Agenda of Economic Growth Committee - Wednesday, 12 April 2023

Economic Growth Committee MEETING

12 April 2023

Order of Business

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. Confirmation of Minutes Page 7

“That the minutes of the Economic Growth Committee meeting of 22 February 2023 Part I Public be confirmed as a true and correct record.”

6. Palmerston North Airport Limited - Interim Report for 6 months to 31 December 2022 Page 13

Memorandum, presented by Steve Paterson, Strategy Manager - Finance.

7. Palmerston North Airport Limited - Draft Statement of Intent for 2023/24 to 2025/26 Page 31

Memorandum, presented by Steve Paterson, Strategy Manager - Finance.

8. Central Economic Development Agency (CEDA): Six-Month Report 1 July to 31 December 2022 and Draft Statement of Intent 2023-24 Page 65

Memorandum, presented by David Murphy, Chief Planning Officer.

9. College Street and Botanical Road Intersection Page 163

Report, presented by Hamish Featonby, Group Manager - Transport and Development.

10. Vogel Street Safety Improvements Page 175

Memorandum, presented by Hamish Featonby, Group Manager - Transport and Development.

11. Palmerston North Quarterly Economic Update - March 2023 Page 183

Memorandum, presented by Stacey Bell - City Economist.

12. 6-monthly report on International Relations and Education Activities Page 205

Memorandum, presented by Gabrielle Loga, International Relations Manager.

13. Work Schedule - April 2023 Page 223

14. 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.

[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

Minutes of the Economic Growth Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 22 February 2023, commencing at 9.00am.

Members

Present:

Councillor William Wood (in the Chair), The Mayor (Grant Smith) and Councillors Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan and Orphée Mickalad.

Non Members:

Councillors Lew Findlay, Patrick Handcock, Karen Naylor and Kaydee Zabelin.

Apologies:

Councillor Leonie Hapeta.

Councillors Lew Findlay and Debi Marshall-Lobb left the meeting at 12.04pm. They were not present for clauses 7 and 8.

	Karakia Tīmatanga
	Councillor Fitzgerald opened the meeting with karakia.

1-23

Apologies

Moved William Wood, seconded Grant Smith.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 1-23 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock, Karen Naylor and Kaydee Zabelin.

2-23	Public Comment
	Rob Campbell, Chief Executive of Palmy Bid spoke on the following items. · Current economic conditions, particularly the effect of inflation on small business owners. · Urged Council to continue to have an Investment mindset and not to shrink investment in the city. Regarding Transport Strategies and Plans: · Palmy Bid is supportive of transport strategies that encourage access to city centre for all modes of transport. · Supports buses using outer ring road, and an on-demand bus system. · Wishes to work with Council to investigate the design and location of the Main St Bus terminal and any review of the car parking strategy.
	Moved William Wood, seconded Grant Smith. The COMMITTEE RESOLVED 1. That the Committee receive the public comment for information.
	Clause 2-23 above was carried 15 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock, Karen Naylor and Kaydee Zabelin.

3-23

Presentation - Central Economic Development Agency

Presentation, by Jerry Shearman CEO and Bobby McFee, Chair of the Board.

Jerry outlined CEDA’s strategic projects and updated the Committee on progress. He discussed -

Te Utanganui – Central NZ distribution hub – wide support around the region for this key logistics hub.

Manawatū Food Strategy – developing sustainability practices and innovation in food production. Focused on getting it adopted as a regional strategy.

Manawatū Destination Management Plan – launched the new Manawatū Version 2.0 visitor promotion. Focused on encouraging sustainable tourism practices.

Te Āpiti Manawatū Gorge Master Plan – deciding on a catalyst project.

Profiling the region – ongoing work to promote the region as a great place to do business.

Moved William Wood, seconded Grant Smith.

The COMMITTEE RESOLVED

1. That the Committee receive the presentation for information.

Clause 3-23 above was carried 15 votes to 0, the voting being as follows:

For:

Reports

4-23

Summary report on the Palmerston North economic structure

Memorandum, presented by Stacey Bell - City Economist.

Moved William Wood, seconded Grant Smith.

The COMMITTEE RESOLVED

1. That the Committee receive the report titled ‘Summary report on the Palmerston North economic structure’ of 22 February 2023 presented to the Economic Growth Committee.

Clause 4-23 above was carried 15 votes to 0, the voting being as follows:

For:

5-23

Palmerston North Strategic Transport Networks

Memorandum, presented by Vinuka Nanayakkara, Senior Transport Planner.

The meeting adjourned at 10.28am

The meeting resumed at 11.00am

Following concerns that members had not received enough time to consider the Plan, the Mayor moved a procedural motion to lie the report on the table so that the Strategic Transport Networks Plan could be workshopped with Elected Members.

Moved Grant Smith, seconded Patrick Handcock.

The COMMITTEE RESOLVED

1. That the Palmerston North Strategic Transport Networks Plan be laid on the table for further socialising and workshopping with Elected Members.

Clause 5-23 above was carried 9 votes to 6, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors William Wood, Mark Arnott, Roly Fitzgerald, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay and Patrick Handcock.

Against:

Councillors Brent Barrett, Rachel Bowen, Vaughan Dennison, Lorna Johnson, Karen Naylor and Kaydee Zabelin.

6-23

Process and options to establish and enforce heavy vehicle routes

Memorandum, presented by Vinuka Nanayakkara, Senior Transport Planner; Peter Ridge, Senior Policy Analyst and Chris Lai, Activity Manager – Transport.

Moved William Wood, seconded Grant Smith.

The COMMITTEE RESOLVED

1. That the Committee receive the memorandum titled ‘Process and options to establish and enforce heavy vehicle routes’ of 22 February 2023 to the Economic Growth Committee.

Clause 6-23 above was carried 15 votes to 0, the voting being as follows:

For:

The meeting adjourned 12.04pm.

The meeting resumed at 1.04pm.

Councillors Debi Marshall-Lobb and Lew Findlay were not present when the meeting resumed.

7-23

Main Street Cycleway - Permanent Solution Decision

Report, presented by Chris Lai - Activity Manager Transport and Bryce Hosking, Acting Chief Infrastructure Officer.

Officers corrected the following errors in the report; -

· the total cost for Option 1 is $650K not $750K.

· the Officer’s recommendation should read “retain the existing … temporary cycleway” not “retain the existing … shared pathway”

Moved Lorna Johnson, seconded Orphée Mickalad.

The COMMITTEE RECOMMENDS

1. That Council endorse Option 1: Retain the existing Pioneer Highway temporary cycleway infrastructure until it reaches the end of its useful life and replace it and progress the remaining pieces as a permanent solution to create a complete and safe cycleway along that route.

Clause 7-23 above was carried 9 votes to 4, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Roly Fitzgerald, Lorna Johnson, Billy Meehan, Orphée Mickalad, Patrick Handcock and Kaydee Zabelin.

Against:

Councillors William Wood, Mark Arnott, Vaughan Dennison and Karen Naylor.

8-23

Work Schedule - February 2023

Moved William Wood, seconded Patrick Handcock.

The COMMITTEE RESOLVED

1. That the Economic Growth Committee receive its work schedule dated February 2023.

Clause 8-23 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Billy Meehan, Orphée Mickalad, Patrick Handcock, Karen Naylor and Kaydee Zabelin.

	Karakia Whakamutunga
	Councillor Fitzgerald ended the meeting with karakia.

The meeting finished at 1.43pm.

Confirmed 12 April 2023

Chair

Memorandum

TO: Economic Growth Committee

MEETING DATE: 12 April 2023

TITLE: Palmerston North Airport Limited - Draft Statement of Intent for 2023/24 to 2025/26

Presented By: Steve Paterson, Strategy Manager - Finance

APPROVED BY: Cameron McKay, Chief Financial Officer

RECOMMENDATIONS TO Economic Growth Committee

1. That the Committee receive the Palmerston North Airport Ltd (PNAL) draft Statement of Intent for 2023/24 to 2025/26, presented to the Economic Growth Committee on 12 April 2023.

2. That Palmerston North Airport Limited be advised:

a. Council supports the proposed direction and implementation strategy;

b. Council suggests the target for tangible net worth be increased from $50m to $80m;

c. Council recognises the projected requirement for loans totalling $31.7m by 30 June 2024 and that Palmerston North Airport Limited will be seeking to utilise the loan facility provided by the Council to fund a significant portion of this.

1. ISSUE

To present and provide comment on the draft Statement of Intent for Palmerston North Airport Ltd (PNAL) for 2023/24 and the following two years.

2. BACKGROUND

2.1 Introduction

PNAL is deemed a Council-Controlled Trading Organisation (CCTO) under the Local Government Act 2002. A CCTO must deliver a draft Statement of Intent (SOI) to shareholders by 1 March each year and adopt it by 30 June. The Council must, as soon as possible after a draft SOI is delivered to it, agree to a CCTO’s SOI or, if it does not agree, take all practicable steps under clause 6 of Schedule 8 of the Local Government Act 2002 to require the SOI to be modified. The Board of the CCTO must consider any shareholder feedback by 1 May.

The Council’s reason for its shareholding in PNAL is to ensure that the capacity and image of the City’s key transportation gateway is consistent with the Council’s economic development objectives.

As a CCTO PNAL is required under the Local Government Act 2002 to have the following principal objective:

· Achieve the objectives of its shareholders, both commercial and non-commercial, as specified in the Statement of Intent; and

· Be a good employer; and

· Exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so; and

· Conduct its affairs in accordance with sound business practice.

The Council’s shareholding represents 100% of the issued and paid-up capital.

On 16 November 2022 the Council adopted a Statement of Expectations for PNAL and this was provided to PNAL in advance of its development of the draft SOI.

2.2 Draft SOI - overview

Attached is a letter from PNAL to shareholders explaining the enclosed draft SOI and outlining the key assumptions.

The draft SOI retains the vision from the current year ‘New Zealand’s leading regional airport’ and the purpose statement ‘Launching our communities into a promising future’ as well as the five strategic objectives.

