ChristchurchNZ Holdings Limited. Statement of Intent. 1 July June 2021

Transcription

1 ChristchurchNZ Holdings Limited Statement of Intent 1 July June 2021

2 2 Statement of Intent Contents DIRECTORY 3 DOCUMENT PURPOSE 4 INTRODUCTION 5 OUR PURPOSE 6 STRATEGIC FRAMEWORK - OUR CONTRIBUTION TO CHRISTCHURCH 7 Our Purpose 7 Our Mission 7 Our Three-Year Priorities 7 OUR AMBITION FOR CHRISTCHURCH 9 Christchurch City of Opportunity 10 Narrative by Audience 10 HOW WE WORK 12 CONTRIBUTION TO COUNCIL COMMUNITY OUTCOMES & STRATEGIC PRIORITIES 13 OUTCOMES AND THREE-YEAR PERFORMANCE MEASURES 15 FINANCIAL PERFORMANCE TARGETS 19 CORPORATE GOVERNANCE 20 Our Group Structure 20 ACCOUNTING POLICIES 23 Distributions 23 Acquisition/Divestment Procedures 23 Information to be provided to Shareholders 23 Compensation from Local Authority 24 Value of Shareholders Investment 24 Role in the CCC Group and Regional Economy 24 ATTESTATION 25 APPENDIX ONE ECONOMIC CONTEXT 26 The Opportunities and Challenges 26 Our Response 28 APPENDIX TWO ACTING WITH IMPACT 30 APPENDIX THREE WORKING IN PARTNERSHIP 31 APPENDIX FOUR DELIVERING OUR THREE-YEAR PRIORITIES IN YEAR 1 32 APPENDIX FIVE CHRISTCHURCH CITY COUNCIL LONG-TERM PLAN: SERVICE PLAN FOR ECONOMIC DEVELOPMENT 36 What does the overall Group of Activities do and why do we do it? 36 Specific Levels of Service 42 2 Page

3 3 Statement of Intent Directory Address: ChristchurchNZ Holdings Limited (CHL) PO Box 2962 Christchurch 8140 Registered Office: Level Cashel St BNZ Centre (west) Christchurch Board: Dr Therese Arseneau (Chair) Kaila Colbin Deputy Mayor Andrew Turner Cr Tim Scandrett Stephen Barclay Roland van Bommel Paul Bingham Auditors: Grant Thornton Audit Partnership (NZ) Limited Contact: Telephone Page

4 4 Statement of Intent Document Purpose This Statement of Intent (SOI) is approved by the ChristchurchNZ Holdings Limited Board (ChristchurchNZ) and then approved by the Shareholder, Christchurch City Council (CCC), following a review and recommendation by a CCC sub-committee charged with the monitoring and oversight of the entity; in accordance with Section 64(1) of the Local Government Act ChristchurchNZ is wholly owned by the Christchurch City Council and, as such, we are a Council Controlled Organisation (CCO). The Statement of Intent defines the objectives, nature and scope of activity, the performance targets and other measures by which ChristchurchNZ may be judged in relation to its objectives over the next three years. The SOI provides an opportunity for CCC to ensure the focus of ChristchurchNZ is consistent with the objectives of Council s Long-Term Plan (LTP). 4 Page

5 5 Statement of Intent Introduction ChristchurchNZ is a new organisation with bold ambition. Our focus, as Christchurch s economic development, attraction and promotion agency, is to grow the economy to the benefit of all. Building economic strength and confidence takes ongoing inspiration and leadership. We are committed to providing that leadership and ensuring Ōtautahi Christchurch is known as a city that enables the exploration and innovation at a civic scale in a vibrant city set between the mountains and the sea. We aim to ignite excitement and ambition and generate momentum for Christchurch as an attractive destination for residents, business, investment, visitors and students. Christchurch is a city that has the right history, natural and built environment and connectivity ensuring our people and visitors are able explore new ideas and ways of living and live balanced lives. Christchurch is well positioned to continue to grow its contribution to the economy of New Zealand and provide the world with a platform for exploring technologies at a city scale and showcasing sustainable practices, community inclusion and resilience and innovative ways of doing business and living. 5 Page

6 6 Statement of Intent Our Purpose Our purpose is to grow the economy to the benefit of all. We do this by supporting prosperity, opportunity and a great quality of life in Christchurch & Canterbury by providing leadership and integration in the following areas: Developing a strong positive city profile and promoting the city to residents, national and global audiences Attracting visitors, migrants, students, new business and investment through integrated marketing, major events & conferences Ensuring the business environment supports successful and sustainable enterprise and encourages creativity and innovation On behalf of Christchurch City Council, we are responsible for the development, monitoring and implementation, alongside partners, of four Council strategies: Christchurch Economic Development Strategy Christchurch Visitor Strategy Christchurch Major Events Strategy Christchurch Antarctic Gateway Strategy We also have responsibility for leading the development and application of the Christchurch City Narrative with our public and private sector partners. The Christchurch Narrative describes Christchurch as a City of Opportunity, where exploration is part of who we are, it is part of what has shaped us. We are hardwired to challenge the status quo, to imagine, explore and discover what s next. Christchurch is a city founded on that spirit, our history was built on it. And our future will be created by it. 6 Page

