Toward 2030 Nelson Tasman Regional Economic Development Strategy Regional Prosperity Vision for the Nelson Tasman Region 2020 The Nelson Tasman Region is a diverse region encompassing the vibrant Nelson City and the thriving communities of the Tasman District. The region has sound governance and an integrated approach to economic development, which balances a growing economy with the region s natural resources and the culture and lifestyle of its people. Nelson City and Tasman District Community Outcome Our region is supported by an innovative and sustainable economy. Mission Developing the region s economy will result in improved standards of living for all residents. 2020 Strategic Objectives Targets To Be Reached By 2020 o The average annual increase in regional GDP between 2014 and 2020 is greater than the national average over that period o GDP per capita for the region is above the national average o The median weekly income, median average weekly earnings for those in paid employment and median weekly household income in the region are above the national average o 85% of the region s 18 year olds will have achieved NCEA Level 2 or equivalent qualification in 2017 o The regional home affordability index remains below the national average Economic Development Strategies 1. Progress an integrated economic development system 2. Foster regional economic drivers 3. Progress education to employment initiatives 4. Advance industry based science and research 5. Develop ICT capability and digital awareness 6. Strengthen the regional identity
Supporting Values 1. Sharing information and knowledge benefits all sectors and the regional economy 2. The development and expansion of the region s key export sectors will continue to drive the economy 3. Education-to- employment initiatives will result in the education sector being aware of regional business needs and students being better prepared for employment 4. Industry based science and research enables economic development and allows knowledge to transform into commercial value 5. ICT supports and enables the region through all economic sectors 6. Promoting the unique characteristics of the region strengthens regional identity Key Regional Export Sectors Horticulture Forestry Seafood Farming Tourism GDP $431 million GDP $430 million GDP $293 million GDP $146 million GDP $102 million Executive summary The Nelson and Tasman regional economies are interlinked and dependent on each other. Local iwi regard Te Tau Ihu (the Top of the South) as one region. The Nelson Tasman region has experienced gross domestic product (GDP) growth over the past four years, yet it lags behind the New Zealand average in GDP per capita, median individual weekly earnings, median weekly household income and median average weekly income for paid employees. Horticulture, forestry, seafood, farming and tourism are Nelson Tasman s key export sectors, followed by engineering, ICT and aviation. Regional support sectors include wholesale and retail, business support, health, construction and education. Of the five key export sectors, forestry and tourism were the only sectors that did not see a decline in GDP contribution through the global financial crisis period of 2007 to 2009. Since 2009 all export sectors have experienced GDP growth, with pastoral farming and horticulture having the highest percentage growth between 2009 and 2012. All support sectors increased their contribution to regional GDP between 2006 and 2009, however between 2009 and 2012 the health and construction sectors experienced a decrease in their contribution to GDP.
Regional GDP per capita was above the New Zealand average in 2004, however as a result of GDP growth in Nelson Tasman being lower than the New Zealand average in 2005, 2006, 2007 and 2008 the Nelson Tasman GDP per capita was 94% of the New Zealand average at 2013. Business units have slowly decreased across the region in all export sectors, except ICT, since 2009. Business units in the business support, health and education sectors increased between 2009 and 2012. The ratio of business births to deaths has been below one in the Nelson Tasman region since 2010, as it has for the whole of New Zealand. Sixty four percent of businesses in the region have zero employees and 0.4% of businesses employ 100+ full time equivalent staff. In 2013, 24% of those employed in the region were employed by the 53 businesses who employed 100+ staff. Businesses that employ less than 20 staff are categorised as small medium enterprises (SMEs). In 2013, 96.4% of all businesses in Nelson Tasman were SMEs, compared to 97.2% across New Zealand. Skill levels vary across the region, however skill levels in all regional export sectors have increased as technology has been introduced across those sectors. The unemployment rate in December 2013 was 4%, down from 4.8% in the March 2013 quarter. With low unemployment the region s horticulture sector finds it necessary to recruit staff through the Registered Seasonal Employment Scheme, employing temporary staff from eligible Pacific countries. The region s land, sea, natural resources, infrastructure, people and regional governance are the foundations of the Nelson Tasman economy. Regional infrastructure issues are highlighted however the key focus at present is on the development and construction of the Waimea dam. Issues that face the region s key sectors include an aging workforce, water, efficient road systems, availability of productive land and adjacent land use and business succession. Other regional issues that impact on economic development include council processes in relation to business, digital awareness and capability, education to employment alignment, support for start up and small business development, and the regional identity. Economic opportunities for the region include the development of mussel farms in Tasman and Golden Bays, increased wood processing as volumes of harvested wood increase and an increase in the use of digital technology across all sectors. This strategy does not incorporate discussion on external events that will affect the regional economy over the next six years that neither industry nor regional councils can avoid or influence. Financial resources for economic development are scarce, however the region has communities of business people who have a wealth of knowledge and a willingness to become involved in economic development. The region s two