The SOI addresses all of the matters outlined in Council’s Statement of Expectations.

It has been assumed there will be a gradual recovery of passenger numbers to 654,000 p.a. by 2025/26 but the ongoing uncertainty is noted.

The key capital-intensive focus is planned to be on:

· Continued reinvestment in landside and airside infrastructure

· Continuous improvement in the customer experience with the commencement of the terminal redevelopment

The three-year budgets assume capital development (totalling $52m; including terminal ($40m) and Ruapehu Aeropark and Airport Drive ($5.8m) and critical infrastructure of $4.38m) will be able to be accomplished by PNAL with additional borrowing (of $42m) but without the need for additional share capital.

It is signalled, however, that funding constraints may limit what is able to be achieved in the way of income diversification. PNAL is actively working with other parties to find ways of funding the capital investment required.

Shareholders’ funds as a percentage of total assets are forecast to reduce to 66% in the first year and 57% through the three-year term of the SOI. This is still well above the expectation that it will remain over 40%.

2.3 Draft SOI – Performance targets

The following financial performance targets are included in the Draft SOI:

	Draft SOI 2023/24 Budget	Forecast 2022/23	SOI 2022/23 Budget
NPBIT: Total assets	4%	5%	3%
NPAIT: Shareholders’ funds	2%	3%	1%
Shareholders’ funds: Total assets (>40%)	66%	76%	69%
Interest cover (>2.5)	4.6	9.1	4.9
Tangible Net Worth (>$50m)	$87.0m	$85.2m	$69.7m
Total debt	$31.7m	$14.3m	$23.2m
Debt to Equity ratio	36%	17%
Net Debt*/EBIDA (< 4.5)	5.5	2.7	6.9
Funds from Operations (FFO**)/Net Debt (long term target > 11%)	12.1%	27.2%	10%
Dividends - % of NPAT	Nil	Nil	Nil

*Net Debt = total borrowings less cash on hand

**FFO = EBIDA less interest less tax

There are non-financial measures of performance for each of the strategic areas – compliance, customer, community, culture and commercial.

Examples include:

· Various compliance requirements including CAA part 139 recertification

· Maintaining a customer satisfaction Net Promoter score of 45 or above (increased from the previous 30)

· Serving 581,000 passengers during the 2023/24 year increasing to 637,000 for the following year and 654,000 in the June 2026 year

· Zero lost time injuries to those who work within the airport community

· Achieving Airport Carbon Accreditation level 4 and implementing several specific initiatives

Completion of physical works:

· terminal development (detailed design by June 2024 and construction by June 2026)

· carpark cover installation and infrastructure/technology updates (June 2024)

· Zone D warehouses complete (June 2024 assuming partner secured by June 2023)

The target that PNAL’s tangible net worth (i.e. total tangible assets after revaluations less total liabilities) be greater than $50m needs updating as it is meaningless as it is. The tangible net worth increases through reinvestment of annual surpluses and from revaluation of assets. The actual net tangible worth has increased as follows over recent years:

As at

Tangible Net Worth $m

30 June 2016

30 June 2017

30 June 2018

30 June 2019

30 June 2020

30 June 2021

30 June 2022

49.8

59.6

60.7

67.5

67.1

68.3

83.0

The net tangible worth performance target became out of date and was last increased from $35m to $50m in 2018.

The draft SOI estimates the tangible net worth will be between $85m and $90m over the period from 2023 to 2026. Staff recommend the target be increased to something more like what PNAL is currently worth (say $80m) as the expectation going forward is this will continue to grow.

2.4 Draft SOI – Dividend policy

Council’s Letter of Expectation outlined the expectation that:

“PNAL is required to have a commitment to retaining and growing long-term shareholder value. Council recognises that shareholder value accretion occurs through PNAL’s on-going and significant investment in critical infrastructure including the terminal development to improve the customer experience and to facilitate sustainable growth in passenger and airfreight volumes, and investment in the development of Ruapehu Business Park which will provide income diversification and value accretion benefits. This is partly reflected in the on-going delivery of dividends to the shareholder.

Council further recognises that given the on-going impacts of Covid-19 on the aviation industry PNAL’s ability to preserve cash and to continue to invest in the long term means dividend payments have been suspended in the short-term. Council has however an expectation that dividend payments will be progressively re-instated within the next two years and that the implications of this will be addressed annually through the SOI.”

The draft SOI contains the following dividend policy:

“PNAL is focused on delivering against strategic objectives as outlined in this Statement of Intent. The achievement of these strategies will ensure PNAL is well placed in the medium to long term to generate enhanced financial returns and maximise value to our Shareholder through an appropriate balance between regional social and economic outcomes, re-investment and dividends.

In total over $52 million of capital expenditure is projected to be undertaken over the three-year SOI period. The level of investment is unprecedented in PNAL’s history with the Terminal Development Project (TDP) alone anticipated to cost $40 million. The company’s financial performance is projected to improve, however with debt at historical highs the gearing risks assumed to achieve strategic objectives is high. Given debt levels and the Shareholder expectations the Airport company must actively seek like-minded investment partners who can support the commercial development priorities outlined within Ruapehu Aeropark and Te Utanganui.

In this context the Airport company’s focus on prudent cashflow management remains as critical as it did during the Covid-19 pandemic. Any divided declaration must therefore carefully consider actual and projected performance. In establishing a dividend recommendation, the directors will consider;

1. The scale of the company’s capital expenditure plans including shareholder expectations,

2. The company’s financial performance including cashflows from operations,

3. The company’s ability to raise debt finance and the term thereof,

4. Compliance with performance metric targets,

5. The risks associated with airline schedule uncertainty in the short to medium term.

Reflecting the above criteria, and the Shareholder expectation that dividends are progressively re-instated, an indicative dividend has been included in the third year of the FY24-FY26 SOI, payable in FY27. The Airport company will however review its ability to declare this dividend in subsequent SOIs.”

Council’s 10 Year Plan 2021-31 assumes there will be no dividend payable for the time being and also assumes the Council will not be required to make any further capital injections during that time. The Council’s Annual Budget for the 2022/23 year assumes there will be no dividend payable in relation to the 2021/22 year and the draft of the 2023/24 Annual Budget assumes there will be no dividend payable in relation to the 2022/23 year.

Directors of companies have an obligation to undertake appropriate solvency tests each year before declaring a dividend. A dividend in any year is therefore subject to successfully completing this test.

Prior to the outbreak of Covid-19 the Council was prepared to consider the suspension of dividend payments for a period to support the planned capital development. The proposed dividend policy is consistent with this and the indication given in the Statement of Expectation.

2.5 Draft SOI – Debt funding

The Council and PNAL have entered a loan facility agreement that involves the Council borrowing from the Local Government Funding Agency and on-lending to PNAL in an effort to reduce the interest expense for PNAL. The intention of the agreement is that the Statement of Intent is a mechanism for determining the maximum facility agreement in any given year.

To date $5m has been raised and on-lent under the terms of the facility. The draft SOI forecasts term liabilities increasing to $53.9m over the coming three years (up to $31.7m in year one) and that revenue will be adequate to service this level of debt assuming interest payable by them at rates of up to 6.5%. Whilst some of the term liabilities will reflect utilisation of PNAL’s facility with its Bank it is anticipated that a significant portion of the increased debt will be obtained through the facility provided by the Council.

The basis of the loan arrangement is that the PNAL borrowing will not impact on the Council’s ability to borrow for other Council funded capital expenditure. This relies on LGFA being prepared to treat the loan advance from the Council to PNAL as an asset that it will net off against the related borrowing. It is important PNAL‘s assessment of its ability to service the debt is robust and it is acknowledged there are many assumptions involved and there are potential risks.

PNAL believe the terminal development plan is fundamental to protecting the future of the City’s airport business.

3. NEXT STEPS

The Council can either endorse the SOI as presented or make suggestions for change to a greater or lesser extent.

4. Compliance and administration

Does the Committee have delegated authority to decide?		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in Transport The action is: Work with the airport company to ensure the airport’s strategic intent aligns with the City’s aspirations
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The draft Statement of Intent includes a direction and specific actions that are designed to continue to improve the airport for customers and stimulate growth.

Attachments

1.	Draft Statement of Intent cover letter from PNAL 2023 ⇩
2.	Draft Statement of Intent 2023/24 -2025/26 ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 12 April 2023

TITLE: Central Economic Development Agency (CEDA): Six-Month Report 1 July to 31 December 2022 and Draft Statement of Intent 2023-24

Presented By: David Murphy, Chief Planning Officer

APPROVED BY: David Murphy, Chief Planning Officer

RECOMMENDATIONS TO Economic Growth Committee

1. That the Committee receive the Central Economic Development Agency (CEDA) Six-Month Report 1 July to 31 December 2022 (Attachment 1).

2. That the Committee receive the Central Economic Development Agency (CEDA) draft Statement of Intent 2023-24 (Attachment 3).

3. That the Committee agree that the recommended comments on the draft Statement of Intent 2023–24 outlined in Table 1 be advised to the Central Economic Development Agency (CEDA).

1. ISSUE

1.1 The Central Economic Development Agency (CEDA) has delivered its six-month report 1 July to 31 December 2022 and draft Statement of Intent (SOI) 2023-24. This report includes analysis of both documents, which are attached to this memorandum.

1.2 Under the Local Government Act 2002 (LGA), when preparing the final SOI, a Council Controlled Organisation (CCO) must consider any comments made on the draft by the Council prior to delivering a final SOI by 30 June 2023.

1.3 The Economic Growth Committee has the delegation to receive the performance report and agree the Statement of Intent for Te Manawa on Council’s behalf.

1.4 The purpose of this report is to receive the CEDA six-month report 1 July to 31 December 2022 and provide an opportunity for Council to give feedback to the CEDA on their draft SOI 2023-24.

