Agenda of Economic Growth Committee - Wednesday, 9 April 2025

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 20 November 2024, commencing at 9.03am.

Members

Present:

Leonie Hapeta (in the Chair), and Councillors William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Debi Marshall-Lobb, Billy Meehan and Orphée Mickalad.

Non Members:

Councillor Lew Findlay, Councillor Patrick Handcock and Councillor Karen Naylor.

Apologies:

The Mayor (Grant Smith) (on Council business), Councillor Lorna Johnson (late arrival), Councillor Kaydee Zabelin (late arrival)

Councillor Lorna Johnson entered the meeting at 9.10am during consideration of clause 57. She was not present for clauses 55 and 56.

Councillor Kaydee Zabelin entered the meeting at 9.06am during consideration of clause 57. She was not present when the meeting resumed, at 11.38am; entering the meeting at 11.41am, after consideration of clause 62. She left the meeting at 3.51pm after consideration of clause 66. She was not present for clauses 55, 56, 62, 67 to 70.

Councillor Karen Naylor left the meeting at 12.11pm during consideration of clause 63. She entered the meeting again at 12.40pm during consideration of clause 64. She was not present for clause 63.

Councillor Lew Findlay left the meeting at 4.13pm after consideration of clause 67. He was not present from clauses 68 to 70.

Councillor Billy Meehan left the meeting at 4.29pm before consideration of clause 69. He was not present for clauses 69 and 70.

	Karakia Timatanga
	Councillor Roly Fitzgerald opened the meeting with karakia.

55-24

Apologies

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 55-24 above was carried 13 votes to 0, the voting being as follows:

For:

Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock and Karen Naylor.

56-24	Public Comment
	Alice Williamson, representing The Greasy Chain, made a public comment in support of Item 17 - Featherston Street Safety Improvements Project Update. She encouraged the Council to finalise the project and keep extending the cycleway in the future.
	Moved Leonie Hapeta, seconded William Wood. The COMMITTEE RESOLVED 1. That the Committee receive the public comment for information.
	Clause 56-24 above was carried 13 votes to 0, the voting being as follows: For: Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay, Patrick Handcock and Karen Naylor.

57-24

Petition - Streets Ahead Palmerston North

James Irwin, representative of Streets Ahead Palmerston North presented to the Committee.

James presented a Petition in support of Council completing the cycleway on Featherston Street. He summarised the benefits this project generated for residents who walk, cycle and use public transport. Street Ahead Palmerston North, requested that Council finish the cycleway on Featherston Street and continue to install cycleways in the city.

Councillor Kaydee Zabelin entered the meeting at 9.06am.

Councillor Lorna Johnson entered the meeting at 9.10am.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the petition for information.

Clause 57-24 above was carried 15 votes to 0, the voting being as follows:

For:

Councillors Leonie Hapeta, 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.

58-24

Presentation - The Factory

Nick Gains, General Manager of The Factory presented to the Committee.

He summarised the activities, and projects worked on during the year, and highlighted several businesses The Factory had assisted in 2024.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the presentation for information.

Clause 58-24 above was carried 15 votes to 0, the voting being as follows:

For:

59-24

Confirmation of Minutes

Councillor Vaughan Dennison asked for his vote to be recorded in favour for clause 49-24.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

That the minutes of the Economic Growth Committee meeting of 18 September 2024 Part I Public and Part II Confidential (as amended) be confirmed as a true and correct record.

Clause 59-24 above was carried 13 votes to 2, the voting being as follows:

For:

Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Orphée Mickalad, Lew Findlay, Patrick Handcock, Karen Naylor and Kaydee Zabelin.

Against:

Councillors Vaughan Dennison and Billy Meehan.

60-24

International Trip to China, April 2024, and International Relations and Education - 6 Monthly Report

Memorandums, presented by Councillor Debi Marshall-Lobb and Gabrielle Loga, Manager International Relations.

Items 9 and 10 were taken together.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the memorandum titled ‘International visit to China, April 2024’ presented on 20 November 2024.

2. That the Committee receive the report titled ‘International Relations and Education – 6 Monthly Report’ presented on 20 November 2024.

Clause 60-24 above was carried 14 votes to 1, the voting being as follows:

For:

Against:

Councillor Karen Naylor.

61-24

Palmerston North Quarterly Economic Update - September 2024

Memorandum, presented by Stacey Andrews, City Economist.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the Palmerston North Quarterly Economic Update – September 2024, including:

a. Palmerston North Economic Growth Indicators - September 2024 (Attachment 1), and

b. Palmerston North Quarterly Economic Card Spending Report - June 2024 (Attachment 2),

presented to the Economic Growth Committee on 20 November 2024.

Clause 61-24 above was carried 15 votes to 0, the voting being as follows:

For:

62-24	Road Maintenance Contract - 6 Monthly Update and Street Light Infill Memorandums, presented by Glen O'Connor, Manager - Transport and Development. Items 12 and 13 were taken together. Elected Members discussed referring a street lighting survey to the Annual Budget process. A motion was moved to refer the Street Lighting survey to the Annual Budget 2025-26 process, as pushing the survey to the 2026-27 year was considered too much of a delay. An additional motion was moved to refer a programme to begin upgrading the streets lighting on the streets listed in the Report - Progress Update on Programme 1367 (City-wide - Street Light Infill), received by the Economic Growth Committee on 19 June 2024 to the Annual Budget 2025-26 process.
	Moved Lorna Johnson, seconded Patrick Handcock. Note: On an amendment (to recommendation 2): “That a budget of $120,000 to support a Street Lighting survey be referred to the Annual Budget ~~2026-27~~ 2025-26 process. The amendment was carried 10 votes to 5, the voting being as follows For: Councillors Leonie Hapeta, William Wood, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Patrick Handcock and Kaydee Zabelin. Against: Councillors Mark Arnott, Roly Fitzgerald, Orphée Mickalad, Lew Findlay and Karen Naylor.
	The meeting was adjourned at 11.19am The meeting resumed at 11.38am Councillor Kaydee Zabelin was not present when the meeting resumed.
	Moved Leonie Hapeta, seconded William Wood. The COMMITTEE RESOLVED 1. That the Committee receive the memorandum titled ‘Road Maintenance Contract - 6 Monthly Update’ presented to the Economic Growth Committee on 20 November 2024. 1. That the Economic Growth Committee receive the report Street Light Infill presented on 20 November 2024.
	Clause 62-24 above was carried 14 votes to 0, the voting being as follows: For: Councillors Leonie Hapeta, 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 and Karen Naylor.
	Moved Lorna Johnson, seconded Patrick Handcock. The COMMITTEE RESOLVED 2. That a budget of $120,000 to support a Street Lighting survey be referred to the Annual Budget 2025-26 process.
	Clause 62-24 above was carried 9 votes to 5, the voting being as follows: For: Councillors Leonie Hapeta, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan and Patrick Handcock. Against: Councillors William Wood, Mark Arnott, Orphée Mickalad, Lew Findlay and Karen Naylor.
	Moved William Wood, seconded Orphée Mickalad. The COMMITTEE RESOLVED 3. That a programme to begin upgrading the street lighting on the already identified streets (listed in the Roading Report to the Economic Growth Committee in June 2024) be referred to the Annual Budget 2025-2026 process.
	Clause 62-24 above was carried 14 votes to 0, the voting being as follows: For: Councillors Leonie Hapeta, 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 and Karen Naylor.

Councillor Kaydee Zabelin entered the meeting at 11.41am

63-24

Palmerston North Airport Limited - Annual report for 12 months ended 30 June 2024 & Instructions relating to Annual Meeting

Memorandum, presented by David Lanham, Chief Executive, Shelly Mitchell Jenkins, Chair Audit & Risk Committee and Jonathon Baker, Chief Financial Officer, Palmerston North Airport Limited.

Councillor Karen Naylor left the meeting at 12.11pm.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the Annual Report and Financial Statements of Palmerston North Airport Limited for the year ended 30 June 2024, presented to the Economic Growth Committee on 20 November 2024.

The COMMITTEE RECOMMENDS

2. That the Council shareholder representative be instructed to support the proposed resolutions (section 2.9) to be considered at the Annual meeting of Palmerston North Airport Limited to be conducted by way of resolution in writing.

Clause 63-24 above was carried 14 votes to 0, the voting being as follows:

For:

64-24	Palmerston North Airport Ltd - Statement of Expectations 2025/26-2027/28 Memorandum, presented by Cameron McKay, General Manager Corporate Services. An additional motion was moved to adjust annually the Council’s dividend in the Statement of Expectations 25/26 – 27/28. Councillor Karen Naylor entered the meeting again at 12.40pm.
	Moved Brent Barrett, seconded Karen Naylor. The COMMITTEE RESOLVED 2. That the PNAL Statement of Expectations for 25/26 – 27/28 include PNCC’s dividend expectation as follows: · 25/26 no less than 20% of NPAT or $300,000, whichever is greater · 26/27 no less than 40% of NPAT or $400,000, whichever is greater · 27/28 no less than 40% or NPAT or $500,000, whichever is greater
	Clause 64-24 above was carried 8 votes to 7, the voting being as follows: For: Councillors William Wood, Mark Arnott, Brent Barrett, Roly Fitzgerald, Debi Marshall-Lobb, Billy Meehan, Karen Naylor and Kaydee Zabelin. Against: Councillors Leonie Hapeta, Rachel Bowen, Vaughan Dennison, Lorna Johnson, Orphée Mickalad, Lew Findlay and Patrick Handcock.
	Moved Leonie Hapeta, seconded Lorna Johnson. The COMMITTEE RESOLVED 1. That the Committee adopt the Statement of Expectations for Palmerston North Airport Ltd 2025/26-2027/28 (Attachment 1)(as amended).
	Clause 64-24 above was carried 15 votes to 0, the voting being as follows: For: Councillors Leonie Hapeta, 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.

65-24

Central Economic Development Agency (CEDA) Annual Report 2023-24

Memorandum, presented by Jerry Shearman, Chief Executive, Katie Brosnahan, Board Member and Jacqui Middleton, Finance and Operation Manager from the Central Economic Development Agency.

Moved Leonie Hapeta, seconded Debi Marshall-Lobb.

The COMMITTEE RESOLVED

1. That the Committee receive the Central Economic Development Agency (CEDA) Annual Report 2023-34 (Attachment 1).

Clause 65-24 above was carried 15 votes to 0, the voting being as follows:

For:

The meeting adjourned at 1.19pm.

The meeting resumed at 2.20pm.

66-24

Featherston Street Safety Improvements Project Update

Memorandum, presented by Glen O'Connor, Manager Transport and Development and Michael Bridge, Service Manager Active Transport.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the memorandum titled ‘Featherston Street Safety Improvements Project Update’ dated 20 November 2024.

Clause 66-24 above was carried 14 votes to 1, the voting being as follows:

For:

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.

Against:

Councillor Leonie Hapeta.

Councillor Kaydee Zabelin left the meeting at 3.51pm

67-24

Draft Parking Framework - Approval for Public Consultation

Report, presented by James Miguel, Senior Transport Planner.

Councillor Bowen moved a procedural motion to lie the report on the table to allow a workshop on the Parking Framework to occur. The motion was moved to allow Elected Members more time to re-consider the framework.

The meeting adjourn at 4.02pm

The meeting resumed at 4.08pm.

Moved Rachel Bowen, seconded Lorna Johnson.

The COMMITTEE RESOLVED

That the report lie on the table to allow a workshop on the Parking Framework to occur.

Clause 67-24 above was carried 11 votes to 3, the voting being as follows:

For:

Councillors Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Lew Findlay and Patrick Handcock.

Against:

Councillors Leonie Hapeta, William Wood and Karen Naylor.

Councillor Lew Findlay left the meeting at 4.13pm.

68-24

Annual Summary of Economic Impact and Benefits of Council Supported Events

Memorandum, presented by Luke McIndoe, Head of Events.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the memorandum titled ‘Annual Summary of Economic Impact and Benefits of Council Supported Events’, dated 20 November 2024.

Clause 68-24 above was carried 13 votes to 0, the voting being as follows:

For:

Councillor Billy Meehan left the meeting at 4.29pm.

69-24

Tamakuku Terrace Six Monthly Update

Memorandum, presented by Bill Carswell, Acting Manager - Property, and Anna Saunders, Capital Projects Officer.

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1. That the Committee receive the memorandum titled ‘Tamakuku Terrace Six Monthly Update’, presented to the Economic Growth Committee on 20 November 2024.

Clause 69-24 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Lorna Johnson, Debi Marshall-Lobb, Orphée Mickalad, Patrick Handcock and Karen Naylor.

70-24

Committee Work Schedule - November 2024

Moved Leonie Hapeta, seconded Patrick Handcock.

The COMMITTEE RESOLVED

1. That the Economic Growth Committee receive its Work Schedule dated November 2024.

Clause 70-24 above was carried 12 votes to 0, the voting being as follows:

For:

	Karakia Whakamutunga
	Councillor Roly Fitzgerald closed the meeting with karakia.

The meeting finished at 4.41pm.

Confirmed 9 April 2025.

Chair

Memorandum

TO: Economic Growth Committee

MEETING DATE: 9 April 2025

TITLE: Featherston Street Safety Improvements Project Update

Presented By: Glen O'Connor, Manager Transport and Development and Michael Bridge, Service Manager Active Transport

APPROVED BY: Chris Dyhrberg, General Manager Infrastructure

RECOMMENDATION TO Economic Growth Committee:

1. That the Committee receive the memorandum titled ‘Featherston Street Safety Improvements Project Update’ presented to the Economic Growth Committee on 9 April 2025.

1. ISSUE

1.1 At the 5 June 2024 Council meeting, the Chief Executive was directed to monitor and evaluate the functionality of the Featherston Street safety improvements and report back in November 2024 and again in April 2025. This is the second of those reports.

1.2 The purpose of this report is to update Council on the post-construction operation of the Featherston Street Safety Improvements Project.

1.3 This memorandum reports on three elements since construction was completed and Officers last reported in November 2024:

a) The function of this segment of Featherston Street;

b) The effect on adjacent businesses; and

c) Feedback on the completed project.

2. BACKGROUND AND PREVIOUS COUNCIL DECISIONS

2.1 The Featherston Street Safety Improvements Project, between Palmerston North Boys’ High School and Central Normal School, has been delivered through NZTA Waka Kotahi’s Streets for People and Transport Choices programmes. The works included:

a) Separated cycleway

b) Raised crossings

c) In-lane bus stops

d) Narrowing and raising side street intersections

e) Placemaking

2.2 The project objectives are to provide safe, accessible transport options for people who would like to ride a bike, walk or take the bus and increase participation in active transport. This aligns with Council’s Strategic Networks, which has Featherston Street as a priority corridor for public transport and cycling.

2.3 At the same time as Council made changes on Featherston Street, NZTA Waka Kotahi made complementary minor improvements to the intersection with Rangitikei Street, mostly around safety improvements and changes to the signal phasing to maintain and improve the level of service for traffic on Rangitikei Street.

2.4 Construction was completed in July 2024.

2.5 Previous Council decisions regarding Featherston Street:

Date	Detail
15 February 2023	Council approved the programme for the wider Featherston Street Safety Improvements Project, which brought together two NZTA Waka Kotahi funding streams – Streets for People (90% NZTA Waka Kotahi funding) and Transport Choices (100% NZTA Waka Kotahi funding).
April-June 2023	Co-design workshops with stakeholders, businesses and residents; involving some Councillors and senior Officers.
28 June 2023	Council endorsed the preferred unidirectional cycleway option. Council also noted trials would be undertaken and feedback from the trials would be brought back to Council for consideration.
August 2023	Trials were undertaken of key elements of the Featherston Street Safety Improvements Project.
27 September 2023	Council endorsed the design for the Featherston Street Safety Improvements Project. A report on the August trials were presented to Council.
December 2023	NZTA Waka Kotahi advised Officers that Transport Choices funding for cycleways was withdrawn.
February 2024	Construction work commenced on Featherston Street.
3 April 2024	Council agreed to additional Streets for People funding for capital expenditure on Featherston Street for additional improvements.
1 May 2024	Council resolved to pause further work on the Featherston Street Safety Improvements Project, pending a report on alternative options for the bus stops.
5 June 2024	Council resolved to retain the existing bus stops and other elements. Council also directed Officers to report back to Council on the project in November 2024 and again in April 2025.
July 2024	Construction work was completed.
20 November 2024	Council received the first of two reports on the function of Featherston St, as well as effects on adjacent businesses and public feedback since construction was completed. Agenda – Agenda of Economic Growth Committee - Wednesday, 20 November 2024 Minutes – Minutes of Economic Growth Committee - Wednesday, 20 November 2024

Table 1: Timeline of Council decisions

3. HOW FEATHERSTON STREET IS FUNCTIONING

3.1 Officers have monitored and evaluated the function of Featherston Street between North Street and Aroha Street since construction was completed in July 2024 and since we last reported in November 2024.

MOTOR VEHICLES

3.2 Two sets of data have been gathered to measure traffic flow. The two sets used different methodologies and show contrasting findings. Both are valid.

3.3 The latest set of data from WSP (consulting engineers, who are part of Palmerston North City Council’s Design Panel) was captured between 17 February and 2 March 2025. Measurements were taken by sensors positioned in the vehicle lanes. These measurements show:

a) The volume of motor vehicle movements has reduced. The average daily vehicle movements range from 10,386 to 12,368 (compared with 13,187 to 14,268 measured pre-construction).

b) The volume of medium and heavy vehicle movements has reduced: The average percentage of medium and heavy vehicle movements ranges from 3.1% to 4.0% (compared with 6.4% to 7.8% measured pre-construction).

c) Traffic speeds have reduced: The 85^th percentile average vehicle speeds range from 44km/h to 46km/h (compared with 50km/h to 51km/h measured pre-construction).

d) Traffic queuing

Measurements were taken between 2:30pm and 5:30pm over five weekdays between 17 and 21 February 2025. These snapshot measurements show:

a) The time it takes to drive westbound has increased since the November 2024 report, but is less than measurements taken pre-construction. The weekday mean is 213 seconds for a westbound motor vehicle to get from the back of the traffic queue through the intersection (compared with 190 seconds reported in November 2024 and 241 seconds measured pre-construction).

b) The time it takes to drive eastbound has reduced since the November 2024 report and pre-construction measurements. The weekday mean is 134 seconds for an eastbound motor vehicle to get from the back of the traffic queue through the intersection (compared with 146 seconds reported in November 2024 and 142 seconds measured pre-construction).