7 7 Statement of Intent Strategic Framework - our contribution to Christchurch Our Purpose To grow the economy to the benefit for all Our Mission To ignite bold ambition for Ōtautahi Christchurch and Waitaha Canterbury Our Three-Year Priorities We will realise this goal through delivering against our six priorities: 1. Catalyse and enable innovation, entrepreneurship, investment and commercialisation at a civic scale We will attract world-leading businesses to Christchurch where they can easily research, develop and commercialise ideas, with a view to creating significant new business, research, investment and employment opportunities for the city while building on our place in the world as a city of opportunity and exploration. We will maximise the profile of Christchurch as a city that catalyses and enables innovation within businesses and communities but also at a civic scale in partnership with the City. The focus will be on Christchurch as a diverse city where ideas can be realised to the benefit of our people and planet. 2. Attract and support business, enterprise and talent We will build on our existing offerings to develop an integrated business and innovation ecosystem which supports and attracts businesses and innovators at every level of their evolution, from students, researchers looking to commercialise and start-ups, right up to businesses focused on global growth. 7 Page

8 8 Statement of Intent 3. Provide thought leadership We will be leaders in evidence-based insight and strategy locally and nationally to ensure policy, strategies and actions deliver the best outcomes for Christchurch, Canterbury and New Zealand. We also provide strategy and policy advice and formulation for other public-sector entities. These insights will help provide the evidence base for Canterbury as a region that is ideal to prototype, innovate and grow new ideas, with positive impact. 4. Enhance Christchurch as a vibrant Destination and Gateway We will enhance Christchurch as a destination and gateway through enabling major new visitor attractions and development of high-quality tourism infrastructure, supporting operators to grow high-quality world-class offerings, providing information and ensuring a high-quality portfolio of major events. We aim to ensure Christchurch reclaims its status as a premier conference destination in Australasia. We will leverage our status as one of only five gateways to the Antarctic. 5. Profile Christchurch and Canterbury locally, nationally and globally We will ensure Ōtautahi Christchurch is promoted actively locally, nationally and globally with precision to high value markets and audiences. We will maximise the profile of Christchurch as a destination and gateway to the South Island, Antarctic and the rest of New Zealand and we will tell a story of Christchurch as a place where it is possible to explore new experiences and ideas and business opportunities to try things that haven t been done before. 6. Grow revenue and organisational effectiveness to realise bold ambition ChristchurchNZ will develop its organisational culture, behaviours and ways of working so we can operate with bold ambition for Christchurch from a solid foundation of care and respect for our community, partners and place. We will significantly grow our strategic partnership and sponsorship relationships to amplify success and impact. We will develop revenue strategies to attract the resource required from commercial partners and beneficiaries of economic growth, to limit our burden on the public purse. 8 Page

9 9 Statement of Intent Our Ambition for Christchurch By delivering on our mission, we aspire to see the following improvements in Christchurch over the next 10 years 1. A strong economy 23% increase in Christchurch s Gross Domestic Product to $23.9bn Attracting more people Canterbury population growth of 16% to 707,400 Restoring our visitor spend market share Christchurch grows its share of New Zealand s domestic visitor spend from 6.5% to 7% and its share of New Zealand s international market visitor spend from 8.4% to 12.1% by 2025 A higher quality of life more than 90% of Christchurch residents rate their quality of life as good or very good Targets/benchmark data source: 1. Canterbury population CEDS goal (net migration of 6,200 people per year) 2. Quality of life* New Zealand Quality of Life Survey 3. Total GDP Info metrics - CEDS goals (target on track for $26bn by 2031) 4. Income vs Affordability Statistics NZ, target to be developed 5. Share of national visitor economy MRTE, MBIE 1 ChristchurchNZ is a member of the New Zealand Treasury s Wellbeing Group. The work of the Wellbeing Group will help inform a more holistic set of outcome measures for inclusion in future Statements of Intent. 9 Page

10 10 Statement of Intent Christchurch City Narrative Christchurch City of Opportunity Exploration is part of who we are; it is part of what has shaped us. We are hardwired to challenge the status quo, to imagine, explore and discover what s next. Christchurch is a city founded on that spirit; our history was built on it. And our future will be created by it. For the people of our city the opportunity is to: Explore new ways of living, connected communities, work life balance and a city of new and old surrounded by nature. For our visitors the opportunity is to: Explore new horizons, a vibrant city of contrast, ancient landscapes, our amazing backyard from the mountains to the sea. For investors the opportunity is to: Explore fresh thinking, the not yet known, the intersection of creativity and commerce. Prototype and explore ideas at a civic scale in our test-bed city. For all of us Christchurch is about exploring new opportunities: Between people and people, between people and place, between people and new ideas, which will shape what s next, between our past, present and future. Narrative by Audience Residents: The spirit of exploration has shaped who we are as a people. Life is good here. We have a lively culture and we re surrounded by nature, both within our active city and in the rugged landscapes beyond the city centre. Our spirit of exploration helps us connect to our ancestral past, find balance in how we get the most from life in the present and grow our future through new ways and ideas that benefit our people and place. Visitors: Explore New Zealand, start in Christchurch. A vibrant place of contrast. I m drawn to the creativity of this progressive city. There are opportunities to explore the rich cultural history and new ideas developing alongside Christchurch s peaceful green spaces, as it both rediscovers its past and invents its future at the same time. Beyond, the breath-taking landscapes of the Port Hills and Banks Peninsula beckon to exploring more experiences further afield. 10 Page