1.5 As a joint shareholder of CEDA with the Manawatu District Council (MDC), any feedback to CEDA on their draft SOI 2023-24 should carefully consider any implications for MDC and the views of MDC on the draft SOI 2023-24. The content of this memorandum and comments on the draft SOI 2023-24 have been shared with MDC.

2. BACKGROUND

2.1 CEDA is a Council Controlled Organisation (CCO) under the LGA and is jointly owned by PNCC and MDC. A CCO must deliver a draft SOI to PNCC and MDC each year and a final SOI by 30 June 2023.

2.2 The CEDA Board must consider any feedback from the shareholders before delivering a final SOI for approval in June 2023.

2.3 The Council is required by the LGA to regularly undertake performance monitoring of its CCOs. Council is required to evaluate:

· The contribution of each CCO to the Council’s objectives for the CCO;

· The desired results set out in the SOI; and

· The overall aims and outcomes of the Council based on the six-month reports.

3. six-month report 1 july to 31 december 2002

3.1 The six-month report allows the Committee to track CEDA’s progress against their SOI 2022/3.

3.2 A copy of the six-month report is included as Attachment 1.

3.3 From a contract-manager perspective, we have seen a renewed focus from CEDA in the last 12-months to actively connect with partners and foster inward investment opportunities that are aligned to the region’s strategic objectives. This has been particularly evident with regards to the work completed on Te Utanganui, Central New Zealand Distribution Hub, where projects of this nature require a long-term commitment to relationships.

3.4 The six-month report is based around the following three pillars:

· People - Attract, retain, and develop talent in the region

· Business - Attract, retain, and develop business and investment in the region

· Place - Profile the region to attract people, business, and investment

3.5 Highlights from CEDA’s six-month report include the following:

· People - Attract, retain, and develop talent in the region:

o Workforce development planning toolkit – 30 businesses registering

o Sustainability toolkit for employers – launched online platform

o Freight and Logistics Workforce planning group established

o Health and School Transitions Workforce Plan established

o Health Sector Accelerate Academy Programme – 50 to 90 students for each week of the 12-week programme

· Business - Attract, retain, and develop business and investment in the region:

o Te Utanganui, Central New Zealand Distribution Hub – raising the profile, regional advocacy and collateral development.

o Manawatū Food Strategy – due for completion by the end of June

o Investment opportunities supported – Soundsphere; pharmaceutical company; commercial analysis for Safari Group; Te Āpiti West Accomodation Hub

· Place - Profile the region to attract people, business, and investment:

o Profiling Manawatū’s regional identity – 12 content pieces

o 34 media features secured profiling the city and region – total reach of 33,401,364

o 29,712 social media followers – Palmy & Manawatū Facebook and Manawatū_NZ Instagram.

3.6 CEDA’s financial performance is detailed on pages 29 to 33 of the six-month report and includes a $194,626 surplus for the six-months to 31 December 2022 (unaudited).

4. statement of expectation 2023/24

4.1 In September 2022, the former Palmerston North City Council/Manawatū District Council Joint Strategic Planning Committee agreed a new Statement of Expectation (SOE) 2023/24 for CEDA, to assist them in preparing their draft SOI. A copy of the SOE 2023/24 is included as Attachment 2.

4.2 The SOE 2023/24 was largely a rollover from previous years and maintained a focus on developing a talent pipeline (people); inward investment (business); and domestic visitation (place).

4.3 There is an opportunity for Council to work with Manawatū District Council to complete a more comprehensive review the next SOE alongside the review of both shareholders’ strategic priorities as part of the 2024 Long Term Plan.

4.4 Both shareholders have also signalled a desire to move to a three-yearly SOE and funding agreement from 2024/25 aligned to the 2024 Long Term Plan cycle, with a letter exchange in the intervening years.

5. draft statement of intent 2023/24

5.1 A copy of the draft SOI 2023/24 is included as Attachment 3.

5.2 CEDA has presented a draft SOI that aligns with the SOE, as outlined in the table below.

Table 1: Comparison of CEDA SOI with the SOE

Statement of Expectation	CEDA Draft SOI 2023/24	Comments
Taking a leadership position and building strategic relationships in the Manawatū region and beyond, is fundamental for CEDA to achieve its purpose. The shareholders have identified the following strategic partners for CEDA: Palmerston North City Council, Manawatū District Council, Iwi, Manawatū Chamber of Commerce, Talent Central, The Factory, and key central government agencies.	CEDA has addressed strategic partners at page 18 of the SOE.	While PNCC and MDC are not listed, it is implicit they are key strategic partners.
Stimulate inward investment (both national and international), retention and expansion of business in the Manawatū region, along with business recovery to COVID-19. Developing a talent pipeline Support Domestic Visitation and tourism recovery post COVID-19.	CEDA has addressed these outcomes via the three pillars, statement of intent outcomes, projects, activities and strategies summarised on page 8.	No comment. Good progress shown in the six-month report 1 July to 31 December 2022.
Top Priorities for PNCC Implementation of the Central NZ Distribution Hub Strategy. Support advocacy on the Palmerston North Integrated Transport Investment project. Stimulate inward investment in Palmerston North city. Continue to stimulate visitor activity in Palmerston North city, in conjunction with the PNCC marketing unit and MDC	CEDA has addressed its work to support Te Utanganui, Central NZ Distribution Hub at page 10. Te Utanganui, Central NZ Distribution Hub advocacy is addressed at page 10 but does not explicitly reference the links to PNITI. Inward investment is addressed via pillar one (business) and the supporting statement of intent outcomes, projects and activities summarised on page 8. Visitor activity is addressed via pillar three (place) and the supporting statement of intent outcomes, projects and activities summarised on page 8.	CEDA should explicitly address the key strategic connections between Te Utangtanui, Central NZ Distribution Hub and PNITI.
Top priorities for MDC Promotion and development of key tourism and visitor destinations, including The Country Road tourism route. Stimulate inward investment for Manawatū district. Promote Manfeild as a conference and events venue option Deliver on the Regional Identity implementation. Identify activities that help resolve labour shortages in the district.	Promotion and development of key tourism and visitor destinations, including The Country Road tourism route is addressed through Pillar one (business) Destination Management Plan Progression, detailed on page 11 and performance measure page 26 Inward investment is addressed via pillar one (business) and the supporting statement of intent outcomes, projects and activities summarised on page 8 and performance measure page 26 Promotion of Manfeild as a conference and events venue option is not explicitly mentioned Regional Identity is addressed via pillar three (place), detailed on page 15 and performance measures page 27 Identification of activities to help resolve labour shortages are addressed via pillar two (people), detailed on page 13, and performance measure page 26	Promotion/development of key tourism and visitor destination priority: · further develop The Country Road tourism/ visitor business · facilitate farm diversification workshops to develop farm business offerings and farm stay, home hosting options · develop clusters/hubs in the district to create visitor destination product i.e. recent Makoura Lodge and Awastone visitor packages Manfeild promotion priority: CEDA advises that Manfeild is promoted via their relationship with the Regional Conference Bureau (that sits within PNCC). CEDA facilitates the relationship between Manfeild and the Bureau and provides visitor destination package options for prospective Conference managers 5.3 Regional Identity priority: Note: regional Manawatū signage ready to be erected
Development of a Food Strategy that addresses the total value chain from primary production, farmers and growers to agri-business clusters, e.g. rural banks, real estate, insurance, vets, sale yards, stock firms, grain & seed merchants, agri-retail and rural tourism with a Manawatu District focus, through to agri-tech & science, including supporting the Factory and Food HQ with its aspirations.	CEDA has addressed the Food Strategy at page 10 as part of the business pillar.	No comment. Good progress shown in the six-month report 1 July to 31 December 2022.
CEDA’s success will be measured by the shareholders using the following indicators of the health of the regional economy: · Job growth · Increase in median household income · Number of investment leads and deals secured · Strength of the relationship with strategic partners	Addressed in the performance measures (pages 26 and 27) and monitoring indicators on page 30.	No comment.

5.4 CEDA has for the first time included explicit quantifiable outcomes for each of its performance measures detailed on pages 26 and 27 of the draft SOI.

5.5 The draft SOI addresses CEDA’s financial performance at pages 33 – 36 and includes a projected $78,611 deficit and total equity of $664,445 for 2023/24.

6. next steps

6.1 Provide comments on the draft SOI in writing to CEDA, noting that any comments on the draft SOI agreed by Council will need to be cognisant of what they mean for Manawatū District Council as a joint shareholder.

6.2 CEDA will deliver its final SOI to both councils (shareholders) in June 2022.

7. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 1: An Innovative and Growing City
· The recommendations contribute to the achievement of action/actions in Economic Development · The actions are: · Agree a Statement of Intent with CEDA · Carry out regular performance monitoring and reporting for CEDA
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The Innovative and Growing Strategy includes the following: Increasing economic wellbeing will depend on Council working well with businesses, support agencies, central government and other local authorities. The Central Economic Development Agency (CEDA) will support business development and retention and will promote a diverse economy. CEDA will focus on helping young people develop the skills they need for the changing jobs market.

Attachments

1.	CEDA Six-Month Report 1 July to 31 December 2022 ⇩
2.	CEDA Statement of Expectation 2023/24 ⇩
3.	CEDA Draft Statement of Intent 2023/24 ⇩

Report

TO: Economic Growth Committee

MEETING DATE: 12 April 2023

TITLE: College Street and Botanical Road Intersection

PRESENTED BY: Hamish Featonby, Group Manager - Transport and Development

APPROVED BY: Bryce Hosking, Group Manager - Property and Resource Recovery

RECOMMENDATIONS TO Economic Growth Committee

1. That the Committee refer an additional Capital New Programme of $120,000 to the 2023/24 Annual Budget deliberations to enable the right turn infrastructure and phases change work to be implemented at the College St/ Botanical Road intersection (Option 1).

2. That the Committee refer the cycleway improvement work at the College Street/ Botanical Road intersection for consideration to the 2024-34 Long Term Plan process (Option 1).

