PALMERSTON NORTH CITY COUNCIL
Economic
Development Committee MEETING
10 September 2018
Order of Business
NOTE: The Economic Development Committee meeting coincides
with the ordinary meeting of the Arts Culture and Heritage Committee
meeting. The format for the meeting will be as follows:
- Arts Culture and Heritage Committee will open and
adjourn immediately to resume after 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. Declarations
of Interest (if any)
Members are reminded of their duty to
give a general notice of any interest of items to be considered on this agenda
and the need to declare these interests.
4. 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.)
5. Presentation
- Stephen Parsons House of Travel Page 7
6. Presentation
- Red Cross Pathways Page 9
7. Presentation
- FR Development Page 11
8. Confirmation
of Minutes Page 13
“That the minutes of the
Economic Development Committee meeting of 13 August 2018 Part I Public be
confirmed as a true and correct record.”
9. Summary
Report on the June 2018 Manawatū Quarterly Economic Monitor, Major
Developments, Quarterly Retail Report for July 2018, and March 2018 report for
the National Policy Statement on Urban Development Capacity Page 19
Memorandum, dated 9 August 2018, presented
by the Strategy and Policy Manager, Julie Macdonald and the Chief Executive,
CEDA, Linda Stewart.
10. Committee Work Schedule Page 61
11. 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), Chief
Infrastructure Officer (Ray Swadel), Acting General Manager – Strategy
and Planning (David Murphy), General Manager - Community (Debbie Duncan),
Acting General Manager – Customer (Sheryl Bryant) Human Resources
Manager (Wayne Wilson), General Manager - Marketing and Communications (Sacha
Haskell), 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.
Acting Governance
and Support Team Leader (Stuart McKinnon) and Committee Administrators (Penny
Odell, Rachel Corser and Courtney Kibby), 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: 10
September 2018
TITLE: Summary
Report on the June 2018 Manawatū Quarterly Economic Monitor, Major
Developments, Quarterly Retail Report for July 2018, and March 2018 report for
the National Policy Statement on Urban Development Capacity
DATE: 9
August 2018
PRESENTD BY: Julie
Macdonald, Strategy & Policy Manager, Strategy and Planning
Linda Stewart, Chief Executive,
CEDA
APPROVED BY: David
Murphy, Acting General Manager - Strategy and Planning
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RECOMMENDATION(S) TO Economic Development Committee
1. That the
June 2018 Manawatū Quarterly Economic Monitor, Major Developments,
Quarterly Retail Report for July 2018, and March 2018 report for the National
Policy Statement on Urban Development Capacity are received
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1.1 This
memorandum presents a summary of:
a. the
key themes in the latest Manawatū Quarterly Economic Monitor for the June
2018 quarter;
b. the
outlook for major construction projects in the region;
c. the
latest CEDA retail report for the three months ended July 2018; and
d. A
brief overview of the National Policy Statement on Urban Development Capacity
monitoring report for the year ended March 2018.
1.2 The
latest Manawatū Quarterly Economic Monitor report indicates stronger GDP
growth in the region in the year ended June 2018 due to strong growth in the
construction sector.
1.3 A
further improvement in the rate of growth in economic activity is expected over
the next 12 months due to the significant increase in the value of building
consents approved over the past year and the value of consents currently being
processed by Palmerston North City Council. Jobs being transferred into
the city (such as Fairfax, AgResearch and Ernest Adams), and continuing
strength in primary sector incomes, are also supporting increased growth.
The GDP estimate is based on the past four quarters, so the continuing increase
in construction activity is boosting the annual GDP growth rate. The GDP
growth rate for Palmerston North is still weaker than the growth rate for
Manawatū district, but we are likely to see the city moving ahead of the
district over the next six months.
1.4 There
was a 5.7% increase in the number of people in the region registered for the
job seeker benefit in the June quarter, which appears to contradict other signs
of strong economic growth in the region. Factors which appear to have
contributed to this have been a decline in rental housing stock in two local
authorities adjacent to the region and increased movement of people into the
region to find work.
2. manawatū
quarterly economic monitor – June 2018
2.1 Estimated
annual gross domestic product (GDP) growth in the Manawatū region was 3.5%
in the year ended June 2018, compared with an increase of 2.9% in the year to
March (the previous estimate was an increase of 2.5%). New Zealand GDP is
estimated to have increased by 2.7% in the year to June 2018, the same as the
growth rate in the year to March.
a. Palmerston
North GDP increased by 3.4%,
b. Manawatū District GDP increased by 4.1%.