11 11 Statement of Intent Business: Doing business in Christchurch is an opportunity to grow by exploring ideas that have future impact. Christchurch has an environment which supports and grows innovation for the benefit of the region and country. The city is home to a highly collaborative business community and a critical mass of innovation assets that support and enable innovation and commercialization to benefit the region and country. A strong education sector that connects like minds and adds to a future focused workforce. It s a city where I can explore new ideas, develop new solutions and ways of working. Christchurch provides opportunities for meaningful work, while enjoying a balanced life. International Education: Studying in Christchurch is an opportunity to explore new thinking and new horizons. Christchurch is inventing its own future, as I explore mine. There is a strong education and research community that connects like minds, and adds to a future focused workforce. It s an energetic and vibrant city where I can explore new ideas and ways of working, find opportunities for meaningful work, while enjoying a balanced life. Beyond, the breath-taking landscapes of the Port Hills and Banks Peninsula beckon to exploring more experiences further afield. Investors: The opportunity Christchurch gives us is to explore our ideas at a city scale. Christchurch is a city on the cusp of a new era. There s an existing culture of collaboration and openmindedness at governance level, as well as an established support structure for innovation and growth. The city s population of people are grounded in optimism and practicality. There is an opportunity to test out ground-breaking ideas at a city-wide scale, in one of the most open, safe and accessible countries in the world. 11 Page

12 12 Statement of Intent How We Work Act with impact ChristchurchNZ is motivated by public good. In everything we do, we will ensure we use our resources most effectively and efficiently to make a difference for the community by growing the economy to the benefit of all. This means ChristchurchNZ will only engage in activities where we can achieve outcomes for Christchurch that are bigger, faster or more successful than they would have been otherwise, or would not have happened without our involvement. Evidence-based We are committed to using and developing evidence to ensure our decisions and activities are the most effective use of our resources and to inform the decision-making of others to achieve the best outcome for Christchurch and New Zealand. We have a clear focus for the next three years, with the building blocks in place for enhanced levels of delivery. We are committed to realising our mission in a way which is grounded in our place, Ōtautahi, Christchurch New Zealand, and our role as a leader in the city. Working in partnership We recognise we can only succeed through trusted partnership with others. We are committed to significantly growing the breadth and depth of our strategic and commercial partnerships to ensure we can amplify success, affect significant change and deliver powerful impact. We are committed to working with our wider family of city agencies and the Council group to maximise the collective benefit we deliver for the city. We have an ambition to diversify funding to 35% of non-council funding from 25%. Kaitiakitanga and sustainability Our plans build on a strong commitment to care for the environment and our community. We place the highest possible value on the core strategic relationship between Ngāi Tahu and ChristchurchNZ, and are committed to ensuring positive outcomes for Maori, while welcoming and respecting the cultural values of all people living and visiting our city and region and respecting those inherent to our place in New Zealand and the world. Exemplar employer ChristchurchNZ seeks to attract, retain and develop great people. ChristchurchNZ is committed to be an exemplar workplace, where staff are enabled and empowered to realise their full potential and make the largest possible contribution to Christchurch in a safe and supportive environment. ChristchurchNZ remuneration policy seeks to ensure a fair, unbiased approach that enables the organisation to compete in the talent marketplace. ChristchurchNZ acknowledges and acts in accordance with the shareholder request to exercise restraint in respect of executive remuneration. Operational effectiveness and value for money ChristchurchNZ is committed to having the systems, processes and tools to enabling effective resource allocation, delivery and evaluation of activity. 12 Page

13 13 Statement of Intent Contribution to Council Community Outcomes & Strategic Priorities A mapping of the contribution we make to Council s community outcomes and three-year strategic priorities through delivery of our priorities is provided in the following table. The dark shading shows where we directly contribute, while light shading shows where we support and align Council Community Outcomes Strong Communities Our Priorities Incentivise innovation, entrepreneurship and commercialisation at a civic scale Take action to support and attract enterprise and talent Provide thought leadership Enhance Christchurch as an exciting Destination and Gateway Profile Christchurch and Canterbury Realise bold ambition through revenue growth and organisational effectiveness Strong sense of community Active participation in civic life Safe and healthy communities Celebration of our identity through arts, culture, heritage and sport Liveable City Vibrant and thriving central city A well connected and accessible city Sufficient supply of, and access to, a range of housing 21 st century garden city we are proud to live in Healthy Environment Healthy waterways High quality drinking water Unique landscapes and indigenous biodiversity are valued Sustainable use of resources Prosperous Economy Great place for people, business and investment An inclusive, equitable economy with broad-based prosperity for all A productive, adaptive and resilient economic base Modern and robust city infrastructure and community facilities 13 Page

