It is often the case that reports by the Ministry of Economic Development (and now its successor, the rather pretentiously named Ministry for Business, Employment, and Innovation or MBIE) recommend further government interference in economic activities in the name of ‘helping business.'

The much-vaunted ‘business growth agenda’ of the government, which few people outside of Wellington have heard of, has suffered from this fate.

So it is refreshing to see an interesting and useful report into regional economic development being released by the Ministry. The Regional Economic Activity Report puts down on paper, with some interesting charts, the economic characteristics – such as employment rate, salaries paid, and economic activity and value – of New Zealand’s different regional council areas.

There is a bit of commentary at the start of the report, but it is mostly a data and descriptive report, and a useful contribution to understanding the economic circumstances of different parts of New Zealand.

Although useful, the report raises a question about what the government intends to use this data for, aside from general elucidation. Perhaps more importantly, how do New Zealand’s local governments intend to take these data on board as they try to improve their region’s prosperity?

Local Government New Zealand, local governments’ peak body, likes to see councils as engines of economic development, and rightly so. Local council settings and processes can have a huge effect, positive or negative, on local business.

This reminds us of a contentious issue that has been bubbling under the surface for quite some years.

On the one hand, the current central government seems to have dangerous centralising ambitions, the most recent and obvious outlet being its attitude towards the Auckland Council’s Unitary Plan (not allowing it to go active for three years is inexplicable). On the other hand, some councils make development difficult, and practically impinge upon, rather than encourage, economic growth.

This report raises questions about the role of councils in growing the national pie, a matter that needs serious thought. As much as we might grizzle and groan about councils, is having more regulation coming out of Wellington really desirable?