PALMERSTON NORTH CITY
COUNCIL
Economic Development
Committee
MEETING
11 December 2017
Order of Business
NOTE: The Economic Development 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
- Poppy Clapperton - Industry Training Solutions Page 7
5. Presentation
- Michael Saywell - Design School Page 9
6. Presentation
- Kevin Pratt, Director - Kamada Park Page 11
7. Confirmation
of Minutes Page 13
“That the
minutes of the Economic Development Committee meeting of 13 November 2017 Part
I Public be confirmed as a true and correct record.”
8. Summary
Report on the September 2017 Manawatū Quarterly Economic Monitor, Major
Developments and Quarterly Retail Report for October 2017 Page 17
Memorandum, dated
20 November 2017 from the Economic Policy Advisor, Peter Crawford and the Chief
Executive, CEDA, Linda Stewart.
9. Committee
Work Schedule Page 51
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.
Chief Executive
(Heather Shotter), 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.
[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].
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PALMERSTON NORTH CITY
COUNCIL
Memorandum
TO: Economic Development Committee
MEETING DATE: 11 December 2017
TITLE: Summary Report on the September 2017 Manawatū Quarterly
Economic Monitor, Major Developments and Quarterly Retail Report for October
2017
DATE: 20 November 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 September 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 September 2017 quarter, the outlook for
major construction projects in the region and the latest CEDA retail report for
the three months ended October.
1.2 The
latest Manawatū Quarterly Economic Monitor report indicates strong GDP
growth in the region in the September 2017 quarter. Further improvement
in the rate of growth in 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 continuing
strength in primary sector incomes.
1.3 Net
overseas migration in the region increased by 12% in the year to September,
well ahead of the national increase of 1%, 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 net migration for New Zealand of 7% in the September
quarter, very weak growth in new consents for housing, and declines in house
values in some parts of New Zealand.
2. manawatū
quarterly economic monitor – September 2017
2.1 Estimated annual gross domestic product (GDP)
growth in the Manawatū region was 2.9% in the year ended September 2017,
compared with an increase of 2.3% in the year to June 2017. New Zealand
GDP is estimated to have increased by 2.5% in the year to September 2017, a
weakening from the 2.8% increase in the year to June.
a. Palmerston
North GDP increased by 2.6%,
b. Manawatū District GDP increased by 4.3%.
2.2 Electronic card retail spending in the
Manawatū region in the September quarter was $310 million, an increase of
4.8% from the September 2016 quarter, while national growth was 4.0%.
Statistics New Zealand estimates that retail prices increased by 1.2% in the
year to September 2017.
a. Annual electronic card retail spending in the region for
the year ended September 2017 was $1,264 million, an increase of 3.7% from
2016. This compares with an increase of 3.8% for New Zealand.
2.3 Commercial accommodation guest nights in the
Manawatū region declined by 1.1% in the September 2017 quarter from the
September 2016 quarter, while national guest nights increased by 0.8%. A
change in the timing of the national secondary schools basketball tournament in
Palmerston North from 26 September – 1 October in 2016 to 2 – 7
October in 2017 is a key factor contributing to the decline in guest nights in
the September quarter.
a. Annual
commercial guest nights in the Manawatū region were 464,813 in the year
ended September 2017, an increase of 1.6% from the previous year. This compares
with an increase of 2.6% for New Zealand.
2.4 The total value of building consents issued in
the region in the September quarter was $92 million, compared with $50 million
in the September 2016 quarter, an increase of 84%. National consent values
increased by 13%.
a. Building consents to the value of $269 million were issued
in the region in the year to September 2017, an increase of 20% from the
previous year. National consent values increased by 8% over the same period.
b. Consents for 153 new residential dwellings were issued in
the region in the September 2017 quarter, compared with 109 in the September
2016 quarter, an increase of 40%. National consents increased by 3%.
c. Consents for 518 new residential dwellings were issued in
the region in the year ended September 2017, compared with 392 in the previous
year, an increase of 32%. National consents increased by 6%.
d. Non-residential consents to the value of $80 million were
issued in the region during the year to September 2017, a decline of 5% from
the previous year. National consents increased by 6% over the same period.
2.5 Car registrations in the region increased by
15.3% in the year ended September 2017 (national registrations increased by
5.2%) while the number of commercial vehicles registered increased by 38%
(compared to a national increase of 12%).
2.6 It is estimated the annual average unemployment
rate in the Manawatū region in the year ended September 2017 was 5.0%,
which was slightly above the unemployment rate of 4.9% for New Zealand.
2.7 The number of people in the region registered
for the MSD Job Seekers benefit declined by 1.4% in September 2017 from
September 2016, while the number in New Zealand declined by 1.3%. 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 September 2017 increased by 3.9% from 2016, while there was an increase
of 2.3% for New Zealand.
2.9 The Manawatū region experienced a net gain
of 804 people from overseas migration in the year ended September 2017,
compared with a net gain of 718 people in the year to September 2016. The
average annual gain in the region over the last 10 years was 265 people
per year.
2.10 Ministry of Business, Innovation and Employment tourism
spending estimates for the year ended September 2017 show total visitor
spending in the region of $432 million, an increase of 3.3% from the
previous year. Total tourism spending in New Zealand increased by 6.4%.
a. Domestic visitor spending in the region increased by 2.5%
in the year ended September 2017 (3.4% increase for New Zealand). There was a
$7.8 million increase in spending by visitors from the Wellington region, a
$1.4 million gain from the Bay of Plenty and a $1.2 million increase from the
Hawkes Bay.
b. International visitor spending in the region increased by
7.9% in the year ended September 2017 (10.5% 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 $2.0 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 OCTOBER 2017
4.1 The latest CEDA quarterly retail report for the three months ended
October 2017 shows a strong improvement in retail growth in the Manawatū
region from 3.7% in the three months ended July to 5.7% in the three months
ended October. 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 64.8% for all New Zealanders. There is
also a lower rate of online retail spending in the region, with local
cardholders spending 6.1% of their total retail spending with online retailers
while the share for all New Zealand was 10.7%.
4.2 The
region recorded strong growth in spending from the Wellington region (12.0%
increase), Waikato (8.7%), Hawkes Bay (7.4%), the rest of the Horizons region
(6.7%) and Auckland residents (6.4% increase).
4.3 Retail precinct data shows a slowing in the rate of growth in
Broadway, although it is still at high levels, and a significant improvement in
the rate of growth in the rest of Palmerston North CBD.
4.4 A copy of the report is attached as Appendix 3.
Attachments
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1.
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Manawatū Quarterly Economic Monitor ⇩ 
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2.
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Major Construction and Development Projects
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3.
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Marketview Manawatū Region Quarterly
Retail Report ⇩ 
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Peter Crawford
Economic Policy Advisor
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Linda Stewart
Chief Executive, CEDA
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