	Pre-construction	Post-construction
Westbound queue time	241 seconds
November 2024 report		190 seconds
April 2025 report		213 seconds
Eastbound queue time	142 seconds
November 2024 report		146 seconds
April 2025 report		134 seconds
Traffic volumes	13,187 to 14,268
November 2024 report		10,879 to 11,865
April 2025 report		10,386 to 12,368
Medium / heavy vehicles	6.4% to 7.8%
November 2024 report		5.3% to 5.9%
April 2025 report		3.1% to 4.0%
Traffic speeds	50km/h to 51km/h
November 2024 report		46km/h to 51km/h
April 2025 report		44Km/h to 46km/h

Table 2: Motor vehicle pre and post-construction data

3.4 The second set of TomTom GPS data has been provided by NZTA Waka Kotahi. This data, covering 24/7 activity over eight months between July 2024 and February 2025, shows contrasting findings for post-construction travel times for motorists, compared with the same period in 2023-2024:

a) Median travel times for westbound traffic has increased by 17 seconds (compared with an increase of 20 seconds, as reported in November 2024) and by 13 seconds for eastbound traffic (compared with an increase of 14 seconds, as reported in November 2024);

b) Median speeds have reduced from 37km/h down to 31km/h eastbound (no change compared with the November 2024 report) and from 35km/h down to 29km/h westbound (compared with 36km/h down to 28km/h, as reported in November 2024).

BIKE RIDERS AND PEDESTRIANS

3.5 Four sets of cameras were used to capture the numbers of bike rider and pedestrian movements between 17 February and 2 March 2025, along the section of Featherston Street between Palmerston North Boys’ High School and Central Normal School. The data shows:

Bike riders

a) The data shows that there has been an increase in the total and average number of bike rider movements since the last count reported in November 2024.

b) Across the four count sites, a total of 3,992 bike rider movements were counted over ten of the measured days (eight weekdays and two Saturdays), with the majority around Palmerston North Boys’ High School. This compares with 3,362 bike rider movements counted over a similar period, as reported in November 2024.

c) Individually, across the four count sites, the average per weekday ranged between 88 and 142 bike rider movements. This compares with an average of 81-118 bike rider movements counted for the November 2024 report.

Pedestrians

d) The data shows that there has been an increase in the total and average number of pedestrian movements since the last count reported in November 2024.

e) Across the four count sites, a total of 32,983 pedestrian movements were counted over ten of the measured days (eight weekdays and two Saturdays), with the majority during the weekday school peak periods. This compares with 29,458 pedestrian movements counted over a similar period, as reported in November 2024.

f) Individually, across the four count sites, the average per weekday ranged between 464 and 1,312 pedestrian movements. This compares with an average of 396-1,103 pedestrian movements counted for the November 2024 report.

3.6 For the April 2025 report, we used the same methodology as we used for the November 2024 report, providing an accurate comparison. The bike rider and pedestrian counts undertaken pre-construction in 2023 (see the Featherston Street Cycleway Update report to Council on 28 June 2023; specifically, Attachment ‘Co-design Session 3 Report’) used a different methodology.

For a breakdown of the latest bike rider and pedestrian counts, refer to Attachment 1 ‘Featherston Street pedestrian and cycle counts Feb-March 2025’.

PARKING

3.7 There are 12 on-street carparks along this segment of Featherston Street, between Palmerston North Boys’ High School and Central Normal School:

· 6 between Rangitikei Street and North Street.

· 6 between Rangitikei Street and Aroha St.

3.8 Parking occupancy was captured across four days between 18 and 27 February 2025 (three weekdays and one Saturday), measuring the peak periods between 10am to 11:30am and 2:30pm to 4pm (weekdays) and 10am to midday (Saturday).

3.9 The data shows the average occupancy of the on-street parking during the morning and afternoon peak was 42%. This compares with 51% reported in November 2024.

3.10 The car parks that had the highest average weekday occupancy were the five car parks in front of Ebony Coffee (opposite Central Normal School). The car parks that had the lowest average weekday occupancy were the three car parks in front of Troy Howard Motors (opposite Palmerston North Boys’ High School).

BUS SERVICE

3.11 The bus network on Featherston Street is serviced by four in-lane bus stops, adjacent to Suzuki, Woolworths, Office Products and Palmerston North Boy’s High School (PNBHS).

3.12 The bus services using these four stops are:

· Route 104 (using the stops at Woolworths and Office Products)

· Route 106 (using the stops at PNBHS and Suzuki)

· Route 311 (using the stop at PNBHS)

3.13 At peak, buses can service these stops every 15 minutes, though in practice buses do not pick up or drop off passengers at each bus stop on every journey.

3.14 The following data provided by Horizons is for the 2-week period 17 February to 1 March 2025:

Bus stop	Dates	Total passengers boarding / alighting / transferring over the 2-week period	Percentage of times buses stopped at this location	Average dwell times of buses when stopped for passengers
Suzuki
	4-17 Sept. 2023 (pre-construction)	52
	9-22 Sept. 2024 (post-construction)	322	22%	25 seconds
	17 Feb. -1 March 2025	529	35%	28 seconds
Woolworths
	4-17 Sept. 2023 (pre-construction)	183
	9-22 Sept. 2024 (post-construction)	198	25%	18 seconds
	17 Feb. -1 March 2025	184	29%	18 seconds
Office Products
	4-17 Sept. 2023 (pre-construction)	134
	9-22 Sept. 2024 (post-construction)	164	20%	31 seconds
	17 Feb. -1 March 2025	142	44%	26 seconds
PNBHS
	4-17 Sept. 2023 (pre-construction)	137
	9-22 Sept. 2024 (post-construction)	393	24%	21 seconds
	17 Feb. -1 March 2025	444	29%	20 seconds

Table 3: Bus passenger data

3.15 The data shows that the in-lane bus stops have a less than minor effect on overall traffic flow and efficiency. Using the bus stop at Office Products as an example:

o In a ‘busiest case scenario’ – with a bus stopping every fifteen minutes during the peak period – there would be a consequential 4.4 second addition to the total journey time for vehicles using that section of road during the peak period.

3.16 The data captured during both 2-week post-construction periods shows that patronage has more than doubled at these four bus stops, compared with the corresponding period pre-construction (Further, the total patronage across these four bus stops has increased by 20% since November’s post-construction reporting period).

3.17 Horizons report that patronage across the Palmerston North bus network has increased by 54% since the new services came into effect in March 2024. Over one million people have used the Palmerston North bus service over the first 12 months of operation.

CRASHES

3.18 In the 8-month period between July 2024 and February 2025, since construction was completed, three crashes have been reported:

· One minor crash involving a car and motorcyclist at the intersection of Aroha Street (this crash was included in the November 2024 report);

· One serious crash involving a young pedestrian crossing Featherston Street near the intersection of Taonui Street (i.e. away from any of the formal crossings);

· One non-injury crash at the Rangitikei intersection.

3.19 By comparison, over the five years between 2019 and 2024, there were 92 reported crashes on Featherston Street between PNBHS and Central Normal School: 1 serious, 21 minor, 70 non-injury.

DESIGN AND OPERATIONAL ISSUES

3.20 For the November 2024 report, we reported on some minor design and operational issues within this segment of Featherston Street and the intersection with Rangitikei Street, which we have been investigating and seeking to address through existing programmes, subject to budget capacity:

a) Cycleway:

I. Some bike riders had been experiencing issues at the intersection, with the detector loops not picking up their presence.

a. This issue has been resolved by adjusting the loop sensitivity.

II. Some drivers continue to park their car in the cycleway, in the gaps between separators near intersections. This is a safety issue that we can address with the addition of separators in the gaps.

a. This issue has yet to be addressed, as there is no budget to install additional separators.

III. The addition of the artwork provided by Rangitāne has not yet been added to the cycleway. This artwork is intended for the approaches to the in-lane bus stops.

a. The Rangitāne artwork has not been added, as there is no budget for improvements.

b) Footpath:

I. The remaining faults along the original footpath on both sides of Featherston Street pre-date implementation of the recent improvements. Subject to budget capacity, these faults will be repaired, and sections of the footpath will be renewed.

a. Repairs to this section of footpath have not yet been carried out, as the footpath maintenance budget is being used to address faults in other priority areas.

II. Some motor vehicles, including heavy vehicles, are cutting across the footpath build outs as they turn left into the side streets, which is damaging the new grass.

a. We are trialling the use of flexi-posts in the build-outs to discourage motorists from mounting the curb.

III. Officers are also considering further improvements proposed by the Disability Reference Group and Blind Low Vision NZ.

a. These may be captured in the Accessibility Audit, currently being investigated and scoped in collaboration with the Disability Reference Group.

c) Public transport

I. It can take longer than planned for public buses turning left from Featherston Street into Rangitikei Street, which is affecting the operator’s ability to run one of the services to schedule. Officers from PNCC and Horizons are investigating possible solutions with NZTA Waka Kotahi.

a. Investigations of possible solutions are ongoing between PNCC, Horizons and NZTA Waka Kotahi.

d) Vehicles

I. Two affected businesses have proposed minor changes to the road layout, to improve user safety and access. Officers have considered these changes.

a. Cross hatching has been added at the Jaycar vehicle crossing;

b. Investigations are ongoing into queueing safety outside Mitre10, where we are measuring vehicle volumes and speeds.

3.21 Construction defects have all been addressed and the certificate of completion has been issued to the contractor.

4. MARKET ANALYSIS

4.1 A market analysis was carried out of selected businesses adjacent to the segment of Featherston Street between North Street and Aroha Street.

4.2 The market analysis:

a) Compared the data for the six-month periods between August 2023 to January 2024 (pre-construction) and August 2024 to January 2025 (post-construction);

b) Measured the number of transactions and value of electronic card spending;

c) Measured the activity of five large retail businesses and ten smaller businesses.

4.3 The data was compared with trends in Palmerston North and sub-precincts within the city, as well as compared with trends nationally.

4.4 The Featherston Street study area has maintained the same market share in terms of spending and transactions in relation to Palmerston North:

§ Spending in the study area represented 4.1% of total spending in Palmerston North over both analysis periods.

§ Transactions in the study area represented 4.5% of total transactions in Palmerston North over both analysis periods.

4.5 For affected businesses on Featherston Street, the data comparing both six-month periods shows:

	Change in spending	Change in the number of transactions	Change in average spend per transaction
Large businesses	-1.3%	-0.7%	-0.6%
Small businesses	-2.7%	-0.7%	-2.0%
Total study area	-1.4%	-0.7%	-0.6%

Table 4: Market analysis showing percentage changes

4.6 During the same six-month periods:

a) Electronic card spending in Palmerston North fell by -1.6%, compared with -1.3 nationally;

b) Retail spending in the ‘CBD and Broadway precinct’ increased by 0.1%;

c) Retail spending in the ‘Terrace End precinct’ fell by -2.2%, with spending in the ‘Outer CBD precinct’ falling by -1.1%.

4.7 Therefore, based on comparing both six-month data sets (pre-construction August 2023 to January 2024 and post-construction August 2024 to January 2025):

a) The reduction in retail spending (-1.4%) in the Featherston Street study area is slightly better than Palmerston North (-1.6%) and slightly lower than New Zealand (-1.3%)

b) The fall in the number of transactions in the study area (-0.7%) is the same as the fall in Palmerston North (-0.7%), but behind New Zealand’s growth (0.2%)

c) The fall in spending per transaction in the study area is slightly better

(-0.6%) compared to Palmerston North (-0.9%) and New Zealand (-1.5%)

4.8 The analysis indicates that the Featherston Street study area has maintained the same market share in terms of spending and transactions in relation to Palmerston North. The downturn in retail spending and transactions experienced is largely consistent with, and in some cases better, than the contraction in retail spending observed in comparator areas. Notably, total spending fell less in the Featherston Street study area than in Palmerston North overall, while the fall in average spend per transaction in Featherston Street was less than the decline for both Palmerston North and New Zealand. Overall, the retail spending trend for the Featherston Street study area was stable comparing the period August 2023 to January 2024 (pre-construction) with August 2024 to January 2025 (post-construction).

4.9 Trends over the six-month period show that changes in retail activity in the Featherston Street study area does not depart from wider observations of retail activity across the city and New Zealand.

4.10 The full ‘Featherston Street electronic card retail spending analysis – August 2024 to January 2025’ is included as Attachment 2.

5. COMMUNITY VIEWS

5.1 We have been receiving less public feedback through official Council channels since construction was completed in July 2024 and since NZTA Waka Kotahi addressed faults with the signals at the intersection with Rangitikei Street / State Highway 3.

5.2 We have compiled two sets of community views on the changes to Featherston Street, since construction was completed:

a) Direct stakeholder and user feedback

b) Hard copy surveys

Direct User and Stakeholder feedback

o We invited affected businesses and schools along Featherston Street to comment on the changes. The feedback received has been compiled into a single document, along with additional feedback from other stakeholders and users.

o See Attachment 3 ‘Featherston Street post-construction stakeholder and user feedback April 2025’.

Hard copy surveys

o A post-construction survey was carried out between 3 February and 6 March 2025, with questions about safety across different modes, issues, likes and dislikes.

o Surveys were carried out during peak hours during weekdays and weekends, outside the schools and businesses, as well as around the intersection and bus stops.

o Respondents were a mix of motorists, pedestrians, bus passengers and bike riders.

o The February results are similar to those we reported in November 2024. They show that respondents have mixed views about safety and other benefits of each of the improvements along Featherston Street.

o Responses continue to reflect a mix of perspectives, with many users acknowledging improvements in safety and accessibility, while some concerns remain regarding specific aspects of the street design.

o The main findings are:

a) There is an even spread of opinions. Around a third of respondents believe the new street design is safer, around a third believe it is less safe and around a third believe the level of safety is unchanged;

b) Most people rate walking and cycling as safer than before, however opinions on safety are mostly negative regarding driving, parking and bus stops;

c) The main concerns raised were around parking, changes to the Rangitikei Street intersection and bus stops.

o Refer to Attachment 4 ‘Featherston Street post-construction engagement report April 2025’.

6. CONCLUSION

6.1 Safety improvements to Featherston Street between Palmerston North Boys’ High School and Central Normal School were completed in July 2024 and since then users have been adapting to the changes.

6.2 Both sets of post-construction data (April 2025 and November 2024) show there has been a reduction in the volume of private and freight vehicles using Featherston Street, as well as a reduction in vehicle speeds. Data on travel times is mixed, however the latest data shows a decrease in travel times in both directions, compared with pre-construction.

6.3 The footpaths on both sides of Featherston Street carry an increasing number of pedestrians at peak times. The cycleway is being well used and bus patronage has more than doubled.

6.4 The data shows that it is a safer environment, with proportionally fewer crashes compared with pre-construction.

6.5 The Featherston Street Safety Improvements Project covers 750 metres of a 4.5-kilometre road intended to prioritise public transport and cycling. The changes completed in July 2024 are delivering localised benefits and affecting some users’ behaviour.

6.6 The transaction data shows that businesses along this segment of Featherston Street, while experiencing a reduction in retail spending, performed slightly better than the rest of the city over a six-month period.

6.7 Public feedback has reduced since construction was completed. There are mixed views about the changes, though there is general agreement amongst users that the environment is safer for people walking and riding bikes.

7. NEXT STEPS

7.1 We are continuing to address the remaining minor design and operational issues, subject to budget capacity.

7.2 No further Council reports are scheduled for Featherston Street.

7.3 It would be possible to carry out additional monitoring and evaluation, however this would require a budget allocation in the Annual Plan.

8. 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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 3. Mahere tūnuku 3. Transport Plan The objective is: Prioritise transport programmes that deliver on Council’s goals.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	NZTA Waka Kotahi’s Streets for People programme aims to create liveable cities through mode shift and creation of low carbon transport choices. Our project aims to improve environmental and social wellbeing for our community.

Attachments

1.	Featherston Street pedestrian and cycle counts Feb-March 2025 ⇩
2.	Featherston Street electronic card retail spending analysis - August 2024 to January 2025 ⇩
3.	Featherston Street post-construction stakeholder and user feedback April ⇩
4.	Featherston Street post-construction engagement report April 2025 ⇩

Report

TO: Economic Growth Committee

MEETING DATE: 9 April 2025

TITLE: Draft Parking Framework - Approval for Public Consultation

PRESENTED BY: James Miguel, Senior Transport Planner

APPROVED BY: David Murphy, General Manager Strategic Planning

RECOMMENDATION TO Economic Growth Committee

1. That the Committee approve the draft Parking Framework (Attachment 1) for public consultation.

Summary of options analysis for

Problem or Opportunity	Palmerston North does not have a strategic plan for how parking is managed in the city. This means that parking decisions have often been made in isolation and are not integrated with wider transport planning considerations. By developing a framework that provides direction and guidance for managing parking, the Council can align carparking management with Council’s broader goals for the City and the transport network, and community aspirations for specific places.
OPTION 1:	Approve the draft Parking Framework for public consultation. This option is recommended.
Community Views	Community views have been provided in the early stages of the development of the draft framework. Further community views on the draft proposal will be sought through formal consultation.
Benefits	The framework will guide future parking decisions made by the Council, therefore improving transparency and consistency in decision-making and ensuring progress towards the Council’s broader goals. Council can make changes to the draft Parking Framework prior to adopting it for public consultation and following submissions.
Risks	Parking management tends to raise competing views within the community regarding the broader approach to managing the transport network. There is a risk that the Council will receive mixed feedback and find it difficult to resolve these tensions. Parking Framework seeks to manage this risk by improving transparency and consistency in decision-making.
Financial	Costs are met within current budgets
OPTION 2:	Status Quo - Do not approve the draft Parking Framework for public consultation
Community Views	Further community views on a framework will not be sought.
Benefits	Consultation fatigue is avoided, post local Water Done Well and Annual Budget.
Risks	Parking management will continue to be managed as per the status quo, with issues being resolved on a somewhat ad-hoc basis. Parking changes are less likely to align with wider transport planning objectives. As the parking framework is a part of the Palmerston North Integrated Transport Initiative (PNITI), there may be a perception by our funding partners that we are not committed to progressing PNITI. Stakeholder who have been involved to date may be disappointed that their time has been wasted.
Financial	No additional costs as work on the parking framework would cease.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 The Council manages a significant amount of on and off-street carparking and there is often competing demands for this space and how it is utilised.