14 14 Statement of Intent Our Priorities Council s Three-Year Strategic Priorities Enabling active citizenship and connected communities Incentivise innovation, entrepreneurship and commercialisation at a civic scale Take action to support and attract enterprise and talent Provide thought leadership Enhance Christchurch as an exciting Destination and Gateway Profile Christchurch and Canterbury Realise bold ambition through revenue growth and organisational effectiveness Maximising opportunities to develop a vibrant, prosperous and sustainable 21 st century city Climate change leadership Informed and proactive approaches to natural hazard risks Increasing active, public and shared transporting opportunities and use Safe and sustainable water supply and improved waterways 14 Page

15 15 Statement of Intent Outcomes and Three-Year Performance Measures Outcome Priority Performance Measure 2018/ / /21 GDP growth Increase in disposable income Catalyse & enable innovation, entrepreneurship and commercialisation at a civic scale Impactful support is provided for industries where we have a regional strength such as manufacturing, agriculture and tourism with the potential for transformational growth. These may include further stimulus in the areas of future foods and agritech, future transport and health technologies, space & Antarctic logistics & communications, technical outdoor equipment & apparel, seismic engineering, and social enterprise. 2 businesses or investments attracted or impactfully supported 2 businesses or investments attracted or impactfully supported 2 businesses or investments attracted or impactfully supported Initiatives to support the local generation and commercialisation of ideas are provided to the research and business eco-system 4 initiatives provided 4 initiatives provided 4 initiatives provided Take action to support and attract enterprise and talent Christchurch businesses with significant export and value-add potential have access to an integrated suite of support to realise their growth ambitions, within a business-friendly city An overarching family of brands for business support in Christchurch is developed and activated. Business growth and support services brand actively promoted across all channels Business growth and support services brand actively promoted across all channels Businesses in Christchurch have access to business support or advice 500 businesses supported 500 businesses supported 500 businesses supported Early stage entrepreneurs are supported 200 entrepreneurs supported 200 entrepreneurs supported 200 entrepreneurs supported Christchurch has a talent pipeline which meets business needs and creates local pathways into employment. A talent pipeline programme is delivered A talent pipeline programme is delivered A talent pipeline programme is delivered 15 Page

16 16 Statement of Intent Outcome Priority Performance Measure 2018/ / /21 Regain market share of national visitor economy Population growth Enhance Christchurch as an exciting Destination and Gateway The value of Christchurch s Antarctic Gateway status is understood and realised through a clear strategy and implementation plan Christchurch has a clear plan for growing the value of the visitor economy to the city: Strategy implementation Strategy implementation Strategy implementation Plans are developed Implementation Implementation A destination management plan A destination marketing plan Christchurch bids into the global events market to attract business events to the city 30 bids prepared 25% of bids are successful 30 bids prepared 30% of bids are successful 30 bids prepared 35% of bids are successful Christchurch has major events (as defined by the Major Events strategy) which attract visitors, provide economic value 2 events supported 3 events supported 3 events supported Profile Christchurch and Canterbury locally, nationally and globally Christchurch has a clear narrative and supporting implementation plan which includes refreshed marketing channels, communications and engagement activity Three targeted campaigns using narrative rolled out Four targeted campaigns using narrative rolled out Four targeted campaigns using narrative rolled out Christchurch s story is supported by a rich set of content and images which can and is used to promote Christchurch Content is maintained & utilisation is monitored Content is maintained & utilisation is monitored Content is maintained & utilisation is monitored Christchurch is promoted using aligned narration through online promotional and digital platforms to visitors and residents 600,000 online sessions 650,000 online sessions 700,000 online sessions 16 Page

17 17 Statement of Intent Outcome Priority Performance Measure 2018/ / /21 Christchurch residents have a better quality of life Provide thought Leadership Christchurch has strategies to guide activity and investment of ChristchurchNZ and third parties An Inclusive Prosperity Strategy with emphasis on inclusion of Maori and Pasifika outcomes is developed Major Events & Antarctic Strategies are reviewed The Christchurch Visitor Strategy is reviewed The city and business leaders have access to insights that support informed decision making and investment that deliver outcomes for the city Economic Report is produced quarterly 6 Christchurch or Canterbury economic research reports completed Economic Report is produced quarterly 6 Christchurch or Canterbury economic research reports completed Economic Report is produced quarterly 6 Christchurch or Canterbury economic research reports completed 17 Page

18 18 Statement of Intent Outcome Priority Performance Measure 2018/ / /21 Organisational effectiveness Realise bold ambition through revenue growth and organisational effectiveness ChristchurchNZ has the strategies and plans in place to enable it to operate with bold ambition, through revenue growth and organisational effectiveness. Key strategies: Strategic Partnership and Revenue Diversification Strategy Sustainability strategy Strategies and implementation plans are developed Implemented Reviewed Maoritanga strategy ChristchurchNZ has a prioritisation and performance management framework which supports robust decision-making, resource allocation and review Framework is developed and implemented Implemented Reviewed Best practice governance is exercised A governance manual aligned to best practice guidelines is in place. Governance Manual reviewed Governance manual reviewed 18 Page

