The Nelson Tasman Regional Economic Development Briefing - Project Kokiri
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The Nelson Tasman January 2021
̸
The Nelson Tasman Regional Economic Development Briefing
Regional Economic
Development Briefing
Developed by the Project Kōkiri collaboration
January 2021
2 The Nelson Tasman Regional Economic Development Briefing ̸ January 2021
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Project Kōkiri –
Who We Are
Project Kōkiri is the Nelson Tasman The following pages outline the current
economic development collaboration state of our region’s economy – the
setup to navigate and mitigate the key insights, drivers, challenges and
January 2021
economic impacts of the COVID-19 priorities that have been derived
pandemic. It’s an action and insights through a series of engagements and
orientated taskforce backed by Nelson from working on the coalface of the
City Council, Tasman District Council, economic response.
Mana Whenua, Nelson Tasman Chamber
of Commerce, Nelson Regional Project Kōkiri has had an unapologetic
̸
Development Agency and the regionally focus on response activity to cushion
The Nelson Tasman Regional Economic Development Briefing
based government agencies. the immediate economic impact of
COVID-19 and support a coordinated
The collaboration was formed during response across government, local
lockdown and developed the Nelson government, mana whenua and the
Tasman Economic Response & business community. The collaboration is
Regeneration Action Plan which now turning its attention to the medium
was released in June 2020. That plan term “Regeneration Strategy” for the
focused on the response pathway for region which sets out our economic
the region in navigating the immediate priorities for the next 3 to 5 years and
challenges that COVID-19 presented acts as a bridge between our initial
and ensuring our region was ‘match fit’ response activity and the long term
for the economic headwinds that the aspirations and priorities laid out in the
country is facing. Te Tauihu Intergenerational Strategy.
The defining purpose of the collaboration This briefing is a reflection of the
was to ensure that the region had a well current economic challenges and
organised and coordinated response priorities we are facing as a region and
across all agencies and stakeholders that is intended to lay the groundwork for
could compliment the health and social the next piece of work developing the
responses being undertaken. medium term regeneration strategy for
the region which is due for completion
in the first quarter of 2021.
4
1,400
Supported over 1,400
businesses through our 1:1
business continuity service,
enabled by the Regional
Business Partner Programme.
In a typical year, we only
service approximately 350.
3,000
Communicated on a weekly
January 2021
basis with over 3,000 local
businesses supplying key
information and insights.
̸
Over 20 webinars
The Nelson Tasman Regional Economic Development Briefing
Delivered over 20 business
information webinars
supporting local businesses
with training, insights and
information on accessing
government support.
We’ve Got This
Delivered the We’ve Got This –
Kei a Tātou response campaign
which reached over one
million people and attracted
over 3,000 submissions from
locals helping storytell our
region’s recovery.
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Overview –
Briefing on a Page
Important Economic Economic Partnership
Insights Drivers Challenges Opportunities
Cautiously Optimistic Outlook — The Oceans Economy — 70% of Low Productivity — 24% lower Unlocking Housing
The region has managed to weather New Zealand's aquaculture is than the national average. Affordability & Access
the early storm from COVID based here in Te Tauihu. � Planning System Reform
relatively well, our September Low Mean Incomes — 13% � Enabling Intensification
quarterly performance was strong, High-value Food, Beverage and below the national average. � Rental Security &
showing that we are performing Wellness Products — This sector Progressive Home
better than the country as a whole. is our largest contributor to Accelerating Ageing Population Ownership
However, much of the impacts are GDP, fuelled by innovation and — Forecast to be the second � Social Housing & Papakainga
yet to be fully realised and many in favourable growing conditions. smallest WAP by 2043.
