Labour's proposal to boost coastal shipping via a national ports strategy is something the Bay of Plenty doesn't need, according to Prime Minister John Key.

Labour leader David Cunliffe confirmed at the Local Government New Zealand conference this week that if elected the party would establish a fund of 'at least” $200million for regional development.

This would include working with stakeholders to develop a national ports strategy.

Labour's Tauranga candidate Rachel Jones believes a New Zealand-wide strategy will get the best out of the port infrastructure as regional ports are being played off against each other by shipping lines.

'Labour will also be boosting coastal shipping. Moving goods by ship is much cheaper and more sustainable than using roads. Reducing truck journeys will save wear on our roads and reduce congestion,” says Rachel.

The port strategy is an integral part of Labour's plans for regional development, she adds.

Speaking to SunLive during his visit to the Bay of Plenty yesterday, John Key disagrees saying the Port of Tauranga is successful enough on its own.

'There has been a number of reviews of ports around the country that's happened over the last decade,” says the Prime Minister.

'Tauranga the highest performing port in the country and is doing extremely well. And ultimately Tauranga is proving it can succeed with a good model and good people running it.”

The Prime Minister also supports coastal shipping to some extent – preferring to look at a wider approach to all forms of transport.

'Yeah generally we [National] think it's a good idea but overall it's an intermodal approach with rail, roading and shipping.”

It is Labour's vision that a new $200m Regional Development Fund will co-invest in infrastructure and industry projects, creating an economic step-change for regions, generating local jobs, and meeting environmental sustainability standards.

Regional projects would compete for Crown co-funding from the fund.

'Labour will ensure Government is an active partner in regional development again,” says Rachel.

Port of Tauranga chief executive Mark Cairns and Tauranga MP Simon Bridges could not be reached for comment.