1.2 Currently Council manages its parking on an as-needed basis, with changes being made on a case-by-case basis. While this does allow Council to address specific parking requests, it limits Council’s ability to align its parking management decisions with wider Council goals.

1.3 A draft Parking Framework included as Attachment 1 has been developed in effort to address this issue.

1.4 The purpose of the Parking Framework is to:

· Align carparking management with Council’s broader goals for the City and the transport network, and community aspirations for specific places.

· Ensure the efficient use of carparks so that there is an adequate supply now and into the future as the city grows.

1.5 Palmerston North is growing and is projected to continue to grow. As the City grows the demand on the transport network is likely to grow as well. By aligning parking management with wider transport planning, we can mitigate the worst of these impacts on the transport network. We can ensure that there is an appropriate supply of parking while enabling development within the city.

1.6 Nothing in the Parking Framework predetermines a specific carparking outcome in a location in the city. Specific decisions will only be made following the preparation of more detailed parking management plans, and the design and consideration of capital programmes.

1.7 The draft Parking Framework was developed with input from a number of community stakeholders. We are now seeking to consult with the wider community to seek their views on the draft framework.

2. Background and previous council decisions

2.1 In 2021 NZTA Waka Kotahi completed the Palmerston North Integrated Transport Initiative (PNITI) Network Option Report. The report put forward a programme of interventions designed to address a number of safety and amenity issues, while improving the overall access for the city. The programme comprises over 70 projects, one of which is a review of the Council’s parking management.

2.2 Work on the Parking Framework began in October 2021 following the completion of PNITI. The project was initially scheduled to be completed in 2022. It has been delayed due to resourcing and budgetary constraints and to avoid consultation overlap with the 2024 Long-Term Plan.

2.3 The project commenced with a workshop with the elected members on 10 October 2021. This workshop was where the initial strategic direction was laid out for the framework. Following this, the project team commenced development of the framework. A second workshop with elected members was undertaken in August 2023. At this workshop, elected members provided feedback on the principles that had been drafted.

2.4 Initial stakeholder engagement was undertaken in 2022, with key stakeholders providing input into parking challenges and issues in the city. This helped to formulate the draft Parking Framework. Further engagement with stakeholders occurred in 2023. The draft framework was shared with stakeholders to seek further feedback as it was refined and prepared for consultation.

2.5 On 27 March 2024 officers held a further workshop with elected members to present a working draft of the Parking Framework, ahead of presenting the draft to the Economic Growth Committee. As a consequence of the workshop discussion, consultation was postponed until after the Long-Term Plan consultation was completed.

2.6 The Parking Framework was also discussed by elected members on 18 September 2024 as part of a workshop on Transport Planning priorities (following a briefing from Waka Kotahi NZTA). There were mixed views on the need for a Parking Framework and the content of the draft Parking Framework. Elected members sought that the matter was to be resolved via consideration at the next Economic Growth Committee.

2.7 A draft parking framework was presented to the Economic Growth Committee on 20 November 2024. Prior to the Committee meeting, an elected member had circulated an alternative version of the Parking Framework for consideration. A procedural motion was passed which laid the November report on the table and requested that a workshop occur in the meantime.

2.8 On 12 February 2025, a workshop was held to discuss the parking framework and the alternative. Now, in this new report, Officers propose a draft based on the discussion at the workshop to the Committee.

3. Overview of amendments to draft

3.1 Following the February 2025 workshop, officers made amendments to the draft framework, to capture the discussion at the workshop.

3.2 The alternative version of the parking framework circulated at the 20 November 2024 Economic Growth Committee was also used to inform the further amendments made to the draft.

3.3 Amendments to the Introduction section:

· Updated second purpose bullet point to include text around ensuring adequate parking supply as the city grows

· Change to text around alternative transport modes and mode shift. The updated text focuses more on integrated transport planning. Have included an example from Queenstown of aligning parking changes with Public Transport changes.

· Introduced text to discuss the role of private parking facilities and the relationship with public parking facilities.

· Removed section ‘Too much parking can create negative outcomes’.

3.4 Amendments to Objectives and Principles:

· Removed objectives ‘Promote sustainable transportation’ and ‘Unify parking for a safe and smooth transportation system;

· Added new objective ‘Support a balanced transportation network’. This objective brings together two removed objectives. The new objective better reflects the general transport outcomes that the city wants to achieve.

· Minor text change to the principle ‘Ensure parking supports a quality urban environment’

3.5 Amendments to Parking Management in City Centre:

· Included wording in the title and the text to include Commercial areas. The changes mean that this approach would also look to include the commercial areas surrounding the city centre.

· Added text to think about the interaction between public car parking and private car parking. Included a proposed approach seeking to explore opportunities to work with the private sector to provide off-street parking facilities.

· Changed text around alternative modes to better reflect the role of end-of-journey facilities.

· Updated the proposed approach to encourage longer-stay parking to use off-street facilities.

· Included a longer-term direction to shift more on-street parking to off-street facilities.

· Moved the placement of long-stay parking up in the parking hierarchy.

3.6 Amendments to Parking Management in Residential Streets with high demand:

· Changed position on residential parking permits to impose restrictions in the first instance, then to phase out if conflicts continue.

· Added Long stay parking into the parking hierarchy

3.7 Amendments to Supporting Actions:

· Added action to introduce restrictions to residential parking permits. This replaces action to phase out residential parking permits

· Added action to investigate off-street parking opportunities

· Added action to regularly review/audit Council permit rules and processes

3.8 The amendments made to the draft have not resulted in any changes to the overall policy alignment.

4. Description of options

4.1 There are two principal options in this report. The first is to approve the draft Parking Framework for public consultation. If the Council chooses this option, then officers will proceed to consult the community on the draft Parking Framework.

4.2 Council can make changes to the draft Parking Framework prior to adopting it for public consultation and following submissions.

4.3 The second option is to not approve the draft Parking Framework for public consultation. If this option is chosen, we will not proceed with public consultation and work on the Parking Framework will stop until officers receive further instructions from elected members.

5. Analysis of options

5.1 Option 1: Approving the draft Parking Framework for public consultation – gives the Council the opportunity to test its approach to parking management with the community. This allows staff to identify improvements that can be made to the framework and understand the views of the wider community.

5.2 Option 2: Not approving the draft Parking Framework for public consultation – would halt progress on the Parking Framework, which has already been delayed. Council will continue to address parking issues on a case-by-case basis without there being a clear alignment in the desired outcome.

6. Conclusion

6.1 Option 1 – approving the draft Parking Framework for public consultation is the recommended option.

6.2 There are clear benefits to undertaking consultation and giving the community an opportunity to provide feedback on the draft Parking Framework, which is an identified action within PNITI.

7. Next actions

7.1 If the recommendation to consult on the Parking Framework is approved, we will start preparing for public consultation, as detailed in section 7 of this report.

7.2 The draft Parking Framework will be developed into a refined document prior to public consultation.

7.3 Hearing of submissions has not yet been scheduled. Subject to approval to consult, officers will work to confirm the dates of the hearings. Following the completion of the consultation process, the Parking Framework will be deliberated on in response to submissions and then recommended to Council for adoption.

7.4 Once the Parking Framework has been adopted, officers will commence work on the first parking management plan.

8. Outline of consultation process

8.1 If the committee approves the draft for consultation, officers propose to undertake consultation in May.

8.2 Consultation will be limited to the resources available and involve the following:

· direct contact with identified stakeholders;

· Public drop-in sessions at key locations;

· Radio adverts to target the morning commute;

8.3 In addition to the above methods, a consultation page on the Council website will host details of the framework, along with a submission form for people to provide feedback. The framework and the opportunity to provide feedback will be promoted via our social media channels. Printed copies of the consultation document and the submission form will also be made available.

9. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual; 4.2 Economic Growth Committee Terms of Reference.		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 Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in Transport The action is: Manage parking in accordance with transport and urban design objectives
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The completion of a Parking Framework to guide decision-making around parking means that decisions can be made in a coordinated manner that aligns with wider transport strategies and achieves a more positive outcome for the community.

Attachments

Draft Parking Framework April 2025 ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 9 April 2025

TITLE: Palmerston North Airport Limited - Draft Statement of Intent for 2025/26 to 2027/28

Presented By: Steve Paterson, Manager - Financial Strategy

APPROVED BY: Cameron McKay, General Manager Corporate Services

RECOMMENDATIONS TO Economic Growth Committee:

1. That the Committee receive the Palmerston North Airport Limited (PNAL) draft Statement of Intent for 2025/26 to 2027/28, presented to the Economic Growth Committee on 9 April 2025.

2. That Palmerston North Airport Limited be advised:

a. Council supports the proposed direction and implementation strategy;

b. Council recognises the projected requirement for loans totalling $40.9m by 30 June 2026 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

1.1 To present and provide comment on the draft Statement of Intent for Palmerston North Airport Limited (PNAL) for 2025/26 and the following two years.

2. BACKGROUND

2.1 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 2025.

2.2 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.

2.3 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.

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

2.5 On 20 November 2024 the Committee adopted a Statement of Expectations for PNAL and this was provided to PNAL in advance of its development of the draft SOI.

3. Draft Statement Of Intent - Overview

3.1 Attached is a letter from PNAL to shareholders explaining the enclosed draft SOI and outlining the key assumptions (Attachment 1).

3.2 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.

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

3.4 It has been assumed there will be an approx. 2% p.a. growth in passenger numbers to 565,000 in 2027/28 off a low base in 2024/25.

3.5 Operating revenues are budgeted to increase and whilst movements in costs are variable – the reasons are explained in the covering letter and on page 18 of the SOI.

3.6 The three-year budgets assume capital development (totalling $73.1m; including terminal ($34.8m), Ruapehu Aeropark ($26.9m), airside infrastructure ($4.5m) and landside infrastructure ($4.7m)) will be able to be accomplished by PNAL with net additional borrowing ($57.3m) but without the need for additional share capital.

3.7 The terminal development project will bring with it significant disruptions to the customer experience, day to day operations and the financial outcomes. PNAL indicate that managing disruption and customer communication are key priorities for them.

3.8 Shareholders’ funds as a percentage of total assets are forecast to reduce to 60% in the first year and 50% through the rest of the three-year term of the SOI. This is still well above the expectation that it will remain over 40%.

4. Draft SOI – Performance Targets

4.1 The following financial performance targets are included in the draft SOI. The draft SOI outlines the budgeted outcomes for 2026/27 and 2027/28 in addition to 2025/26 shown below.

	Draft SOI 2025/26 Budget	Forecast 2024/25	SOI 2024/25 Budget
NPBIT: Total assets	6%	6%	5%
NPAIT: Shareholders’ funds	(1%)	1%	(2%)
Shareholders’ funds: Total assets (>40%)	60%	75%	59%
Interest cover (>2.5)	5.5	9.7	4.4
Tangible Net Worth (>$80m)	$80.9m	$80.5m	$84.1m
Net debt	$40.8m	$16.3m	$44.9m
Total Debt to Total Debt + Equity ratio	34%	17%	53.4%
Net Debt*/EBIDA (long term target < 4.5)	4.9	2.5	6.4
Funds from Operations (FFO**)/Net Debt (long term target > 11%)	15.9%	38.0%	13.5%

*Net Debt = total borrowings less cash on hand

**FFO = EBIDA less interest less tax

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

4.3 Examples include:

· Various compliance requirements including CAA part 139 recertification

· Maintaining a customer satisfaction Net Promoter score as close as reasonably practical to the greater of the tourism industry benchmark or 45

· Serving 543,400 passengers during the 2025/26 year increasing to 555,700 for the following year and 564,800 in the June 2028 year

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

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

· Completion of physical works:

o Terminal development with stage 1 (Western end) complete in mid-2026 and stage 2 (Eastern end) complete in mid-2027

o Progressively extending the covered walkways to carparks

o Airside pavement upgrades

o Commercial developments in the Ruapehu Aeropark focused on freight and logistics, premises for aeronautical operators, rental car precinct and Massey School of Aviation support premises.

5. Draft SOI – Dividend policy

5.1 Council’s Statement of Expectations (SOE) outlines the expectation that:

“PNAL is required to have a commitment to retaining and growing long-term shareholder value. Council recognizes that shareholder value accretion occurs through PNAL’s ongoing and significant investment in critical infrastructure including the terminal redevelopment 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.

Council further recognizes that given the magnitude of the planned capital programme associated with the terminal replacement and commercial development opportunities PNAL’s ability to preserve cash is likely to be constrained in the short-term. However as outlined last year Council has an expectation that a dividend payment will be progressively re-instated, in line with PNAL’s dividend policy and that the implications of this will be addressed annually through the SOI.

As a guide Council has the following dividend expectations:

· the dividend payment for the 2024/25 year (payable in 2025/26) will be no less than 20% of net profit after tax or $300,000, whichever is greater,

· the dividend payment for the 2025/26 year (payable in 2026/27) will be no less than 40% of net profit after tax or $400,000, whichever is greater,

· the dividend payment for the 2026/27 year (payable in 2027/28) will be no less than 40% of net profit after tax or $500,000, whichever is greater.”

5.2 The draft SOI contains a section relating to its dividend policy. It acknowledges the Council’s dividend expectations and provides for them at the levels indicated in the SOE. PNAL provides information about projected cashflows and it’s ability to fund the payment of dividends. It notes that although dividend payments are being planned for, it will need to borrow to make the payments. It also notes as is the case for the current SOI:

“Directors will have the opportunity to assess a range of criteria before arriving at an appropriate dividend, including actual and projected performance. In establishing a dividend recommendation, the Directors will consider the following:

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

· The company’s financial performance including cashflows from operations,

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

· Compliance with performance metric targets,

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

5.3 In summary the forecast position is as outlined in the following table:

Forecast/Budget	Forecast 2024/25	SOI 2025/26	SOI 2026/27	SOI 2027/28
Net profit/(loss) after tax	$(1.113m)	$0.810m	$2.764m	$3.591m
Dividend declaration	$0.3m	$0.4m (49% of NPAT)	$1.106m (40% of NPAT)	$1.436m (40% of NPAT)
Dividend payment	$0.195m	$0.3m	$0.4m	$1.106m

5.4 Council’s Long-term Plan 2024-34 currently assumes there will be a dividend received of $150k each year and indicates there is a high level of uncertainty regarding this assumption. Council recognises the dividend in the year of payment. Council’s proposed annual budget for 2025/26 assumes the Council will receive a dividend payment of $300k during 2025/26.

5.5 The matters highlighted by PNAL raise the issue of whether or not it is appropriate for the Council to expect dividends at a time when cash outgoings for essential development effectively mean PNAL is being required to borrow to fund the dividend payment.

5.6 The situation has not changed since the Council considered this when adopting the Statement of Expectations containing the dividend expectations.

5.7 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.

6. Draft SOI – Debt funding

6.1 The Council and PNAL have entered a $50m loan facility agreement that aims to reduce the interest expense for PNAL and involves the Council borrowing from the Local Government Funding Agency then on-lending to PNAL at a market-related margin to cover Council’s costs and the risks involved. The intention of the agreement is that the Statement of Intent is a mechanism for determining the maximum facility agreement in any given year.

6.2 To date $12m has been raised and on-lent under the terms of the facility. The draft SOI forecasts term liabilities increasing to $73.6m over the coming three years (up to $40.9m in year one) and that revenue will be adequate to service this level of debt. At the present time PNAL has a $15m facility agreement with its bank and plans to seek proposals from banks to increase this to $40m. This is further addressed in section 7 below. 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.

6.3 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.

7. PNAL structure &/or investment partnerships

7.1 The previous two SOIs have highlighted capital constraints have limited PNAL’s ability to deliver developments in the Ruapehu Aeropark.

7.2 PNAL and the Council have investigated possible options. Council has expected PNAL to be the primary driver of this investigation.

7.3 PNAL advise (on page 19 of the draft SOI), they have concluded the most appropriate approach for the time being is to finance the development through additional borrowing. In view of this they plan to seek proposals for a new $40m line of credit, up from the present $15m facility. Their aim is to have the new facility in place by 1 July 2025. It is necessary for PNAL to have a bank facility as this is capable of being structured more flexibly than is possible through the facility with the Council.

7.4 It will be sensible for the Council and PNAL to work closely to ensure an appropriate mix of bank and Council sourced debt each year to achieve the best outcomes.

7.5 As outlined in clause 6.3 the Council needs to continue to be assured PNAL is capable of servicing its total debt without impacting the Council’s ability to borrow for its own purposes.

7.6 PNAL recognise this and will assure themselves each investment proposal is sufficiently robust to be able to be sustained.

8. NEXT STEPS

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

9. Compliance and administration

Does the Committe 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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan 3. Mahere tūnuku 3. Transport Plan These relate to having an innovative, resilient & low-carbon city economy where people, whanau and communities can prosper & achieve their goals and a city transport system that links people & opportunities.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The airport is a key strategic gateway to the City. 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.	Covering letter from PNAL ⇩
2.	Draft Satement of Intent ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 9 April 2025

TITLE: Palmerston North Quarterly Economic Update - April 2025

Presented By: Stacey Andrews, City Economist

APPROVED BY: David Murphy, General Manager Strategic Planning

RECOMMENDATION TO COMMITTEE

1. That Committee receive the Palmerston North Quarterly Economic Update – April 2025, including:

a. Palmerston North Economic Growth Indicators - April 2025 (Attachment 1), and

b. Palmerston North Quarterly Economic Card Spending Report – December 2024 (Attachment 2),

presented to the Committee meeting on 9 April 2025.

1. introduction and purpose

1.1 This memorandum presents a summary of the key themes in the Palmerston North Quarterly Economic Update to April 2025, and the Palmerston North City Centre Quarterly electronic card spending (retail and selected tourism sectors) for the December quarter 2024.

1.2 The quarterly economic update is prepared in-house, using data from a range of sources to provide the most up-to-date information available on the city economy. This includes national and global data where appropriate, to inform us of broader conditions that are impacting on local economic conditions.

