Shearer says regional push a Labour priority

David Shearer.
David Shearer.
A strategy for regional development would be one of the first things a Labour government would look at, party leader David Shearer says.

In Dunedin yesterday as part of a tour marketing the party's power policy, Mr Shearer said there needed to be political action to stem the tide of Dunedin job losses, mostly the result of the streamlining or centralising of government services.

There was no doubt the regions had been neglected in favour of the country's major cities, he said.

''And I actually think ... Dunedin has done worse than pretty much any other region ... That shouldn't be the case, because you've got a world-class university and polytech and great industries.''

Labour had not started drafting a plan for the regions, but policies would come out ''as we come along''.

It was something ''we would look at doing first off.''

The plan would include changing government procurement policies constructed to favour overseas companies and seek the cheapest supplier (often overseas companies).

''Current policies mean New Zealand companies that are trying to get a foothold or a foundation, don't get a look in.''

He cited, as an example, IRD's search for a contractor to upgrade its computer systems.

The companies that could tender had to have experience with overseas contracting and have had international contracts. That immediately shut out many New Zealand companies from winning the $1.5 billion, 10-year contract.

On Bradken, which last week reduced 64 Dunedin staff to a four-day week after a KiwiRail contract was awarded to an American firm, he would have liked to have seen KiwiRail sit down ''and say: 'Look we want to use you; this is the price we are getting overseas'; and the Government then say: 'Well, how can we make this work'.''

Labour would stop cutting the level of government services and increase support for regional development by creating a strategy where government worked alongside councils on projects and in areas where they thought they could grow.

In the meantime, it would keep the pressure on AgResearch to reconsider the shifting north of 85 jobs from Invermay and do what it could to halt any further government service cuts in the city.

It would do that through continued questioning, and support of local action.

Dunedin North MP David Clark, with Mr Shearer and Dunedin South MP Clare Curran yesterday, said Labour would not be giving up.

''We're going to keep pushing on Invermay, the hospital kitchen [authorities are considering centralising hospital kitchen services to Christchurch and Auckland] and the immigration office [which plans to close its Dunedin branch this year]. We want to make sure public services are retained here.''

Ms Curran said technology industries had flourished in Dunedin, citing examples such as TracMap and ADInstruments which were succeeding ''despite the [economic] setting''.

''With some support we could have more of those,'' she said.

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