Summary of options analysis

Problem or Opportunity	In response to concerns raised by members of the public relating to turning traffic and cyclists at the Botanical Rd/ College St intersection, Council requested Officers investigate safety improvement options for the intersection. This report seeks direction on the timing of when the work is to be implemented, if at all.
OPTION 1: (Preferred option)	Install the right turn bays and phases in 2023/24 Defer the cycleway work for consideration as part of the 2024-34 Long Term Plan process.
Benefits	· The right turn infrastructure and phases can be implemented in 2023/24 which will resolve some of the safety concerns and will improve the safety of turning traffic. Council Officers are comfortable that this can be implemented alongside their existing workloads without impacting the delivery of other programmes of work. · The cycleway infrastructure can be implemented in a coordinated way with any future cycleway infrastructure along Botanical Road. · The public will feel that their submissions on the safety at this intersection were listened to and that action is being taken to remedy these in a timely manner. · Provides the opportunity for Officers to apply for co-funding from Waka Kotahi for the cycleway part of the project as part of the 3-year funding allocation submission.
Risks	· Altering the intersection will increase the delays experienced at the intersection, especially in peak times. · As the cycleway infrastructure is being deferred to the LTP, no improvement to active transport safety will be achieved in 2023/24.
Financial	· The implementation of the right turn bays and phases is estimated to cost $120,000. · This work was not planned for in 2023/24 and as such $120,000 capital new budget would need to be included in the 2023/24 Annual Budget prior to its approval in June to progress. · The $120,000 right turn bay portion of the project is not co-funded from Waka Kotahi. · The cycleway infrastructure at the intersection is estimated to cost $500,000 and would be considered as part of the 2024-34 LTP.
OPTION 2:	Make no changes to the intersection.
Benefits	· No additional financial commitment will be required in the 2023/24 Financial Year. · There will be no impact on the current wait times experienced at the intersection, maintaining the current level of service in this respect.
Risks	· The public may feel their submissions on the safety at this intersection were ignored. · The safety concerns raised for turning traffic and active transport users remains as it is currently.
Financial	· None.
OPTION 3:	Refer both the right turn and separated cycleway work for consideration as part of the 2024-34 Long Term Plan.
Benefits	· The public may feel disappointed any work to remedy their concerns raised in submissions will be delayed from their initial expectations. · The intersection improvements can be considered in a coordinated way with any future cycleway infrastructure along Botanical Road. · No additional financial commitment will be required in the 2023/24 Financial Year. · There will be no immediate impact on the current wait times experienced at the intersection, maintaining the current level of service in this respect. · Provides the opportunity for Officers to apply for co-funding from Waka Kotahi for the project as part of the 3-year funding allocation submission.
Risks	· The public may feel that Council is not prioritising their safety concerns as these would not be attended to for several years as they would be considered in the LTP. · The safety concerns raised for turning traffic and active transport users remains as it is currently.
Financial	· No additional financial commitment will be required in the 2023/24 Financial Year. · The implementation of the right turn bays and phases is estimated to cost $120,000. · The separated cycleway is estimated to cost $500,000. · Both expenses would be considered as part of the 2024-34 Long Term Plan. · Provides the opportunity for Officers to apply for co-funding from Waka Kotahi for the project as part of the 3-year funding allocation submission.

1. Overview of the problem or opportunity

1.1 Council received several requests from the public as part of the 2022/23 Annual Plan consultation which raised concerns about the safety of the intersection at Botanical Road and College Street. Specific concerns were raised regarding right turning of vehicles and active transport navigation through the intersection.

1.2 Council requested Officers investigate safety improvement options for the intersection to address the concerns raised relating to turning traffic and cyclists.

1.3 Officers have investigated safety improvements. This report updates Elected Members on this work and seeks direction on the timing of when the work is to be implemented, if at all.

2. Background- botanical Rd/ college St intersection

2.1 Under the PNCC Urban Cycle Network Master Plan 2019, both College Street and Botanical Road are indicated as cycle routes. College Street currently has buffered cycle lanes along its length, but the lanes terminate leading up to the intersection as cyclists are expected to merge with traffic on approach. Botanical Road currently has minimal markings along its length but is currently not fit for purpose as a cycle route. Work is planned in future LTPs for a separated cycleway on Botanical Road.

2.2 In the 5-year period between 2018-2022, there have been eight recorded crashes at the intersection. This involved one serious, one minor, and six non-injury crashes. The one serious crash involved a pedestrian, and two of the crashes involved vehicles turning right. This intersection has not registered as a high priority under Road to Zero due to there being other intersections within our road network that have ranked higher (this conclusion is based on road safety reviews/planning between Council and Waka Kotahi Officers).

2.3 Near to the intersection is a dairy and neighbouring shops on the North East corners, West End School and Hilton Brown swimming pool on the South East corner, as well as a childcare centre and Awatapu College nearby.

2.4 The current layout of the intersection has right hand turning bays, straight through and left turning combined bays and painted sections providing provision for cyclists as per the image below. The intersection itself includes painted turning bays but not the traffic light infrastructure to create a prioritised right hand turning for cycles.

2.5 Whilst Officers acknowledge that some members of the public may feel unsafe, it is important to note that the incident data for the intersection is relatively low compared to other intersections.

Current Intersection- Botanical Rd/ College St

3. safety improvementS proposed

3.1 In October 2022, Officers commissioned WSP to assess the current performance of the intersection and model the impact on traffic wait times should certain safety improvement works be implemented.

3.2 Several scenarios were considered. Analysis included assessment of the potential impacts on traffic flows.

3.3 A summary of the WSP Report and the scenario investigations are attached as Appendix 1.

3.4 After considering the findings of the WSP report, Officers consider the best solution to address the safety concerns is:

· Adding a right turn bay and phases for all approaches to the intersection.

· Cycle lanes extending to the intersection on all approaches including a phase for cycling.

This is Scenario 5 in the WSP report.

4. timing of improvements

4.1 Given the above, Council now has options around the timing of when the work is to be implemented, if at all. Officers suggest there are three options to consider:

1. Add the right turn infrastructure and phases in 2023/24 and defer the cycleway work for consideration as part of the 2024-34 Long Term Plan process.

2. Make no changes to the current situation.

3. Refer both the right turn and separated cycleway work for consideration as part of the 2024-34 Long Term Plan.

Option 1 - Install the right turn infrastructure and phases in FY 2023/24 and defer the cycleway work for consideration as part of the 2024-34 Long Term Plan process.

4.2 This option allows the right turn bay and phases to be implemented in 2023/24, resolving some of the safety concerns and will improve the safety of turning traffic.

4.3 The cycleway infrastructure can then be implemented in a coordinated way with any future cycleway infrastructure along Botanical Road as it will be considered as part of the 2024-34 Long Term Plan.

4.4 This also provides the opportunity for Officers to apply for co-funding from Waka Kotahi for the cycleway part of the project as part of the 3-year funding allocation submission.

4.5 As this work was not planned for in 2023/24 this work is currently not included in the draft 2023/24 budget. As such, an additional $120,000 capital new budget would need to be included in the 2023/24 Annual Budget for this to proceed next year and this would be unsubsidised from Waka Kotahi.

Option 2 – Make no changes

4.6 This is option would keep the Level of Service at under 35 seconds throughout the peak times, ensuring reasonable traffic flows. However, it does not address the safety concerns at that intersection or prepare it for future cycleways along the route.

Option 3 – Defer both the right turn and separated cycleway work for consideration as part of the 2024-34 Long Term Plan.

4.7 This option reflects the desire to proceed with the right turn bay and cycleway with phases, but instead defers all works for prioritisation as part of the 2024-34 Long Term Plan.

4.8 This option allows for the all the work to be planned and timed to coordinate with any future cycleway along Botanical Road.

5. Next actions

5.1 If Recommendation 1 is agreed by the Committee, it will be included as part of the 2023/24 Annual Budget deliberations.

5.2 Should the 2023/24 budget be confirmed, Officers will commission the work to have the right turning phase added to the traffic lights at College / Botanical intersection during the 2023/24 Financial Year.

5.3 If Recommendation 2 is agreed by the Committee, Officers will apply for co-funding from Waka Kotahi for future Long-Term Plans for the cycleway along Botanical Road as part of the 3-year funding allocation submission.

5.4 Following approval of the 2024-34 Long Term Plan, work would begin on engagement, consultation, and designs for cycling for Botanical Rd including this intersection and its improvements in the considerations.

Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		Yes
Are the decisions significant?		No
If they are significant do, they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		No
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in Transport The action is: Deliver the Urban Cycle Network Masterplan.
Contribution to strategic direction and to social, economic, environmental, and cultural well-being	The implementation of the safety improvements and the cycleway improvements at the intersection will contribute towards the Urban Cycle Network Masterplan and make the intersection safer for its users.

Attachment

Appendix 1 - Summary of WSP Report - Botanical and College Intersection ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 12 April 2023

TITLE: Vogel Street Safety Improvements

Presented By: Hamish Featonby, Group Manager - Transport and Development

APPROVED BY: Bryce Hosking, Acting Chief Infrastructure Officer

RECOMMENDATION TO Economic Growth Committee

1. That the Committee note that public engagement will be undertaken to seek community feedback on Vogel St safety improvement packages.

1. ISSUE

1.1 This report:

· Provides the Committee with more detail on potential packages of work that can address safety concerns for walking and cycling on Vogel St.

· Notifies the Committee that Council Officers will be undertaking community engagement on these packages to understand public preference(s).

2. BACKGROUND

Previous Decisions

2.1 In response to public submission and accompanying petition to the Annual Budget 2022/23, Council resolved,

“That the Chief Executive report to Council with a staged plan to address the road safety concerns in Vogel Street as raised by petitioners in Submission 174, including information on community engagement, budget and timing.”

2.2 Following this, Officers investigated options to resolve the safety concerns. The Vogel Street Safety Investigation Plan was presented at the Council meeting on 5 October 2022. The memorandum of 5 October 2022 should be read in conjunction with this report. It focuses on the strategic and implementation considerations for developing safety improvements for Vogel St.