our community are doing it tough. Resilient & Future Proof
January 2021
Forestry and Wood Processing Housing Access and Infrastructure
Vulnerable to COVID-19 — Due — We produce approximately Affordability — Average house � The Waimea West to Nelson
to the region’s exposure to 10% of New Zealand's costs nearly 7 times average City Link
the international consumer sustainable roundwood forest household income. � Active & Public Transport
markets, high proportion of supply. and export a signficant Solutions
SME's and disproportionately % of value added wood Resilient Future-Proof � Rural Connectivity
high % of tourism contribution products. Infrastucture — Under-
to the economy we are more investment in critical Enabling the Future of Work
vulnerable than most to COVID. An The Visitor Economy — Driven infrastructure is an economic � Seasonal Labour
Infometrics report commissioned by family owned businesses handbrake. Intervention
̸
in May 2020 forecast a 7.9% decline and renowned for its proximity � Horticultural Harvesting
in regional GDP and similar to a diverse range of stunning Labour Challenges (Seasonality Progression
The Nelson Tasman Regional Economic Development Briefing
unemployment impacts over the natural landscapes. Tourism & Talent Attraction) — Over
short-term to March 2021. This contributes to approx 10% of 60% of our businesses Growing a Smarter Economy
compares to a 1.4% decline during GDP and employment in the identified talent attraction � Accelerating Aquaculture
the GFC. region. as one of their top three � Leadership on Climate
challenges. Solutions
Export Driven — The Nelson Research, Science and
Tasman region is more highly Technology — We have the Unemployment — A new Championing Regional
connected to the global economy, highest number of scientists COVID-19 challenge for the Economic Development
than many other parts of NZ. per capita of any NZ city. region. � Enabling Government
Exports generate 39% of GDP Economic Development
from compared with an average of Liveability — Our accelerating Resilience of our SME's — Over Partnership in the region
27% for NZ. population base is driven by 90% of our businesses and 45% � More Support for SME's
migration due to our liveability of our employment comes � Destination Management
Increasing Job Seekers — Nelson proposition (93% migration from SME's. Plan implemntation
Tasman has recorded some of compared to the national � Enabling Māori Economic
the highest increases in COVID average of 67%) Climate Change — We Development
related job seekers of any region are already facing the
in NZ (20% increase from Jan consequences. A Just Transition
2020). � Zero Carbon Economy
Visitor Seasonality and Loss of � Climate Change Adaption
Low Productivity — Nelson Spend — International visitors � Waimea Dam Hydro
Tasman suffers from the second contributed approximately Electricity
lowest productivity in the country. 40% of our annual visitor
Our productivity is 24% below the spend.
national average.
Housing Affordability — Our
housing affordability is the second
worst in the country, behind
Auckland creating many barriers
to our medium-term economic
recovery (Tasman 2nd, Nelson 3rd).
Low Mean Incomes — Our mean
income is the second lowest in
NZ, 13% below the NZ average
and have only caught up by 2% in
the last 20 years.
The Nelson Tasman Regional Economic Development Briefing ̸ January 2021 6
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Introduction
Tūpuna Pono – To Be Good Ancestors
That was the wero laid down when we Whilst our region has many strengths, we
engaged with over 1,000 people of all ages, are struggling with:
across our community, as we developed
the Te Tauihu Intergenerational Strategy, � Consistent low productivity which
The Strategy was launched in November impacts on our companies resilience
2020. It sets out our aspirational vision and delivers poor outcomes for our
for our region and informs this Regional communities in relation to wages and
Economic Briefing. living conditions.
January 2021
This Nelson Tasman Regional Economic � A worsening housing crisis which
Briefing is designed to help inform the disadvantages first home buyers,
government of our regional challenges, renters and vulnerable communities
opportunities and priorities as we and continues to be a handbrake on our
progress the COVID-19 economic region’s economic potential in
recovery, and leverage the recovery particular around the attraction and
̸
to reshape and reposition our region’s retention of the talent we need to fuel
The Nelson Tasman Regional Economic Development Briefing
economy. It’s the beginning in a series that potential.
of conversations we wish to have with
you, our central government partners, � Mounting pressure on a just transition
as we seek to unlock the potential of our to improve outcomes in areas such as
region and harness the passion we are biodiversity and climate change in our
experiencing locally for ‘building back core economic drivers such as tourism
better’ from COVID-19. and the primary sector.
We live in a very special place where the These core issues are fuelling other
land and sea shapes our way of life. Our challenges such as labour supply, low
communities are rich in human potential. incomes, our ageing population and
But we face some serious challenges. unemployment. These challenges are not
Solving them is not insurmountable but it new but they have been accelerated by
will require unprecedented partnership COVID-19. Solving them requires a strong
with central government. partnership with government, that aligns
with our collaborative regional approach
As a region, we are committed and vision (To be Good Ancestors), and
and ready to partner with central the government’s priorities and direction
government as together we face the for Aotearoa New Zealand.
global headwinds of COVID-19 and
our other pressing challenges such as
climate change and inequality.
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Progress through Partnership
We are committed to strengthening our partnership with central government. Our
region is ‘match fit’ through successful and ground-breaking collaborations such as the
Te Tauihu Intergenerational Strategy and Project Kōkiri. We have worked together to
maximise regional benefits from many of the government’s economic development
policies and funds and are well positioned to work closely with government through the
next term and beyond to advance the interests of Nelson Tasman, in alignment with the
government’s goals and aspirations laid out for Aotearoa New Zealand.