2.2 Electronic
card retail spending in the Manawatū region in the June quarter was
$328 million, an increase of 4.2% from the June 2017 quarter, while
national growth was 4.0%. Statistics New Zealand estimates that retail prices
increased by 0.7% in the year to June 2018.
a. Annual electronic card retail spending in the region for
the year ended June 2018 was $1,319 million, an increase of 5.2% from 2017.
This compares with an increase of 4.6% for New Zealand.
2.3 Commercial
accommodation guest nights in the Manawatū region declined by 0.3% in the
June 2018 quarter from the June 2017 quarter, while national guest nights
declined by 0.4%.
a. Annual
commercial guest nights in the Manawatū region were 464,438 in the year
ended June 2018, a decline of 0.4% from the previous year. This compares with
an increase of 2.4% for New Zealand.
2.4 The
total value of building consents issued in the region in the June 2018 quarter
was $89 million, compared with $59 million in the June 2017 quarter, an
increase of 51%. National consent values increased by 15%.
a. Building consents to the value of $366 million were issued
in the region in the year to June 2018, an increase of 31% from the previous
year. The total in the year to June was the highest recorded since the
building consents series began in 1990. National consent values increased by
11% over the same period. The value of building consents issued in
Palmerston North was $274 million, an increase of 86% from the previous
year, while Manawatū district increased by 16%.
b. Consents for 159 new residential dwellings were issued in
the region in the June 2018 quarter, compared with 121 in the June 2017
quarter, an increase of 31%. National consents increased by 20%.
c. Consents for 612 new residential dwellings were issued in
the region in the year ended June 2018, compared with 477 in the previous year,
an increase of 28%. National consents increased by 8%.
d. Non-residential consents to the value of $151 million were
issued in the region during the year to June 2018, an increase of 155% from the
previous year. National consents increased by 10% over the same period.
2.5 Car
registrations in the region increased by 4.3% in the year ended June 2018
(national registrations increased by 1.1%) while the number of commercial
vehicles registered increased by 17% (compared to a national increase of 5.4%).
2.6 It
is estimated the annual average unemployment rate in the Manawatū region
in the year ended June 2018 was 5.7%, which was above the unemployment rate of
4.5% for New Zealand.
2.7 The
number of people in the region registered for the MSD Job Seekers benefit
increased by 5.7% in June 2018 from June 2017, while the number in New Zealand
increased by 3.1%. 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 2018 increased by 3.6%
from 2017, while there was an increase of 3.1% for New Zealand.
2.9 The
Manawatū region experienced a net gain of 747 people from overseas
migration in the year ended June 2018, compared with a net gain of 797 people
in the year to June 2017. The average annual gain in the region over the last
10 years was 328 people. The net gain for Palmerston North was 709
people while the net gain for Manawatū district was 38 people.
2.10 Tourism
spending in the Manawatū region in the June quarter was $112 million, an
increase of 9.0% from the June 2017 quarter. Total tourism spending in
New Zealand increased by 4.7%.
a. Total visitor
spending in the region was $459 million in the year
ended June 2018 ($412 million in Palmerston North and $47 million in
Manawatū district), increasing by 4.1% from the previous year (with an
8.5% increase for New Zealand).
b. Domestic visitor spending in the region was $389 million in
the year ended June 2018, increasing by 2.5% from the previous year (and a 6.9%
increase for New Zealand). There was strong growth in spending in the June
quarter from visitors from the rest of the Manawatū-Whanganui region.
c. International visitor spending in the region was $70
million in the year ended June 2018, increasing by 13.6% from the previous year
(with an 11.0% increase for New Zealand). Countries contributing the most to
the increase in spending in the region were the rest of Europe (excluding
Germany and the United Kingdom), the rest of Oceania (excluding Australia), and
China.
2.11 The
Manawatū Economic Monitor for the June 2018 quarter is Appendix 1.
3. major
developments
3.1 Major
development and construction projects announced for Palmerston North and the
Manawatū region amount to at least $2.5 - $3.0 billion of construction
activity to 2030. Some projects are still waiting for final approval -
the largest of these is the MidCentral DHB investment plan. There is an
increasing number of smaller projects under development.