Vogel Street Context

2.3 In the five-year period 2018-2022, there were 50 crashes on Vogel Street (not including Tremaine Avenue intersection). This comprised of two serious injuries, 13 minor and 35 non-injury crashes:

· 25 crashes involved vehicles rear ending with a combination of speed and distracted driving being the main causes.

· nine lost control on bend.

· five lost control on straight.

· 21 intersections at intersections (only five involved turning).

· 2 pedestrian crashes (1 serious, 1 minor).

2.4 The road reserve is approximately 20.2m wide and has a carriageway (kerb to kerb) width of approximately 10.5m-11.5m. The width between the kerb to the property boundary varies between 4m and 5m.

2.5 Current street configuration:

A picture containing diagram

Description automatically generated

2.6 On approach to the intersection of Tremaine Avenue, the street cross section changes as there are three lanes on approach. Due to the change in cross section the carriageway widens to 15m and the width between properties and the kerbs is reduced to 2.7m.

2.7 Each side of Vogel Street has 37 trees where the estimated value is $800,000 for each side based on the “Tree valuations in the city of Melbourne” methodology. The methodology provides a dollar figure to represent a combination of replacement cost, amenity, species, age, condition and locality for protection bonds and removal fees and can be used towards understanding the true cost of a project. While this metric is useful for comparison purposes it does not necessarily reflect the public sentiment or views on tree value.

3. proposed vogel street safety improvementS

3.1 In the urban environment there are multiple different users and requirements of the road reserve (from fence to fence) competing for limited space. Accommodation of pedestrians, cyclists, buses, cars, freight vehicles, parking, and trees are currently sharing the space and so the options will require reallocating that space.

3.2 Officers have undertaken a detailed assessment and derived feasible opportunities that address the following areas:

· Pedestrian improvements

· Right Turn Bay considerations

· Cycling improvements

These opportunities have then been aligned into two potential work packages which could be implemented should Council wish to proceed with the work.

3.3 The recommended approach to make improvements for pedestrians crossing the road is to install raised pedestrian crossings near key intersections along the corridor. The rationale behind this approach is to facilitate key walking routes within the neighbourhood which improves neighbourhood connectivity and targets locations pedestrians are more likely to cross.

3.4 Officers recommend three raised crossings at a cost of circa $80,000 each. The advantage of starting with a small number of crossings is that additional crossings and/or traffic calming can be considered as future options should the community feel more is needed.

3.5 The use of right turn bays should be undertaken where the intersection is experiencing a high volume of right turning traffic and is supported by crashes.

3.6 Along the corridor there are 15 intersections. Based on the crash data, turning type crashes at most intersections along Vogel Street is low (21 crashes over 14 intersections). Featherston Street has the worst record on along Vogel Street at with two minor crashes and one non-injury.

3.7 Officers recommend one right turn bay at a cost of circa $20,000. Due to the high volume of Featherston Street and crash data, a right turn bay (or painted median) is only recommended to be considered at this intersection.

3.8 Officers will continue to investigate a possible conflict between the right turn bay and pedestrian crossing and whether it may be appropriate to use a painted median instead which would operate similarly.

3.9 Cycleway options in both the safety improvement packages below have been costed out for the West side of Vogel Street (City side) as it has fewer intersections to deal with and makes the connection to Featherston Street and its future cycleway easier. That said, the options would still work and be of similar expense on the other side and so this would be a consideration included when talking to the community to determine whether there is a strong preference for one side over another.

Example of a raised pedestrian crossing

A picture containing text, road, sky, outdoor

Description automatically generated

Safety Improvement Package options

	Package 1	Package 2
Raised pedestrian crossings^{^[1]}	3 locations: · Rata St · Featherston St/Haydon St · Rangiora Ave	3 locations: · Rata St · Featherston St/Haydon St · Rangiora Ave
Right turn bay	1 location: · Featherston St	1 location: · Featherston St
Cycles	Shared pathway	Separated cycleway
Cost estimate^{^[2]}	$3,560,000	$2,360,000

Package 1

This work package includes a Shared pathway, Raised Pedestrian Crossings, and a Right Turn Bay.

3.10 The main benefit of a shared path is that the function of Vogel Street will remain like it is today with the availability of on street parking.

3.11 The disadvantage of a shared path is:

· Pedestrians will be at a higher safety risk.

· There is an increased likelihood of cyclists being struck by vehicle emerging from driveways, particularly where there are tall fences and vegetation. Driveways will also affect the quality of the ride due to level changes with the vehicle crossings.

· Unfortunately, the only way to feasibly construct a shared pathway on Vogel Street, would require the removal of the 37 street trees and relocation of 14 streetlights to enable the 3m-wide path required.

3.12 Like the bi-directional cycleway, intersections pose a safety risk. As such it is recommended that intersections are treated with raised platforms and kerb extensions to slow down vehicles entering the intersection.

3.13 The Shared Pathway Street Configuration could look like the following:

3.14 A shared pathway is estimated at $3,300,000.

Package 2

This work package includes a Separated Cycleway, Raised Pedestrian Crossings, and a Right Turn Bay.

3.15 To undertake a separated cycleway within the existing carriage way, the cycleway would need to be bi-directional due to the narrow width. The change will require the removal of on-street parking and require bus and collection services to operate within the traffic lane which will slow down traffic.

3.16 The main advantage of this option is the retention of street trees.

3.17 The disadvantage of a bi-directional cycleways is the complex interactions at intersections. To alleviate the risk associated, the cycleway would need safety improvements by using raised platforms at intersections to slow down traffic. The platforms would be supported with kerb extensions to narrow down the road carriage way. This would also include raised platforms/kerb extensions, lighting relocation, cycling separators, and line marking.

3.18 Separated Cycleway Street Configuration could look like the following:

3.19 A separated bi-directional cycleway is estimated at $2,100,000.

4. NEXT STEPS

4.1 Undertake public engagement on the Vogel Street safety improvement packages detailed in Section 3 of this report.

4.2 Report community feedback to the Economic Growth Committee alongside officer analysis of the strengths and weaknesses of options for a decision on how to proceed.

4.3 A preferred improvement package could then be considered as part of the 2024-34 Long Term Plan process.

5. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		Yes
Are the decisions significant?		No
If they are significant do, they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No

The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in Transport The action is: Prioritise active transport programmes that deliver on Council goals, the purpose of this plan, and the Government Policy Statement on Transport.
Contribution to strategic direction and to social, economic, environmental, and cultural well-being	Road safety improvements will encourage active transport and in turn improve the social and environmental wellbeing of the Vogel St residents; noting that the strategic nature of the route is not defined and therefore does not prioritise modes of travel.

Attachments

NIL

Memorandum

TO: Economic Growth Committee

MEETING DATE: 12 April 2023

TITLE: Palmerston North Quarterly Economic Update - March 2023

Presented By: Stacey Bell - City Economist

APPROVED BY: David Murphy, Chief Planning Officer

RECOMMENDATION TO Committee

1. That Committee receives the following reports for information:

a. Palmerston North Quarterly Economic Update – March 2023; and the,

b. Palmerston North electronic card spending report – December quarter 2022

1. ISSUE

1.1 This memorandum presents a summary of the key themes in the Palmerston North Quarterly Economic Update to March 2023, and the Palmerston North City Centre Quarterly electronic card spending (retail and selected tourism sectors) for the December quarter 2022.

1.2 The quarterly economic update presented today departs from the Infometrics Quarterly Economic Monitor presented to Committee previously. The new report has been developed in-house and employs December quarter data, and, where available, more recent monthly data to provide up-to-date information on economic activity and wellbeing in the city.

1.3 The Palmerston North City Centre Quarterly electronic card spending report is also prepared in-house and provided as a resource to the city retail sector. This report includes information on retail spending across the city and by precinct, as well as data on retail flows, customer loyalty, and the origin of customers that are spending in Palmerston North. For this reason, it is now included within quarterly economic reporting to Committee to provide more detailed information of retail spending and trends in the city,

Palmerston NOrth Quarterly economic update – march 2023

2.1 The mix of industries has supported economic activity in the city with GDP growing by 21.5 percent over the five-years to December 2022, compared with 17.8 percent nationally.

2.2 Over the year to December 2022, GDP increased by 2.9 percent in Palmerston North to reach a total value of $6.34b. Growth in the city over the 2022 year remained above national GDP growth of 2.8 percent.

2.2 High employment and earnings growth has been a substantial driver of economic activity in Palmerston North with an additional 758 jobs generated in the city over the year to December 2022, and total earnings growth of 7.1 percent.

2.3 Tight labour market conditions continue with annual average unemployment in the city dipping below both regional and national unemployment at 3.2 percent in December 2022. This compares with a regional and national unemployment rate of 3.3 percent over the same period.

2.4 High jobs and earnings growth, and the recovery of tourism related activity is supporting core spending in the city, with retail spending increasing 7.0 percent over the year to February 2023. This is despite annual national inflation of 7.2 percent in 2022 and falling disposable incomes.

2.5 While core spending is holding up, spending on high-value and discretionary items is falling away. Other consumer spending, which includes cars and motorcycles, fell by 34.6 percent in the February quarter 2023 compared with the February quarter 2022, while home and recreational retail spending fell by 4.6 percent over the same timeframe. Falling numbers of new registrations for cars and commercial vehicles further supports the conclusion of weakening discretionary spending both in the city, and nationally.

2.6 Tourism spending increased by 7.7 percent in Palmerston North over the year to January 2023. Domestic spending increased by 4.4 percent over the year, while international tourism spending was up 96.2 percent.

2.7 The pipeline from record building consents in 2020 and 2021 continues to flow through to development in the city. However, softer consenting volumes and values for the January 2023 year signals a slow-down of construction investment intentions in the city:

a. New dwelling consents fell from a record 572 over the year to July 2020, to 402 in the January year 2023. Rolling annual new dwelling consents remained above 500 to March 2022.

b. A total of $327.7m in consents were issued over the year, down 15.9 percent from the January year 2022. Residential consent values fell 20.0 percent while non-residential consents values fell 8.8 percent over the year.

