revealed last week a lack of details around the 560 jobs created by the fund.

Today officials admitted most of the jobs early on will be temporary contracting jobs.

"Most of these projects at the moment, the jobs created, will primarily be for contractors. They'll be building construction staff, they'll be people from advisory firms," Mr Pigou said.

What's more, the Auditor-General, who's in charge of checking up on government spending, is keeping a very close eye on the fund.

"I think the Auditor-General's very aware that I am incredibly alert to any suggestion that just because this came from New Zealand First that it should suffer a more intense level of inspection, or because I have wandered around with a megaphone somehow that means something not quite cosher is happening," Mr Jones said. 

Mr Goldsmith said Mr Jones "deserves all the criticism that he gets frankly. He politicised this fund."

The minister will be hoping for political success when an updated number of jobs is revealed in June.

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