19 19 Statement of Intent Financial Performance Targets Financial Objectives Objective 1. Financial Performance meets shareholder expectations (budget). Performance CNZ meets or exceeds budgeted key performance measures $000 $000 $000 CCC Funding 11,619 11,619 11,619 Other Funding 5,521 6,521 6,521 Shareholders Funds/Total Assets 79% 78% 80% 2. CNZ s capital structure and funding model is appropriate for the nature of its business. 3. Treasury management policies and practices are consistent with best practice. 4. CNZ Accounting Policy is consistent with shareholder requirements and complies with IPSAS. ChristchurchNZ will utilise CCC funding for the objectives as set out in the LTP and secure additional funding from appropriate sources to complete specific projects as required, utilising capital reserves retained by CRIS Ltd as available and required to leverage other funding sources. The CNZ Group maintains an adequate level of reserves to meet on-going commitments (circa six months of operations). CNZ to review its Treasury Policy biennially. Annual external audit reviews do not highlight any material issues. Group Financial Objectives 1. Subsidiary performance is in line with expectations. 2. The capital structure and funding model of subsidiaries are appropriate for the nature of the business. 3. The Accounting Policies of Subsidiaries are consistent with shareholder requirements and comply with IPSAS. Subsidiaries achieve budget and objectives set out in their Annual Operating Plans. CRIS provides a source of capital to fund visitor attraction and economic development initiatives. Subsidiary governance arrangements are reviewed and rationalised as appropriate Annual external audit reports are completed and do not highlight any material issues. 19 Page

20 20 Statement of Intent Corporate Governance ChristchurchNZ is monitored by the Finance & Performance sub-committee of CCC on behalf of the shareholder. The Board of Directors is appointed by the Shareholder on advice from Christchurch City Holdings Limited in accordance with the CCC Director appointments and remuneration policy and a memorandum of understanding (MOU) between the three entities Our Group Structure ChristchurchNZ manages its governance of subsidiaries and related entities towards similar goals as its shareholder, the Council. Making this a place where you can realise your potential. Existing subsidiaries and related entities Canterbury Regional Business Partners Limited is a joint venture with the Canterbury Employers Chamber of Commerce. This Joint Venture initiative is funded by Callaghan Innovation and the Ministry of Business, Innovation and Employment to co-ordinate business capability building and research and development related activities across the Canterbury region. CRIS Limited is a wholly owned subsidiary of ChristchurchNZ Holdings Ltd, and it is a partner entity to ChristchurchNZ. It holds a portfolio of investments and contractual commitments that support the delivery of innovation & commercialisation initiatives within the region. CRIS Ltd has its own Statement of Intent which is included as an appendix to this document. Role of the Board of Directors The Board is ultimately responsible for setting the strategic direction of the company, oversight of the management of the company and direction of its business strategy, with the ultimate aim being achievement of the shareholder s vision and wishes for the economic development of Christchurch city and the city s surrounding area of interest. The Board is accountable to the shareholder for the performance of the company and will act in accordance with any letter of Shareholder expectation received. The Board draws on relevant corporate governance best practice principles to assist and contribute to the performance of CNZ and acts in accordance with the guidelines and policies set out in in the organisation s Governance Manual. The functions of the Board include: 1. Seeking advice from CCC on matters of policy and strategic direction, agreeing intervention logic with CCC as shareholder and key funder. 2. Providing strategic direction for, and approving, the company s and any directly controlled subsidiaries, business strategies and objectives; 3. Reviewing and approving the company s budgets and business plans and monitoring the management of the company s capital, including the progress of any major capital expenditure, acquisitions or divestitures; 4. Providing leadership of the company within a framework of prudent and effective controls which enables risk to be assessed and managed; 20 Page

21 21 Statement of Intent 5. Agreeing the risk appetite of Company, identifying the principal risks faced by the company and taking reasonable steps designed to ensure that appropriate internal controls and monitoring systems are in place to manage and, to the extent possible, reduce the impact of these risks whilst achieving our mission of igniting bold ambition; 6. Monitoring the operational and financial position and performance and health & safety practices of the company; 7. Requiring that financial and other reporting mechanisms are put in place by the Chief Executive which result in adequate, accurate and timely information being provided to the Board and the company s shareholder and the financial market being fully informed of all material developments relating to the company; 8. Appointing and, where appropriate, removing the Chief Executive, approving other key executive appointments, planning for executive succession and monitoring the performance of the Chief Executive and other senior executives, having regard to the company s strategic direction and goals; 9. Reviewing and approving the company s remuneration policies; 10. Establishing procedures to ensure that financial results are appropriately and accurately reported on a timely basis in accordance with all legal and regulatory requirements; 11. Adopting appropriate procedures to ensure compliance with all laws, governmental regulations and accounting standards; 12. Approving and regularly reviewing the company s internal decision making and compliance policies and procedures, including any codes of conduct, the Board Charter and the charters of the Board s Committees; 13. Ensuring that the company s internal decision making and compliance policies and procedures are adhered to, to ensure that the business of the company is conducted in an open and ethical manner; and; 14. Appointing board members or representatives for the subsidiary entities in conjunction with CCHL and CCC where appropriate. All Directors are required to comply with a formal Code of Conduct which is based on the New Zealand Institute of Directors Code of Proper Practice for Directors. The Board meets at least eight times per year and as determined by an agreed annual work programme. Board Committees The Board may, from time to time, establish committees to assist it in carrying out its responsibilities. For each committee the Board adopts a formal charter that sets out the delegated functions and responsibilities for, and the composition and any administrative matters relating to, that committee. An Audit and Risk Committee and a Remuneration Committee have been established by the company. The Board is responsible for the oversight of its committees. This oversight includes, in relation to each committee, determining and reviewing its composition and structure and regularly reviewing its performance against its charter. Delegation of Responsibilities to Management The Board has delegated management of the day-to-day affairs and management responsibilities of the company to the executive team to deliver the strategic direction and goals determined by the Board. 21 Page