2.8 The weakening housing market was the first indication of softening domestic economic conditions:

a. Sales volumes fell 18.2 percent in Palmerston over the year to February 2023, compared with 29.9 percent nationally.

b. The average number of days to sell lifted to 59 days in the Manawatū-Whanganui Region compared to 60 days nationally.

c. The pace of house price decline is slowing. Average house prices in the city fell 13.4 percent since the market peak and 13.2 percent over the year. This compares with a 9.5 percent fall from the peak nationally, and an annual fall of 8.9 percent.

d. Median house prices fell 24.3 percent in the city since the peak, and 14.3 percent over the year to February 2023. This compares with a 21.3 percent fall from the peak nationally, and a 13.8 percent fall over the year. The median house price is influenced by where in the market houses are selling, with a higher proportion of lower value properties pulling the median down.

2.9 Per capita GDP in Palmerston North is nearing national per capita GDP at $67,731 per annum. This compares with $69,880 nationally, and $53,648 in the Manawatū-Whanganui Region.

2.10 The public housing register fell 12.1 percent over the year to December 2022. This trend is emerging across the country with a 9.4 percent decline in numbers, nationally.

2.11 Rental prices continue to rise but at a slower rate. The number of rental properties formally rented in Palmerston North has increased by 150 over the year to a total of 7,647.

2.11 The number of people receiving the Jobseeker benefit fell 7.4 percent over the year to December 2022, with numbers falling across all age groups. Numbers, however, remain above pre-pandemic levels.

2.12 Persistent inflation, higher than anticipated borrowing costs, and ongoing challenges accessing and affording labour, continue to weigh on organisations and businesses in the city.

2.13 The Palmerston North Quarterly Economic Update - March 2023 is attached as Appendix 1.

Palmerston North electronic card spending report – December 2022

3.1 Total electronic card spending was $406 million in Palmerston North in the December quarter 2022. Of this total, 57.4 percent was spent in the city centre.

3.2 Spending increased 7.1 percent in Palmerston North over the year to December 2022. This compares with a 6.1 percent increase in spending in the central city and a 10.3 percent increase across New Zealand. National spending was coming off a low base, due to restrictions on economic activity in the upper half of the North Island from August to December 2021.

3.3 The annual inflation rate to December 2022 was 7.2 percent, indicating real spending is holding up in the city.

3.4 The loyalty rate, explained as the percentage of spending by Palmerston North residents at local retailers, remained high at 81.6 percent over the year to December 2022. This compares with 81.2 percent the previous year.

3.5 There was a $295m net gain from spending flowing into the city, compared with spending flowing out of the city in 2022. This is a 14.7 percent increase in net gain to the city, compared with 2021.

3.6 Spending in Palmerston North CBD and Broadway Avenue increased by 8.8 percent in 2022, while spending across the rest of Palmerston North increased 10.0 percent over the same period. The rest of Palmerston North covers all locations outside Terrace End, the CBD and Broadway Avenue.

3.7 Spending on arts, recreation and visitor transport, fuel and automotive, and other consumer spending increased the most over the year to December 2022. As previously indicated, other consumer spending fell sharply in the February 2023 quarter compared with the February 2022 quarter, indicating the impact of rising costs on discretionary spending.

3.8 The Quarterly Economic Card Spending Report for December 2022 is attached as Appendix 2.

2. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in Economic Development The action is: Implement Inward Investment Strategy
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Reporting on economic trends in the city and Manawatū region and the longer-term outlook for growth, is important for encouraging local business to invest in growing their business and attracting new businesses to the city.

Attachments

1.	Palmerston North Quarterly Economic Update - March 2023 ⇩
2.	Palmerston North Electronic Card Spending Report - December Quarter 2022 ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 12 April 2023

TITLE: 6-monthly report on International Relations and Education Activities

Presented By: Gabrielle Loga, International Relations Manager

APPROVED BY: David Murphy, Chief Planning Officer

RECOMMENDATION TO Economic Growth Committee

1. That the Committee note the progress on the International Relations and Education activity over the past six months, contributing to the Economic Development Plan and Innovative and Growing City Strategy.

1. ISSUE

1.1 The purpose of this memorandum is to update the Economic Growth Committee on the development of Palmerston North’s key international relations and education outcomes and activities over the past six months, and their contribution to the relevant goal, strategy and plan.

2. background

International Context: New Zealand and European Union Free Trade Agreement

2.1 On 30 June 2022, New Zealand and the European Union (EU) finally concluded a Free Trade Agreement (FTA) after 12 rounds of formal negotiations since 2018. The EU is New Zealand’s 4th largest trading partner, with two-way trade in goods and services worth NZ$17.5 billion in 2021. It is one of New Zealand’s most important markets, with close to 450 million high-income consumers.

2.2 Under the FTA:

- 91% of New Zealand’s current goods trade to the EU will enter duty free from day one, rising to 97% after seven years; and

- Estimated tariff savings of $100 million from day one, rising to $110 million after seven years.

- The FTA will also open up valuable additional quota access for key products of export interest to New Zealand, including for beef and dairy.

2.2 This agreement also contains a chapter on ‘Māori Trade and Cooperation’ which talks about collaborating to enhance the ability for Māori enterprises to benefit from the FTA’s trade and investment opportunities, strengthen links between EU and Māori enterprises (with a particular emphasis on SMEs), supporting science, research and innovation links, and cooperating on geographical indications. It sets a new modality for New Zealand – EU engagement.

International Context: Viet Nam Mekong Delta Regional Master Plan

2.3 As detailed in later sections of this memorandum, Viet Nam is a growing opportunity for New Zealand and Palmerston North. Viet Nam's economy experienced a strong rebound in 2022 as the national GDP grew 8.02% in 2022, the highest in the 2011-2022 period, outpacing the target of 6.5% set by the National Assembly, and inflation was curbed at 3.15%, below the 4% projected. This growth was partly due to a low base effect, driven by a rebound in domestic private consumption following COVID-19 and solid performance in export-oriented manufacturing.

2.4 In addition, Viet Nam has also launched its comprehensive Mekong Delta Regional Master Plan to boost the socio-economic development of the Mekong Delta area. The Mekong region of Viet Nam covers 12 provinces and is home to 18 million people. It is Viet Nam’s food basket and is known for its intensive rice production and fertile soils allowing two to three harvests per year. Together the Mekong provinces account for almost 50% of Vietnam’s rice production, and 70% of total fruit production.

2.5 A key feature of the plan is the development of enhanced and comprehensive infrastructure which is needed to increase trade and connectivity in the region. This includes the construction of new roads and highways, expansion of airports and development of inland waterway cargo and logistics hubs. The plan sets out a commitment to ensure development takes place in a sustainable and environmentally friendly manner. This includes a commitment to clean and renewable energy, with wind and solar power projects to be developed, and gas-fired power projects under way by 2030.

2.6 There are potential opportunities for New Zealand to contribute to the implementation of the plan, including through climate finance projects and private investment in sustainable agriculture; agri-tech; eco-tourism consultancy; and expertise in countering the effects of climate-related change, such as coastal erosion and seawater intrusion.

2.7 The World Bank, the Netherlands and Australia are also expected to be major partners in the implementation of the Plan.

3. international relations activity

City Partnerships – Missoula

3.1 Following the successful hybrid celebration of the 40^th sister city anniversary between Palmerston North and Missoula, the International Relations team joined Dr. Udo Fluck, Director of Arts Missoula Global in his International Voices podcast to talk about the special milestone of the sister city connection between the two cities; to highlight how education and international relations are connected; how students in both locations can benefit from that bond; and how the two communities can learn from each other locally.

3.2 On 25 November 2022, PalmyBID ran ‘Missoula Day’ in Te Marae o Hine to celebrate the 40^th anniversary of Palmerston North’s sister city partnership with Missoula. The city of Missoula puts on a ‘New Zealand Day’ every year, so this was Palmerston North’s turn to bring all things Missoula to our community. Amongst the performances, food trucks, rides, games, and a competitive all-ages hotdog eating competition, Council ran an educational sister city booth.

3.3 Our friends in Missoula, namely Arts Missoula, Bayern Brewery and the University of Missoula, and also the Embassy of the United States in Wellington and Education USA, were kind enough to send us merchandise which we could giveaway to members of the community who approached the booth and asked questions or could tell us a story about their travels to Missoula. PalmyBID has indicated that Missoula Day will become an annual event due to the success of the pilot. ‘Missoula Day’ was picked up by US media and featured on NBC Montana on 30 November 2022:

https://nbcmontana.com/news/local/missoula-day-in-new-zealand-celebrates-sister-city-connection

Image 1: Kate Harridge, International Relations and Education Advisor (left), Jenna Kelly, Events Manager (centre) and Brent Barrett, City Councillor (right) show off Missoula and Montana merchandise at the event.

3.4 At the 2022 Global Cities New Zealand Forum on 10 November 2022, Palmerston North was congratulated for the effort and commitment the city had dedicated to nurturing 40 years of sister city relationship with Missoula and 30 years with Guiyang.

City Partnerships - Mihara

3.5 On 24 November 2022, Koizumi Elementary School from Mihara and Carncot School from Palmerston North collaborated in an online cultural exchange. Thirteen Year 6 students from Koizumi Elementary and nineteen Year 6 students from Carncot connected via Zoom to each share a self-introduction and presentations about their most recent school holidays (winter in Japan and summer in New Zealand). For the students of Koizumi Elementary School, it was an opportunity to practise what they had been learning in their English language class and interact with native English speakers of similar ages.

3.6 The online cultural exchange closed with a waiata from Carncot School, a traditional song from Koizumi Elementary and a big group photo with lots of smiles, waving and laughter. Koizumi Elementary is the second primary school from Mihara to connect with schools in Palmerston North, the first being Saigura Elementary School which connected with Terrace End School in 2017, Palmerston North Intermediate Normal School in 2019 and St Peter’s College in 2020. Not only do these connections from early age provide an opportunity for language and culture exchanges, they also encourage students from both cities to develop their global competence and confidence about their own cultural identity as well as to grow their international friendship network for the future.

