Economic Growth Committee

 


 

 

 

 

 

 

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

 

 

 

 

 

 


 

 

 

Economic Growth Committee MEETING

 

18 September 2024

 

 

 

Order of Business

 

1.         Karakia Timatanga

2.         Apologies

3.         Notification of Additional Items

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion.  No resolution, decision or recommendation can be made in respect of a minor item.

4.         Declarations of Interest (if any)

Members are reminded of their duty to give a general notice of any interest of items to be considered on this agenda and the need to declare these interests.

 

 

 

5.         Public Comment

To receive comments from members of the public on matters specified on this Agenda or, if time permits, on other Committee matters.

(NOTE:   If the Committee wishes to consider or discuss any issue raised that is not specified on the Agenda, other than to receive the comment made or refer it to the Chief Executive, then a resolution will need to be made.)

6.         Presentation - Manawatū Chamber of Commerce                                    Page 7

7.         Presentation - Palmy BID                                                                                 Page 9

8.         Confirmation of Minutes                                                                                Page 11

 

That the minutes of the Economic Growth Committee meeting of 19 June 2024 Part I Public be confirmed as a true and correct record.

9.         Notice of Motion - Tolling Proposal for Te Ahu a Turanga                        Page 17

            Notice of Motion, presented by Councillor Brent Barrett

10.       International Relations and Education - 6 Monthly Report                       Page 25

Memorandum, presented by Gabrielle Loga, Manager International Relations.

11.       International Trip to China - April 2024                                                        Page 83

Memorandum, presented by Councillor Debi Marshall-Lobb.

12.       Palmerston North Quarterly Economic Update - September 2024         Page 99

Memorandum, presented by Stacey Andrews, City Economist.

13.       Road Maintenance Contract - 6 Monthly Update                                   Page 125

Memorandum, presented by Glen O'Connor, Manager - Transport and Development.

14.       Committee Work Schedule - September 2024                                        Page 131

15.       Karakia Whakamutunga      

 16.      Exclusion of Public

 

 

To be moved:

That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

 

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under Section 48(1) for passing this resolution

17.

Tamakuku Terrace design guidelines review

Maintain legal privilege: and commercial activities:

s7(2)(g) and s7(2)(h)

 

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

[Add Third Parties], because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

 

 

 


 

Presentation

TO:                                Economic Growth Committee

MEETING DATE:           18 September 2024

TITLE:                             Presentation - Manawatū Chamber of Commerce

 

 

RECOMMENDATIONTO Economic Growth Committee

1.   That the Economic Growth Committee receive the presentation for information.

 

Summary

Amanda Linsley, Chief Executive, and Steve Davey, Chair of the Manawatū Chamber of Commerce will present the Manawatū Business Chamber’s current activities, including feedback from the Long Term Plan and their Business Confidence Survey.

 

Attachments

NIL  

 


 

Presentation

TO:                                Economic Growth Committee

MEETING DATE:           18 September 2024

TITLE:                             Presentation - Palmy BID

 

 

RECOMMENDATION TO Economic Growth Committee

1.   That the Economic Growth Committee receive the presentation for information.

 

Summary

Palmy BID (Business Improvement District) exists to support organisations within the Central Business District.  Matthew Jeanes, General Manager will present an update to the Committee on various projects.  

 

Attachments

NIL  

 


 

 

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 19 June 2024, commencing at 9.00am

Members

Present:

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

Non Members:

Councillors Patrick Handcock and Kaydee Zabelin.

Apologies:

Councillors Lorna Johnson and Debi Marshall-Lobb both for early departure.

 

The Mayor (Grant Smith) entered the meeting at 9.04am during consideration of clause 37.  He was not present for clause 37.

 

Councillor Lorna Johnson left the meeting after consideration of clause 44.  She was not present for clause 45 and 46 inclusive.

 

Councillor Debi Marshall-Lobb left the meeting at 9.41am after consideration of clause 42.  She entered the meeting again when it resumed at 11.16am.  She was not present for clause 42 to 44 inclusive.