22 22 Statement of Intent The Board has also developed a statement of their Reserved Powers. Directors and Board committees have the right, regarding their duties and responsibilities, to seek independent, professional advice at CNZ s expense, subject to Board approval. Board Composition and Fees The composition of the Board of Directors is determined by CCHL under the CCC policy on Council Controlled Organisations (CCO) board appointments. Directors fees are reviewed periodically as part of the CCHL process. The Board comprises independent and council directors with an independent Chair. Established practice is for a donation to be paid to the Mayoral Welfare Fund in lieu of payment of Directors Fees to Councillor Directors. Subsidiary Board Members All directors of subsidiary companies are selected for their commercial expertise and aptitude. It is established practice for representatives of the subsidiary board and management to meet with CNZ at least twice a year, to discuss the company s strategic direction and any significant issues that arise. The CNZ Board also receives such other reports as are necessary to perform its monitoring function; however, CNZ does not involve itself in the management of subsidiary companies. Reporting and monitoring ChristchurchNZ reports quarterly to CCC against its levels of service and expects to meet with and report quarterly to the CCC Finance & Performance sub-committee. 22 Page

23 23 Statement of Intent Accounting Policies CNZ has defined itself as a Public Benefit Entity (PBE) for the purposes of financial reporting. The financial statements are prepared in accordance with the PBE Standards Reduced Disclosure Regime for a Tier 2 entity. The company s current accounting policies are consistent with New Zealand International Public-Sector Accounting Standards, generally accepted accounting practice and in accordance with the Companies Act 1993 and the Financial Reporting Act 1993 and any amendments thereto. Distributions Organisational activity is not for Private Pecuniary Profit None of the capital or income of the company shall be paid or transferred directly or indirectly by way of dividend, distribution or otherwise for the private pecuniary profit of any individual. This does not prevent the payment in good faith of reasonable remuneration to any directors or employees of the company, to any other person for services rendered to the company or to subsidiary entities in the furtherance of the objectives of the company. Acquisition/Divestment Procedures The subscription or acquisition of securities in any company or organisation, or a divestment of part of the parent will only be considered where it is consistent with the long-term objectives of the shareholder. When the subscription, acquisition or divestment is considered by directors to be significant to the company s business operations, it will be subject to consultation with the shareholder (CCC). Major transactions as defined in the Companies Act 1993, s 129(2) will be subject to shareholders approval by special resolution. In respect of the subsidiary entity CRIS Limited, which is an investment vehicle, acquisitions and divestments are subject to the CRIS Limited Constitution, consistent with the long-term objectives of the CRIS Limited board and shareholder. Information to be provided to Shareholders CNZ will provide information requested by the shareholder in accordance with the requirements of the Local Government Act CNZ will disclose as much information on its operations as is practical and consistent with commercial and confidentiality considerations under the covenants of its SOI with CCC and third party contractual obligations. CNZ will operate on a no surprises basis in respect of significant shareholder-related matters, to the extent possible in the context of commercial sensitivity and confidentiality obligations. As a minimum, shareholder reporting will involve: 14.1 Annual report and audited financial statements within 90 days of balance date, including reporting against FMA corporate governance principles Annual Report against performance measures 14.3 Contribution to CCC Annual and Long-Term Plan preparation and reporting processes 23 Page

24 24 Statement of Intent 14.4 A quarterly report including a financial and activity update and information on the health and safety practices, current operational risks that may impact the shareholder and performance of the organisation Half year GAAP compliant financial statements by the 28 February each year Compensation from Local Authority ChristchurchNZ expects to receive funding from CCC of $11.61m for the year ended 30 June This includes $600k of funding allocated by Council resolution to the delivery of specific events, Antarctic events ($250k) & Christchurch Cup & Show Week ($350k). An amount of $328,500 is allocated to CRIS Limited. The related levels of service for this funding will be delivered by ChristchurchNZ and as such, this funding will be passed by CRIS to ChristchurchNZ. The Antarctic Strategy was endorsed by Council in May 2018 and Council also resolved to pass Antarctic Office responsibilities to ChristchurchNZ. A funding line of $250k from CCC follows the function. An amount of $549k is expected to be allocated to CNZ from the CCC events & festivals budget and this is included in the total compensation expected. The activity undertaken in exchange for the compensation is set out in the CCC three-year Long-Term Plan, as per appendix 1 of this document. Value of Shareholders Investment The directors estimate that the value of the shareholder investment in the group is approximately $8.6m. This value is reassessed annually as part of the preparation of the audited financial statements. Role in the CCC Group and Regional Economy Commercial relationships within the CCC Group Wherever possible, ChristchurchNZ will work with other group companies to benefit the CCC Group and the Canterbury region. Role in the regional economy As part of its role for the City, CNZ will work proactively with other regional EDAs and RTO s; and the CCC Group to drive regional economic growth. CEDS establishes a direct correlation between the region s rural economy and the economic strength of the City. Other Matters Requiring the Approval of the Shareholder ChristchurchNZ will bring to the attention of the shareholders; Any matters of critical concern, or significant public interest Major transactions as defined in the Companies Act 24 Page

