ba5 activate tairawhiti presentation sept 23rd
TRANSCRIPT
BACKGROUND
EDA’s HISTORY IN TAIRĀWHITI
• Lots of different opinions about its worth
• Long history of effort to establish an EDA
• Several false starts
• Many other exemplars now available to Tairāwhiti
• Lessons to be learned…
.
CONTEXT
WHAT HAVE WE BEEN DOING? • ECT coordinated a “consensus building group” in May 2014
• A “bit-‐of-‐a-‐plan” was put together by the resultant Steering Group
• Mandate provided to me to “get cracking” as Establishment Chair
o Appointed Astrid as Establishment Chief Executive
o Appointed 3 Trustees to date (John Rae plus)
q Jasper Holdsworth -‐ PULTRON
q Fraser Brown – CRAIG’S
q Finalising iwi representative
• GOT UNDERWAY!
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ECONOMIC LANDSCAPE
Economic Measure
MARCH YEARS Equivalent Annual Growth Rate % p.a. 2007 2013
GDP or GRP $ millions $ millions
Gisborne RC 1,271 1,613 4.1%
Northland RC 4,972 5,562 1.9%
New Zealand 169,869 211,639 3.7%
Value Added per Worker
Gisborne RC 68,004 80,812 2.9%
Northland RC 115,979 104,529 -‐1.7%
New Zealand 106,424 109,034 0.4%
TAIRĀWHITI ECONOMIC SECTORS COMPARATIVE ADVANTAGE
-‐6.00
-‐4.00
-‐2.00
0.00
2.00
4.00
6.00
Forestry & Forest Services
HorSculture & Fruit Growing
Dairy Sheep & Beef
Logging Fishing Livestock & crop farming
Other farming (pigs, horses)
Employment Growth, GRP MulSplier, Employment MulSplier by Sector
GRP MulSplier EC Growth: 2000/2013 % p.a. Employment MulSplier
IMPROVING PERFORMANCE COMPARATIVE ADVANTAGE ECONOMIC SECTORS (DECLINING EMPLOYMENT)
-‐6.00 -‐5.00 -‐4.00 -‐3.00 -‐2.00 -‐1.00 0.00 1.00 2.00 3.00 4.00 5.00
Forestry & Forest Services
HorSculture & Fruit Growing
Livestock & crop farming
Fishing
Employment Growth, GRP mulSplier, Employment count mulSplier by Sector
GRP MulSplier
EC Growth: 2000/2013 % p.a.
Employment MulSplier
0
0.5
1
1.5
2
2.5
Revenue Mul@plier by Sector
Sectors experiencing employment growth
0
100
200
300
400
500
Forestry & Forest Services
HorSculture & Fruit Growing
Livestock & crop farming Fishing
466
290
78
20
Total Revenue Impact $m
TAIRĀWHITI ECONOMIC SECTORS COMPETIT IVE ADVANTAGE
EC Growth 36.72 (4.2% growth per annum 2008 – 2013)
-‐5.00
-‐4.00
-‐3.00
-‐2.00
-‐1.00
0.00
1.00
2.00
3.00
4.00
5.00
Wood Product Manufacture
Other Food Manufacture
Meat Processing
ScienSfic & Technical Services
PlasSc Products
Movies Radio & Tv
Beverages, Malt & Tobacco
Agricultural Services
Industrial Machinery
Road Transport
Employment Growth, GRP MulSplier, Employment MulSplier by Sector
GRP MulSplier EC Growth: 2000/2013 % p.a. Employment MulSplier
IMPROVING PERFORMANCE COMPETITIVE ADVANTAGE SECTORS (DECLINING EMPLOYMENT)
-‐5.00 -‐4.00 -‐3.00 -‐2.00 -‐1.00 0.00 1.00 2.00 3.00 4.00 5.00
Wood Product
Manufacture
Other Food Manufacture
Movies Radio & Tv
Beverages, Malt & Tobacco
Agricultural Services
Employment Growth, GRP MulSplier, Employment MulSplier by Sector
GRP MulSplier
EC Growth: 2000/2013 % p.a.
