Government provides extra support for Buller

Economic Development Minister Steven Joyce and Social Development Minister Anne Tolley today announced up to $300,000 worth of funding to help people into work in the Buller District.

The Ministry of Social Development funding will be matched by a further $300,000 from the District and will be used to provide wage subsidies for up to 20 people impacted by recent business closures in the region to be hired by new employers.

“The Buller District has had a particularly difficult period recently with some key employers retrenching at the same time. This plan, which is unique around the country, will help other businesses expand and take on people who have lost their jobs,” Mr Joyce says.

Mr Joyce says the initiative complements the work the Government is doing to support growth in the wider West Coast region through the Regional Growth Programme.

“A study is underway that will provide a comprehensive analysis of the economic opportunities on the West Coast.” Mr Joyce says.

“We will then work with the region to look at how best to take advantage of the opportunities identified to improve investment, jobs and income in the area.”

“Unemployment across the wider West Coast/Tasman region is currently relatively low at 4.2 per cent. This initiative acknowledges a particular problem in a small but important part of the region.”

Mrs Tolley says the initiative represents a significant investment in the area and supports employers to hire beneficiaries by contributing to the cost of their wages.

“This is another example of central government partnering to deliver the right solutions to suit a district under very significant pressure,” Mrs Tolley says.

“We know from experience that targeted wage subsidies are one of the most effective tools we have to support people into employment, which is why preference will be given to those at high risk of long term benefit dependence.”

MSD will provide up to $300,000 in wage subsidies to employers for 20 people who are receiving a Work and Income benefit in Buller or have made contact with Work and Income seeking assistance due to the impact of recent business closures. The subsidies will last for 12 months at a rate of $15,000 per person.

While it is targeted at those aged between 18-30, all Work and Income clients or potential clients will be eligible for the subsidies.

The use of the existing wage subsidy process also means MSD can start implementing the initiative immediately.

“We will continue to work closely with the Buller District and Mayor Garry Howard to seek new growth opportunities to counter the difficult current economic situation in the district,” Mr Joyce says.