PALMERSTON NORTH CITY
COUNCIL
Economic
Development Committee MEETING
11 September 2017
Order of Business
NOTE: The Economic Development Committee meeting coincides
with the ordinary meeting of the Community Development Committee meeting.
The format for the meeting will be as follows:
- Community Development Committee will open
and adjourn immediately to following Economic Development Committee.
- Economic Development Committee will open,
conduct its business and then close.
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
- Manawatu Chamber of Commerce Page 7
5. Presentation
- CEDA Page 9
6. Confirmation
of Minutes Page 11
“That the
minutes of the extraordinary Economic Development Committee meeting of 7 August
2017 Part I Public be confirmed as a true and correct record.”
7. Summary
Report on the June 2017 Manawatu Quarterly Economic Monitor, Major Developments
and Quarterly Retail Report for July 2017 Page 15
Memorandum,
dated 24 August 2017 from the Economic Policy Advisor, Peter Crawford and the
Chief Executive, CEDA, Linda Stewart.
8. International
relations activity update Page 49
Memorandum,
dated 29 August 2017 from the International Relations Manager, Toni Grace.
9. Committee
Work Schedule Page 71
10. Exclusion
of Public
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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:
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General
subject of each matter to be considered
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Reason for
passing this resolution in relation to each matter
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Ground(s)
under Section 48(1) for passing this resolution
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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
Communications and Marketing Manager (or their representative (name)) 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.
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PALMERSTON NORTH CITY
COUNCIL
Memorandum
TO: Economic Development Committee
MEETING DATE: 11 September 2017
TITLE: Summary Report on the June 2017 Manawatū Quarterly Economic
Monitor, Major Developments and Quarterly Retail Report for July 2017
DATE: 24 August 2017
AUTHOR/S: Peter
Crawford, Economic Policy Advisor, City Future
Linda Stewart,
Chief Executive, CEDA, -
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RECOMMENDATION(S) TO Economic Development Committee
1. That
the June 2017 Manawatu Quarterly Economic Monitor,
Major Developments and Quarterly Retail Report is received
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1. Overview
1.1 This
memorandum presents a summary of the key themes in the latest Manawatū
Quarterly Economic Monitor for the June 2017 quarter, the outlook for major
construction projects in the region and the latest CEDA retail report for the
three months ended July.
1.2 The
latest Manawatū Quarterly Economic Monitor report indicates a slight
weakening in GDP growth in the region in the June 2017 quarter. However,
improvement in the rate of economic activity is expected over the next 12
months due to stronger population growth, increased building activity, jobs
being transferred into the region (such as Fairfax and Ernest Adams) and growth
in primary sector incomes.
1.3 One
factor contributing to the short-term weakness in June quarter GDP was a
decline in non-residential consents in the region, which declined from $38
million in the June 2016 quarter to $13 million in the June 2017 quarter.
Major projects included in the June 2016 quarter consents were the new FMG
building, the second-stage consent for Broadway Radiology, Property Brokers
office building, the Farmers home store and Cable Price. The value of
consents lodged with Palmerston North City Council in July 2017 was $70 million,
so there will be a significant lift in the value of building activity in the
City over the next 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 accelerate.
1.4 Net
overseas migration in the region increased by 24% in the year to June, well
ahead of the national increase of 5%, a good indication of improving economic
prospects in the region. The increase in population growth is being
reflected in higher house prices and 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 a decline in the number
of consents for the construction of new housing in the June quarter.
2. manawatū
quarterly economic monitor – june 2017
2.1 Estimated annual gross domestic product (GDP)
growth in the Manawatū region was 2.3% in the year ended June 2017,
compared with an increase of 2.4% in the year to March 2017. New Zealand
GDP is estimated to have increased by 2.8% in the year to June 2017, also a
weakening from the 2.9% increase in the year to March.
a. Palmerston
North GDP increased by 1.9%,
b. Manawatū District GDP increased by 3.8%.
2.2 Electronic card retail spending in the
Manawatū region in the June quarter was $313 million, an increase of 3.6%
from the June 2016 quarter, while national growth was 4.3%. Statistics New
Zealand estimates that retail prices increased by 1.2% in the year to June
2017.
a. Annual electronic card retail spending in the region for
the year ended June 2017 was $1,250 million, an increase of 2.5% from 2016.
This compares with an increase of 3.4% for New Zealand.
2.3 Commercial accommodation guest nights in the Manawatū
region declined by 1.4% in the June 2017 quarter from the June 2016 quarter,
while national guest nights increased by 7.0%. A change in the timing of
the national secondary schools volleyball tournament in Palmerston North from 3
– 8 April in 2016 to 26 – 30 March in 2017 is a key factor
contributing to the decline in guest nights in the June quarter.
a. Annual
commercial guest nights in the Manawatū region were 466,086 in the year
ended June 2017, an increase of 2.1% from the previous year. This compares with
an increase of 3.7% for New Zealand.
2.4 The total value of building consents issued in
the region in the June quarter was $59 million, compared with $76 million in
the June 2016 quarter, a decline of 23%. National consent values declined by
3%.
a. Building consents to the value of $231 million were issued
in the region in the year to June 2017, an increase of 4% from the previous
year. National consent values increased by 7% over the same period.
b. Consents for 119 new residential dwellings were issued in
the region in the June 2017 quarter, compared with 106 in the June 2016
quarter, an increase of 12%. National consents declined by 2%.
c. Consents for 474 new residential dwellings were issued in
the region in the year ended June 2017, compared with 351 in the previous year,
an increase of 35%. National consents increased by 4%.
d. Non-residential consents to the value of $59 million were
issued in the region during the year to June 2017, a decline of 30% from the
previous year. National consents increased by 2% over the same period.