 

 

Karakia Timatanga

 

Councillor Kaydee Zabelin opened the meeting with karakia.

 

37-24

Apologies

 

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1.   That the Committee receive the apologies.

 

Clause 37-24 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, Lorna Johnson, Debi Marshall-Lobb, Billy Meehan, Orphée Mickalad, Patrick Handcock and Kaydee Zabelin.

 

The Mayor (Grant Smith) entered the meeting at 9.04am

 

38-24

Public Comment

Chris Teo-Sherrell made a public comment to request Council reconsider the positioning of the new bus shelters to mitigate safety and access concerns.

Peter French made a written public comment that was read by the Chair.  He tabled a design option regarding Vogel/Hayden/Featherston Street intersections.

 

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1.   That the Economic Growth Committee receive the public comments.

 

Clause 38-24 above was carried 14 votes to 0, the voting being as follows:

For:

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

 

39-24

Confirmation of Minutes

 

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1.   That the minutes of the Economic Growth Committee meeting of 24 April 2024 Part I Public be confirmed as a true and correct record.

 

Clause 39-24 above was carried 13 votes to 0, with 1 abstention, the voting being as follows:

For:

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

Abstained:

Councillor Debi Marshall-Lobb.

 

40-24

Central Economic Development Agency (CEDA) Final Statement of Intent 2024/25

Memorandum, presented by Bobbie O’Fee, CEDA Board Chair and Jerry Shearman, CEDA Chief Executive

 

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1.   That the Committee agree the final Statement of Intent 2024/25 submitted by the Central Economic Development Agency (Attachment 1).

 

Clause 40-24 above was carried 14 votes to 0, the voting being as follows:

For:

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

 

41-24

Palmerston North Airport Limited (PNAL) - Final Statement of Intent for 2024/25 to 2026/27

Memorandum, presented by Steve Paterson, Strategy Manager – Finance, Murray Georgel, PNAL Board Chair, David Lanham, PNAL Chief Executive, and Jonathan Baker, PNAL Chief Financial Officer

 

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1.   That the Committee agree the Statement of Intent for Palmerston North Airport Limited for 2024/25 to 2026/27 (Attachment 2).

 

Clause 41-24 above was carried 13 votes to 1, the voting being as follows:

For:

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

Against:

Councillor Brent Barrett.

 

42-24

Central City Transformation - Street for People Six Monthly Update

Memorandum, presented by Glen O'Connor, Group Manager - Transport and Development

Officers indicated they will report back to the committee with an update on the City Central Indicative Business Case (CCIBC).

 

Councillor Debi Marshall-Lobb left at 9.41am

 

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1.   That the Committee receive the memorandum titled ‘Central City Transformation – Streets for People Six Monthly Update’ presented to the Economic Growth Committee on 19 June 2024.

 

Clause 42-24 above was carried 13 votes to 0, the voting being as follows:

For:

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

 

43-24

Progress Update on Programme 1367 (City-wide - Street Light Infill)

Memorandum, presented by Glen O'Connor, Group Manager - Transport and Development.

Officers noted an error in paragraph 2.2 – the programme of work will be completed this year (2023/24) and not 2024/25.

An additional motion was moved so that Elected Members could fully understand the ongoing streetlight issues and the cost and time required to fix it.   

 

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

1.   That the Economic Growth Committee receive the report titled ‘Progress Update on Programme 1367 (City-wide - Street Light Infill)’ presented on 19 June 2024.

2.   That the Chief Executive report back on:

·    timing and cost of a city-wide survey on streetlights, and

·    timing and cost on the lighting upgrade of the streets listed in appendix 1, and

·    replacement of streetlight bulbs and stock.

 

Clause 43-24 above was carried 13 votes to 0, the voting being as follows:

For:

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

 

44-24

Tamakuku Terrace Six Monthly Update

Memorandum, presented by Bryce Hosking, Group Manager - Property and Resource Recovery, and Anna Saunders, Capital Projects Officer.

Elected Members moved an additional motion as they were concerned that the current design requirements were discouraging development at Tamakuku Terrace.  More information was sought on the ramification of reducing design requirements, specifically the legal implications any design changes may have on existing covenants.