We already have:
� A clear mandate from our community. � An ability to generate ‘on the ground’
regional insights quickly to inform
� Existing fora and systems to support our clear and often understated
collaboration between regional leaders regional deficits and disadvantages that
January 2021
and stakeholders. need addressing urgently.
� A focused list of key strategy priorities � A compounding historic shortfall of
to work through to investment cases central government investment in
status. key areas across our region, especially
̸
in comparison to other regions with
� The ability to be fast, agile, and similar metrics and indicators to ours.
The Nelson Tasman Regional Economic Development Briefing
innovative. We are ready to pilot new
models and solutions. � Significant regional advantages and
opportunities that can be leveraged.
These are unprecedented times of great challenge and great opportunity. Nelson Tasman
stands ready to work with government to advance our economic development agenda
and build a more inclusive, sustainable and productive economy. Through leveraging our
strengths, advancing new economic opportunities, and tackling our issues head on, our
regional economic development revitalisation and regeneration will support our vision
To Be Good Ancestors.
Being ‘Match Fit’ through Project Kōkiri
During the COVID-19 lockdown, our collaborative, cohesive and effective as we
region came together under Project recognised the enormity of the challenges
Kōkiri to ensure our response was nimble, and uncertainty our people were facing.9
Project Kōkiri is now well established as The collaborative structures we have
the “war room” of the region’s economic built ensure we are continually taking
response to COVID-19 underpinned by a action together, always operating from
strong partnership between our councils the best insights from our public and
(Nelson City and Tasman District), mana private sectors, and that we are tracking
whenua, our business community, our our success against the wellbeing
economic development agencies and our outcomes identified by the Te Tauihu
regionally based government agencies. Intergenerational Strategy.
Activating the Te Tauihu
Intergenerational Strategy
January 2021
The recently launched Te Tauihu actions with our vision of being good
Intergenerational Strategy gives voice ancestors and delivering on our wellbeing
to the long term aspirations of our framework ‘Oranga Te Tauihu’.
community across people, environment
and the economy. It connects our Project Kōkiri acknowledges that we
̸
decision-making and planning across have a once-in-a-lifetime opportunity
The Nelson Tasman Regional Economic Development Briefing
geographical boundaries, generations and to rebuild and regenerate our economy
sectors. It gives us an enduring blueprint in new ways, so that our economy
from which we make decisions. It helps underpins our regional wellbeing and our
us to align our short and medium term intergenerational outcomes.
Building on our Strengths
The Nelson Tasman region is one of the Research Science and Technology is a
main export generating regions of New growing central enabler for the innovation
Zealand, generating 39% of its GDP from and productivity improvements that the
exports (compared with an average of 27% region needs, and is often reflected in the
for NZ). This means our region’s economic core primary sector GDP. The remaining
future is more reliant on the global 45% of the regional economy includes
economic recovery than other parts of services (18%), owner-occupied property
the country. Our key industry sectors activities (e.g. DIY) and operations e.g.
represent 55% of the total economy, as AirB&B (9%), and medical and social
measured by GDP. services (7%).The Nelson Tasman Regional Economic Development Briefing ̸ January 2021 10
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Our Key
Economic Drivers
The Nelson Tasman economic growth This direction looks to build on our
direction is based around creating a more strong export platform and the growing
productive, sustainable and inclusive appreciation of the liveability of the
economic future through the application region as a place to live, work, visit and
of research, science, and technology do business. The six key areas of regional
within our six key areas of regional economic competitive advantage
competitive advantage. outlined below are those which we
believe will offer the key opportunities to
January 2021
influence our regional intergenerational
outcomes, as prioritised in our Te Tauihu
Intergenerational Strategy.
̸
GDP by Key Economic Driver Sectors, 2019
The Nelson Tasman Regional Economic Development Briefing
Value Added Food
and Beverage 10%
Visitor Economy 8%
Oceans Economy
6%
Forestry and Wood
Products 45% 3%
Population Based
Consumption incl
Construction
Research, Science
and Technology
25%
Other incl Support
2%12
1 The Oceans Economy
70% of NZ’s aquaculture is located Research into new products and
in Te Tauihu. The aquaculture and new sectors (e.g. algae) is being led
fisheries sectors support a long and by our Cawthron Institute and Plant
strong regional and national supply and Food Research’s Seafood Unit.
chain. Quality products remain in There is significant potential to
demand with the majority going create an internationally recognised
to global export markets. There is Oceans Research, Science,
significant potential for new value- Technology and Innovation hub in
add products and industry growth the region to advance the efforts to
via harnessing new water space and create more sustainable value from
applying new research, science and the ocean environment.
technology across the value chain.
