Local Government Economic Development 31 August 2017
Structure LGNZ The Survey The Key Issue Key themes from the survey: 1. Definition 2. ED related activities 3. Institutional arrangements and expenditure 4. Performance measurement Conclusions and wisdom
Why LGNZ? Activity History: Business Friendly Councils NZ Core Cities China Mayoral Forum Local Government Excellence Programme (LGEP)
Why did LGNZ gather this information? LGNZ is interested in working with councils to gain a shared understanding of the state of economic development within New Zealand at the local level. This also represents an opportunity to share information throughout the sector and exchange ideas about best practice.
The Survey A survey of councils was undertaken in late 2016 as a stocktake of local government investment in economic development. The survey had an 88% response rate.
The Key Issue In executing local economic development, local governments and their implementing organisations generally need to improve the definition or actually define economic development and associated metrics to clarify their role to its broad audience of stakeholders and participants.
Key themes from the survey
Definition of economic development (1) Amongst those councils who did have a specific definition of economic development, surprisingly the definition between them varied widely. Within these definitions, councils mentioned a range of activities to support the wealth and quality of life of their communities.
Definition of economic development (2) Council has a definition for economic development Council has a definition for economic development, by sector Percentage of councils 0% 20% 40% 60% 80% 100% No, 37, 51% Yes, 35, 49% Metro Provincial Regional Rural No Yes
Definition of economic development (3) Number of responses 0 5 10 15 20 Wealth / prosperity Businesses / industry Quality of life / standard of living / Jobs Area promotion and tourism Skills and talent Investment Managing industrial land / Increasing rating / tax base Reaching potential Environment Leadership Internationalisation and market Culture 1 1 1 2 2 2 5 5 6 7 14 15 16 19 Note: Economic development definitions provided by councils were coded to a range of actions and outcomes as part of the survey. Some definitions were coded to multiple actions and outcomes.
Economic development related activities (1) Councils have differing views about what makes up the services which support economic development. It is unclear how councils go about deciding what economic development services they will support.
Economic development related activities (2) Economic development strategy development Visitor marketing and promotion, isitess Events Information and intelligence, data gathering on local economic Infrastructure projects aimed at growing a specific industry Case management of businesses through council processes Mainstreet development programmes Investment attraction International relations Skills and talent initiatives Grants for economic development Government contractual relationships Enterprise development services Industry development Incentives for businesses Innovation support services Other Number of respondents 0 10 20 30 40 50 60 70 29 28 27 26 25 23 21 17 37 36 36 34 47 59 58 54 53
Institutional arrangements and expenditure (1) There are a diverse range of institutional arrangements Can best practice be shared more widely?
Institutional arrangements and expenditure (2) What are the institutional arrangements of ED activities Single or multiple teams/units within council Regional tourism organisation Council-controlled organisation Independent trust Incorporated society Council-controlled organisation of another council Other Independent company No specific economic development function Economic development staff based at another council Number of respondents 0 10 20 30 40 50 60 8 7 5 5 3 1 12 23 31 48
Institutional arrangements and expenditure (3)
Institutional arrangements and expenditure (4) Council ED operating expenditure as a proportion of total operating expenditure, 2014-15 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -2.00% Waitaki District Council Chatham Islands Council Environment Southland Matamata-Piako Tasman District Council South Waikato District Carterton District South Wairarapa Horowhenua District Waikato Regional Waikato District Council Kaipara District Council Bay of Plenty Regional Far North District Waimate District Waimakariri District Horizons Regional Westland District Hurunui District Council Grey District Council Timaru District Council Gisborne District Kapiti Coast District Masterton District Waipa District Council Western Bay of Plenty Whanganui District Buller District Council Tauranga City Council Central Otago District Tararua District Council Hastings District Council Wairoa District Council Clutha District Council Rangitikei District Waitomo District Otorohanga District Ashburton District South Taranaki District Dunedin City Council Upper Hutt City Council Marlborough District Whakatane District Kaikoura District Council New Plymouth District Hutt City Council Whangarei District Greater Wellington Invercargill City Council Hamilton City Council Manawatu District Porirua City Council Hauraki District Council Christchurch City Mackenzie District Nelson City Council Thames Coromandel Ruapehu District Council Wellington City Council Gore District Council Auckland Council Hawke's Bay Regional Stratford District Palmerston North City Kawerau District Council Taupo District Council Queenstown-Lakes Opotiki District Council Northland Regional Rotorua Lakes Council Napier City Council
Performance measurement (1) Performance measurement is most useful when it is linked back to a clear understanding of objectives and goals. Economic development services can be very difficult to measure due to the number of external factors outside the council s control.
Performance measurement (2) Indicators used to assess the value or impact of ED activities Number of councils 0 10 20 30 40 50 60 Long term outcomes (e.g., GDP, population) Outputs (e.g., number of businesses engaged with) 50 52 Medium term outcomes (e.g., increased participation of 38 Short term outcomes (e.g., changes in knowledge, skills 34 Target setting 29 None of the above 5 Other 2
Conclusions The survey has indicated that there is a wide range of variation amongst councils in defining economic development Consequently, there is inconsistency in the approach towards how the sector undertakes many aspects of economic development. This inconsistency may not be problematic given the complexity of these issues, and the need for arrangements to suit local conditions.
Wisdom (1) Engagement v. consultation: Consultation is developing a proposal and seeking community views on that proposal Engagement is involving the community in determining the problem and coming up with proposals for resolving it
Wisdom (2) Be careful not to over promise or raise expectations that cannot be met; Be clear about the purpose are you seeking consultation, engagement or empowerment? Understand the nature and values of the community you are working with.