PALMERSTON NORTH CITY
COUNCIL
Economic
Development Committee MEETING
12 June 2017
Order of Business
(NOTE: The commencement time for this meeting coincides with
the commencement time for the extraordinary Council and the Community
Development meetings. The format for the meeting will be that the Economic
Development and Community Development Committee meetings will open, take
apologies and adjourn immediately to allow the Extraordinary Council meeting to
consider its business. At the conclusion of the Council meeting the Economic
Development Committee meeting and then the Community Development meeting will
resume to consider their business.)
1. Apologies
2. Notification of Additional Items
Pursuant to Sections 46A(7) and
46A(7A) of the Local Government Official Information and Meetings Act 1987, to
receive the Chairperson’s explanation that specified item(s), which do
not appear on the Agenda of this meeting and/or the meeting to be held with the
public excluded, will be discussed.
Any additions in accordance with
Section 46A(7) must be approved by resolution with an explanation as to why
they cannot be delayed until a future meeting.
Any additions in accordance with
Section 46A(7A) may be received or referred to a subsequent meeting for further
discussion. No resolution, decision or recommendation can be made in
respect of a minor item.
3. Public Comment
To receive comments from members of
the public on matters specified on this Agenda or, if time permits, on other
Committee matters.
(NOTE: If the Committee wishes
to consider or discuss any issue raised that is not specified on the Agenda,
other than to receive the comment made or refer it to the Chief Executive, then
a resolution will need to be made in accordance with clause 2 above.)
4. Presentation
- RACE Group Page 7
5. Presentation
- NZ Young Farmers Grand Final Committee Page 9
6. Presentation
- CEDA Page 11
7. Presentation
- CEDA Page 13
8. Confirmation
of Minutes Page 15
“That the
minutes of the Economic Development Committee meeting of 8 May 2017 Part I
Public be confirmed as a true and correct record.”
9. Summary
Report on March 2017 Manawatu Quarterly Economic Monitor and Major Developments Page 19
Memorandum,
dated 25 May 2017 from the Economic Policy Advisor, Peter Crawford and the
Chief Executive, CEDA, Linda Stewart.
10. Committee
Work Schedule Page 37
11. Exclusion
of Public
|
|
To be moved:
“That the
public be excluded from the following parts of the proceedings of this
meeting listed in the table below.
The general
subject of each matter to be considered while the public is excluded, the
reason for passing this resolution in relation to each matter, and the
specific grounds under Section 48(1) of the Local Government Official
Information and Meetings Act 1987 for the passing of this resolution are as
follows:
|
General
subject of each matter to be considered
|
Reason for
passing this resolution in relation to each matter
|
Ground(s)
under Section 48(1) for passing this resolution
|
|
|
|
|
|
|
|
|
|
This resolution is made in reliance on Section
48(1)(a) of the Local Government Official Information and Meetings Act 1987
and the particular interest or interests protected by Section 6 or Section 7
of that Act which would be prejudiced by the holding of the whole or the
relevant part of the proceedings of the meeting in public as stated in the
above table.
Also that the
persons listed below be permitted to remain after the public has been
excluded for the reasons stated.
Acting Chief
Executive (David Wright), Chief Financial Officer (Grant Elliott), General
Manager, City Enterprises (Ray McIndoe), General Manager, City Future (Sheryl
Bryant), General Manager, City Networks (Ray Swadel), General Manager,
Customer Services (Peter Eathorne), General Manager, Libraries and Community
Services (Debbie Duncan), Human Resources Manager (Wayne Wilson) and
Strategic Communications Manager (Mark Torley) because of their knowledge and
ability to provide the meeting with advice on matters both from an
organisation-wide context (being members of the Council’s Management
Team) and also from their specific role within the Council.
Legal Counsel
(John Annabell), because of his knowledge and ability to provide the meeting
with legal and procedural advice.
Governance and
Support Team Leader (Kyle Whitfield) and Committee Administrators (Penny
Odell, Carly Chang and Rachel Corser), because of their knowledge and ability
to provide the meeting with procedural advice and record the proceedings of
the meeting.
[Add Council
Officers], because of their
knowledge and ability to assist the meeting in speaking to their report and
answering questions, noting that such officer will be present at the meeting
only for the item that relate to their respective report.
[Add Third
Parties], because of their knowledge and ability
to assist the meeting in speaking to their report/s [or other matters as
specified] and answering questions, noting that such person/s will be present
at the meeting only for the items that relate to their respective report/s
[or matters as specified].
|
PALMERSTON NORTH CITY
COUNCIL
Memorandum
TO: Economic Development Committee
MEETING DATE: 12 June 2017
TITLE: Summary Report on March 2017 Manawatū Quarterly Economic
Monitor and Major Developments
DATE: 25 May 2017
AUTHOR/S: Peter
Crawford, Economic Policy Advisor, City Future
Linda Stewart,
Chief Executive, CEDA, -
|
RECOMMENDATION(S) TO Economic Development Committee
1. That
the Manawatū Quarterly Economic Monitor
– March 2017 and Major Developments Report is received.
|
1. Overview
1.1 This
memorandum presents a summary of the key themes in the latest Manawatū
Quarterly Economic Monitor for the March 2017 quarter and the outlook for major
construction projects in the region.
1.2 The
latest Manawatū Quarterly Economic Monitor report indicates a
strengthening in GDP growth in the region in the March 2017 quarter.
Further improvement in the outlook for economic activity is expected in 2017
due to stronger population growth increased building activity, and growth in
primary sector prices.