1.3 The quarterly economic update is organised under the categories of ‘Gross Domestic Product (GDP) and national indicators’, ‘business and jobs’, ‘earnings and income’, ‘spending’, and ‘housing’. National data that influences the city economy, such as the Consumer Price Index (CPI) and the Official Cash Rate (OCR), are also included in the quarterly economic update. This update is attached as Appendix 1.

1.4 The Palmerston North City Centre Quarterly electronic card spending report is 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 who are spending in Palmerston North. The electronic card spending report for the city is included as Appendix 2.

1.5 Section 2 of this report includes a high-level summary of economic outcomes for the city to April 2025. A more in-depth analysis of economic performance, including the economic outlook for the city, is included within sections 3 to 5 of this report.

2. Economic summary

2.1 Economic activity is showing some early signs of recovery as inflation remains subdued, housing market indicators improve, commercial vehicle investment starts to recover, elevated returns to the agricultural sector continue, and business confidence remains relatively positive.

2.2 While an improvement in economic activity is signalled in the latest data, there is still considerable pressure on the New Zealand economy. Consumer confidence remains downbeat, weakness in construction activity continues, job numbers are down, and concerns over the global growth outlook are hindering confidence. These factors are weighing on consumer demand for goods and services and placing businesses under pressure. Falling interest rates and repricing from higher onto lower mortgage rates throughout 2025, are expected to support spending across the economy and support business activity. It will take time however, for lower interest rates to flow through to demand, with the Reserve Bank of New Zealand (RBNZ) anticipating that positive economic impacts will be felt in the second half of 2025.

2.3 The New Zealand economy is expected to continue to strengthen throughout 2025 as lower interest rates flow through to businesses and households, and elevated commodity prices and strong demand for New Zealand exports, boost the economic performance of regional New Zealand. Increasing trade barriers and the potential impacts on global economic growth, however, pose a risk to the pace of economic recovery here in New Zealand. At the time of writing the detail of trade tariffs, and how they may impact on the New Zealand economy, is unclear. Recent events would imply that U.S. trade tariffs may not be as onerous as previously signalled by the Trump administration, but much uncertainty remains. Events are being watched closely by the economics team, to understand impacts on the city, regional, and national economy.

2.4 The December quarter 2024 returned the New Zealand economy to positive growth after two consecutive quarters of negative growth, with national GDP rising +0.7% compared with the September quarter 2024. This was a welcome surprise, with forecasters estimating quarter on quarter growth of between +0.3% and +0.5%. Unsurprisingly, growth was particularly strong in the ‘Agriculture, forestry and fishing’ sector, rising by +1.4% year-on-year.

2.5 On an annual basis, national GDP remained in contraction, down -0.5% compared with the year ended December 2023. In the city, GDP fell a relatively positive -0.2%. The ‘relative strength’ of the Palmerston North economy, has been driven, in-part, by our position at the heart of a strong rural economy.

2.6 Business numbers increased +0.6% in Palmerston North over the year to December, with an additional 47 businesses established. This was lower than national growth of +1.3%. At the same time, 903 jobs were lost in Palmerston North over the year (-1.9%). This compares with a -1.6% decrease in jobs, nationally. The unemployment rate in Palmerston North remains stable at 4.2% due, in part, to some people leaving the labour force in response to weaker labour market conditions. Increasing Jobseeker beneficiary numbers reflect the current labour market weakness with recipients in Palmerston North up +14.5% alongside a +12.4% increase in Jobseeker benefits, nationally.

2.7 Annual earnings growth has eased as expected in response to these weaker labour market conditions. Total earnings from salaries and wages increased 4.0% in the city over the year, compared with 4.5% growth nationally. These earnings figures exclude income from self-employment.

2.8 Tourism and consumer spending remains soft, with the exception of new commercial vehicle registrations which increased by +9.0% in Palmerston North over the December 2024 year. This compares with +4.4% growth nationally, over the same timeframe.

2.9 The housing market is showing signs of strengthening, with sales in the city up 10.6% over the year to February 2025 compared to an increase of 10.4% nationally. At the same time, house prices remain flat with the average price easing -0.7% over the year to a value of $637,895. This compares with a -1.4% decrease in house prices nationally to an average value of $912,904. Housing continues to be far more affordable in Palmerston North than at the national level, with the average property in the city equal to 5.0 times the average city income. This compares with the average house price of 6.7 times the average household income, nationally.

2.10 Weekly rental prices increased by +3.2% in the city over the year to January 2025, to an average price of $482 per week. This compares with an average weekly price of $596 nationally. There were 141 fewer properties rented in Palmerston North in January 2025 compared with January 2024. This may reflect spare capacity to cater for incoming demand for the academic year, an increase in houses sold as reflected in the annual house sales data for the city, and/or a decrease in demand. Further months of data will provide greater insight into rental property supply and demand conditions.

2.11 New dwelling consents increased +8.0% over the year to December 2024, to a total of 458. This compares to a -9.8% decline in dwelling consents, nationally. Of these 458 consents, a net 356 dwellings are expected to be added to the dwelling stock (77.7%). In contrast, non-residential consent values declined by -32.3% over the year as several large-scale public projects were completed in the city. Of note, construction values for ‘hotels, motels and other short-term accommodation’ increased to $5.6 million over the year, with investment in social, cultural and religious buildings’ and ‘storage buildings’ also increasing substantially over the year.

2.12 Section 2 of this report includes a high-level summary of economic outcomes for the city to December 2024. A more in-depth analysis of economic performance, including the economic outlook for the city, is included within sections 3 to 5 of this report.

3. Quarterly economic Update

Gross Domestic product and national indicators

3.1 Infometrics reports that Palmerston North GDP fell by -0.2% over the year to December 2024 as economic activity remained subdued due to the lingering impacts of restrictive monetary and fiscal policy. This compares with a -0.5% contraction in the New Zealand economy over the same timeframe.

3.2 More recently, Statistics New Zealand has released the latest national GDP figures, revealing that GDP grew above expectation at +0.7% between the September quarter and the December quarter 2024. This result was a welcome surprise, with commentators estimating quarterly growth of between +0.3% and +0.5%. Unsurprisingly, growth was particularly strong in the ‘Agriculture, forestry and fishing’ sector, increasing +1.4% over the year. GDP growth was also supported by a lift in activity in distribution and logistics, health care and social assistance, and tourism related sectors. Despite the stronger than expected result in the December quarter, national GDP still contracted by -0.5% in the 2024 calendar year, compared with 2023.

3.3 The ‘relative’ strength of the city economy has been driven in-part, by our position at the heart of a strong rural economy. Commodity prices for goods produced in the wider region have increased strongly over the past 12-months while, at the same time, interest rate pressures have eased. Elevated returns for agricultural products alongside easing interest rates, are contributing to profitability in the agriculture sector and supporting the economic recovery of the regions.

Figure 1: Manawatū-Whanganui export goods and values (2024)

Source: Infometrics, Regional Economic Profile, 2024

3.4 The latest ASB commodity price index reflects the rate of increase in prices for goods produced in our region, with dairy prices rising 13.5% over the year and sheep and beef prices up +20.7%. Supporting New Zealand Inc., fruit prices have also been well supported, rising by +16.8%, while forestry prices continue to come under pressure, down -7.4% over the year. Strong global demand and elevated pricing is benefiting our largest agricultural producers, supporting economic activity in the region amidst wider economic challenges. These favourable conditions are reflected in the latest Rabobank farmer confidence survey, with sentiment at its highest level since 2017.

3.5 Risks to global economic activity remain elevated as uncertainty from shifting United States (U.S.) policy, looks set to continue. How this will play out in reality is uncertain. On the one-hand, actual and threatened tariffs could redirect international demand to New Zealand products, boosting export returns to our producers. On the other hand, tariffs placed on our trading partners could slow economic growth within these countries, reducing incomes and weighing on demand for New Zealand products. More directly, if tariffs are placed on agricultural goods coming into the U.S., this would directly affect our producers with lower U.S. demand the likely outcome. It is worth noting that the U.S. is New Zealand’s second largest export market, with a total of $9.2 billion in exports to the U.S. over the year to January 2025. Beef is our largest export to the U.S., worth over $1.9 billion in value over the year. This is approximately 40% of the total value of New Zealand’s annual beef exports. The U.S. is also a substantial market for our wine producers with around 36% of total export values earned from exports to the US in the year to January 2025.

Figure 2: New Zealand exports into the United States (YE January 2025)Source: Statistics New Zealand, harmonised trade exports, January 2025

3.6 Tariff concerns are also front of mind for central banks as they grapple with the potential for lower growth amidst higher inflation. The endgame for global interest rates is uncertain. Initial fears are that the added cost of tariffs to importers would be passed on to businesses and consumers, fuelling inflation and pushing up global interest rates. As risks have continued to elevate, concerns have shifted toward fears of lower global growth and higher unemployment alongside elevated inflation, as tariffs weigh on global confidence and economic activity. Amidst the increasing risk of weaker global growth, lower interest rates also become a possibility should suppressed demand and investment sufficiently weaken the global economy and inflation. This would require central banks to reduce interest rates to stimulate economic activity supporting the recovery of the global economy. The risk of lower global growth, as a result of U.S. tariffs, is reflected in the latest OECD interim global growth report, which has revised expectations of global growth down from 3.3% to 3.1% in 2025, and 3.3% to 3.0% in 2026.

3.7 What all this means for the New Zealand economy is unclear. One thing is for sure, uncertainty is never positive for investment and economic activity. New Zealand businesses exposed to these risks may sit on planned investment awaiting greater certainty while volatility in currency, equity and bond markets, are weighing on investment across the wider global economy and pushing up debt servicing costs for both governments and the private sector.

3.8 On the upside, back at home annual inflation (as measured by the Consumer Price Index) remained at 2.2% for the second consecutive quarter in December 2024, falling from its peak of 7.3% in the June quarter 2022. Declining prices for goods we import into the country has been driving much of the annual decrease in consumer inflation, with imported (tradeable) inflation falling by -1.1% over the 2024 calendar year. In contrast, domestic inflation has remained elevated, with prices for domestically produced goods and services rising 4.5% over the year. The largest contributors to the increase in domestic inflation were rental prices, followed by local authority rates, and prices for cigarettes and tobacco. The first two are set to ease pressure on domestic inflation in 2025.

3.9 In response to weaker than expected economic activity and lower inflation, the RBNZ has continued to cut the OCR, with an additional 50bp drop at the most recent monetary policy review in February 2025. At the time of writing, the OCR sits at 3.75% with the next rate review scheduled for 9 April. Further rate reductions are expected this year with a 25 basis points drop forecast for the April review. The OCR is currently forecast to fall to 3.1% in the first quarter of 2026.

Business and jobs

3.10 There were 8,185 businesses in Palmerston North in December 2024; an increase of 47 businesses from the previous year. This is an increase of +0.6% over the year, compared with +1.3% growth in business counts, nationally.

3.11 The three-year business survival rate highlights the percentage of businesses that continue to operate after three-years, as an indicator of business resilience. The latest data to February 2024, indicates that 56.8% of businesses in operation in February 2021 continued to operate in February 2024. This is a slight increase in the percentage compared with the 2023 year, where 55.6% of businesses remained in operation after three-years. The previous five-years have been a period of elevated economic volatility, with survival rates ranging between 55.5% to 58.5% in the city over this period. National business survival rates have exceeded survival rates in the city since 2020.

Figure 3: Three-year business survival rate – Palmerston North (2021-2024)

Source: Statistics New Zealand, Business Demography

3.12 Non-residential consents totalled $126.4m in the city in the 2024 calendar year, a decline in value of -32.3% compared with 2023. This compares with a -0.9% decline in non-residential consent values, nationally. The decline in non-residential consent values in the city was driven by the completion of a number of large-scale public infrastructure projects, with ‘education’ and ‘healthcare’ construction values falling by -78.7% and -96.0% respectively over the year. In contrast, construction values for ‘hotels, motels and other short term accommodation’ increased by 138.2% to $5.6 million over the year. Strong growth in consent values for ‘social, cultural and religious buildings’ and ‘factories, industrial and storage buildings’ was also recorded in the city over the year, rising by 190.4% and 39.2% respectively.

3.13 The Seek Employment report for January 2025 showed a slight improvement in labour market conditions in the Manawatū Region in January 2025, with the number of jobs advertised increasing by +5% compared with the previous year. This compares with a +4% increase in jobs advertised nationally over the same time period. This improving trend follows a challenging year, where the number of jobs advertised fell by -29% in the region, compared with a -17% fall nationally. Nationally, ‘banking and financial services’, ‘mining resources and energy’ and ‘government and defence’ were the only three sectors where job ads increased year-on-year. Applications per job advertisement increased the most across ‘education and training’ (+18%), ‘customer service’ (+14%) and ‘construction’ (+12%) roles.

3.14 Excluding self-employment, there was a total of 46,925 jobs located in Palmerston North in December 2024. This is 903 fewer jobs than December 2023, down -1.9% from the previous year. This compares with a -1.6% decline in the number of jobs nationally over the same period. Filled jobs by place of place of residence followed a similar trend with people in employment in the city falling by -815 (-2.3%) to 35,118 over the year. This compares with a decrease in people employed nationally of 1.6%.

3.15 The annual average unemployment rate in the city remained at 4.2%, for the second consecutive quarter, falling from 4.4% in the first two quarters of 2024. This compares with an annual average unemployment rate of 4.7% nationally. For the December quarter, the unemployment rate in the city was 4.6% compared with a national unemployment rate of 5.0%. Statistics New Zealand estimated a national unemployment rate of 5.1% in the December quarter, with a total of 156,000 people unemployed.

3.16 The number of MSD jobseeker beneficiaries in Palmerston North increased by 447 over the year to September, to a total of 3,534. This is a +14.5% increase (+447) on the previous year, compared with a +12.4% increase, nationally. Of this increase, 312 people were receiving the benefit due to health conditions and disability, compared with an increase in work-ready jobseekers of 135 over the year.

3.17 The number of jobseekers increased across all age groups both in the city and nationally, in the 2024 calendar year. Jobseeker beneficiaries aged 18-24 increased by 138 in the city over the year (+18%), compared with a +19.6% increase nationally. Over the same period, Palmerston North Jobseekers aged 25-39 rose by 141 (+13.3%) compared with a +12.0% increase nationally, with Jobseekers aged 40-54 rising by 87 (+11.1%) in the city, compared with a +9.4% increase nationally. Palmerston North Jobseekers aged 55-64 increased by 87 (+18.5%), compared with a +9.6% increase nationally.

Earnings and income

3.18 Following high earnings growth over the period 2021 to early 2024, wage inflation is starting to ease with annual earnings growth falling back to 4.0% in the city in 2024. This compares with 4.5% growth in annual earnings, nationally. This period of high earnings growth coincided with public sector pay agreements and tight labour market conditions from 2021 to early 2024, where competition for labour was elevated, and wages were bid up to attract appropriately skilled workers.

3.19 Statistics New Zealand Linked Employer-Employee Data (LEED) measures median earnings from wages and salaries, including incomes from self-employment. This data has a twelve month lag and therefore estimates median earnings growth to December 2023; a period characterised by elevated wage growth due to pay agreements and higher wages being paid to attract scarce labour. Reflecting this elevated wage growth, median earnings in Palmerston North city increased by +8.3% over the year to December 2023 to a total of $67,700. This compares with a +6.0% increase nationally to a median salary of $68,590. The rate of growth in median incomes is expected to have eased in 2024, reflecting the more recent weakness in economic and labour market conditions.

3.20 Easing wage growth is reflected in the Quarterly Economic Survey (QES) for ordinary time hourly earnings, and the Labour Cost Index (LCI) for the December 2024 year. These measures of wage growth indicate that ordinary time hourly earnings increased by +4.2% over the 2024 calendar year, compared with a +6.9% increase in 2023. The LCI also reflects the easing of wage inflation with the increase in labour costs falling to 3.0% in 2024, compared with a 3.9% increase the previous year.

Spending

3.21 Retail spending fell -1.8% in the city over the year to February 2025, to a total of $1,480m ($1.48b). This compares with a -1.1% decrease in retail spending nationally. It is worth noting that 2024 was a leap year, therefore February 2024 comprised of 29 days in comparison to 28 days in February 2025. Retail spending is also in dollar value and does not account for the impact of inflation on the purchasing power of consumers.

3.22 As discussed, the annual rate of inflation in 2024 was 2.2% with an increase in average household living costs of 3.0% over the year. The annual rate of spending growth continues to come in well below the rate of annual inflation, reflecting a decline in real spending across the economy. The contraction of demand driven by higher interest rates and fiscal policy has successfully driven down inflation, but it has delivered challenges to the New Zealand economy, driving job losses and higher unemployment. Further relief from lower interest rates is expected to support an increase in spending across the national economy through 2025, but the recovery is expected to be gradual.

3.23 The pressure on household budgets is further reflected in the decrease in spending on discretionary items. ‘Home and recreational retail’ spending in the city fell by -13.9% over the year to February 2024, with spending on ‘Arts, recreation and visitor transport’ down -16.5% over the same period.

3.24 New car registrations in Palmerston North fell by -10.0% over the year to December 2024, compared with a -17.6% decrease nationally. Reflecting improving business confidence, the number of new commercial vehicle registrations increased by +9.0% in 2024 compared with the previous year. This compares with a +4.4% increase nationally. This uplift in expenditure on commercial vehicles in the city, is likely to have been supported by renewed confidence of our agriculture sector.

3.25 Annual tourism spending fell by -2.7% in Palmerston North in the year to January 2025, compared with the previous year. This compares with a +1.5% increase in tourism spending nationally. Tourism spending continues to be weighed down by a pullback in spending by domestic travellers, with domestic tourism spending falling by -3.5% over the year to January 2025 to a total of $270.9m. This compares with a -2.3% fall nationally. International tourism spending continued to strengthen in the January 2025 year, with spending in the city up +6.5% and a 14.2% increase in national spending.

3.26 The annual change in guest nights is also a useful indicator of tourism activity. Over the year to January 2025, guest nights in the city fell by -3.1% to a total of 422,500. This compares with a +0.5% Increase nationally. Reflecting the downturn in domestic tourism, guest nights from domestic travellers fell by -3.1% in Palmerston North over the same period, compared with a -2.5% decrease nationally. Guest nights from international travellers to the city fell by -4.2%, compared with a +6.9% increase nationally.