3.2 A
list of projects is attached as Appendix 2.
4. MANAWATŪ
REGION QUARTERLY ELECTRONIC CARD RETAIL REPORT FOR JULY 2018
4.1 The
latest CEDA quarterly retail report for the three months ended July 2018 shows
a further strengthening in the rate of electronic card retail growth in the
Manawatū region, from 5.1% in the three months ended April 2018 to 5.3% in
the three months ended July 2018. New Zealand retail growth improved from
4.3% to 4.6% over the same period.
4.2 Growth
in spending locally by local residents increased from 6.9%, in the three months
ended April 2018, to 7.1% in the three months ended July 2018, and was the main
contributor to the growth in total spending in the region. Spending by
local residents in other regions has been slowing, with a 0.6% decline in the
three months ended July.
4.3 There
was a 3.0% increase in domestic visitor spending in the region in the latest
period, which followed a 4.5% increase in the same period last year.
Visitor spending from the rest of the Horizons region increased by 4.9% in the
three months ended July 2018, while visitor spending from the rest of New
Zealand increased by 1.4%. Contributing to this weakness in growth from
other regions was an 8.1% decline in spending from Hawkes Bay residents and a
0.3% decline in spending from Wellington region residents. Growth in spending
from Auckland residents continues, with an increase of 8.7% in the three months
ended July.
4.4 Retail
precinct data shows a 4.1% decline in spending in Broadway, which is likely to
be due to the closure of Whitcoulls in May. There was an increase of 4.3% in
the rest of Palmerston North CBD, but the strongest growth in the city was in
the outer CBD, where spending increased by 8.7% in the three months to
July. The rate of growth in spending remains higher in Manawatū
District, with a 7.5% increase in Feilding in the three months to July and an
increase of 11.4% across the district. Spending in the district was
boosted by a 55% increase in fuel spending in the three months ended
July. The fuel sector accounts for 18% of annual spending in the
district.
4.5 Manawatū
region residents spent $21.4 million online in the three months ended July
2018, accounting for 6.5% of total electronic card spending by residents in the
region. This remains well below the 11.4% online share for all New
Zealand residents. Local resident online spending increased by 12.0% in
the three months ended July while national growth was 12.9%.
4.6 A
copy of the Manawatū Region Electronic Card Quarterly Report is attached
as Appendix 3.
5. URBAN
DEVELOPMENT CAPACITY INDICATORS FOR PALMERSTON NORTH – MARCH 2018 QUARTER
5.1 This
report has been produced to meet the quarterly reporting requirements of the
National Policy Statement on Urban Development Capacity 2016. These
reporting requirements apply to all medium and high growth local authorities
with urban area populations of 30,000 or more people.
5.2 The
report shows further declines in housing affordability for housing ownership
and rents. The average house sales price in Palmerston North was $360,000
in the 12 months ended March 2018, an increase of 10% from the previous
year. The average rent was $303 in the year ended March 2018, increasing
by 3.8% from 2017.
5.3 Provisional
housing estimates from Quotable Value suggest the housing stock in the city
increased by 224 dwellings in the year to March 2018.
5.4 A
copy of the Urban Development Capacity Indicators report is attached as
Appendix 4.
6. Compliance
and administration
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Does the Committee have
delegated authority to decide?
If Yes quote relevant clause(s)
from Delegations Manual 166
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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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The recommendations contribute
to Goal 1: An innovative and growing city
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The recommendations contribute
to the outcomes of the Economic Development Strategy
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The recommendations contribute
to the achievement of action/actions in the Economic Development Plan
The action is: Attract
investment expansion and new businesses.
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Contribution to strategic
direction
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Reporting on economic trends
in the city and Manawatū region, and the longer-term outlook for growth,
is important for encouraging local businesses to invest in growing their
business, and attracting new businesses to the city.
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Attachments
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1.
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Manawatū Quarterly Economic Monitor - June 2018 quarter
⇩ 
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2.
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Major Construction Projects 2018 - 2030 ⇩ 
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3.
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Manawatū Region Quarterly Electronic Card Retail Report
for July 2018 ⇩ 
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4.
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Urban Development Capacity Indicators for Palmerston North -
March 2018 quarter ⇩ 
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