January 2021
2 High-value Food, Beverage and
Wellness Products
̸
The Nelson Tasman Regional Economic Development Briefing
Favourable growing conditions for wellness solutions. This sector is
and innovation in the region has the largest contributor to GDP and
created a sustainable competitive generates significant employment,
advantage in the production of produces quality products that
hops, apples, kiwifruit, berries, are in demand globally, and
grapes and a range of other also supports a long and strong
horticultural products, as well regional supply chain. With smart
as high-value ingredients for investment in infrastructure and
wellness products (e.g. marine productivity we are well positioned
extracts). From this platform we to meet growing global consumer
have developed a strong position demand for quality, nutritional,
across the value chain, including high-value food and beverage
research, science and technology, products and wellness solutions
high value food manufacturing, and that are sustainable and traceable.
innovation around new ingredients13
3 Forestry and Wood Processing
Producing approx. 10% of NZ investment platform and a long
sustainable roundwood forest and strong local supply chain,
harvest provides a sustainable supporting a significant number
supply for the range of value-add of jobs. The sector presents an
wood manufacturers in the region opportunity for our region in the
who are capturing value in NZ further development of value-add
from the raw material. Among products, and the application of
those manufacturers is Nelson new science and technology to
Pine Industries, one of the world’s forestry planting, harvesting and
largest single site producers of production systems. The potential
medium density fibreboard (MDF) is significant for the innovative
and also one of the largest and utilisation of the value-added
most modern laminated veneer wood products and systems we
January 2021
lumber (LVL) production lines in currently have in the region to
the Asia Pacific region. Their high- enable new, smart, affordable
quality products are exported to housing solutions, for both
markets around the world. This domestic and export markets.
sector has a stable international
̸
The Nelson Tasman Regional Economic Development Briefing
4 The Visitor Economy
The Nelson Tasman visitor industry higher contribution than the NZ
is made up of well-established average. The region relies heavily
family-owned operators who have on our award-winning airport and
been providing unique experiences regular air connectivity with the
in the region for decades. The rest of NZ. The sector is currently
industry is a significant employer, adapting to the COVID-related
and the recent period of sustained market challenges. We are creating
growth has contributed to a more sustainable low-carbon
supporting many other sectors future plan, that includes a focus
of the economy, including the on developing a wider range of
provision of seasonal labour to experiences that will appeal across
support the primary sectors. The the seasons, leverage the region’s
sector contributes to approx. competitive advantages, and
10% of the region’s economy and underpin a transition to a more
employment, which is about 45% resilient sector.14
5 Research Science and Technology
Nelson has the highest number of Technology and the new Nelson
scientists per capita of any NZ city Artificial Intelligence Institute.
and the sector has created the most Building from this strong base, the
jobs growth in the region over the application of research, science
past 10 years. We have potential and technology outcomes to
to leverage our existing cluster of our primary industries, whilst
research, science and technology developing a ‘knowledge economy’,
institutes, headlined by the will provide a key opportunity.
Cawthron Institute and including Leveraging our existing research
Plant and Food’s Seafood Unit and and production capability to
their Motueka horticulture site attract related, new industries
(with a specialisation in Hops), to our region will be a focus, e.g.
Nelson Marlborough Institute of pharmaceutical companies.
January 2021
6 Liveability
̸
The growing appreciation of the population growth has led to a
liveability of the region as a place significant increase in consumer
The Nelson Tasman Regional Economic Development Briefing
to live, work, visit and do business spending and construction (whilst
has contributed to an accelerated also putting pressure on growth
population growth, 93% of which related infrastructure and housing
is driven by net migration (which supply and affordability - issues
is high compared to 67% for NZ). which will need to be addressed
COVID has assisted to accelerate concurrently with our efforts to
and enable an opportunity to attract new talent to the region ).
capitalise on the shifting trends Our business and talent attraction
towards virtual working and activity aims to focus on businesses
enhanced work-life balance and and talent which will create new
attract new talent to our region, high-value jobs within the region,
especially those in the technology in particular within the younger
and service sectors who can work demographic.
from anywhere. Our accelerated15 The Nelson Tasman Regional Economic Development Briefing ̸ January 2021
16
Our Top 10
Economic
Challenges
January 2021
1
Nelson Tasman Productivity per employee is 24% lower
than the NZ average and has only caught up by 1% in the last 20 years.
