Regional Strategies and Implementation
Regions are encouraged to develop comprehensive regional economic development strategies with input from MED and its strategy development guidelines. The strategy development guidelines are available from www.med.govt.nz/strategy-development. MED is available to provide advice on the strategy development process; please talk to your NZTE Regional Economic Development Manager (see appendix one) for contact information.
Broad Based Strategies
The strategy should reflect all of the factors that affect economic development in a region, including skills, infrastructure, business support, land-use/zoning, etc.
The implementation plan should also reflect all of these factors. It should not be limited to 'enterprise and innovation' or other specific activity.
The implementation plan should reflect actions to be undertaken by all regional players including councils, industry groups, training organisations, central government agencies (the Ministry of Social Development, the Tertiary Education Commission, the Foundation for Research, Science and Technology, etc.).
Regions are encouraged to address sustainability through the wider regional framework and strategy. Sustainability can be woven into each strategic priority and subsequent implementation projects.
Ensuring Strategic Depth
Regions are encouraged to undertake further research to deepen understanding of region specific issues and strategic priorities in order to reflect these findings in the published regional strategy. For example, where a skills shortage has been identified as a serious regional issue, business needs could be assessed. This would further understanding and focus of a possible intervention and allow any required actions to be included in the strategy. The Regional Strategy Fund (RSF) can fund this type of 'further investigative' research.
Some regions are allowing for such research in their strategy budget (i.e. an amount for 'further research as required'). Regions that have not done this but find further investigation is required are encouraged to apply for further RSF funding to assist with such work to ensure the published strategy is as complete and detailed as possible.
Developing and implementing strategies for attracting and retaining investment into a region may be funded under the RSF. Applicants must clearly demonstrate how such proposals go beyond existing activity for the region. This requirement would also apply to generic infrastructure strategies as well.
Communication and Monitoring
Best practice strategic planning involves communicating both the strategy and its success. When a strategy is completed a communication plan will help ensure the wider region is aware of the strategy and what it seeks to achieve. Such communication can encourage support for the strategy and link people together.
Communicating how the strategy is progressing can help keep the strategy alive and help inform the region, particularly parties contributing resources to the strategy (i.e. regional ratepayers). One example would be to produce newspaper supplements (similar to those run regularly by some local councils) highlighting key achievements. Again the RSF can fund such activity.
The implementation of the strategy should be monitored. This helps ensure actions are being undertaken and the strategy's goals are being achieved. For example, the strategy and implementation plan could be assessed annually, with the implementation plan subsequently updated. Other monitoring work could include measuring progress towards community outcomes, or developing a regional data 'observatory' that collates and makes available key economic, social, environmental, etc. indicators across a region or regions. Again the RSF could contribute towards this work.
Funding for communication and monitoring of the strategy and its implementation plan could be applied for as a separate project (that could run for up to three years). Communication and monitoring activities relating to specific implementation projects should be considered as part of the project, and not funded separately by the RSF (i.e. an evaluation of a project's effectiveness at achieving the strategy's goals). These project based activities can only be supported on a yearly basis (as a result of yearly contracts for the RSF) and should be planned for appropriately.
Implementation Projects
The RSF can support projects that implement the innovation and enterprise aspects of the strategy where these projects are not more appropriately funded by other central government organisations. For example, a tertiary education facility that implements part of the regional strategy may be more appropriately funded by the Tertiary Education Commission.
The RSF, unlike the EPF, can support projects that are not nationally significant or do not directly align with national priorities. As long as they meet the objectives and criteria of the fund, regional (or sub-regional) level projects that are identified as a priority by the region's governance group can be funded. For example tourism and other sector related projects that are not in themselves nationally significant projects could be funded.
The RSF cannot fund projects that are variations of projects/services that NZTE currently funds. For example raising ICT capability is not funded as it is better addressed by working with Enterprising Training Programme providers.
The RSF cannot bulk fund existing training courses unless the work is beyond existing activity and part of a more comprehensive programme for the region. For example, the RSF could not subsidise a management course unless it was part of a broader project addressing management capability in the region, and was not better addressed by working with other agencies or providers.
Projects that benefit a smaller sub-set of businesses in the region may be more appropriately funded by NZTE's Growth Services Fund.
Regional Discretion
The RSF has up to $750,000 available to each region over a three year cycle. Regions can choose how to allocate RSF funding between financial years with the exception that no more than half of the $750,000 can be drawn down in any one financial year. This three-year cycle begins when a region's first application to the RSF is approved.
How RSF funding is used across the strategy cycle is flexible. As noted above, it can fund strategy development, communication, monitoring, the development of business cases and for implementation projects. The region's governance group has discretion over how funding is focused across these areas.
For example:
- the full $750,000 of RSF funding could fund the development of the regional strategy (including research, consultation, further investigative studies, implementation plans, etc); or conversely
- the full amount of RSF funding could fund a single large multi-year project (provided the project flows out of an existing regional strategy). For example, a project costing $1 million could be funded with $250,000 of regional funds and the full $750,000 of RSF funding.
Administration agents appointed by regional governance groups may recover legitimate costs incurred in contracting and financial management under the RSF. This is up to a maximum of 4% of total approved funding in a financial year. Claims should relate to actual expenditure and should be supported by timesheets and receipts where appropriate.
Regions can also use a percentage of RSF funding for governance group costs or costs involved with ensuring region-wide participation in regional economic development activity (i.e. travel costs). This amount is also determined on a case by case basis at the discretion of NZTE. Again, claims should be supported by receipts or other documentation.
Applications to the RSF
Regions are now eligible to apply for RSF funding at anytime, but only once in each financial year. Regions should agree with their local NZTE Regional Economic Development Manager when an application will be made.
An exception to the above allows two applications in one financial year when the first application is for strategy development, or strategy review, and the second is for 'further investigative research' that furthers the strategy development, as discussed above, or for projects that implement the finalised strategy.
Applications must include a three year 'priority action plan' which clearly identifies priority actions from the region's implementation plan that are appropriate for NZTE RSF funding.
Applications need to provide detail on the process undertaken to identify NZTE as the best source of funding for the projects identified, and how the project will complement programmes managed by other organisations (Foundation for Research Science and Technology, Tertiary Education Commission etc).
If a project has parts that are related to work previously supported by NZTE funding (e.g. a Major Regional Initiative or another fund), a clear distinction between the objectives of the new project and of previous projects needs to be made.
NZTE would prefer to see an industry contribution as the regional contribution to projects. However, contributions from publicly funded organisations such as Crown Research Institutes, universities and polytechnics will be considered.
Clear milestone tables with key performance indicators need to be given for each project with measurable deliverables. A best practice example of a project milestone table for a strategy development project is attached as appendix two.
Letters of support from key partners/stakeholders describing their involvement in particular projects must accompany each application.
Applicants need to show respective contributors and contributions as per the 'NZTE/Regional Cash Contribution' table in appendix one of the application.
If an application involves funding for a project that could result in a financial gain for the applicant, the applicant's intentions need to be clearly stated.
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