Paula Bennett

Central and local government have pledged to work together to respond to the economic downturn, Social Development and Employment Minister Paula Bennett said today.

The Government and the Mayors Taskforce for Jobs today signed a Memorandum of Understanding to tackle common issues around unemployment.

The renewed partnership is another outcome from the Prime Minister's Job Summit, which identified an expanded role for the Mayors Taskforce.

"I have been talking with Mayors for some time about the role of the Task force - they are well-placed to understand how the recession affects their communities. Mayors have the insight and relationships to know what works to help businesses retain jobs and broker solutions," Ms Bennett said.

The Taskforce, a nationwide network of Mayors, will continue to focus on helping young people into employment, and will expand its role to target other groups affected by the recession.

Mayors Taskforce Chairman Dale Williams welcomed the signing. "We are encouraged by the MOU and with the action plan we have developed. With the economy as it is, it's a critical partnership with the government and it continues the success we have had over the past nine years," he said. The Taskforce is considering setting up a small team to work with rural and provincial communities to find solutions to problems caused by the recession. Mayors have also been involved in setting up trades training centres to retain local people and local jobs.

Queenstown's Mayor Clive Geddes is working to keep the local construction industry alive by bringing forward major civic infrastructure projects. He is also considering using public-private partnerships to help reduce the need for potential rate increases.

Ms Bennett said the National-led government was united with local communities in its desire to do as much as possible to keep Kiwis in work during this recession.

"This is about working together to maintain the highest possible levels of employment while we weather the downturn. We need to have a combined approach that is pragmatic, respectful and effective. That way the whole country will be in a good position to take full advantage of the eventual global economic upswing," Ms Bennett said.