Nelson Tasman is second lowest in NZ, second only to Gisborne. The low
productivity has a significant impact on companies’ ability to pay higher
̸
wages, reinvest, and their overall profitability.
The Nelson Tasman Regional Economic Development Briefing
2 Mean Incomes are 13% below the NZ average and have only caught
up by 2% in the last 20 years. Nelson Tasman is second lowest in NZ,
second only to Gisborne. Low mean incomes have a signficant flow-on
impact through the wider economy and community well-being.
3 Accelerating Decline in Working Age Population (WAP).
We have a significantly disproportionate ageing population base. Our
regional WAP is projected to decline to the fourth smallest WAP by 2028
and the second smallest by 2043. Our projected decrease of around 8.5%
in our WAP over the next 15 years is in contrast to a NZ trend of +13%. This
projected shift in population structure will have a significant impact on
the ability of the business community to access the talent they require, the
type of businesses in the region, the value of the jobs associated with those
businesses and the provision of public services.17
4 Housing Affordability & Access
� Affordability: Nelson Tasman house affordability has been declining
since 2012 and an average house costs nearly 7 times an average annual
household income. This is second only to Auckland as the least
affordable region in NZ. Average NZ has been improving since 2017 and
is now just over 6 x income. Average NZ excluding Auckland sits at just
over 5 x income.
� Supply and Demand: Analysis of regional population growth compared
to new homes consented shows an approximate 4 year lag before the
market responds to population increase. 93% of the Nelson Tasman
population increase is driven by net migration, which is high when
compared to NZ at 67%. (data source Statistics New Zealand). Tasman
District Council’s annual monitoring report found that 63% of rental
households in Nelson Tasman cannot comfortably afford ‘typical
January 2021
rents.’ The Nelson Tasman Future Development Strategy (July 2019) cites
a demand for an extra 24,000 homes in Nelson Tasman by 2049.
Housing supply and affordability is having a significant impact
throughout the wider community.
� Homelessness & Inequity of Access - Our housing problems contributes
̸
to a range of issues including reinforcing inequality, child poverty
The Nelson Tasman Regional Economic Development Briefing
and overcrowding, a growing level of homelessness, and a lack of capital
available to invest in local businesses.
5 Resilient, Future Proof Infrastructure is required to
support the functional demands of our growing region, as well as private
sector confidence. Priority infrastructure has been identified as water,
roading, housing, and digital connectivity. (Based on various market
research reports and the 2019 NTIN Nelson Tasman Talent research.)
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Labour Challenges – Seasonality & Talent Attraction
Pre-COVID over 60% of Nelson Tasman businesses identify talent
attraction as one of the top three challenges, according to research
conducted in 2019. Anecdotal evidence post-COVID lockdown suggests
this situation has not eased that much. The dominance of our primary
sector, in particular seafood and horticulture, makes seasonal labour
availability one of our most pressing challenges in the short-medium term
in a COVID-19 environment. This has a significant impact on productivity
and the knock-on impacts for the permanent post-harvest jobs.18
7
Unemployment is a new challenge brought about by Covid-19
impacts. Compared to the start of 2020, at w/e 18th September 2020 the
number of Job Seekers for Nelson Tasman was up from 2644 persons to
3795, an increase of 44%. These figures do not include the approximately
4500 CIRP wage subsidy recipients of whom 3500 came off in September
and a further 1000 in October. (Data source MSD). Related to the talent
attraction challenges identified above, there appears to be a mis-match of
the skills of those coming into the jobseekers market and the demand.
8 Resilience of our SME’s 90%+ of our businesses are SMEs. 70% of
our businesses have zero employees. Only 0.5% of our businesses employ
more than 49 staff. (That is just 67 businesses out of our total of 12,264.)
The ability of our SMEs to respond to fast-paced change and unforeseen
January 2021
challenges is significantly impacted by their capacity and capability due to
size. There is also an increased risk of a cumulative impact across SMEs in
the region, in particular through cashflow constraints. Because our SME’s
employ 45% of the workforce, this could significantly affect employment
and generate supply chain spill over impacts.