Housing

3.27 According to QV, house prices in Palmerston North fell by -0.7% over the year to February 2025 to an average price of $637,895. This compares with a -1.4% fall nationally to $912,904. The volume of houses sold in Palmerston North over the year reflects strengthening demand, with the number of houses sold up +10.6% over the year to a total of 1,278. This compares with a +10.4% increase in house sales, nationally. The February 2025 RBNZ Monetary Policy Statement reflects the expectation of a moderate strengthening of housing market conditions this year, with prices expected to increase by +3.8% in 2025, and a further +4.7% in 2026.

3.28 Total New Zealand mortgage lending increased to $77.0 billion in the year to January 2025, compared with $62.8 billion the previous year. This represents a +22.6% increase in mortgage lending in the January 2025 year. Mortgage lending to owner-occupiers and investors increased the most, up $7.9 billion (+21.8%) and $4.8 billion (+45.2%) respectively. Lending to first home buyers lifted by $1.3 billion (+8.9%) over the same period.

3.29 Home ownership continues to be far more affordable in the city than nationally, with the average house price equal to 5.0 times the average annual household income. This compares with the average house price of 6.7 times the average household income, nationally.

3.30 Rental prices increased 3.2% in the city over the year to January 2025, to an average price of $482 per week. This compares with a +1.9% increase nationally, to $596 per week. Over the same period, the number of properties rented in the city fell by -1.8% with 141 fewer properties rented in the city in January 2025 compared with January 2024. This compares with a +2.2% increase in rental properties nationally, over the same period. The fall in rented properties in the city in January, is possibly due to this data preceding the start of the academic year. Rental market conditions will be tracked closely to understand any changes to supply and demand conditions.

3.31 Renting a home in Palmerston North remains more affordable than across much of New Zealand, with annual average rent making up an estimated 19.8% of annual household income, compared with 22.0% nationally. Renting in the city is more affordable than both the Manawatū District and the wider Manawatū-Whanganui region, with average annual rent taking up 21.1% and 21.7% of the average household income, respectively.

3.32 The number of households on the public housing register in Palmerston North fell by -129 (-20.6%) over the year to December 2024. This compares with a -20.0% fall nationally. The number of families on the transfer register in Palmerston North sat at 147 in the December quarter 2024, down from 177 a year ago (-16.9%) compared with a 9.5% fall nationally.

3.33 Households in emergency housing in Palmerston North fell to 6 in December 2024, down from 63 in December 2023. The number of families in emergency housing, nationally, fell from 2,931 in December 2023 to 945 in December 2024. Some of the decrease in the number of families accessing housing support will be explained by the increased level of evidence required to prove housing need. Insights from MSD in the city also highlight an increase in tenancies available and stabilising rental prices in the city.

3.34 There were 458 consents for new dwellings issued in Palmerston North over the year to December 2024, an increase of 34 (+8.0%) compared with the previous year. This compares with a -9.8% decrease in new dwelling consents nationally. New dwelling consents have been trending down since the peak of the market in the city over the 2021 calendar year. Economic recovery and improving financial market conditions are expected to support levels of residential investment from 2026.

3.35 Provisional data estimates that a total of 356 of the 458 dwellings consented over the 2024 Calendar will add to the housing stock of Palmerston North. This series removes ‘relocates’ moved outside the city, adds in ‘relocates’ coming into the city from other parts of New Zealand, and removes uplifted dwellings. This estimate compares with the housing demand forecast in the 2024-34 LTP of 328 dwellings per year from 2024-2027, with 399 dwellings per year on average over the 10-years to 2034^{^[1]}.

4. Palmerston North electronic card spending report – December 2024

4.1 Total electronic card spending fell -1.1% in the December quarter 2024 compared to the December quarter 2023, to a total value of $403m. This compares with a -0.7% decrease in spending nationally over the same period.

4.2 Over the year to December 2024, electronic card spending in Palmerston North fell by -0.8% to $1.488 billion. This compares with a +0.1% increase in retail spending nationally over the same period. Of this total, 56.1% continues to be spent in the city centre.

4.3 In the city centre, spending in the December quarter 2024 increased by 0.2% compared with the December quarter 2023, to a total value of $231 million. This compares with a -0.7% fall in retail spending, nationally.

4.4 Over the December 2024 year, electronic retail card spending in the city centre fell -0.2% compared to the previous year, to a total value of $837 million. This compares with an increase in retail spending of 0.1%, nationally.

4.5 Discretionary spending has been most affected by the pullback in consumer demand with ‘home & recreational retail’ spending down -3.9% and ‘arts, recreation & visitor transport’ spending falling -6.5% in the city centre over the year. Spending on ‘home & recreational retail’ and ‘arts, recreation & visitor transport’ was down -4.0% and -4.4% respectively, in Palmerston North over the same timeframe. Nationally, spending on ‘home & recreational retail’ and ‘arts, recreation & visitor transport’ fell by -2.8%, and -4.2% over the year.

4.6 Spending on essential items continued to increase as households and businesses reduced spending on discretionary items. Spending on ‘groceries and liquor’ was the highest growth sector in Palmerston North, up +2.2% compared with the previous year. The trend for grocery spending was similar for the city centre and New Zealand, up by +4.0% and +2.7% respectively over the year.

4.7 Spending on ‘cafes, restaurants, and bars’ fell further over the December year, down -1.7% across the city and -1.3% in the city centre. This compares with a -0.2% fall in spending, nationally. Increasing demand for non-essential spending is expected to flow through to the city and national economy later in 2025, as relief from lower interest rates and improving business and consumer confidence boosts spending across the economy.

4.8 ‘Other consumer spending’ continues to rebound in the city with spending in the sector increasing +71.2% in the city centre and +22.9% across Palmerston North over the year. This compares with a +1.7% increase nationally over the same period. While ‘Other consumer spending’ makes up just +0.1% of total spending in the city, the increase in spending on these non-essential items implies an improving appetite for discretionary spending.

4.9 Palmerston North consumers remain relatively loyal to local merchants. The loyalty rate, explained as the percentage of spending by Palmerston North residents at local retailers, was 81.5% over the year to December 2024. Across the Manawatū Region, the loyalty rate increases to 82.9% as consumers from the Manawatū District contribute to spending in the city.

4.10 The Quarterly Economic Card Spending Report for December 2024 is attached as Appendix 2.

5. Economic outlook

5.1 The latest round of economic data reflects some early and tentative signs of recovery in both the New Zealand and city economy, with annual GDP growth becoming less negative and business sentiment improving across key sectors such as agriculture. Palmerston North’s position at the heart of a strong rural economy, was central to the stronger economic performance of the city, with elevated returns to agricultural production boosting the outlook for regional economies, relative to our larger metropolitan counterparts. Economic growth is expected to be positive as we progress through 2025.

5.2 The data also reflects the challenges that remain across our economy. Job losses and higher unemployment remains, and households continue to be hampered by the high cost of living and concerns over job and income security. While interest rates have been falling since August 2024, it is taking time for these lower rates to flow through and deliver relief to households and businesses. Combined with risk aversion from increasing job insecurity, and concerns over levels of demand by businesses, consumption has understandably been slow to respond to the easing interest rate environment.

5.3 Westpac estimates around half of all mortgages will come up for re-fixing in the next six-months, with the majority of these coming off higher interest rates onto lower rates. This is expected to boost disposable incomes in the second half of 2025, stimulating demand for goods and services across the New Zealand economy. This is expected to positively impact on demand for goods and services, and it follows, levels of employment across the country, with the number of people employed forecast to rise by 80,000 between March 2025 and December 2026. The unemployment rate is forecast to peak at 5.2% in the March and June quarters this year falling back to 4.5% by the end of 2026. New Zealand is in the early stages of economic recovery, but there is some way to go.

5.4 While projections reflect the expectation of strengthening economic conditions in 2025, there are external factors which may pose a risk to the economic recovery of the New Zealand economy. The potential impact of U.S. tariffs on economic growth is discussed in sections 3.5 to 3.7 of this report. The government is proactively strengthening relationships with countries where the mutual benefits of increased trade, are high. These efforts are reflected in recent Free Trade Agreements (FTAs) with the United Arab Emirates (UAE) and Vietnam, with FTA discussions currently underway with India. Building strong and mutually beneficial trade and security relationships with global partners, is critical to building the resilience of the New Zealand economy, in the face of mounting international challenges.

5.5 Assuming impacts on the New Zealand economy from trade tariffs are limited, pricing for commodities produced in our region such as dairy, are expected to remain elevated for the next two seasons, supporting the economic recovery of the city and the region. The repricing of the majority of mortgages from higher onto lower rates throughout 2025, will also support spending across the economy, and flow through to business investment and labour demand in time. The completion of large scale infrastructure projects such as Te Ahu a Turanga (the Manawatū Tararua Highway) will further support the regional economy, reducing transport costs and relieving travel times for businesses and residents.

5.6 The wellbeing of our people is also fundamental to achieving the economic objectives of our nation and our region, with a healthy, housed, and skilled workforce central to economic growth and prosperity.

5.7 Economic conditions remain challenging, but the New Zealand economy is moving in the right direction with inflation well back in range, interest rates falling and business confidence strengthening in 2025. Uncertainty from external factors look set to continue, with the impacts on the New Zealand and city economy, unclear. Factors that impact on the city, regional and national economy will be watched closely and reported back to Committee throughout 2025.

6. 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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to this plan: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan The objective is: Support sustainable business activity and labour market development, in particular, providing information and education resources to city businesses.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Reporting on economic trends in the city and the longer-term outlook for growth, is important for encouraging local business to invest, growing their business and attracting new businesses to the city. It is also important to support businesses to make informed decisions under the current economic conditions.

Attachments

1.	Palmerston North Economic Growth Indicators - April 2025 ⇩
2.	Palmerston North Retail Electronic Card Spending Report - December 2024 ⇩

Memorandum

TO: Economic Growth Committee

MEETING DATE: 9 April 2025

TITLE: 6 month report on International Relations and Education Activities

Presented By: Gabrielle Loga, Manager International Relations
Kate Harridge, International Relations and Education Advisor

APPROVED BY: David Murphy, General Manager Strategic Planning

RECOMMENDATION TO Economic Growth Committee

1. That the Committee receive the ‘6 month report on International Relations and Education Activities’, presented to the Economic Growth Committee on 9 April 2025.

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 activities over the past six months and their contribution to the relevant goal, strategy and plan.

2. BACKGROUND

2.1 On 5 June 2024, Council accepted the following goals set for the city’s international relations and education in 2024-2025:

· Increase international exchange & cooperation to strengthen local economies and preparedness for future challenges.

· Increase promotion of the city and engagement with international partners to enhance the city’s attractiveness as a tourism as well as a preferred study destination.

· Foster economic diversification and growth by facilitating new connections for local businesses, supporting emerging industries, and promoting innovation and entrepreneurship.

· Build up cultural competence, expertise and experience in international affairs across Council and within the city, with a focus on engaging the youth for the sustainability of Council’s international connections.

2.2 This report outlines the key international relations and education activities since October 2024 and measures them against the agreed goals. It also provides an updated activity schedule from the International Relations and Education Annual Plan 2024-2025.

INTERNATIONAL RELATIONS

3. Highlights of the global/national context

50^th Anniversary of New Zealand and ASEAN Relations

3.1 New Zealand formalised its relationship with the Association of Southeast Asian Nations, or ASEAN in 1975. In 2025, New Zealand will celebrate 50 years of dialogue relations with ASEAN.

3.2 ASEAN is New Zealand’s fourth largest trading partner with total trade value at $27.02 billion, ahead of the United States and behind China and Australia. ASEAN’s economic outlook remains positive with regional real GDP growth of 4.7% in 2024 and 4.8% forecast for 2025, outperforming the global average. With its commitment to sustainable agriculture and enhancement of cooperation in agricultural sector, ASEAN continues to be a critical trading partner of New Zealand. (Source: New Zealand Ministry of Foreign Affairs and Trade, 2024)

3.3 Within ASEAN, Viet Nam is the fastest growing and stable economy with a projected GDP growth of 6.5% for 2025. With few trade barriers, a population of over 100 million people and a growing middle class, Viet Nam has been identified as one of the top export growth opportunities for New Zealand. New Zealand’s top exports to Viet Nam are education, dairy, timber and horticulture. (Source: New Zealand Ministry of Foreign Affairs and Trade, 2024)

3.4 Prime Minister Luxon’s recent visit to Viet Nam saw an accession to the Comprehensive Strategic Partnership between the two countries and the announcement of a new direct flight between Auckland and Ho Chi Minh City for four times a week by VietJet. There is an expectation of increasing tourists and international students from Vietnam to New Zealand. (Source: https://www.stuff.co.nz/travel/360596326/new-zealands-new-low-cost-flight-standout-vietnam-great-news)

Figure 1 - Secretary of Foreign Affairs and Trade Bede Corry at the launch of 50th anniversary commemorations. (Source: MFAT website)

Figure 2 - Prime Minister Luxon visited Vietnam in Feb 2025 and attended the announcement of VietJet's direct flights between Auckland and Ho Chi Minh City

U.S Imposed Tariffs on Canada, Mexico And China - Implications for New Zealand

3.5 The United States is New Zealand’s third largest trading partner with a total trade value of $28.06 billion, after China and Australia. It is a significant source of foreign direct investment, education, tourism, and innovation. Despite New Zealand’s strong focus on free trade and its pursuit of Free Trade Agreements, there is no agreement between New Zealand and United States. However, the two countries have had a Trade and Investment Framework Agreement in place since 1992. Commercial ties between New Zealand and the United States are robust and growing. (Source: New Zealand Ministry of Foreign Affairs and Trade, 2024 and U.S. Department of States, 2025)

3.6 The United States has imposed tariffs on imports from America’s three biggest trading partners, 25% taxes on Mexican and Canadian imports and 20% on Chinese products. This action has drawn immediate retaliation from Beijing with tariffs of up to 15% on U.S. farm exports and from Canada with 25% tariffs on $20.7 billion USD worth of U.S imports. Both Canada and Mexico are negotiating with the United States in hope to work out a partial resolution; while China is hitting back promptly and strategically to each set of tariffs. (Source: The Associated Press News, 2025)

3.7 The ongoing tariff war can impact New Zealand in various ways. Demand for New Zealand goods may drop due to global economic slowdown. New Zealand might face higher import costs due to disruptive supply chains. Global trade tensions weaken investor confidence, causing currency volatility, affecting export revenues.

3.8 However, it also presents opportunities for New Zealand goods as these markets pivots away from U.S. imports including agricultural products, technology, fish and aquaculture, etc.

Navigating Stagnated European Economies

3.9 New Zealand maintains strong trade and innovation partnerships with European countries, with a total trade valued at $5.02 billion. A new Free Trade Agreement, which came into effect in May 2024, further strengthens these ties. While New Zealand imports more from Europe than it exports, resulting in a trade balance of -$1.95 billion in 2024, European nations remain key partners in science and innovation. Over half of New Zealand’s researchers actively collaborate with European counterparts, highlighting the depth of this relationship beyond trade. (Source: New Zealand Ministry of Foreign Affairs and Trade, 2024)

3.10 Eurozone GDP stagnated in 2024 with Germany and France experiencing sharper-than-expected contractions. The downturn in the bloc’s two largest economies has heightened concerns about persistent economic weakness in the region. (Source: New Zealand Ministry of Foreign Affairs and Trade, 2024)

3.11 The economic stagnation of Europe could dampen demand for New Zealand exports, weaken investor confidence, and reduce European tourism. If economic uncertainty persists, it would put the trade balance further in the negative.

3.12 While New Zealand maintains strong science and innovation partnerships with Europe, its diversified trade and deep ties with Asia-Pacific markets may help offset potential economic impacts. At city level, a proactive approach is essential to strengthening trade and investment links, fostering innovation and R&D, and supporting local business in diversifying into Asia-Pacific markets to enhance resilience and growth.

4. activitiy OutCome Report

Visit from The Beijing’s Shijingshan District

4.1 On 17 October 2024, Palmerston North hosted a delegation of 8 officials from Shijingshan District, one of the main urban areas of Beijing, China. Shijingshan District is home to half a million people, developing into a high-tech hub, particularly with Beijing Financial Street extension and other innovation-driven projects.

4.2 During the visit, the delegation received a presentation from Mr Nick Gain, Chief Executive of The Factory, on Palmerston North-Manawatū being a thriving start up and innovation hub, especially for agritech and food. There was a further discussion on how both cities could share knowledge, explore ways to collaborate in innovation and technology, and attract investment into start-ups and innovation.

4.3 As a result, the Mayor visited Beijing’s ZGC Science Fiction Industry Innovation Centre after attending the China’s International Friendship Cities Conference in November 2024. The visit provided insights into China’s policies and funding for Science Fiction as a national innovation driver, the collaboration between tech companies, universities and start-ups as well as plans for global collaboration in research and technology.

4.4 The Mayor’s visit to Beijing was reported in two Chinese media channels, which increased visibility of the city in this key market. Upon his return, the Mayor discussed with The Factory and ManawaTech on potential collaboration for research and networking.

Figure 3- The delegation visit to Palmerston North by Beijing's Shijingshan District in Oct 2024 resulted in the Mayor's visit to the ZGC Science Fiction Industry Innovation Centre (science fiction, AI, and 5G technology) in Beijing in Nov 2024.

Visit from the European Delegation’s Ambassador

4.5 The EU Ambassador Lawrence Meredith attended Palmerston North’s Festival of Cultures in February 2024 after just one month being posted to New Zealand. He was impressed by the city tour showcasing the AgriTech sector on 23 February 2024 and returned for a bespoke visit on 17 October 2024.

4.6 During this visit, Ambassador Meredith and two trade officers visited Novolabs, C-Dax Agricultural Solutions, AgResearch and the New Zealand Ruminant Methane Measurement Centre. The wider AgriTech stakeholders including New Zealand Plant and Food Research, FoodHQ, Grassmere Dairy, Fonterra R&D Centre, and Massey University joined the Ambassador for a networking lunch. The success of the day in promoting the city as a research and innovation hub for AgriTech and Food was a collective effort of multiple stakeholders in collaboration with the Council.