councils are committed to raising prosperity and the region has key education and science facilities that work with industry sectors. The purpose of this strategy is to improve standards of living for all residents. The objectives reflect the mission as they include measurements for economic growth and personal incomes, education and housing affordability. The strategic initiatives aim to create a shift from individual economic development efforts to an integrated regional development approach; with all sectors sharing information, communicating needs and having the opportunity to come together to participate in the development of Nelson Tasman. At the heart of this economic development strategy is the sustainable relationship between the economy and the region s social, cultural and environmental values. Rather than focus on sustainability as a stand-alone activity, sustainability is seen as an implicit element of all economic activity within the region. Measuring progress, reviewing initiatives and planning for new initiatives will be essential to take advantage of future opportunities. Each initiative has an assigned lead organisation that will be responsible for determining how the initiative is to be achieved in the timeframe and how progress will be measured. The EDA will be responsible for publishing the progress of all initiatives and working with regional sectors to develop further initiatives. Strategic Initiatives Progress an integrated regional economic development system Establish a Nelson Tasman economic development advisory forum. Align Nelson City and Tasman District Council s community outcomes. Establish a system to collate and disseminate economic reports, research and statistics that have been developed by business, sectors and local government across the region. NZ Trade & Enterprise, Nelson Regional Economic Development Agency and the Nelson Marlborough Institute of Technology, along with industry, establish guidelines for developing business relationships with China. Nelson City Council, Tasman District Council and the EDA establish a small working group to develop initiatives that will result in both councils reducing barriers, costs and uncertainties for business in line with the LGNZ Business Friendly Councils guidelines. Develop consistent guidelines for the RMA and building consent application process in Nelson and Tasman, in order to reduce uncertainties for applicants and ensure consents are processed in a timely manner.
Nelson City Council and Tasman District Council work with iwi to develop an efficient and effective RMA consultation process. EDA carry out an analysis of services and resources available to start-up and small businesses in the region to identify gaps and work with all agencies to ensure those gaps are filled. Foster Regional Economic Drivers Advance the construction of the Waimea Dam. Develop plans to promote the region as a premier New Zealand food and beverage destination. Develop funding solutions to enable the completion of the Tasman Great Taste Trail. Continue to advance the importance of the Nelson Arterial Route, Saxton Road to Hope corridor and SH6 Whangamoa Saddle as the region s three key roading issues to the New Zealand Transport Agency. Progress education-to- employment initiatives Hold an Education for Industry Forum bringing educators and industry together to discuss industry and sector employment needs and the development of further regional education-to- employment initiatives. Develop education initiatives that prepare students for employment, no matter what vocation they choose. Advance industry-based science and research Develop a business case for the Marine City 2025 initiative that will promote the region as New Zealand s pre-eminent location for marine and seafoodrelated research, education institutions and facilities. Promote the value of science and research within the region. Develop and implement a plan to progress increased volumes of seawater to the aquaculture development at Glenhaven. Develop ICT capability and digital awareness Organise a regular ICT forum to bring the region s IT professionals together to discuss regional IT capability, a digital strategy and regional economic development.
Develop a digital strategy that is based on having a vibrant ICT sector and all residents and businesses in the region online, confident with digital technologies and taking advantage of new opportunities. Strengthen regional identity Strengthen the region s image and identity by developing a consistent message, which includes promotional material available for all sectors and the community to use. image and identity by developing a consistent message, which includes promotional material available for all sectors and the community to use.