̸
The Nelson Tasman Regional Economic Development Briefing
9 Climate Change. As a region we are facing new challenges
from climate change, including increased extreme weather events,
coastal incursion, and fires. Climate change is already affecting our
horticulture, aquaculture and agriculture industries, native ecosystems,
infrastructure, health and biosecurity. We are a coastal region and must
make challenging decisions on future investments in infrastructure
and strategic land use planning. Consideration of the transitions
required within the current economy to a lower-emissions focus,
and a focus on the future resilience of the region in response to the
significant challenges presented by climate change, is at the heart of the
regenerative economic thinking in Project Kōkiri.19
10 Visitor Seasonality and Loss of Spend. Seasonality has been
a long-standing challenge and it is unknown what changes may occur as a
result of the Covid-19 impacts on the visitor sector. Seasonality is of course
heavily influenced by the pattern of international spend. However, even
for domestic-only spend, Nelson-Tasman seasonality is twice as bad as
the NZ average, with summer spend being more than double the winter
spend at a ratio of 2.2:1. (Average NZ is only 1.2:1.) International visitors
usually contribute approximately 40% of annual total visitor spend. Due
to Covid-related border closures, the region is facing an enormous loss in
revenue ($224m in 2019). (Data source MBIE). The sector is adjusting to a
domestic-only market, which for the Nelson Tasman region comes with
some additional constraints due to the comparatively small drive market,
with the closest significant drive market being Christchurch, which is 5
hours away. As a result, we rely heavily on air travel and this makes us more
susceptible to alert level changes, airline capacity and pricing and more
pronounced seasonality spikes.
January 2021
̸
The Nelson Tasman Regional Economic Development Briefing20
Our Partnership
Opportunities
We recognise the competing priorities on government and believe that being clear
on areas of alignment, opportunities and priorities is critical to a good partnership.
Therefore, we have prioritised our partnership opportunities into six areas of focus
for the government, and outlined the specific priorities sitting within those that we
would like to work on together.
1. Unlocking Housing Affordability & Access
Our data shows that we have a four-year housing supply lag of at least 1,600 homes
January 2021
across Nelson Tasman. Assuming that government policy and regulatory conditions
enable housing supply to keep pace with population growth demand, we still require
intervention to deal with this backlog which is handbraking regional growth.
Our housing crisis is critical – MSD advise that we have had circa 13,000
Accommodation Supplement Payments issued across the Te Tauihu, up 15%
̸
compared to the same period last year. We have also seen a 22% increase in people
The Nelson Tasman Regional Economic Development Briefing
on our Public Housing Register since June 2020. Tasman and Nelson regions have the
second and third worst housing affordability in New Zealand (behind Auckland).
Priorities:
1.1 Planning System Reform – We support 1.3 Rental Security and Progressive
improvements in our planning system and Home Ownership – New legislative
RMA Reform. Whist this process unfolds, frameworks to improve rental security
an expanded scope to the RMA Fast Track and pilot new housing models and
Bill - or the utilisation of the Minister’s progressive home ownership pathways.
approval process and all available tools -
would allow two significant and fully-ready 1.4 Social Housing and Papakainga –
housing development proposals in our An increased regional share of central
region to deliver new housing solutions at government social housing and
relative pace, if we can get them consented. papakainga funds, to address years
Currently neither proposal meets the Fast of underinvestment, and including
Track criteria. funding to address our urgent need for
Emergency/Transition Housing Facilities,
1.2 Intensification – Policy and alongside prioritisation of Kainga Ora
regulatory support for our Councils to funding to accelerate the intensification
enable intensification in key areas and of the social housing stock (142 units) they
urban centres. recently acquired off Nelson City Council.21
2. Resilient & Future Proof Infrastructure
Investment in resilient and future proof infrastructure is essential to both meeting
our climate and biodiversity challenges, growing the economy and improving
housing affordability.
Decades of underinvestment in our roading network is affecting our resilience to
address future needs and challenges, including our ability to provide new active,
public, and low-carbon transport solutions. SH6 is the economic lifeline to our Port
and airport, and the economic and social connector sustaining our communities in
Nelson, Richmond and beyond.
Priorities:
2.1 The Waimea West to Nelson City 2.2 Active & Public Transport
Link – We are committed to working Solutions – We are keen to pilot new
January 2021
with government on an urgent, funding and investment models
all-of-government solution to the for public transport and active
critical transport bottleneck (SH6) transport solutions. Our region has
that impacts economic and social a low population density and a vast
connectivity between Nelson City, Port geographic area: we know that new
̸
Nelson, Richmond and the productive solutions will need to be heavily
hinterlands beyond. The SH6 bottleneck subsidised, and that existing funding
The Nelson Tasman Regional Economic Development Briefing
significantly affects our infrastructure’s models will not deliver a transition to
resilience to forecast population growth a lower-carbon transport network and
as well as extreme weather events, the infrastructure improvements we
natural disasters, or lesser events that need, at pace.