4.7 Throughout the course of the day, Ambassador Meredith shared his insights into Horizon Europe, the next EU Research and Innovation Programme worth approximately €95.5 billion of funding over seven years (2021 – 2027). He also answered questioned from the sector about the funding application process and criteria among other related topics.

4.8 Since the Horizon Europe roadshow took place in Auckland, Hamilton, Wellington and Christchurch, this visit provided Palmerston North’s local stakeholders with a first-hand opportunity to learn how the funding could benefit them and more importantly, how to successfully apply for it.

4.9 Social media coverage of the visit, shared on LinkedIn by the Palmerston North City Council and the European Delegation, garnered 754 impressions and over 120 reactions, further amplifying engagement and visibility.

Figure 4- EU Ambassador Meredith visited Novolabs and shared insights on Horizon Europe Funding Programme

Visit from the Can Tho City Delegation

4.10 The Chairman of the City People’s Council of Can Tho City from Vietnam led a delegation to visit Palmerston North on 22 October 2024. Can Tho City with its deep interest in expanding cooperation with New Zealand met with Deputy Mayor Debi Marshall-Lobb, Councillor Roly Fitzgerald and Manager International Relations to discuss the possibility of cooperation in various areas including agriculture, education, and climate change.

4.11 The visit was organised and supported by local Vietnamese business and community in Palmerston North. It was an opportunity to promote and better understand both cities.

4.12 Upon returning to Vietnam, the delegation followed up with a letter, confirming their interest in collaborating with Palmerston North in scientific research and technology transfer on waste treatment, environmental protection, and effective use of resources, responding to climate change.

Figure 5- Deputy Mayor delivered a welcome speech to the Can Tho City Delegation

Attending the Global Cities New Zealand North Island Forum

4.13 The International Relations and Education Advisor attended the Global Cities New Zealand (GCNZ) North Island Forum in Cambridge on 8 November 2024. The event provided a platform to engage with key stakeholders and advance Council’s strategic goal of strengthening the city’s international profile and fostering partnerships that support local community development.

4.14 With over 40 participants, including three Mayors, council officers, and community leaders from regions such as Waikato, Auckland, Gisborne, Bay of Plenty, Hawkes Bay, and Manawatū, the Forum covered topics such as engaging iwi and expat communities, internationalisation, global trade, and the future of managing global partnerships. The International Relations and Education Advisor contributed as a panellist on a session discussing the evolution of global city partnerships.

4.15 The Forum highlighted Palmerston North’s approach to managing international partnerships and their local impact. Key discussions included modernising outdated partnerships, bridging cultural differences, and balancing community and council involvement in global initiatives.

4.16 The session reinforced the importance of aligning local and international objectives in an increasingly complex and globalised world. Palmerston North’s partnership management was viewed as a model for other councils. Participation in the forum strengthened connections with other local authorities and raised Palmerston North’s profile as a leader in global city relations.

A group of people sitting in chairs

Description automatically generated A group of people sitting at tables in a room

Description automatically generated

Figures 6 & 7 - Panel discussion and interactive sessions at the GCNZ North Island Forum on 8 Nov 2024

Visit from the Dutch Innovation Delegation

4.17 Another visit resulting from the success of the AgriTech city tour during the 2024 Festival of Cultures was the visit from the Dutch Innovation Delegation on 19 November 2024. It was organised by the Embassy of the Kingdom of the Netherlands in collaboration with AgriTech New Zealand, supported by Palmerston North City Council.

4.18 The delegation, led by Dr Richard Harrison from Wageningen University & Research, consisted of specialists in orchard monitoring, precision spraying, autonomous robotics, CO2 capture solutions, Rabobank, Wageningen University & Research, as well as government agencies. Their mission was to explore collaboration in horticultural research, innovation, and business with New Zealand, taking advantage of funding mechanism like Horizon Europe for joint research and development.

4.19 Local stakeholders including the Central Economic Development Agency (CEDA), Massey Ventures, Novolabs, C-Dax, FoodHQ, and the Factory were invited to a networking lunch with the delegates. There were in-depth discussions, seeking mutual understanding of each other’s offers and capability for partnerships.

4.20 In addition to individual follow-ups by local stakeholders, Council has been discussing with the International Innovation – AgriFood division of the Netherlands Enterprise Agency to explore joint thematic priorities and a potential matchmaking session to connect Dutch and NZ organisations for the Horizon Europe funding opportunity. The Netherlands Enterprise Agency is part of the Dutch Ministry of Economic Affairs, supporting entrepreneurs, NGOs, knowledge institutes, policy makers, and organisations through funding and networks.

4.21 The potential matchmaking event would be a collaboration between the Embassy of the Kingdom of the Netherlands, the Netherlands Enterprise Agency, and Palmerston North City Council. If it were to happen in 2025, it would also be in time to commemorate the 60^th anniversary of diplomatic relations between New Zealand and the Netherlands.

Figure 8 - AgResearch showcased the Map and Zap system to the visiting Dutch Innovation delegation

Visit from the Ambassador of Switzerland

4.22 The Council hosted Ambassador Viktor Vavricka of Switzerland and Deputy Head of Mission Zita Ballaman for a full day visit on 28 November 2024. During the visit, the Ambassador explored Switzerland’s longstanding connections with Palmerston North, including decades-old investments in Norwood Group and DKSH, as well as Noske Rail, whose major clients include the prestigious Swiss railway manufacturer, Stadler Rail. The Ambassador also engaged with UCOL to discuss potential collaboration in vocational education and delivered a keynote presentation at the event Small Advanced Economies’ Success Factors: Insights from Switzerland, organized by the Palmerston North branch of the New Zealand Institute of International Affairs.

4.23 This visit provided local businesses with a valuable opportunity for publicity and association with a high-profile diplomatic figure, enhancing their credibility and brand prestige. It also reinforced ties between Switzerland and Palmerston North, fostering business growth and opening doors to potential international partnerships.

4.24 Coverage of the visit on LinkedIn, shared by both the Ambassador and local stakeholders, generated nearly 1,000 impressions. This exposure elevated Palmerston North’s profile strengthened confidence in international business opportunities and highlighted the city's potential to attract increased inward investment.

Figure 9 - Factory tour of Noske Rail Figure 10 - Meeting with DKSH

Figure 11 - Participated in panel discussion during NZIIA event

Attending the Fuzhou International Friendship City Festival

4.25 At the invitation of the Fuzhou Foreign Affairs Office, Palmerston North’s Deputy Mayor Debi Marshall-Lobb and Manager International Relations represented the city at the Fuzhou International Friendship Cities Tourism and Culture Festival from 4 December until 8 December 2024. It was part of the 2024 Maritime Silk Road International Tourism Festival, well-attended by nearly a thousand government officials, representatives of UN Tourism and the World Tourism Alliance, and delegates from 41 countries and regions including Brazil, Cambodia, Croatia, Maldives, Nepal, the United States, etc.

4.26 During her short stay in Fuzhou, the Deputy Mayor visited the Fuzhou No.4 High School Juyuanzhou campus which has over 3000 students and has been awarded many outstanding awards in primary and secondary education. The school expressed strong interest in establishing a partnership with a local school in Palmerston North. After gauging enthusiasm through engagement with local schools, Council and the Fuzhou Foreign Affairs Office facilitated an online introductory meeting between Queen Elizabeth College and No.4 High School Juyuanzhou campus on 10 March 2025. As a result, the schools are now exploring the possibility of a 20-student group study tour to Palmerston North this July.

Figure 12 - Visit to Fuzhou No.4 High School Juyuanzhou Campus

4.27 The Deputy Mayor and International Relations Manager also took the opportunity to network with colleagues from around the globe. They had in-depth conversations about potential collaboration between Palmerston North/Manawatū and Campinas, Brazil’s thriving hub for innovation and start-ups. Upon return, the two cities have had virtual meetings to discuss engagement strategies with industry stakeholders. While this is an ongoing discussion, an agribusiness environmental consultant from AgFirst from Feilding will be meeting with Campinas’ Director of International Cooperation and Foreign Trade in June 2025. If circumstances allow, the Manawatū consultant will visit Campinas to network and explore synergies with key agribusinesses, start-ups, research institutions and other industry leaders there. The visit will be supported by Campinas City Council.

Figure 13 - Making connections with Campinas, Brazil's capital for AgriTech and Food Innovation

4.28 During the festival in Fuzhou, Palmerston North was prominently showcased on a large display wall in the event hall, reaching and promoting itself to tens of thousands of attendees. The Deputy Mayor delivered addresses at the Opening Ceremony and the Mayors’ Tea & Talk seminar. On behalf of Palmerston North, she also signed a Letter of Intent for future collaboration in education and beyond with Fuzhou.

4.29 The activities received extensive coverage across social media platforms, Chinese television channels, and various national and local news outlets including CCTV, China Daily, FZNews, and Shandong Radio and Television. The Fuzhou International Friendship Cities Tourism and Culture Festival was an excellent opportunity to promote Palmerston North to not only the Chinese audience, but to the world as a great place to visit, study, and do business.

Figure 14 - Deputy Mayor at the city's exhibition and being interviewed by Chinese media

Visit from Grand Tag, Kunshan to the Factory, Palmerston North

4.30 On 17 June 2024, Council facilitated the signing of the Memorandum of Understanding for Collaboration between FoodHQ and the East China Agricultural Science and Technology Centre of our thirty-year-old partner city, Kunshan. As a result of this new partnership, The Grand Tag group, an established provider of RFID tags for livestock animal management, food traceability management, and brand protection management, visited Palmerston North on 16 December 2024.

4.31 Council facilitated an in-depth discussion between The Factory and Grand Tag, exploring opportunities to feature Palmerston North’s local products on Grand Tag’s new online trading platform for high-end food products. The conversation also expanded to include the potential for Grand Tag to invest in the city’s start-up and innovation ecosystem.

4.32 Since then, both parties have held follow-up meetings to discuss specific export opportunities and the possibility of a subsequent in-person visit.

Symposium on Strategic Subnational Diplomacy in Washington, D.C, USA

4.33 Sponsored by the U.S. Department of State and in partnership with the Truman Centre and Melbourne Centre for Cities, Meridian International Centre hosted the inaugural Symposium on Strategic Subnational Diplomacy in Washington, D.C. from 15-17 January 2025. The symposium brought together municipal and regional leaders from the U.S. and eight allied nations to strengthen coordinated strategies for international subnational engagement, counter malign influence, uphold democratic values, and drive economic prosperity.

4.34 This fully funded programme provided a valuable opportunity to enhance cities' ability to develop evidence-based international strategies, conduct due diligence on political, economic, and financial risks, and negotiate from a position of strength in global partnerships.

4.35 Forty-eight participants from the United States, Australia, Canada, France, Germany, Italy, Japan, New Zealand, and the United Kingdom were carefully selected and personally invited based on their unique expertise and perspectives. Among them, Palmerston North’s Manager International Relations attended alongside representatives from Auckland, Christchurch, and Global Cities New Zealand, which also represented Whakatāne.

4.36 The programme featured intensive training and workshops on key topics, including combating disinformation at the subnational level, identifying vulnerabilities and countering foreign interference, navigating local-national dynamics in global affairs, strengthening subnational diplomacy, and engaging effectively in multilateral forums. It also fostered deeper connections among cities and regions with shared priorities and challenges.

4.37 The symposium facilitated in-depth discussions on economic development, educational, scientific, and technical exchanges, foreign direct investment, migration, and more. Palmerston North led the conversation on private sector collaboration, showcasing the city’s initiatives in AgriTech, start-ups, and innovation - highlighting efforts to drive economic growth and entrepreneurship.

4.38 As a result, Nancy, a city in the North-eastern region of France, has shown strong interest in learning more about New Zealand’s AgriTech and Food Innovation sector, whilst also exploring potential collaboration opportunities with Palmerston North. Nancy is also home to the Food Innovation Days, a major event in the Grand Est region that brings together industry leaders, researchers, and innovators. The event addresses critical topics such as water and raw materials management, climate challenges, agricultural constraints, emerging food resources (e.g., beans, algae, insects), and the carbon footprint of food products. Additionally, it explores European consumer expectations, organic food trends, health foods, and regulatory developments in the food industry. Organised by FoodTech® Grand Est, Agria Grand Est, and other key stakeholders, the event aims to drive innovation and collaboration among start-ups, food companies, and researchers to promote sustainable and responsible food solutions.

4.39 The respective Manager International Relations at Palmerston North and Nancy have organised a virtual introductory meeting for key stakeholders in the AgriTech and Food Innovation sectors of both cities on 11 April 2025. Participants from Palmerston North will include representatives from Massey Ventures, New Zealand Plant & Food Research, Food HQ, Sprout AgriTech, and The Factory.

4.40 As a world leader in AgriTech and FoodTech, France offers significant opportunities for collaboration. Strengthening ties with Nancy - particularly through initiatives like their Food Innovation Days - could enhance the visibility and impact of New Zealand and Palmerston North's innovative solutions while also providing greater access to European markets for local businesses and organisations."

Figure 15 - New Zealand delegates and other participants from 8 other ally nations at the symposium in Washington, D.C

Dunhuang Cultural Exhibition

4.41 In celebration of Lunar New Year 2025, Council and the Embassy of the People's Republic of China offered residents a rare and immersive experience of the breath-taking treasures of the ancient Silk Road. The Dunhuang Cultural Exhibition, showcasing the wonders of the Mogao Caves - one of China’s most renowned UNESCO World Heritage Sites - was open to the public free of charge from 27 January to 5 February 2025.

4.42 The Dunhuang Cultural Exhibition was met with great enthusiasm from the community, drawing hundreds of visitors to Caccia Birch. Among the attendees was Dr Viv Smith, Director of Research Operations at Massey University. She shared her insights into the symbolism in the paintings with fellow visitors during the exhibition and expressed her willingness to be contacted for similar events in the future.

4.43 The Dunhuang Cultural Exhibition enriched the community with a unique culture experience that deepened local understanding of the Silk Road and the Mogao Caves. The event attracted hundreds of visitors to Caccia Birch, including some from out of town, contributing to the boost of tourism and benefiting local businesses. It also strengthened international ties between Palmerston North and China, fostering future opportunities for cultural exchanges. The exhibition promoted community engagement and increased visibility for Palmerston North as a centre for cultural and academic collaboration.

Figure 16 - Chinese Deputy Head of Mission Mr Xie welcomed by the Mayor and Rangitāne Chief Wiremu Te Awe Awe

Guiyang’s “All Friends in a Shared Community Network” Online Conference

4.44 In order to deepen the understanding and communication with its global partner cities, Guiyang hosted an online conference featuring “All Friends in a Shared Community Network” on 14 February 2025. The conference provided a platform for Guiyang’s partner cities in the Asia Pacific to share their development achievements in 2024 and plans for practical cooperation in 2025.

4.45 The conference drew participation of 12 representatives from South Korea, Cambodia, Laos, Thailand, Malaysia, the Philippines and New Zealand.

4.46 Palmerston North shared its achievements in building relationships with China as part of the broader goal to advance the city’s business interests through international connections.

Festival of Cultures: Showcasing Palmerston North as a Centre for Solutions

4.47 Palmerston North once again came alive with the 2025 Festival of Cultures, a vibrant celebration of the city’s diverse and multicultural community. Over three days, from 21 to 23 February, the festival transformed the city centre into a dynamic showcase of international music, dance, cuisine, and cultural exchange.

4.48 A highlight of this year’s festival was the participation of over 30 members of the diplomatic corps, representing more than 20 nations. The delegation embarked on a curated city tour on 21 February 2025, showcasing Palmerston North’s role as a Centre for Solutions, visiting key innovation and business hubs such as Novolabs, the Australian Defence Apparel logistics hub in Te Utanganui, and New Zealand Plant and Food Research.

4.49 Hosting the diplomatic delegation underscored Palmerston North’s commitment to fostering international partnerships and leveraging its strengths in agritech, food innovation, logistics, and sustainability. The visit provided a platform for meaningful connections, reinforcing the city’s potential as a destination for global collaboration and investment.

4.50 Following the event, the Council invited members of the diplomatic corps to act as ambassadors for Palmerston North, serving as a bridge between the city and businesses in their respective countries.

4.51 Businesses and organisations that hosted the diplomatic delegation during the city tour have since received international interest. For example, Thailand, India, the Netherlands, the United States, and the United Kingdom have all reached out to Novolabs to explore further collaboration.

Figure 17 - Welcome Pōwhiri for the diplomatic delegation on 21 Feb 2025

Figure 18 - CEDA delivered Te Utanganui presentation

Figure 19 - Visit to NZ Plant & Food Research

Figure 20 - Understanding the Novolabs offers

INTERNATIONAL EDUCATION

5. Overview of the global, national AND LOCAL context

Global

5.1 The global international education landscape is undergoing major shifts post COVID-19, with evolving mobility trends, visa policies, and financial pressures reshaping student flows.

5.2 The pandemic caused a sharp decline in student mobility during 2020-2021, with recovery varying by region. UNESCO reports that global mobility rebounded more strongly in Europe and Canada, where quicker pandemic recovery and flexible visa policies were implemented, compared to the United States and Australia.

5.3 Hybrid learning models, combining remote and in-person components, are reshaping global education. Driven by technological advances and changing student preferences, these models will continue to influence international education dynamics. (Source: OECD, 2025)

5.4 The United States remains a key player in international education, but political shifts under the new administration pose challenges for international students and researchers. “Extreme vetting” policies and extensive background checks for visa applicants, rising tuition rates, and policies limiting academic freedom are raising concerns about the United States’ stability as a hub for higher education. (Source: NAFSA, 2025)

5.5 In contrast, countries like Canada, the United Kingdom, and New Zealand have leveraged open visa policies to become attractive alternative study destinations to the United States. Canada’s welcoming approach, the United Kingdom’s post-Brexit focus on student growth, and New Zealand’s reputation for safety is driving increased international enrolments.

5.6 The global state of international education remains fluid as countries adapt to post-pandemic realities, increasing competition among nations, and shifts in visa policies. As nations reimagine their roles in the international education space, fostering global partnerships and creating welcoming environments for students will remain crucial to sustaining the benefits of cultural exchange and academic collaboration.