With the support from both councils, education providers are expected to foster further connections, both online and in-person, between Mihara and Palmerston North schools in the future.

Image 2: Koizumi Elementary School students (top left and bottom middle) connect with Carncot School students (top right).

Diplomatic Corps Relations – European Ambassadors

3.7 Three months after the conclusion of the New Zealand – EU Free Trade Agreement negotiations, the city hosted a group of nine European ambassadors and diplomats on 11-12 November 2022. The visitors received a warm welcome at Te Hotu Manawa O Rangitāne O Manawatū Marae and experienced first-hand te ao Māori, mātauranga Māori, tikanga Māori, and kaupapa Māori. They were taken to visit Prepared Foods (Moana NZ), Massey University including Massey School of Aviation, and Te Utanganui Central New Zealand Distribution Hub. A business dinner talk was organised that evening where Her Excellency Mrs. Nina Obermaier, European Union ambassador to New Zealand, discussed the new NZ-EU Free Trade Agreement and what it meant for our local businesses.

3.8 After a full day touring the city, the guests recognised many possible opportunities for local businesses and organisations to do well in European markets.

Image 3: European delegation receiving instructions on tikanga before entering Prepared Foods (Moana Ltd) for a site visit.

3.9 The visitors stayed on for the launch of the V4 Wildlife Exhibition on Saturday 12 November 2022 at Caccia Birch. It was a week-long exhibition of stunning pictures of wildlife and landscapes from the Czech Republic, Poland, Hungary and Slovakia, taken by some of the region’s top photographers. With the strengthening trade ties and freer borders within the European Union, it was hoped to encourage locals to travel to Europe for music, history, culture and art. All koha donations collected went towards humanitarian aid for the people of Ukraine.

Image 4: Honorary Consul of the Kingdom of Belgium, Honorary Consul of The Slovak Republic, HE Ambassador of Hungary, HE Ambassador of The Republic of Poland, His Worship Mayor Grant Smith at the Opening of the V4 Wildlife Exhibition.

Embassy of Israel

3.10 Council worked with the Embassy of Israel, CEDA, and Manawatū Business Chamber to organize an AgriFood Business Connect luncheon on 16 September 2022. The attendees had the opportunity to connect with business interests in the field like Kenneth Irons, Managing Director of AgSorted Ltd; Glen Holland, Managing Director and Founder of Tasman Bay Berries; Pierre Venter, General Manager of Innovation Services at Fonterra; Gil Meron, CEO of SproutAgritech; and Eitan Dan, Managing Director at CropX New Zealand Ltd. They were offered the chance to participate in a trade delegation to Israel and participate in AgriFood Week in Tel Aviv in November 2022. Prior to the day of the event, His Excellency Mr. Ran Yaakoby, visited the Mayor to brief him on Israel’s offerings to our local businesses. He went on to visit SproutAgritech, Riddet Institute and Fonterra Research and Development Centre.

Image 5: Ambassador of Israel hosting AgriFood Business Connect Luncheon at CEDA on 16 September 2022.

President of the National Assembly of Vietnam, Mr. VUONG Dinh Hue

3.11 Continuing with the theme of economic development, in response to former Prime Minister Ardern’s invitation during her visit to Vietnam, President of the National Assembly of Vietnam, Mr. VUONG Dinh Hue, arrived New Zealand on Saturday 3 December with his entourage of 175 senior officials from the Ministry of Planning & Investment, Ministry of Industry & Trade, Ministry of Defence and Ministry of Education & Training.

3.12 During his visit to New Zealand, whilst in Auckland, he met with key businesses including Fonterra, Fiso Investment, VietTech New Zealand and Viet River Holdings. Whilst in Hamilton, Mr. VUONG Dinh Hue also witnessed the signing of 10 MOUs between New Zealand universities and a number of top universities in Vietnam. He said by the first quarter of 2023, Vietnam’s population would reach 100 million. By 2035, there would be 3.5 million Vietnamese students in need of tertiary education and New Zealand with its advanced education system was well-placed to meet that need.

Image 6: Viet Nam and New Zealand official permit for New Zealand to export butternut squash and strawberries to Viet Nam and for Viet Nam to export limes and pomelos to New Zealand.

3.13 Palmerston North City Council was invited to join the Viet Nam – New Zealand Economic Forum on 4 December 2022 where Mr. VUONG Dinh Hue attended alongside Trade Minister, Hon Damien O’Connor. He celebrated the Strategic Partnership between the two countries highlighting recent permissions for New Zealand to export butternut squash and strawberries to Viet Nam and for Viet Nam to export limes and pomelos to New Zealand. He insisted that trade and investment cooperation was a key component for the direct benefit of our people and businesses. The areas of cooperation interests for Viet Nam include food, national defence, security, education-training, labour and agriculture, as well as climate change response, digital transformation and energy transition.

3.14 The PNCC International Relations Manager was also invited by the Embassy of the Socialist Republic of Viet Nam to meet with the President of the Vietnam's National Assembly in a separate function afterwards to speak to Mr VUONG Dinh Hue about Palmerston North and the opportunity to establish city-to-city partnerships to deepen the bilateral relations between the two countries. His Excellency Ambassador NGUYEN Van Trung is very much in support of this view and indicated the embassy will support our initiative in exploring partnership opportunities with cities/regions in Viet Nam.

As a result, PNCC in collaboration with the Embassy of the Socialist Republic of Viet Nam, the Viet Nam Trade Office in Wellington, CEDA and Manawatū Business Chamber is organising an informative business development session on 3 April 2023 where businesses attending will receive market updates of Viet Nam in post-Covid times, learn about opportunities for Manawatū and Palmerston North businesses, as well as how to get support to do business with Viet Nam. This event will be reported in further detail in the next 6-monthly report.

Lunar New Year

3.15 The celebrations of Lunar New Year – The Year of the Rabbit – on Sunday 29 January 2023 was a fantastic opportunity for the community to gather and enjoy a mix of contemporary and traditional cultural performing arts, as well as a variety of flavoursome, iconic and exotic dishes of Asia. PNCC had the honour of welcoming His Excellency Mr NGUYEN Van Trung, Ambassador of the Socialist Republic of Viet Nam to New Zealand and his Trade Counsellor TRAN Dieu Oanh, as well as Minister Counsellor Mr YE Su and Mr SONG Haigang, Head of the Consular section from the Embassy of the People’s Republic of China. The distinguished guests spoke about the significance of Lunar New Year in their culture, spent time with the community and showed strong support for the effort of preserving and promoting cultural diversity in the city.

Festival of Cultures

3.16 On Friday 24 February and Saturday 25 February 2023, the city welcomed 22 diplomats to our iconic Festival of Cultures, including:

- Ambassadors of Italy; the Republic of Poland; the Republic of Cuba; the Argentine Republic; and Socialist Republic of Viet Nam

- Deputy heads of mission from the embassy of the People’s Republic of China; Australia High Commission; and High Commission of Malaysia;

- Counsellors from Indonesia; Republic of Korea; and Embassy of the Philippines.

The members of the diplomatic corps were welcomed in a pōwhiri by PNCC and Rangitāne and participated in a city tour of Palmerston North themed around logistics, distribution and infrastructure on Friday 24 February. They visited the Manawatū Industrial Park, received a briefing on Te Utanganui, Central New Zealand Distribution Hub at Higgins HQ and had a site visit to Te Ahu a Turanga – Manawatū Tararua Highway.

3.17 The diplomatic dinner that evening was a great opportunity for the eminent visitors to meet and network with elected members and leaders from Palmerston North’s key sectors such as Massey University and Fonterra. On Saturday 25 February, they attended a Mayoral morning tea before attending the opening ceremony of the 2023 World Food, Craft and Music Fair in Te Marae o Hine and enjoyed the festivities with the community. Council ran a stall at the World Food, Craft and Music Fair to promote the city’s international partnerships and encourage local residents and businesses to take advantage of the city‘s support to explore various opportunities with these international connections.

3.18 This diplomatic visit not only added to the attendance of the Festival of Cultures, but also brought business opportunities for the city’s key sectors. It helps attract further interest in Palmerston North and promotes the city’s international and national profile.

Image 7: David Murphy, Chief Planning Officer, discusses Te Utanganui with members of the diplomatic corps at Higgins HQ.

Image 8: Wiremu Te Awe Awe (Rangitāne) and Elected Members joined by 22 members of the diplomatic corps at the Opening of the 2023 World Food, Craft and Music Fair in Te Marae o Hine on 25 February 2023.

Image 9: Sister City stall at World Food, Craft and Music Fair

International Women’s Day

3.19 PNCC, in collaboration with the embassy of the Republic of Poland and the Palmerston North branch of the New Zealand Institute of International Affairs, organised a panel discussion, followed by a live Q&A on International Women’s Day at Caccia Birch House. The theme for International Women’s Day was “DigitALL: Innovation and technology for gender equality”.

3.20 The event brought together technologists, entrepreneurs, international representatives, education providers and community organisations. Panelists included Heather Todd from Yorb and ManawaTech; Sarah Cowan from The Herb Farm; Dr. Izabela Gladkowska from Fonterra; and Jemma Cheer from Jemma Cheer Design.

Image 10: Inspiring panel discussion with Gemma Cheer, Heather Todd, Dr. Isabella Gladkowska, Sarah Cowan, and Ramola Duncan (from left to right)

3.21 The Ambassador of Poland to New Zealand – Grzegorz Kowal and Mayor Grant Smith were also present to address the official opening of the Polish Outstanding Women’s Exhibition (New Zealand premiere) as a part of this year’s celebration of Poland-New Zealand’s 50th anniversary of diplomatic relations.