2.5 Car registrations in the region increased by 14%
in the year ended June 2017 (national registrations increased by 9.5%) while
the number of commercial vehicles registered increased by 11% (compared to a
national increase of 20%).
2.6 It is estimated the annual average unemployment
rate in the Manawatū region in the year ended June 2017 was 4.8%, which
was below 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 2.5% in June 2017 from June 2016,
while the number in New Zealand increased by 0.7%. 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 June 2017 increased by 3.4% from 2016, while there was an increase of
3.3% for New Zealand.
2.9 The Manawatū region experienced a net gain
of 797 people from overseas migration in the year ended June 2017, compared
with a net gain of 642 people in the year to June 2016. The average annual gain
in the region over the last 10 years was 237 people per year.
2.10 Ministry of Business, Innovation and Employment tourism
spending estimates for the year ended June 2017 show total visitor spending in
the region of $425 million, an increase of 3.6% from the previous year. Total
tourism spending in New Zealand increased by 5.9%.
a. Domestic visitor spending in the region increased by 3.9%
in the year ended June 2017 (3.7% increase for New Zealand). There was a $7.2
million increase in spending by visitors from the Wellington region and a $3.7
million gain from Auckland.
b. International visitor spending in the region increased by
2.0% in the year ended June 2017 (8.9% increase for New Zealand). Countries
contributing the most to the increase in spending in the region were Australia
and the USA.
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, but building consent applications have been received for three projects
and a resource consent application has been received for another. There
are several projects under development where estimates have not been put on the
final value of the project, such as the Countdown supermarket. There is
also an increasing number of smaller projects under development.
3.2 A list of projects is attached as Appendix 2.
4. MANAWATŪ REGION QUARTERLY RETAIL REPORT FOR JULY 2017
4.1 The latest CEDA quarterly retail report for the three months ended
July 2017 shows an improvement in retail growth in the Manawatū region
from 3.2% in the three months ended April to 3.7% in the three months ended
July. Local residents spent 75.8% of their total electronic card retail
spending at merchants within the Manawatū region, a high loyalty rate
compared to the average of 65.1% for all New Zealanders. There is also a
lower rate of online retail spending in the region, with local cardholders spending
6.0% of their total retail spending with online retailers while the share for
all New Zealand was 10.8%.
4.2 The improvement in rate of growth in the region was mostly due to
the impact of the February 2016 Leap Day on the rate of growth in three months
to April 2017. Between the April and July quarters there was an increase
in spending by local residents and visitors from outside of the Horizons
region, while the rate of growth in spending from the rest of the Horizons
region slowed.
4.3 The
region recorded strong growth in spending from the Wellington region (12.8%
increase) and Auckland residents (9.4% increase), which accounted for nearly
half of visitor spending from outside of the Horizons region. The Hawkes
Bay and Waikato were the next most important regions for visitor spending.
4.4 Retail precinct data shows further strengthening of growth in
Broadway and an improvement in the rest of Palmerston North CBD, but a slowing
in growth in Feilding, Terrace End and Sanson.
4.5 A copy of the report is attached as Appendix 3.
Attachments
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1.
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Manawatu Quarterly Economic Monitor June
2017 quarter ⇩ 
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2.
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Major Developments ⇩ 
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3.
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Marketview Quarterly Retail Report for July
2017 ⇩ 
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Peter Crawford
Economic Policy Advisor
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Linda Stewart
Chief Executive, CEDA
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PALMERSTON NORTH CITY
COUNCIL
Memorandum
TO: Economic Development Committee
MEETING DATE: 11 September 2017
TITLE: International relations activity update
DATE: 29 August 2017
AUTHOR/S: Toni
Grace, International Relations Manager, City Future
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RECOMMENDATION(S) TO Economic Development Committee
1. To
note the progress of international relations
activity and key outcomes of the recent Mayoral-led delegation to Asia
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1. ISSUE
This paper
presents an update on Council’s international relations activity since
March 2017.
2. BACKGROUND
In March 2017,
the City Council granted approval for the Mayor’s overseas travel to lead
a city business delegation in July.
The purpose of
this trip was to strengthen Palmerston North’s cooperation with key
international partners, including the 25th anniversary of our Sister
City relationship with Guiyang, Guizhou Province, in China.
The
International Relations Office committed to submitting a full report on the
trip outcomes to the Economic Development Committee, alongside the regular
international relations activity report, with intended next steps.
3. NEXT
STEPS
The
International Relations Office is working with delegation members and overseas
counterparts to follow-up on discussions and proposals from recent visits and
activities.
This includes
preparations for a Guiyang to pay a reciprocal delegation visit to Palmerston
North after the China New Zealand Mayoral Forum in Wellington this December.
4. Compliance
and administration
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Does the Committee have delegated authority to
decide?
If Yes quote relevant clause(s) from Delegations
Manual <Enter
clause>
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Yes
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Are the decisions significant?
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No
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If they are significant do they affect land or a
body of water?
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No
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Can this decision only be made through a 10 Year
Plan?
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No
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Does this decision require consultation through the
Special Consultative procedure?
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No
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Is there funding in the current Annual Plan for
these actions?
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Yes
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Are the recommendations inconsistent with any of
Council’s policies or plans?
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No
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Attachments
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1.
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Appendix 1: International Relations
Activity Update September 2017 ⇩ 
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2.
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Appendix 2: Post trip report - Mayoral-led
Delegation to China, Japan, and Singapore ⇩ 
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Toni Grace
International Relations Manager
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