1.3 Net
overseas migration in the region increased by 5% in the year to March, close to
the national increase of 6%, a good indication of improving economic prospects
in the region. The increase in population growth is being reflected in
higher house prices, increased house sales and very strong growth in consents
for the construction of new housing. This is in contrast to national
trends, which show a decline in house sales since June 2016 and weaker growth
in consents for the construction of new housing in the March quarter.
1.4 Non-residential
consent values in the year to March 2017 were higher than in 2016 but are
volatile due to the size of major commercial projects approved. They are
expected to increase as work begins on major projects in the region this
year. The consents data does not capture major development projects such
as the $150 million Powerco upgrade of its network over the next 5 – 7
years, or future major roading investment, since the majority of the work does
not require the construction of buildings. Consents are an indication of
future economic activity so there is confidence GDP growth in the region will
continue to accelerate during 2017.
2. Manawatū
quarterly economic monitor – march 2017
2.1 Estimated annual gross domestic product (GDP)
growth in the Manawatū region was 2.4% in the year ended March 2017, a
doubling in the rate of growth from the 1.2% increase in the year to March
2016. New Zealand GDP is estimated to have increased by 2.9% in the year
to March 2017.
a. Palmerston
North GDP increased by 2.1%,
b. Manawatū District GDP increased by 3.5%.
2.2 Electronic card retail spending in the
Manawatū region in the March quarter was $301 million, an increase of 3.7%
from the March 2016 quarter, while national growth was also 3.7%. Statistics
New Zealand estimates that retail prices increased by 2.0% in the year to March
2017.
a. Annual electronic card retail spending in the region for
the year ended March 2016 was $1,239 million, an increase of 1.9% from 2016.
This compares with an increase of 3.2% for New Zealand.
2.3 Commercial accommodation guest nights in the
Manawatū region increased by 7.6% in the March 2017 quarter from the March
2016 quarter, while national guest nights declined by 0.6%.
a. Annual
commercial guest nights in the Manawatū region were 467,610 in the year
ended March 2017, an increase of 3.4% from the previous year. This compares
with an increase of 3.2% for New Zealand.
2.4 The total value of building consents issued in
the region in the March quarter was $56 million, compared with $42 million in the
March 2016 quarter, an increase of 31%. National consent values increased by
15%.
a. Building consents to the value of $241 million were issued
in the region in the year to March 2017, an increase of 27% from the previous
year. National consent values increased by 11% over the same period.
b. Consents for 129 new residential dwellings were issued in
the region in the March 2017 quarter, compared with 80 in the March 2016
quarter, an increase of 61%. National consents increased by 9%.
c. Consents for 461 new residential dwellings were issued in
the region in the year ended March 2017, compared with 309 in the previous
year, an increase of 49%. National consents increased by 10%.
d. Non-residential consents to the value of $83 million were
issued in the region during the year to March 2017, an increase of 16% from the
previous year. National consents increased by 5% over the same period.
2.5 Car registrations in the region increased by
11.2% in the year ended March 2017 (national registrations increased by 8.2%)
while the number of commercial vehicles registered increased by 4.3% (compared
to a national increase of 16.7%).
2.6 It is estimated the annual average unemployment
rate in the Manawatū region in the year ended March 2017 was 5.0%, the
same as the unemployment rate of 5.0% for New Zealand.
2.7 The number of people in the region registered
for the MSD Job Seekers benefit increased by 5.4% in March 2017 from March
2016, while the number in New Zealand increased by 1.9%. The MSD benefit
numbers reported in the Infometrics report are based on the average of the last
four quarters.
2.8 Traffic flows in the Manawatū region in the
year to March 2017 increased by 3.6% from 2016, while there was an increase of
4.6% for New Zealand.
2.9 The Manawatū region experienced a net gain
of 729 people from overseas migration in the year ended March 2017, compared
with a net gain of 692 people in the year to March 2016. The average annual
gain in the region over the last 10 years was 211 people per year.
2.10 Ministry of Business, Innovation and Employment tourism
spending estimates for the year ended March 2017 show total visitor spending in
the region of $424 million, an increase of 5.1% from the previous year. Total
tourism spending in New Zealand also increased by 5.1%.
a. Domestic visitor spending in the region increased by 5.9%
in the year ended March 2017 (2.8% increase for New Zealand). There was a $5.9
million increase in spending by visitors from the Wellington region, $4.0
million gain from Auckland and $1.7 million gain from Hawkes Bay.
b. International visitor spending in the region increased by
1.1% in the year ended March 2017 (8.3% increase for New Zealand). Countries
contributing the most to the increase in spending in the region were Australia,
the USA and China.
2.11 A
copy of the report is attached as Appendix 1.
3. major
developments
3.1 Major development and construction projects announced recently for
Palmerston North and the Manawatū region amount to more than $1.5 billion
of construction activity over the period to 2030. Some projects are still
waiting for final approval, the largest being the MidCentral DHB investment
plan. There are several projects under development where estimates have
not been put on the final value of the project, such as the Countdown
supermarket.
3.2 A list of projects is attached as Appendix 2.
Attachments
|
1.
|
Manawatū Quarterly Economic Monitor -
March 2017 quarter ⇩ 
|
|
|
2.
|
Major construction and development projects
in Palmerston North and the Manawatū region ⇩
|
|
|
Peter Crawford
Economic Policy Advisor
|
Linda Stewart
Chief Executive, CEDA
|
|