cause extraordinary congestion. SH6
capacity will also limit our transition 2.3 Rural Digital Connectivity – Our
to lower-carbon transport options. vision for the future is for Nelson Tasman
Solving the challenges impacting SH6 to be a recognised leader in STEM,
will unlock opportunities to provide new leveraged from our existing strengths in
pedestrian, cycling and public transport the oceans and horticulture economies
solutions, as these solutions all require an and wider primary sector. For us to be
appropriation of existing roading space. truly world class in our approach here –
we need consistent digital connectivity
across our region. Central government
help is needed to fast track improved
service provision for fibre and the
elimination of mobile blackspots across
our region. The existing model for
prioritising and delivering improvements
to digital connectivity is not meeting our
region’s needs.22
3. Enabling the Future of Work
Our strong primary sector has underpinned our economic recovery. But a labour
shortage, due to the borders being closed, threatens the economic gains of the
upcoming harvest. MSD is forecasting a seasonal labour gap of at least 1,350 people
in Nelson, Tasman and Marlborough. In horticulture alone, if just 75% of the fruit is
picked from harvest, the economic loss is approximately $125M to the local economy.
Traditionally, around 80% of our labour supply for harvest is through RSE and
Working Holiday Visas. However, the post-harvest employment is around 90% locals.
Dealing with our urgent short-term needs and enabling the future of work must go hand
in hand to ensure our businesses are able to invest. Our liveability proposition offers a
fantastic opportunity to position Nelson Tasman as a destination for remote working.
Priorities:
January 2021
3.1 Seasonal Labour Intervention – really important to ensure information
Help is required urgently to meet and support is clear and consistent. It’s
our seasonal labour demands for our important that flexibility is provided
approaching harvests. As a region, we to government departments to be agile
are throwing everything at this for the and respond appropriately to these
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upcoming season but recognise this is challenges, enabling and resourcing them
an ongoing and longstanding challenge. to support the regionally led response.
The Nelson Tasman Regional Economic Development Briefing
The Government interventions around
financial incentives, the incoming RSE 3.2 Horticultural Progression – Help is
allocation and extensions to working required (funding and tools) to support
holiday visas have been well received by longer-term industry transitions
the local industry. Ongoing support for to accommodate different labour /
the RSE scheme is essential for certainty employment models, and the adoption
in the local primary sector. When it of new technologies to mitigate seasonal
comes to coordinating seasonal labour labour supply dependency.
issues, an all of government response is
4. Growing a Smarter Economy
Making a meaningful difference to the livelihoods of Nelson Tasman residents
requires a greater focus on higher value jobs and commerical opportunities. We are
well positioned for this transition. Nelson has the highest number of scientists per
capita of any NZ city and the sector has created the most jobs growth in the region
over the past 10 years. We have a regional capacity advantage that we can build from.
The commercial outcomes from investment in R&D that can result in high-value
applications (e.g. algae) are significant for our region and for New Zealand.23
Priorities:
between science and industry and enable
4.1 Accelerating Aquaculture – We economic growth whilst safeguarding
back the Government’s goal of a $3B industry against emerging threats.
aquaculture industry by 2035 and believe
it is easily achievable through open oceans 4.2 Leadership on Climate Solutions –
aquaculture. Our aquaculture sector Nelson Tasman is well positioned to be
is eager to grow in response to globally the engine room for climate solutions.
increasing demand but is constrained by We have the backing of the business
limited allocation of inshore space and community to champion a fast track
progress around unlocking offshore farms. to zero carbon through leveraging our
Similarly, growth can’t happen in isolation. strengths such as Ekos, Businesses for
We need to ensure we protect the existing Climate Action, Wakatū Incorporation
sector from shocks (such as Bonamia and Cawthron Institute. We have a
ostreae, the parasite that wiped out the strong existing relationship with the
flat oyster farms). Science is critical for Municipality of Lemvig (Denmark)
January 2021
both protection and growth. Cawthron and their Klimatorium initiative, with
Institute and Plant and Food Research’s progress being made on developing a
Seafood Unit provide an important bridge similar model here.
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The Nelson Tasman Regional Economic Development Briefing
5. Championing Regional Economic Development
We recognise that the Government has set out clear priorities in championing
regional economic development. Enhanced productivity, skills development,
increased wages, investment attraction and strengthening existing businesses are
all shared priorities between our region and your government. To achieve this, we
require the right investment and the delegated authority to get on with the job.