Employment MulSplier
0 100 200 300 400
174
373
29 108 171
Total Revenue Impact $m
0 0.5 1
1.5 2
2.5 3
Revenue MulSplier by Sector Sectors experiencing employment growth.
ECONOMIC OPPORTUNITY
EXPORT SECTORS - CLUSTERS
-‐5.00
-‐4.00
-‐3.00
-‐2.00
-‐1.00
0.00
1.00
2.00
3.00
4.00
5.00
Dairy Sheep & Beef
Forestry & Forest Services
Other Food Manufacture
HorSculture & Fruit Growing
Meat Processing
Wood Product
Manufacture
Beverages, Malt & Tobacco
Major Export Sectors by GRP, Employment & Revenue MulSpliers and EC Growth
GRP MulSplier EC Growth: 2000/2013 % p.a. Employment MulSplier Revenue MulSplier
0
100
200
300
400
500
600
Exports in $millions
EC Growth 36.72 (4.2% growth per annum 2008 – 2013)
IMPROVING PERFORMANCE C O N S U M P T I O N D R I V E N E C O N O M I C S E C T O R S
0 200 400 600 800
1000 1200
Employment Count 2013
0 1 2 3 4 5 6 7 8
Annual Growth Rate % Employment Count
Employment Count high but annual employment count growth rate low
IMPROVING PERFORMANCE C O N S U M P T I O N D R I V E N E C O N O M I C S E C T O R S
( E M P L O Y M E N T D E C L I N E )
0 2 4 6 8
10 12 14 16 18 20
Annual Loss Rate %
COMMUNITY ECONOMIC & EMPLOYMENT STRATEGIES
1. Retaining and Expanding Local Businesses
Actions which assist local businesses improve their productivity and market share. 2. Fostering New Businesses
Actions that encourage and support the creation of new businesses to add value to existing products, to meet consumer demand and to capture trade that might otherwise go to other communities, regions or countries.
3. Attracting Outside Business and Resources Actions that bring new investment, employers and funding to the region.
4. Plugging the Leaks in the Local Economy
Actions that encourage greater loyalty in terms of purchasing by local residents and businesses.
5. Marketing the Community Actions that enhance the appeal and image of the community to potential visitors and new immigrants.
Source: Peter Kenyon
IMPORTANCE OF EXISTING BUSINESS BASE • Creates between 60-‐80% of new jobs
• Provides most of the investment for new community economic initiatives, infrastructure
• Often generates ideas about new businesses
• Often acts as an attractor for outside businesses to relocate or establish within the community
(Source: Peter Kenyon)
TAIRĀWHITI ECONOMIC DEVELOPMENT WHAT DOES IT LOOK LIKE SO FAR…
Connected Community (Broadband) (Technology)
Sectors Clusters
EducaSon Skills Pathways
Plugging the Leaks Iwi
Economic Growth
Sectors/Clusters Forestry, Logging, Wood Product HorSculture (includes Cropping & Fruit Growing) Food Manufacture/Processing Dairy, Sheep, Beef, Other Livestock Industrial Machinery Tourism
USliSes Water, Power, etc
ECONOMIC DEVELOPMENT He aha te mea nui o te ao? He tangata! He tangata! He tangata! What is the most important thing in the world? It is people! It is people!
Fundamentals of Economic Development • Retain Existing Wealth
• Create New Wealth
• Capture Wealth from Elsewhere
ECONOMIC DEVELOPMENT NEXT STEPS…
• Economic Development Workshop (October) • Collate Economic Information & Workshop Outcomes
• Economic Development Workplan with KPIs (everyone has a role to play)…
• CEO position advertised & appointed early 2015
• Workplan implemented together with business, stakeholders and key partners.
IN CONCLUSION…
• Quite a bit done -‐ but lots more to go… • Activate Tairāwhiti is YOUR EDA…engage and get in behind it
• Support the Workshops – Tairāwhiti will get out what it puts in…
• THANKYOU…QUESTIONS?