News

In response to the Otago Daily Times’ call to “Stand Up Otago,” Economic Development Minister Steven Joyce provided a rebuttal that was published by the newspaper on 10 August.

In the rebuttal, entitled “Government Assisting Otago in Multiple Ways,” Joyce cited a $15 million contribution to the development of the Forsyth Barr Stadium, the $277 million devoted to the University of Otago throughout 2013, and, perhaps controversially, “encouraging petroleum exploration around the region.”

Joyce went on to admit that “in Otago’s case, one of the real competitive strengths is tertiary education.” According to the government’s first official measurement of regional economic performance, Otago grew 16 per cent in the four years from 2007-2010. Among the other ways in which Joyce believed the government was assisting Otago were “encouraging the development of irrigation projects in the region,” the construction of an ultra-fast broadband upgrade throughout Otago, and a bypass on State Highway 88.

Two days earlier, Labour’s Spokesman on Economic Development Dr David Clark labelled Joyce “wilfully or blissfully ignorant” after Joyce posted on Twitter that “Dunedin is growing with lots of companies adding jobs.” In an article on the Labour Party’s official website, Clark goaded Joyce to “get out of his Beehive office and get to Otago.” This came after Clark’s assertion that, at 7,800, Otago had reached its highest absolute unemployment figure since 1991.

The job cuts at Invermay in particular have spurred the creation of a delegation that includes Dunedin Mayor Dave Cull. The delegation plans to travel to Wellington in the next few days to present the case for greater government interests in Otago. At a press conference on 14 August, Cull emphasised that boosting Invermay rather than destroying it would benefit the country as a whole. Environment Southland chairwoman Ali Timms added that Southland offers a different environment to Canterbury, where much of the Invermay workforce is set to be relocated.

Cull called the delegation “probably a first” and “quite exceptional.” Deputy Mayor Chris Staynes added that “perhaps we haven’t been doing that as well as we could. I think today was a very positive step in that direction.”

In related news, New Zealand First Leader Winston Peters has called for members of Age Concern Otago to “revolt” against the “dumb people in Wellington” who he alleges are responsible for Otago’s economic plight. Addressing the crowd of approximately 60 pensioners, Mr Peters highlighted Dunedin’s faltering economy. “This is more than just a university town. Dunedin should still be considered a major economic hub,” Peters said.

According to Peters, the wealth from Otago’s export industries was being effectively “relocated.” He further cited National’s subsidising of developments of Tiwai Point in Southland. “How about an enduring, lasting hand-up for local industry here?” he asked. To Peters, regional New Zealand is being abandoned in favour of Auckland, which contains only a third of the country’s population. Peters encouraged the crowd of retirees to draw on their Scottish heritage as inspiration for the revolt.

In a press release, OUSA President Francisco Hernandez agreed with Joyce’s detractors, stating that OUSA is “passionate about keeping and creating jobs in Dunedin.” Hernandez is concerned that there are insufficient local job opportunities for former students.

“For students, Dunedin doesn’t need to be a part-time home. There should be more incentives and opportunities to stay and make Dunedin home,” said Hernandez. “Invermay is a significant part of the local knowledge economy, providing a place for students to study and work with top researchers in their industry. … With 60 joint research projects in the last five years, it’s clear that there’s significant knowledge transfer between the blue skies university and the applied sciences institute that is Invermay.”

Hernandez concluded that “this is just another chunk chipped away [from] Dunedin’s knowledge economy.”