The Government had made a good start to restoring neglected regions with its funding for Southland's strategic plan, but there was more work to do, Labour economic development spokesman David Clark said.
Dr Clark was asked to comment on the nearly $2.5 million the Government was spending in Southland in support for the new growth plan for the region.
The Southland regional development strategy was launched in Invercargill yesterday with Economic Development Minister Steven Joyce, Primary Industries Minister Nathan Guy and Associate Tourism Minister Paula Bennett in attendance.
Dr Clark commended the Government on working at a local level with the Southland Mayoral Forum but said Southland's problems were part of the regional neglect suffered nationwide.
Southland's GDP, or economic activity, had fallen 10% last year and the reason for that was regional neglect.
''This help has been desperately needed. The community-led strategy means the estimations of what is needed are likely to be sound. The Government has come in behind this project.''
Two items of expenditure missing from the announcements were roads and IT spending, both critical to the success of any region, he said.
Otago had expressed its own ''local desires'' but the Government had been silent on the fate of Invermay, the rapid build of the Dunedin Hospital and tourism.
''People I talk to on economic development are angry about the Government's neglect of regions. Otago is not special in feeling neglect from the Government. The Government doesn't seem to care much for the future outside of Auckland and Christchurch.
''The drip-fed Government investment signalled today is insufficient and won't be enough to turn the tide on eight years of neglect.''
The Southland action plan would be supported by the Government's regional growth programme which Mr Joyce said aimed to increase jobs, incomes and investment in regional New Zealand.
Local and central government, businesses and iwi worked together to develop the plan, which was informed by the Southland regional development strategy.
Southland had laid out a clear and coherent plan to diversify the regional economy, grow the population by 10,000 by 2025 and strengthen local business.
To help achieve those goals, the region had identified opportunities to grow sectors like tourism and international education.
''These will be underpinned by work to train or attract more skilled workers and improve water management, digital connectivity and transport infrastructure.''
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Not a lot of point dropping a money bucket or two into the regions when every second week government are removing local jobs. Their incessant zeal to centralise all functions to Wellington and Auckland (yeah, and sometimes Christchurch) is eroding local communities. Sadly local National MP's just grin and watch it happen - have a bucket of dollars, just don't look at the details!