25 25 Statement of Intent Attestation Chairperson Signed for and on behalf of the Board of Directors Appendices CCC Levels of Service (per draft LTP) CRIS Limited Draft Statement of Intent 25 Page

26 26 Statement of Intent Appendix One Economic Context Christchurch is part way through one of the most important periods of change in its history. Christchurch s near and long-term future will be significantly influenced by our success over the next few years in maintaining the regeneration momentum and continuing to develop the economy. The Opportunities and Challenges Christchurch is New Zealand s second largest city and the largest urban centre of the South Island. It is home to four tertiary education providers, international air and sea ports, is an important logistics and service hub for the wider rural economy and has strong manufacturing, technology and knowledge services sectors. Our city economy is currently operating close to full capacity we have high levels of economic activity, low unemployment and high labour force participation. Growth is slowing, and may turn negative over the next year as we transition out of high construction volumes. However, the underlying economy is strong, with visitor number continuing to grow as well as employment in some other sectors. The post-earthquake rebuild has provided Christchurch with a strong platform for future growth we have new, safe and resilient buildings and horizontal infrastructure, state of the art education and health facilities, fresh amenities and social spaces. The post-earthquake period has seen strong growth in some sectors, particularly construction, with the associated development of new products and professional services which have opportunities beyond the Christchurch rebuild. The need to reinvest and, in some cases, reinvent post-earthquake has created new opportunities and more resilient business models for some businesses. The postearthquake environment has also proven extremely challenging for many businesses, resulting in some business closures, or at the least, delayed investment or expansion. Those parts of the economy most affected by the earthquakes, are still facing issues of supply and demand misalignment. Christchurch now has significantly more commercial, hospitality and retail capacity than prior to the earthquakes, as the development of commercial nodes in the suburbs immediately post-earthquake are in addition to commercial, hospitality and retail capacity in the regenerating central city. In other sectors, namely visitor accommodation, the strong seasonality of the visitor sector makes new hotel development more difficult. Attracting new economic activity including visitors, population and business is particularly critically to maintain the momentum of the regeneration of the city and create a city with vibrant central city and suburban centres. Christchurch and Canterbury are mutually supportive economies, with greater Christchurch providing a gateway to the region, and acting as the logistics hub and professional, research and education services for the rural economy. Not only does this mean that the economic future of Christchurch and its rural economy are strongly entwined, but that there is potential for Christchurch and Canterbury to realise greater value through a closer relationship. 26 Page

27 27 Statement of Intent Christchurch faces many of the challenges faced by other developed cities in the world. Disruptive global trends be they rapid technological change, the need to respond to climate change or wider geo-political and societal changes, Christchurch will be significantly impacted as will be every other city around the world. Our ability to adapt and respond to these changes in a positive and constructive way will be critically important for our future. Alongside technological change, our aging population will impact employment who is employed, how they work and what they do. With our current industry structure, Christchurch could have as many as 73,500 vacancies over the next 15 years which won t be filled by our natural population growth. The application of new technologies including, for example, digitisation, automation, artificial intelligence and virtual reality will make some jobs and skills obsolete. It is difficult to predict how the interaction of these trends will impact on our workforce over the long term. However, we anticipate that at least in the shorter term, Christchurch will need to attract new talent to meet the needs of our growing economy. In addition to these global trends, Christchurch faces some particular circumstances which provide specific opportunities and challenges for the city. Our city is still only part way through its regeneration. Over the past six years, we have benefited from investment flowing from government and insurance companies to rebuild our city. Local investors, property owners and businesses have proven their commitment to the city through private property redevelopment and businesses started, retained and expanding in the city. The challenge Christchurch faces now is one of demand, not supply. Without a significant increase in the demand for new commercial and residential property, for hospitality and retail offerings, the continued regeneration of the city could easily stall. We could face a period of stagnation with a partially complete central city, empty buildings and stagnating property yields. This increased demand requires attraction of new economic activity into the city increasing visitors, attracting population and new business investment, in addition to continuing to expand and enhance our existing economic base. Relying on the growth from the existing economic base is insufficient. Our city faces some pre-earthquake challenges. Prior to the earthquake, Christchurch faced several economic challenges which remain relevant today. We had and continue to have a highly diverse economy populated by SMEs and micro businesses. While this diversity has been a source of resilience for the city, it limits the city s ability to grow scale and depth, which is critical to attract international investment and new business, to attract and retain talent and ultimately, if these areas of scale are in high-value industries, to generate higher wages. While Christchurch has seen a steady, but slow improvement in wages rate relative to Auckland and Wellington, our average weekly income is still 12-15% below that of these other two major cities. This is equivalent to $8,000 - $10,000 less income per year for households on an average income (for Christchurch in $55,400). Prior to the 2010/11 earthquakes, Christchurch s CBD had a significant proportion of empty commercial property, which in turn supressed redevelopment of the central city. While the central city blue-print 27 Page

