WELLINGTON, Feb. 23 (Xinhua) -- New Zealand on Friday launched the Provincial Growth Fund in Gisborne, a city in northeastern part of the country, to allocate 1 billion NZ dollars (730 million U.S. dollars) per year to boost regional development.

"The Provincial Growth Fund demonstrates how serious we are about providing economic opportunities to all parts of New Zealand," Parliamentary Under-Secretary for Regional Economic Development Fletcher Tabuteau said in a statement.

There is huge potential in New Zealand's provinces and this fund will allow the central government to form genuine partnerships with local councils, business owners, community organizations and other private sector entities to unlock this potential, Tabuteau said.

"With better resourcing, we are now in a position to create jobs, enable long-term sustainable growth, and enhance social inclusion for all New Zealanders," he said.