National

5.7 New Zealand’s international education sector had demonstrated significant growth and resilience in recent years. In 2023, the country recorded 69,135 international student enrolments, marking a 67% increase compared to 2022 and reaching 60% of the enrolment numbers seen in 2019. This positive trend aligns with projections from a report commissioned by Education New Zealand which suggests that the sector’s contribution to the national economy has the potential to return to pre-pandemic levels by 2030. (Source: Education New Zealand, 2023 and 2024)

5.8 The following Education New Zealand dashboard (Figure 21) provides a breakdown of total enrolments across sub-sectors in New Zealand from 2013 to 2024. This includes students who are on exchange, studying in New Zealand, and studying outside New Zealand.

A screenshot of a graph

Description automatically generated

Figure 21 - New Zealand International Student Enrolments 2013-2024 (Source: ENZ)

5.9 The New Zealand government has actively worked to strengthen educational ties with key international partners. In February 2025, Prime Minister Luxon visited Vietnam, where he and Vietnamese Prime Minister Pham Minh Chinh agreed to establish a comprehensive strategic partnership, including enhanced cooperation in education. This highlights New Zealand’s readiness to welcome more Vietnamese students, scientists, and researchers.

5.10 At the time of writing this report, Prime Minister Luxon is in India to enhance bilateral ties, including in education. Notable developments include the signing of an Education Cooperation Agreement, which focuses on educational exchanges, institutional collaborations, and dual-degree programmes. Discussions also involve the establishment of New Zealand university campuses in India and joint research initiatives. This visit is expected to increase Indian student mobility to New Zealand and further strengthen New Zealand’s presence in India’s growing education market. (Source: Ministry of External Affairs - Government of India, 2025; Press Information Bureau - New Delhi, 2025)

5.11 International education is New Zealand’s fifth-largest export industry, generating approximately $5.0 billion in 2023. The sector not only supports GDP but also creates jobs in hospitality, retail, and transport, driving economic recovery post COVID-19. (Source: Education New Zealand, 2024)

5.12 International students contributed significantly to New Zealand’s economy in 2015/16, generating an estimated $3.8 billion in foreign exchange earnings and a total GDP impact of $4.0 billion when accounting for direct, indirect, and induced effects. The sector supported 32,000 jobs, with tuition revenue alone amounting to $1.03 billion. On average, each student spent $25,600 on living expenses, including accommodation and transport. Auckland was the key hub, hosting 66% of international students and generating $2.2 billion in foreign exchange earnings. The majority of students came from China, India, South Korea and Japan, with Chinese students alone contributing $1.3 billion. (Source: Education New Zealand and Infometrics, 2016)

5.13 International students provide significant economic, social and cultural benefits to New Zealand. Each year, Education New Zealand conducts an International Student Experience Survey to assess their experiences. In 2024, 86% of the 6,423 respondents (aged 14 and above) rated their overall experience in New Zealand positively. The survey also evaluates key aspects of student life, including social connections, education quality, study arrangements, arrival and orientation, living conditions, value for money, and work opportunities.

5.14 International education supports a range of ancillary industries, benefitting both urban and regional economies. The long-term impact is also seen in alumni who contribute to New Zealand’s economy as business leaders, professionals, and ambassadors for the country’s education institutions. (Source: Education New Zealand, 2024)

Local

5.15 The Manawatū-Whanganui region plays an active role in international education, offering a diverse array of opportunities across primary to tertiary levels. In 2023, the region recorded 2,335 international student enrolments, marking a 35% increase compared to 2022 and reaching 69% of pre-pandemic levels. (Source: Education New Zealand, 2024)

5.16 The following Education New Zealand dashboard (Figure 22) provides a breakdown of total enrolments across sub-sectors in the Manawatū-Whanganui region from 2013 to 2024. This includes students who are on exchange, studying in New Zealand, and studying outside New Zealand.

Figure 22 - Manawatū-Whanganui International Student Enrolments 2013-2024 (Source: ENZ)

5.17 Immigration New Zealand provides monthly data for valid international student visa holders - including those engaged in English language studies, exchange programmes, full-fee paying students, pathway students, and scholarship recipients - studying in the Manawatū-Whanganui region. This data (Figure 23) is limited to the regional level and does not provide a breakdown by territorial authority or institution.

5.18 Student numbers can fluctuate due to new arrivals, departures upon programme completion, or changes in visa status (e.g. dependants of student visa holders transitioning to domestic status). As a result, accurately tracking a consistent headcount proves challenging.

Valid international student visa holders who are studying in Manawatū-Whanganui
	4 Mar 2024	1 Apr 2024	2 Jun 2024	1 Jul 2024	4 Aug 2024	1 Sep 2024	6 Oct 2024	3 Nov 2024	1 Dec 2024	5 Jan 2025	2 Feb 2025	3 Mar 2025
Polytechs	125	119	111	110	115	124	130	128	125	124	145	182
PTEs	209	193	216	213	195	236	239	246	237	205	241	237
Schools	236	232	236	207	212	214	198	207	123	43	153	255
Universities	740	730	701	543	741	743	778	704	529	424	479	810
Total	1310	1274	1264	1073	1263	1317	1345	1285	1014	796	1018	1484

Figure 23 - Valid international student visa holders in Manawatū-Whanganui 2024-2025 (Source: INZ)

5.19 Higher education enrolment data (headcount and EFTS) for international and domestic students at the Palmerston North/Manawatū campuses of Massey University, UCOL, Te Wānanga o Aotearoa, and IPU New Zealand is provided to Council annually (Figures 24 and 25). This is the same data the institutions submit to the Tertiary Education Commission as at 15 April each year for funding purposes. The international headcount data was previously published on the city dashboards but is no longer featured due to the new overarching city-level indicators set by elected members.

Student headcount as at 15 April each year
		Massey University	Universal College of Learning	Te Wānanga o Aotearoa	IPU New Zealand	Total Higher Education
2018	Domestic	4,840	2,855	511	55	8,261
	International	1,311	197	0	288	1,796
	Total	6,151	3,052	511	343	10,057
2019	Domestic	4,598	2,949	534	65	8,146
	International	1,367	217	0	243	1,827
	Total	5,965	3,166	534	308	9,973
2020	Domestic	4,310	3,003	494	42	7,849
	International	1,335	175	0	177	1,687
	Total	5,645	3,178	494	219	9,536
2021	Domestic	4,133	3,164	493	49	7,839
	International	1,098	151	0	137	1,386
	Total	5,231	3,315	493	186	9,225
2022	Domestic	3,814	3,108	378	31	7,331
	International	896	150	0	138	1,184
	Total	4,710	3,258	378	169	8,515
2023	Domestic	3,182	2,678	514	31	6,405
	International	836	185	0	161	1,182
	Total	4,018	2,863	514	192	7,587
2024	Domestic	2,830	3,984	517	21	7,352
	International	965	174	0	173	1,312
	Total	3,800	4,158	517	194	8,664

Figure 24 – Student headcount numbers 2018-2024 (Source: Individual providers)

Equivalent full-time students as at 15 April each year
		Massey University	Universal College of Learning	Te Wānanga o Aotearoa	IPU New Zealand	Total Higher Education
2018	Domestic	3,218	1,858	511	33	5,621
	International	881	86	0	196	1,164
	Total	4,099	1,945	511	229	6,784
2019	Domestic	3,080	1,860	484	61	5,484
	International	952	130	0	181	1,263
	Total	4,031	1,990	484	242	6,747
2020	Domestic	2,969	1,908	471	48	5,397
	International	911	108	0	144	1,162
	Total	3,880	2,016	471	192	6,559
2021	Domestic	2,851	1,934	469	37	5,291
	International	726	99	0	123	947
	Total	3,576	2,033	469	160	6,238
2022	Domestic	2,528	1,675	356	30	4,589
	International	584	45	0	103	732
	Total	3,112	1,720	356	133	5,321
2023	Domestic	2,202	1,486	423	26	4,137
	International	602	63	0	150	815
	Total	2,804	1,549	423	176	4,952
2024	Domestic	1,855	2,174	405	16	4,450
	International	680	107	0	140	927
	Total	2,535	2,281	405	156	5,377

Figure 25 - Equivalent full-time student numbers 2018-2024 (Source: Individual providers)

5.20 It is worth noting that the Education New Zealand, Immigration New Zealand, and individual providers data pertains exclusively to international students holding a valid student visa, excluding those participating in short-term programmes (≤ 3 months) who may enter New Zealand on a visitor visa, or are from a visa-waiver country. It is estimated that Palmerston North schools host around 400 short-term students annually. Data on short-term enrolments varies between institutions and across years, making it difficult to provide a consistently accurate representation.

5.21 International education is a key contributor to the economic and cultural vitality of the Manawatū-Whanganui region. In the 2015/16 period, the sector generated approximately $100.6 million in foreign exchange earnings. Direct spending by international students added nearly $48 million to the regional economy and supported around 420 jobs, primarily in the Manawatū sub-region. When considering indirect and induced effects, total regional employment reached 679 jobs, with a value-added contribution of $71.5 million, accounting for about 0.83% of the region’s GDP. (Source: Education New Zealand and Infometrics, 2016)

6. Activity outcome report

Visit from the Hefei Delegation

6.1 On 14 October 2024, Deputy Mayor Debi Marshall-Lobb hosted a delegation from Hefei city, including officials from the Hefei Education Bureau and representatives from Hefei No. 3, No. 6, and No. 7 High Schools, at Palmerston North Boys High School. This visit was organised by World Class Education Limited, local education providers, and Council, with the goal of sending student groups to Palmerston North secondary schools from Hefei annually.

6.2 The visit reinforced Palmerston North’s position as a key hub for international education, strengthening relationships with Hefei’s schools and providing local education providers with valuable global connections. It also promoted the city as an attractive destination for international students.

6.3 These efforts align with the Council’s goal of supporting local education providers by fostering international partnerships and expanding global educational opportunities. Council’s facilitation of such visits enhances Palmerston North’s profile and creates pathways for cross-cultural exchange, elevating the status of local schools as destinations for international students.

City Welcome Session

6.4 On 16 November 2024, Council hosted a City Welcome session/Pōwhiri as part of the Welcoming Communities programme. Newcomers welcomed at this session added to over 400 attendees throughout 2024. The International Relations and Education advisor supports the Community Development Advisor (Welcoming Communities) to ensure international students are included in these sessions.

6.5 This collaboration between Council and Rangitāne o Manawatū provides newcomers, including international students, with opportunities to connect with city leaders, service providers, and each other while learning about local services and community involvement. The City Welcome sessions/Pōwhiri have been instrumental in fostering a sense of belonging and integration, with strong participation. In response to growing demand, discussions are underway to increase the number of sessions each year.

6.6 A dedicated City Welcome session/Pōwhiri for international students is planned for August 2025 to further support their integration into the community and enhance their study experience in Palmerston North, following requests from education providers.

Figures 26 & 27 - Newcomers at the City Welcome session

Shijiazhuang short-term study programme

6.7 On 18 April 2024, Council hosted a delegation from Shijiazhuang, the capital city of Hebei Province in China, to explore the potential of educational collaboration between the two cities. In November 2024, while in China to attend the International Friendship Cities Conference, the Mayor visited Shijiazhuang and toured two middle schools. Following these successful reciprocal visits, Shijiazhuang expressed interest in sending middle school students to Palmerston North to further educational ties.

6.8 After gauging interest from local schools, Council facilitated a connection between Global Ocean Group Limited (an Auckland-based education agent for the Shijiazhuang schools) and Queen Elizabeth College. As a result, Queen Elizabeth College hosted 9 students and 2 staff members from No 48 Middle School and GaoXin Foreign Language School from 2 to 15 February 2025. The school is also considering hosting additional student groups later in the year.

6.9 This initiative demonstrates how reciprocal visits can lead to tangible outcomes, such as the short-term study programme at Queen Elizabeth College. This programme not only strengthens educational ties between Palmerston North and Shijiazhuang but also provides the school with additional income, a benefit made possible through international collaboration. By fostering these connections, the initiative contributes to the broader goal of enhancing global partnerships and expanding educational opportunities for local schools.

Montana Academic World Quest Student to Student Global Conversation

6.10 The Montana World Affairs Council hosted the annual Academic World Quest conference from 2 to 4 March 2025 in Missoula, Montana, with 500 high school students attending from across the state. Palmerston North students (aged 14-18) were invited to participate in the conference alongside students from 25 counties in Montana, including three schools from Missoula, Palmerston North’s sister city. A key feature of the event was the Student to Student Global Conversation, a virtual exchange where students from Montana and Palmerston North engaged in a moderated Zoom discussion.

6.11 The Student to Student Global Conversation facilitated an enriching dialogue on topics ranging from daily school life to global issues. Palmerston North students - Tarshay Rawhiti-Fiti (Head Girl at Queen Elizabeth College), Azmain Ifrit (Multicultural Prefect at Palmerston North Girls High School), and Lintang Krohn (Cultural Captain at Awatapu College), participated and offered thoughtful responses to challenging questions on cultural practices, political matters, and international travel. Tarshay also shared insights into taonga, bone carvings, and her tāmoko, providing a meaningful cultural exchange that was well-received by Montana students.

6.12 This initiative strengthened the sister city relationship between Missoula and Palmerston North by providing students with a valuable international experience through cultural exchange and global conversations. It aligned with our strategic goals of promoting international relations, supporting youth engagement, and fostering global partnerships.

A computer on a table

Description automatically generated A group of women standing together

Description automatically generated

Figures 28 & 29 - Lintang Krohn, Azmain Ifrit and Tarshay Rawhiti-Fiti participating in the Student to Student Global Conversation

NZIIA Event: ‘Unlocking Doors for Global Experiences’

6.13 On 6 March 2025, over 60 students attended the ‘Unlocking Doors for Global Experiences’ event, a collaboration between the Palmerston North branch of the New Zealand Institute of International Affairs (NZIIA), Palmerston North City Council, the New Zealand Centre for Global Studies, IPU New Zealand, Massey Business School, Massey Global, and the Manawatū Young Chamber.

6.14 The event featured a panel discussion with the International Relations and Education Advisor, Mayor Grant Smith (President of Global Cities New Zealand), and Chris Gallavin (Director & Founder of Global Citizenship New Zealand), who shared their insights on global citizenship and the value of cross-cultural experiences. Libby Giles (Director of the New Zealand Centre for Global Studies) delivered the keynote address. Several organisations, including Asia New Zealand Foundation, Massey University, Volunteer Service Abroad, IPU New Zealand, AFS, PNCC International Relations, and UCOL Manawatū showcased their scholarships, grants, and international programmes.

6.15 The event provided students with tangible opportunities to engage with international organisations and learn about the global pathways available to them.

6.16 This initiative successfully promoted global opportunities to students, enhanced international relations, and supported youth engagement. By connecting students to global networks and showcasing local success stories, like Abby Ives (a Palmerston North Girls High School student studying at United World Colleges in China), the event encouraged students to broaden their perspectives and pursue international experiences. This aligns with our strategic goals of fostering international relations, supporting youth engagement, and creating pathways for students to develop personally and professionally.

A group of people sitting on a stage

Description automatically generated A group of women standing in front of a sign

Description automatically generated

Figures 30 & 31 - Images from the ‘Unlocking Doors for Global Experiences’ event

Waseda short-term study programme

6.17 Following a successful proposal to Education New Zealand and the Waseda teacher familiarisation visit in November 2022, Manawatū and Hawkes Bay were selected as the two regions to host a short-term study programme for students from Waseda University’s network of affiliated schools starting in 2023.

6.18 The fifth cohort of 14 students from Waseda University’s network of affiliated schools undertook a two-week programme in Palmerston North from 23 March to 5 April 2025. The participating schools were Awatapu College, Palmerston North Boys High School, and Palmerston North Girls High School. The students studied English, attended regular classes, participated in extracurricular activities and lived with local homestay families.

6.19 During the programme, the students were introduced to local tertiary education institutions. They toured Massey University, met international staff, participated in a campus ‘Amazing Race’ challenge, and attended a session on New Zealand’s tertiary education system. The cohort also visited UCOL, where they received a Mihi Whakatau, a comprehensive campus tour, and a hands-on group activity with construction lecturers. These experiences provided the students with a deeper understanding of education in New Zealand and the study options available in the region.

6.20 A sixth cohort of 15 students will undertake a three-week programme in Palmerston North from 10 to 30 August 2025.

6.21 This programme not only strengthens international educational ties but also supports economic development by generating additional revenue for local schools. As a result of the short-term programme, Palmerston North Boys High School has enrolled Waseda students in long-term, fee-paying international programmes, positioning Palmerston North as an attractive destination for international students and supporting the city’s educational and economic goals.

Hiroshima Global Academy scholarship for Palmerston North students

6.22 In partnership with Hiroshima Global Academy (HiGA), Palmerston North city and Mihara city signed a Memorandum of Understanding, offering Palmerston North students the opportunity to study the International Baccalaureate (IB) programme at HiGA for 2-3 years at no tuition cost, as a scholarship. To promote the programme, two international webinars were held on 7 June and 5 July 2024, targeting students, parents, and teachers. Additionally, two HiGA teachers visited Palmerston North from 19-23 August 2024, presenting to students at local schools and visiting Massey University, UCOL, IPU New Zealand and the English Teaching College (ETC).

6.23 The initiative commemorates the 5th anniversary of the sister city relationship between Palmerston North and Mihara (2019-2024), while providing a unique educational opportunity for secondary school students. It builds cultural competence and fosters international connections, aligning with the city’s goals of promoting youth engagement and global partnerships.

6.24 Ashlyn Osborne, a student at Palmerston North Girls High School, was awarded the scholarship and will commence her study at HiGA in April 2025. Mihara city will connect Ashlyn with a local homestay family in Mihara, to support her during weekends and holidays, and ensure her well-being and pastoral care throughout her time in Japan. This scholarship provides a tangible global opportunity for Palmerston North youth, strengthening the city’s ties with Mihara.

6.25 Furthermore, HiGA is exploring future educational pathways, including English language study and farm stay experiences at the English Teaching College (ETC) in Palmerston North. Ongoing discussions are also taking place regarding a reciprocal short-term student exchange between HiGA and Palmerston North secondary schools, deepening the educational relationship between the cities.

Global Youth Summer Camp in Guiyang

6.26 To strengthen global youth connections and build on the 32-year sister city relationship between Palmerston North and Guiyang, the two city councils have established an education abroad programme for youth from both cities.