International Education Projects with Education New Zealand

3.22 100 secondary school students aged between 14 and 16 years old from Paraná (southern Brazil) travelled to New Zealand in August to undertake a three-month study experience. The trip was the outcome of long-term relationship building with key stakeholders in Paraná State and Education New Zealand. The students represent all regions of the state, which has a population of around 11 million people and an economy with a strong emphasis on agribusiness. Palmerston North was fortunate enough to host 10 of these students at Freyberg High School.

3.23 On 29 September 2022, Kate Harridge (International Relations and Education Advisor, Palmerston North City Council) and Roma Pōtiki (Programme Developer, Te Manawa) hosted a small event at Te Manawa Art Gallery for the 10 students who undertook the three-month student experience programme at Freyberg High School. The purpose of the event was to celebrate their presence within region and acted as a farewell prior to their departure from New Zealand in October. The event was well attended by the students, Freyberg High School International Staff and Senior Management, Education New Zealand, Council officers and elected members, and representatives from Palmerston North’s Latin American Society. The event began with a guided tour of The Iny͂ People of Central Brazil exhibition, followed by speeches and formalities, and concluding with the students one-by-one sharing the highlights of their time in Palmerston North and New Zealand.

3.24 Every student had such a positive experience at Freyberg High School and was emotional retelling stories of their time in class, with their host families, and in the Palmerston North community. The study programme is fully funded by the Paraná Government, through Paraná’s Secretary of Education and Sport, and is expected to continue next year for around 2,000 students. The positive experience of this cohort will encourage even more students to choose Palmerston North as their preferred study destination.

Image 11: Students from Freyberg High School saw a presentation on the Iny͂ People of Central Brazil exhibition at Te Manawa Museum, Palmerston North

Waseda University

3.25 On Monday 21 November to Wednesday 23 November, Kate Harridge (International Relations and Education Advisor) and Dana Mitchell (then-International Relations and Education Intern) coordinated and hosted a regional education familiarisation visit by a delegation from Waseda University (ranked 2nd in Japan with 7 subjects in World Top 100) and its network of affiliated schools from Tokyo, Japan. The delegation comprised of 11 principals, teachers, international staff and administrators from Waseda Senior High School, Waseda Saga Senior High School, Waseda Honjo Senior High School, Waseda Jitsugyo High School and Waseda University; and 2 representatives from Education New Zealand’s Wellington and Tokyo offices.

3.26 The delegation visited Palmerston North Girls’ High School, Palmerston North Boys’ High School, Freyberg High School, Awatapu College, Nga Tawa Diocesan School, IPU New Zealand, Massey University and the English Teaching College. Each institution got a chance to showcase their strengths and explain why Manawatū should be the preferred study destination for international students. Some highlights included a powhiri and haka at Palmerston North Boys High School, a tour of the Equestrian Centre at Nga Tawa, a performance by the Kodama Drum Team at IPU New Zealand, afternoon tea with a homestay family, as well as witnessing a smorgasbord of dance, drama, physical education, automotive, textiles, woodwork, food technology and visual arts classes in action.

3.27 Some classrooms in Japan still use blackboards and fax machines so the delegation was blown away by the seamless integration of digital literacy and Bring Your Own Device initiatives. Most of the delegation had never visited New Zealand before which makes it even more special that they could experience so many firsts with us in the Manawatū/Rangitīkei.

3.28 As a result of our successful proposals earlier this year, Manawatu and Hawkes Bay were selected as the two regions to host a Group Study Programme for students from Waseda University’s network of affiliated schools in 2023 and beyond. Commencing on 19 March 2023, our local secondary schools will host 21 students for 2 weeks in which they will study English, attend regular classes with domestic students, participate in extracurricular activities and live with a homestay family or in the schools’ boarding accommodation. This number could grow to 50+ students annually with potential interests to come back for tertiary education.

Image 12: The Waseda Teacher Famil delegation with staff and students from Palmerston North Girls High School.

Student Experience events

3.29 On 1 February 2023, Kate Harridge, PNCC International Relations and Education Advisor, hosted Assistant Professor Killian Kinney from Pacific University in Oregon at Massey University. Assistant Professor Kinney met with Massey University’s School of Social Work and Office of Global Engagement to explore study abroad and internship options for their undergraduate and postgraduate social work students in New Zealand.

3.30 The conversation was very fruitful, including in-depth discussion of the academic curriculum and registration requirements, and Massey University was also able to connect Assistant Professor Kinney with industry contacts. The formalisation of a partnership between Massey University and Pacific University is ongoing. PNCC was alerted to this opportunity to host Assistant Professor Kinney by the Strategic and Capability Lead at Whanganui and Partners which highlights the importance of cross-regional relationships and opportunity sharing for the greater good of the international education sector.

4. next steps

· Coordinate and support the Waseda Group Study Programme in March 2023.

· Complete the project funded by Education New Zealand for a marketing mission to Japan and Viet Nam in March 2023.

· Liaise with stakeholders participating (CEDA and Massey University) in the overseas mission to Missoula and Wageningen in June 2023 to finalise on the programme.

· Liaise with ManawaTech to promote the opportunity for our local businesses to showcase their products and services at the 2023 China Big Data Expo held in our sister city Guiyang in May 2023.

5. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in Economic Development The action is: Various actions with the international relations chapter of the economic development plan.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The six-monthly report on International Relations and Education Activities outlines the progress of actions in the International Relations Chapter, which contributes to the Economic Development Plan and Innovative and Growing City Strategy.

Attachments

Nil

work schedule

TO: Economic Growth Committee

MEETING DATE: 12 April 2023

TITLE: Work Schedule - April 2023

RECOMMENDATION TO Economic Growth Committee

1. That the Economic Growth Committee receive its work schedule for April 2023.

Committee Work Schedule 2023

	Estimated Report Date	Subject	Officer Responsible	Current Position	Date of Instruction & Clause no.
1	21 June ~~12 April~~ 2023	Update on infill lighting required to achieve compliance in P and V categories (update for Programme 1367)	Chief Infrastructure Officer		16 March 2022 Clause 3-22
2	~~12 April 2023~~	~~International Relations 6 Monthly report~~	~~Chief Planning Officer~~		~~Terms of Reference~~
3	~~12 April 2023~~	~~Quarter 2 Economic Report Oct-Dec 2022~~	~~Chief Planning Officer~~		~~Terms of Reference~~
4	~~12 April 2023~~	~~PN Airport – Interim report (6 months to 31 December 2022)~~	~~Chief Financial Officer~~		~~Terms of Reference~~
5	~~12 April 2023~~	~~PN Airport - Draft Statement of Intent for 2023-26~~	~~Chief Financial Officer~~		~~Terms of Reference~~
6	~~12 April 2023~~	~~CEDA - Draft Statement of Intent for 2023-26~~	~~Chief Planning Officer~~		~~Terms of Reference~~
7	~~12 April 2023~~	~~College Street and Botanical Road – Safety Improvement Options~~	~~Chief Infrastructure Officer~~		17 Aug 2022 Clause 13-22
8	~~12 April 2023~~	~~CEDA - Six Month Performance Report (to 31 Dec 2022)~~	~~Chief Planning Officer~~		~~Terms of Reference~~
9	21 June ~~12 April~~ 2023	Te Utanganui Master Plan	Chief Planning Officer	Work in progress	Terms of Reference
10	21 June 2023	Palmerston North Strategic Transport Networks	Chief Planning Officer	laid on the table
11	21 June 2023	Streets for People Update (6 monthly)	Chief Infrastructure Officer		Terms of Reference
12	21 June 2023	Presentation of Square East Stage 3 and 4 final design plan	Chief Infrastructure Officer		17 Aug 2022 Clause 17-22
13	21 June 2023	Quarter 3 Economic Report Jan-March 2023	Chief Planning Officer		Terms of Reference
14	21 June 2023	Streets for People - Options for delivery of the construction stage of the programme (Square East Stage 3+4).	Chief Infrastructure Officer		Council 5 Oct 2022 Clause 119-22
15	21 June 2023	Tamakuku Terrace Six Monthly Update	Chief Infrastructure Officer		Terms of Reference
16	21 June 2023	PNAL - Final Statement of Intent for 2023/26	Chief Financial Officer		Terms of Reference
17	21 June 2023	CEDA - Final Statement of Intent for 2023/26	Chief Planning Officer
18	21 June 2023	Road Maintenance Contract (six-monthly report on work programme and performance)	Chief Infrastructure Officer		16 March 2022 Clause 4-22
19	30 Aug 2023	Quarter 4 Economic Report April-June 2023	Chief Planning Officer		Terms of Reference
20	25 Oct 2023	PN Airport – Annual Report for 2022/23	Chief Financial Officer		Terms of Reference
21	25 Oct 2023	CEDA – Annual Report for 2022/23	Chief Planning Officer		Terms of Reference
22	25 Oct 2023	PN Airport –Statement of Expectation for 2024/25	Chief Financial Officer		Terms of Reference
23	25 Oct 2023	Streets for People Update (6 monthly)	Chief Infrastructure Officer		Terms of Reference
24	6 Dec 2023	Quarter 1 Economic Report July-Sept 2023 Present to Council	Chief Planning Officer		Terms of Reference
25	6 Dec 2023	Tamakuku Terrace Six Monthly Update Present to Council	Chief Infrastructure Officer		Terms of Reference
26	TBC	Sector Profiles: Construction (full and summary) Agriculture (full and summary) Manufacturing (full and summary) Education (full and summary) Defence (summary) Non-Profit (summary) Research, Science & Innovation (full and summary)	Chief Planning Officer	Future of sector profiles to be reported back to committee

Attachments

NIL

[1] A crossing near Rangiora Avenue may require the removal of an Ash Street tree.

[2] Costs are estimates only and would need to be confirmed in more detail as part of the 2024-34 LTP process.

Leonie Hapeta (Chair)
William Wood (Deputy Chair)
Grant Smith (The Mayor)
Mark Arnott	Lorna Johnson
Brent Barrett	Debi Marshall-Lobb
Rachel Bowen	Billy Meehan
Vaughan Dennison	Orphée Mickalad
Roly Fitzgerald