28 28 Statement of Intent tried to address this through reducing the size of the CBD, strong commercial development on the fringe of this CBD in addition to commercial development in Christchurch s industrial suburbs, has meant Christchurch continues to have an under-utilised commercial property market, now coupled with under-developed commercial land, particularly in the central city. Our Response Christchurch s economic development focus over the next few years needs to be: Addressing the near term We need to generate the additional economic activity needed to continue to drive the regeneration, particularly of the central city, and to offset the impact of lower construction volumes. We need to attract new activity (visitors, new residents, businesses and investment), with continued support to grow our existing economic base and make sure Christchurch has a supportive environment to start and grow business. Spring boarding into the future Christchurch s long-term ability to generate wealth, retain and attract people, employment and business opportunities will depend on its ability to grow scale and value in areas of regional strength with growth headroom. Christchurch s areas of strength lie in: Our place we are city within a rich natural environment of productive land, inspiring landscape and good climate, with strong connections with the wider South Island and internationally. Our status as an Antarctica gateway is a unique opportunity. New Zealand remote location provides opportunities where open spaces are required. Our culture we are part of a country with a global reputation for openness, fairness and adaptability. Our city s long history of social, civic and commercial innovation and the highly connected nature of our city and region are significant strengths, which makes it easier for us to innovate at a civic scale. Our economic base our strong manufacturing and engineering base, our close connection with our rural economy and our innovative, connected health system, all provide opportunities to develop sectors of value and scale. Our areas of commercial capability align well with our research and education strengths, creating a strong regional innovation system. This sits alongside strong lifestyle and amenity benefits and affordable housing. These strengths provide a platform for generating significant value in areas of global growth and disruptive technologies. These areas of growth potential are: Space Christchurch is well placed to develop opportunities to travel to, explore and live in space, as well as the opportunities satellites provide to better understand our environment on earth. Operating in hostile environments including post-disaster, Antarctica and space in areas of engineering, manufacturing and health. 28 Page

29 29 Statement of Intent Future transport our natural environment, strong manufacturing and engineering base, and innovative local government makes us an obvious test-bed for future transport on land and in the air Future food and fibre rapid innovation in the food and fibre sectors creates both opportunities and threats for Canterbury s strong agricultural sector. We are well placed with our strong education and research base, diverse farming systems and strong agri-related professional services and manufacturing base to respond positively to these new opportunities. Outdoor apparel Christchurch has a strong outdoor apparel design sector. With the evolution in fibre, our strong connection to the outdoors and our ability to test in many environments, including Antarctica, we have the potential to be an international leader in outdoor apparel innovation. Integrated health Christchurch s integrated health system, strong research base and our hightech capabilities, create a platform to grow innovative applications and solutions in the health and wellbeing sector. 29 Page

30 30 Statement of Intent Appendix Two Acting with Impact All ChristchurchNZ s activities are motivated by the public good. Economic development of the region benefits everyone and facilitates the affordability of health care, education and other public services, as well as promoting greater social cohesion. ChristchurchNZ s focus on acting with impact directs the strategic planning and consequently the activities of ChristchurchNZ. It is critical to maintain an alignment between the strategic directions of ChristchurchNZ and the priorities of the CCC. ChristchurchNZ provides economic context based on research and business information, while Councillors apply the majority political, economic and social philosophy. The outcome is a shared framework which is applied to everything we do. Background CCC was the first council in the country to recognise the city s role in economic development and consequently ChristchurchNZ builds on the longest established and most mature Economic Development Agency (EDA) in New Zealand. As a wholly owned subsidiary of CCC, ChristchurchNZ leads economic development for CCC. ChristchurchNZ is politically neutral it takes guidance from the Council of the day on the nature and focus of its interventions and reports against its agreed targets through its levels of service (LoS) with council. What is Economic Development? Economic Development is working with local businesses, institutions and communities, national government and commercial partners to increase prosperity and the economic health and resilience of our region. Economic Development is about improving the region s employment and business opportunities and enhancing Christchurch as a destination for visitors and residents. What are the criteria for acting with impact? Any activity should create a benefit to the city that would otherwise not have occurred it should have a benefit greater than the cost of the activity achieving outcomes for Christchurch that are bigger, faster or more successful than they would have been with only private sector involvement. Prioritisation There is always greater demand for ChristchurchNZ s help than there is resource available so we must prioritise our efforts based on identifying those projects and activities that maximise the benefit to the community. In this process we take a significant degree of guidance from CCC, who through the Long- Term Plan (LTP) and Levels of Service (LoS) agree where our focus should be and to what degree we should engage. Relationships with central government, Ngai Tahu and key strategic partners also guide our activity. 30 Page

31 31 Statement of Intent Appendix Three Working in Partnership ChristchurchNZ can only succeed through trusted partnership with others. ChristchurchNZ is part of a wider ecosystem of agencies focused on achieve greater prosperity outcomes for the city. The Trust Network map below shows our partners and funders. The map highlights several key themes: Collaboration and partnership are critical to achieve the best prosperity outcomes for the city The roles and responsibilities of all these partners are distinct the strength is bringing them together ChristchurchNZ can operate as a trusted and independent broker across these diverse networks for the greater benefit of the city 31 Page