25 Jun 2020

Hawke's Bay hostel project and manufacturer secure nearly $8m from PGF

2:00 pm on 25 June 2020

Training for disadvantaged youth and a packaging manufacturer in Hawke's Bay have received nearly $8 million from the Provincial Growth Fund.

Artist impression of the proposed Hawke's Bay hostel to be built at the regional sports park.

Artist impression of the proposed Hawke's Bay hostel to be built at the regional sports park. Photo: Supplied

The Hawke's Bay Community Fitness Centre Trust will receive a $5m grant to construct a hostel at the regional sports park, which aimed to improve job prospects for disadvantaged youth across Waipukurau, Flaxmere, Maraenui, and Wairoa.

Under-secretary for Regional Economic Development Fletcher Tabuteau said the funding for the Trust would help 100 young people each year.

"The programme, run by the Trust, will use sports and physical fitness to build self-esteem, develop leadership skills, as well as prepare for job readiness and vocational training."

Artist impression of the proposed Hawke's Bay hostel to be built at the regional sports park.

Artist impression of the proposed Hawke's Bay hostel to be built at the regional sports park. Photo: Supplied

Trust chairman Sir Graeme Avery said the investment would also allow 125 people to be employed in the hostel's design and construction over the next 19 months.

A $2.88m loan for Hawk Group, which makes paper packaging for the horticulture industry, would go towards installing an additional line at their Hastings factory.

Fletcher Tabuteau

Fletcher Tabuteau. Photo: RNZ / Rebekah Parsons-King

This investment would create more than 30 immediate jobs during the construction phase, as well as contribute to increased productivity over the longer term across manufacturing, recycling and horticulture industries, with the majority of revenue staying in the region, Tabuteau said.

With Covid-19 crisis and drought hitting the region, it was more important now than ever to support job creation and the economy, he said.

More than $100m from the Provincial Growth Fund had been invested in Hawke's Bay to date, Tabuteau said.

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