Priorities:
5.1 Enabling Government Economic partnership delivery agent for government
Development Partnership - We have to activate our shared priorities in the
invested in strengthening our regional region. We believe increased investment
economic development platforms through in regional economic development and
the Te Tauihu Intergenerational Strategy, a stronger partnership with the regional
Project Kōkiri and the Nelson Regional development agencies are both critical in
Development Agency which has ensured enabling this.
we are ‘match ready’ for the Government’s
exciting new direction around regional
economic development. We are ready
to play a pivotal role as an insights and24
5.2 More Support for SME’s – The 5.4 Enabling Māori Economic
Government’s increased backing of the Development – We fully support the
Regional Business Partner network was a governments aspirations as laid out in
lifeline for many businesses this year. We the ‘Strategy to 2040 - He kai kei aku
serviced over four times the number of ringa’ which speaks to the importance
businesses we usually do in a year – many of getting the settings right and backing
of them facing very serious decisions Māori economic development. We see
and angst about the future. To accelerate the key priorities for government here
our economic recovery and strengthen as backing a regionally led approach
the SME sector against further economic that ensures Māori enterprises are
headwinds, we ask the government to connected to the innovation system,
utilise the Regional Business Partner there is increased support for Māori
Network more to deliver new tools and enterprises wanting to access export
support with a focus on more accessible markets, and that our Te Tauihutanga
market access, capability, R&D and (local identity) is a key part of our
innovation funding. provenance story. We also recognise
January 2021
the need for safeguards and legislative
5.3 Implementing our Destination frameworks to better protect the
Management Plan – Through the STAPP cultural IP that exists in Aotearoa New
funding, we have been successfully Zealand. Locally, our Kia Kotahi te Hoe
funded to develop a Destination plan which was developed and backed
Management Plan for Nelson Tasman. by all eight iwi of Te Tauihu lays out the
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As a region of small family owned framework for our local iwi led response.
The Nelson Tasman Regional Economic Development Briefing
operators, this form of regional
coordination and collaboration is critical
to strengthening the resilience of the
industry and aligning ourselves around a
common set of aspirations and goals for
our community and the sector. We now
need central government to partner
with us and back the implementation
of these plans. This includes but is not
limited to growing our capability and
capacity to deliver on the priorities
identified such as enabling 100,000
local ambassadors, being a leader in
food tourism and championing light
footprint travel as a region.25
6. A Just Transition
The last term of government saw the significant Zero Carbon Act brought into law
which sets out the pathway for our transition to a zero carbon economy. As a region,
we are ready to go further and faster on this work by leveraging the existing appetite
amongst our business community to champion our zero carbon aspirations.
We recognise that a truly just transition is about more than reducing our carbon
emissions. Our just transition must deliver improved outcomes for our land
(whenua), water (wai), koiora (people and animals) and āhuarangi (climate). We
support the Government programmes such as Fit for a Better World and Te Taiao
which is helping support our primary sector transition and recognising the vital
contribution of Mātauranga Māori and the opportunity to truly partner under Te
Tiriti o Waitangi in this transition.
Priorities:
January 2021
6.1 Zero Carbon Economy – We areas that councils have responsibility for
ask government to support our such as transport, water management,
region’s transition to a zero carbon urban development and environmental
economy. Our regional economic management. Our Councils have
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development must have a focus on opportunities to contribute towards
realising the opportunities that a zero meeting national emissions reduction
The Nelson Tasman Regional Economic Development Briefing
carbon economy will present. We ask targets in areas such as public transport
government to back us as a region to and afforestation. There is currently
pilot innovative low carbon, waste a great deal of uncertainty as to who
reduction and climate adaptation will shoulder the burden of meeting
projects, models and solutions. Work costs associated with addressing and
with us to fund our regional transition responding to climate change.
and implementation plan. As a region,
we are ready to champion transition 6.3 Waimea Dam Hydroelectricity – The
pathways with our key economic drivers Waimea Dam will be delivered with or
such as the visitor and primary sector. without the inclusion of hydroelectricity.
We have a strong mandate from our We believe this is an unmissable
communities to make bold progress on opportunity for government to further
this, but we must offer support to and back its investment in hydroelectricity,
make transition viable for our businesses, add further community benefit to
especially our farmers and growers. this significant regional asset. A $10M
investment from government would help
6.2 Climate Change Adaption – Clear unlock the hydro potential of the Waimea
signalling is needed regarding climate Dam, create new jobs and leverage the
change policy implementation and existing central and local government
cost burden. Climate change will have investment in the dam.
significant impacts across many of the26
Appendix – Te Tauihu
Intergenerational Strategy
January 2021
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The Nelson Tasman Regional Economic Development Briefing
You can find out more about the Intergenerational Strategy at: www.tetauihu.nzThe Nelson Tasman
Regional Economic
Development Briefing
kokiri@nelsontasman.nz
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