6.27 Guiyang Municipal Government has invited 14-18 year old students from Palmerston North to participate in the Global Youth Summer Camp in Guiyang from 29 June to 10 July 2025. The programme will bring together up to 20 students from Palmerston North and up to 20 students from Guiyang No. 6 High School, a prestigious institution with a strong focus on international education initiatives. The immersive programme includes cultural workshops, hands-on activities, and discussions to promote mutual learning and a deeper understanding of Chinese culture.

6.28 This initiative offers Palmerston North students a unique opportunity to experience Chinese culture, expand their global perspectives, and build valuable personal and professional skills through connections with Guiyang peers. It strengthens the sister city relationship, fosters cross-cultural exchanges, and supports the strategic goals of enhancing international education, promoting global citizenship, and encouraging youth engagement. Ultimately, the programme aims to cultivate a long-term, mutually beneficial relationship between the two cities.

6.29 At the time of writing this report, the programme proposal and applications have been circulated to local secondary schools, including Feilding High School and Nga Tawa Diocesan School as part of the wider International Education Manawatū network. Manawatū Multicultural Council is also promoting the opportunity within their communities. A LinkedIn post has garnered over 1,300 impressions. Students are invited to submit expressions of interest by 5pm, Friday 28 March 2025. The programme cost is capped at $3,500 per participant (excluding personal spending money).

Prime Minister’s Scholarships for Asia

6.30 The International Relations team is assisting the PNCC Emergency Management team and UCOL in submitting group applications for the Prime Minister’s Scholarships for Asia. The Emergency Management team is seeking to establish a partnership with Mihara, Japan, focusing on civil defence and emergency preparedness, while UCOL is exploring internship opportunities for Early Childhood Education students with Kunshan, China.

6.31 This initiative leverages existing sister city relationships to create new opportunities for local stakeholders, both internal and external, through international collaboration. By supporting these applications, the International Relations team is enabling Palmerston North organisations to expand their global networks and engage in cross-cultural learning and professional development.

7. Quantitatve success measures

7.1 Council passed the following resolution on 5 June 2024:

That the Chief Executive develop quantitative success measures in addition to the qualitative measures proposed in the International Relations and Education Annual Plan 2024/25.

7.2 This 6-month update has provided new quantitative data related to the work of the International Relations and Education function. For example, national and regional international student enrolments, valid international student visa holders who are studying in Manawatū-Whanganui, and equivalent full-time students for Palmerston North based tertiary institutions.

7.3 At this stage there is limited quantitative data available that is directly linked to the work of the International Relations and Education function. Officers are aware of data regarding the number of international students studying or visiting local schools and the corresponding revenue the schools receive, but much of that data is sensitive and not appropriate to be reported in this context. What we do know is that international students are an important source of additional revenue for local schools and the relationship the City has with the local schools and overseas partners is very important to facilitating those outcomes.

7.4 While there are social and cultural outcomes associated with the International Relations and Education function, much of the work is linked to broader economic development outcomes. One option to give effect to the Council resolution is to monitor macro quantitative measures such as GDP, median income, international card spend, jobs and/or jobs in particular sectors linked to the work of the International Relations and Education function, e.g. jobs in education, logistics, agri-food, research, science and innovation. The 6-month report could then connect the work of the International Relations and Education function to broad trends and outcomes in these areas. However, these macro measures are already monitored elsewhere via quarterly economic reporting, sector profiles and dashboards. These measures or indicators are also influenced by a very broad range of drivers, many of which are outside the direct control of Council, including the International Relations and Education function.

7.5 An alternative option to give effect to the Council resolution is to develop quantitative success measures linked to the core activities of the International Relations and Education function, e.g. host X number of overseas delegations, facilitate X number of study groups, lead X number of overseas delegations, host X number of ambassadors, support X number of cultural activities, connect with X number of local schools. This option could be undertaken on the basis that the Council acknowledges that these types of activities contribute to broader outcomes and goals for the City.

7.6 Quantitative measures do tend to work well for certain Council activities, e.g. infrastructure standards, visits to facilities, consent numbers and land supply. Determining appropriate quantitative measures for many Council activities, including the International Relations and Education function, is a real challenge. For example, CEDA’s performance framework previously included macro economic measures such as job growth and median income. As noted above, the reality is these types of measures are influenced by a very broad range of drivers, many of which are outside the direct control of Council or CEDA. The statement of service performance for CEDA now includes measures such as; deliver 9 sector development initiatives to support the regions sectors of strength; 400 engagements with businesses to support growth and talent retention; and partner with key stakeholders to deliver 6 start-up and innovation activities or initiatives.

7.7 It is a very rare where a successful outcome for the City is linked to a single activity or function of the Council. In most cases there will be multiple factors at play that influence certain outcomes. For example, if the City was successful in securing a new international freight and distribution activity at Te Utanganui, it is likely that the activities of international relations, CEDA, planning, building, infrastructure, economic analysis & reporting, advocacy via the Mayor’s office, and policy settings regarding development contributions and rates all factored into the outcome. Likewise, if one of the local research or education institutions was able to secure additional overseas funding, it is likely that the activities of international relations, CEDA, FoodHQ (PNCC is a partner) and advocacy via the Mayor’s office all played a role. Outcomes such as these are long term plays for the City that require ongoing commitment to relationships and partnerships, including with our overseas partners if we want to position the City for inward investment.

7.8 Work is continuing to give effect to the 5 June 2024 resolution, taking into account the various challenges associated with developing quantitative measures for this type of work. Subject to any further direction from elected members, it is likely that the quantitative measures developed will be linked to the activities of the International Relations and Education function, as opposed to macro quantitative measures. Officers will continue to provide updates on the quantitative data that is available and was provided within this 6 month report.

8. 2024-2025 annual plan – SUMMARY UPDATE

Timeline	Activities	Status/Outcomes
June 2024	Successfully hosted the Kunshan delegation visit to Palmerston North and facilitated the MOU signing between FoodHQ and ECS-CAAS on 17 June 2024	Completed Resulted in ongoing discussion on scalable export and investment opportunities with Kunshan
July 2024	‘Pisco es Peru’ event	Due to strategic changes, our partner has opted not to proceed with the event
August 2024	Successfully facilitated the 2nd intake of the Waseda Study Group for the year from 4 – 24 August 2024	Completed
	Successfully hosted visit from Hiroshima Global Academy teachers to promote the Palmerston North – Mihara – HiGA scholarship programme from 19 – 24 August 2024	Completed Resulted in one Palmerston North Girls’ High School student awarded the scholarship, commencing study in HiGA in April 2025. Details are provided in section 6.22 – 6.25 of this report
	Successfully hosted the Yantai delegation visit and signed a Letter of Intent for educational collaboration on 29 August 2024	Completed Resulted in support for Massey University’s high-level visit to the China Agricultural University campus in Yantai and the Yantai City Government in May 2025
September 2024	Supported City Welcome Session – Pōwhiri on 14 September 2024	Completed
September 2024	Successfully collaborated with ASEAN Business Council and NZIIA PN branch to host the ‘ASEAN – Open doors for AgriTech’ event on 19 September 2024	Completed Provided a market information session and networking opportunity for local businesses interested in ASEAN – one of the key strategic partners for New Zealand
October 2024	Supported the Te Utanganui Sydney Knowledge Acquisition Trip through connections with the Australian High Commission, Penrith and Liverpool City Council from 3-4 October 2024	Completed Outcomes as reported by CEDA,
	Supported the Hefei Delegation visit on 14 October 2024	Completed Details are provided in section 6.1 - 6.3 of this report
	Hosted the EU Delegation’s Ambassador visit with a focus on the EU-NZ FTA and Horizon Europe Funding programme on 17 October 2024	Completed Details are provided in section 4.5 - 4.9 of this report
	Supported the Latin American and Spanish Film Festival – showcasing Latin cultures	Completed
	Hosted the Can Tho City’s Delegation visit to Palmerston North on 22 October 2024.	Completed Details are provided in section 4.10 - 4.12 of this report
1. November 2024	Supported Diwali Mela – Festival of Light on 2 November 2024	Completed
	Attended the GCNZ North Island Forum on 8 November 2024	Completed Details are provided in section 4.13 - 4.16 of this report
	Supported City Welcome Session – Pōwhiri on 16 November 2024	Completed Details are provided in section 6.4 – 6.6 of this report
	Supported Riddet Institute and Massey University with the 17^th International Hydrocolloids Conference	Completed
	Facilitated the Dutch Innovation Delegation visit on 19 November 2024	Completed Details are provided in section 4.17 - 4.21 of this report
	Hosted the Swiss Ambassador’s visit to Palmerston North on 28 November 2024	Completed Details are provided in section 4.22 - 4.24 of this report
December 2024	Attended the Fuzhou International Friendship Cities Tourism & Cultures Festival from 4 – 8 December 2024	Completed Details are provided in section 4.25 - 4.29 of this report
December 2024	Supported The Factory with visit from the Grand Tag Group on 16 December 2024	Completed Details are provided in section 4. 30 – 4.32 of this report
January 2025	Attended the Symposium on Strategic Subnational Diplomacy on 15 – 17 January 2025	Completed Details are provided in section 4.33 – 4.40 of this report
January 2025	Successfully co-hosted the Dunhuang Cultural Exhibition	Completed Details are provided in section 4. 41 – 4.43 of this report
February 2025	Supported the Lunar New Year Celebration on 1 February 2025	Completed
	Attended Guiyang’s “All Friends in a Shared Community Network” Online Conference	Completed Details are provided in section 4.44 – 4.46 of this report
	Successfully hosted the 2-day programme for the diplomatic delegation during the 2025 Festival of Cultures on 21-22 February 2025	Completed Details are provided in section 4. 47 – 4.51 of this report
March 2025	Supporting Holi – Festival of Light	Ongoing
March 2025	Hosted the Indian Entrepreneurship Initiative delegation with Asia New Zealand Foundation on 12 March 2025	Completed Promoted Palmerston North as an AgriTech and Food Innovation Hub to Indian market
	Successfully facilitated the 1st intake of the Waseda Study Group for the year from 23 March - April 2025	Completed Details are provided in section 6.17 – 6.21 of this report
	Supported and attended the NZIIA Event – ‘Unlocking Doors for Global Experiences’ on 6 March 2025	Completed Details are provided in section 6.13 - 6.16 of this report
April 2025	Facilitating the virtual introductory meeting for key stakeholders in the AgriTech and Food Innovation sectors in Palmerston North and Nancy, France	Ongoing
May 2025	Attending the 3^rd China – New Zealand Mayoral Forum in Chengdu from 19 – 22 May 2025	Ongoing
June 2025	Presenting the 2025-2026 Annual Plan to Council	Ongoing

9. 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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to this plan: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan The objective is: - Support international education and promote Palmerston North’s interests to global partners - Promote Palmerston North’s interests to global city partners - Facilitate international economic and education partnerships with city institutions - Manage official delegations and relationships with the diplomatic corps - Participate in international forums and events
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The 6-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

[1] The annual housing forecasts include the 20% competitiveness margin required under the National Policy Statement for Urban Development. Actual forecast demand for housing over the first three years of the LTP is 273 per year, with average annual growth of 333 per year over the 10-years of the LTP. This series is subject to revision as more information becomes available.

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

Quarterly audit	Total Faults	Bulb, Fuse and Luminaire faults	Network faults	Outstanding Faults	% of the network lit
Jan-25	97	59	38	30	99%
Oct-24	146	105	41	All now resolved	98%
Jul-24	235	133	102	All now resolved	97%

Time to Complete	Dispatches 1st July 24- 31st Dec 24	Percentage (%)	Dispatches_ 1st July 23 - 30th June 24	Percentage (%)
Within 1 week	41	29%	91	33%
1 week to 1 month	73	51%	65	24%
1 month to 2 months	25	17%	103	38%
2 months to 3 months	4	3%	13	5%
Total	143	100%	272	100%

Statement of Expectation	CEDA Draft SOI 2024/25	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 key partners for CEDA: Palmerston North City Council, Manawatū District Council, Horizons Regional Council, Iwi, Manawatū Chamber of Commerce, NZ Defence Force, Federated Farmers, Accelerate 25, KiwiRail, FoodHQ, Massey University, The Factory, Palmy BID, Feilding & District Promotions, and key Government agencies.	CEDA has addressed strategic partners at page 19 of the SOE and in the performance measures on page 26.	No comment. Priorities addressed.
Stimulate inward investment (both national and international), retention and expansion of business in the Manawatū region. Developing a talent pipeline. Support domestic visitation and tourism	CEDA has addressed these outcomes via the three pillars, statement of intent outcomes, projects, activities and strategies summarised on page 9 and the performance measures for each are captured on pages 25 and 26.	No comment. Priorities addressed.
Top priorities are: Te Utanganui, Central New Zealand Distribution Hub. Strategic oversight and coordination of the Manawatū Food Strategy. Promotion and development of key tourism and visitor destinations. Inward investment in the Feilding town centre and Palmerston North city centre.	CEDA has addressed its work to support Te Utanganui, Central NZ Distribution Hub at page 11. Manawatū Regional Food Strategy is addressed at page 11. Visitor activity is addressed via pillar three (place) and the supporting statement of intent outcomes, projects and activities summarised on page 9. The focus on Feilding town centre and Palmerston North city centre is addressed at page 11 under inward investment opportunities.	No comment. Priorities addressed.
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 25 and 26). CEDA’s performance measure framework identifies quantifiable measures of their programmes and activities aligned to their key strategic outcomes. These form the basis of their accountability and will be reported on six-monthly. In CEDA’s reporting, additional commentary will be used to inform on the delivery and effectiveness of the full range of CEDA’s activity.	No comment.

	Estimated Report Date	Subject	Officer Responsible	Current Position	Date of Instruction & Clause no.
1	~~9 April 2025~~	~~Draft Parking Framework – Approval for Public Consultation~~	~~General Manager Strategic Planning~~	~~Laid on table from November 2024~~
2	~~9 Apr 2025~~	~~Streets for People Update (6 monthly)~~	~~General Manager Infrastructure~~		Terms of Reference 28 February 2024 Clause 18-24
3	~~9 Apr 2025~~	Featherston Street – concept design options – shared walkway/ non-separated cycleway	General Manager Infrastructure	Due to NZTA funding cutbacks, and no further Council funding allocated to the project, this paper is no longer required	Council 5 June 2024 Clause 98-24
4	~~9 Apr 2025~~ 11 June 2025	City Central Indicative Business Case (CCIBC) Update	General Manager Strategic Planning	Report not ready due to date availability and the complexity of the different plans	19 June 2024 Clause 42-24
5	~~9 Apr 2025~~ 27 Aug 2025	Economic Profile: Logistics and distribution (3-yearly)	General Manager Strategic Planning	Delayed due to late release of data and NZIER CBA	30 August 2023 Clause 35-23 Schedule
6	~~9 Apr 2025~~	~~Road Maintenance Contract (six-monthly report on work programme and performance)~~	~~General Manager Infrastructure~~		~~16 March 2022 Clause 4-22~~
7	~~9 Apr 2025~~ 11 June 2025	Tamakuku Terrace Update (6 Monthly)	General Manager Infrastructure	Move to June to align with 6 monthly update, as last update was presented Nov/Dec 24	Terms of Reference
8	~~9 Apr 2025~~	~~Featherston Street – report back on functionality of road~~	~~General Manager Infrastructure~~		Council 5 June 2024 Clause 98-24
9	~~9 Apr 2025~~	Vogel Street Safety Improvements Update	General Manager Infrastructure	Due to NZTA funding cutbacks, and the decision at November 6 Council Meeting, safety work is not progressing.	12 April 2023 Clause 14-23
10	~~9 Apr 2025~~ 11 June 2025	City Economic Structure Report (annually)	General Manager Strategic Planning	Data delayed.	Rec 1c of the Community Grants & Events Funding Review – May 2021
11	11 June 2025	Manawatū Regional Economic Structure Report (2 yearly)	General Manager Strategic Planning	Data delayed.	Rec 1c of the Community Grants & Events Funding Review – May 2021
12	~~9 Apr 2025~~	~~PN Airport – Six Month Report and draft SOI~~	~~General Manager Corporate Services~~		~~Terms of Reference~~
13	~~9 Apr 2025~~	~~Quarter 2 Economic Report October-December 2024~~	~~General Manager Strategic Planning~~		~~Terms of Reference~~
14	~~9 Apr 2025~~	~~CEDA – Six Month Report and draft SOI 2025-28~~	~~General Manager Strategic Planning~~		~~Terms of Reference~~
15	~~9 Apr 2025~~	~~International Relations and Education Activities – 6 months update~~	~~General Manager Strategic Planning~~		~~Terms of reference Council Clause 203-23~~
16	11 June 2025	PNAL – Final Statement of Intent for 2025/26 to 2027-28	General Manager Corporate Services		Terms of Reference
17	11 June 2025	CEDA – Final Statement of Intent for 2025/26	General Manager Strategic Planning		Terms of Reference
18	11 June 2025	2025-2026 Annual Plan – International Relations Activity to include quantitative and qualitative measures	General Manager Strategic Planning		Council 5 June 2024 Clause 102-24
19	11 June 2025	Kākātangiata Development Progress Report	General Manager Strategic Planning	Moved from Council	Terms of reference
20	1 December 2026	CEDA – Statement of Expectations 2027-2030	General Manaer Strategic Planning		30 August 2023 Clause 37-23
21	2024/25	Economic Profile: Agri-food (3 yearly)	General Manager Strategic Planning		30 August 2023 Clause 35-23
22	2025/26	Economic Profile: Tourism (3 yearly)	General Manager Strategic Planning		30 August 2023 Clause 35-23
23	Early 2025	New Zealand Food Awards – Annual Report	General Manager Customer & Community		31 May 2023 Clause 88.12-23
24	Early 2025	Annual Snapshot of Economic indicators for the city	General Manager Strategic Planning		30 August 2023 Clause 35-23
25	TBC	Annual Presentation: The Factory
26	TBC 2026	Economic Profile: For Purpose organisations (5-yearly)	General Manager Strategic Planning		30 August 2023 Clause 35-23

1.	CEDA 6 Month Report December 2024 ⇩
2.	CEDA Statement of Expectations 2024/25 - 2026/27 ⇩
3.	Draft CEDA Statement of Intent 2025/26 ⇩