 

Moved William Wood, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1.   That the Committee receive the memorandum titled ‘Tamakuku Terrace Six Monthly Update’, presented to the Economic Growth Committee on 19 June 2024.

 

Clause 44.1-24 above was carried 12 votes to 0, the voting being as follows:

For:

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

 

 

Moved William Wood, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

2.   That the Chief Executive provide options to the next meeting of the Economic Growth Committee (18 September 2024) to reduce the design requirements for the unsold sections at Tamakuku Terrace.

 

Clause 44.2-24 above was carried 11 votes to 1, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Leonie Hapeta, William Wood, Mark Arnott, Brent Barrett, Rachel Bowen, Roly Fitzgerald, Billy Meehan, Orphée Mickalad, Patrick Handcock and Kaydee Zabelin.

Against:

Councillor Lorna Johnson.

 

Note:

Councillor Vaughan Dennison declared a conflict of interest, withdrew from the discussion and sat in the gallery.

 

 

The meeting adjourned 10.59am

The meeting resumed 11.16am

 

Councillor Lorna Johnson was not present when the meeting resumed.

Councillor Debi Marshall-Lobb entered the meeting when it resumed.

 

 

45-24

Palmerston North Quarterly Economic Update - June 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 – June 2024, including:

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

b.   Palmerston North electronic card spending report – March quarter 2024 (Attachment 2),

presented to the Economic Growth Committee on 19 June 2024.

 

Clause 45-24 above was carried 13 votes to 0, the voting being as follows:

For:

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

 

46-24

Work Schedule - June 2024

 

Moved Leonie Hapeta, seconded William Wood.

The COMMITTEE RESOLVED

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

 

Clause 46-24 above was carried 13 votes to 0, the voting being as follows:

For:

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

 

 

Karakia Whakamutunga

 

Councillor Kaydee Zabelin closed the meeting with karakia.

 

 

The meeting finished at 11.43am

 

Confirmed 18 September 2024

 

 

 

Chair

 

 

 


 

Notice of Motion

TO:                                Economic Growth Committee

MEETING DATE:           18 September 2024

TITLE:                             Notice of Motion - Tolling Proposal for Te Ahu a Turanga

FROM:                          Councillor Brent Barrett

 

 

RECOMMENDATION TO COUNCIL:

1.   That Council lodge a submission calling for Te Ahu a Turanga to be kept free of road tolling.

 

NOTICE OF MOTION

 

I, Councillor Brent Barrett, in accordance with Ngā Tikanga Whakahaere / Standing Orders 2.7.1, hereby GIVE NOTICE OF MOTION that I will move at the Economic Growth Committee meeting of 18 September 2024 the following motion:

“That in response to NZTA Waka Kotahi’s recent proposal to toll Te Ahu a Turanga, Council lodge a submission calling for Te Ahu a Turanga to be kept free of road tolling” 

 

AND I further give notice that in compliance with Standing Order 2.7.2 the reason for the Notice of Motion include:

This Notice of Motion is specific to NZTA Waka Kotahi’s recent proposal to retrospectively decide to toll Te Ahu a Turanga after the planning, funding, procurement and most of the build has been completed. The Notice of Motion should not be seen as taking or indicating a position on future projects that are still in the planning stages. While there are reasonable arguments for road pricing in some instances, in this case they’re outweighed by the risk of unintended consequences that road tolling could have on the local community. These unintended consequences might include:

 

1.   Tolling Te Ahu a Turanga may encourage volumes of through traffic in places not designed for and not desiring the impacts of ongoing state highway traffic.  The Ashhurst community has gone through quite a lot already with the diversion of SH3 through their village.  Ashhurst would be negatively impacted by ongoing volumes of state highway traffic using local streets and the Saddle Road to avoid paying tolls on Te Ahu a Turanga. 

2.   Tolling Te Ahu a Turanga may encourage ongoing use of the Saddle Road and Pahiatua Track, both of which are markedly less safe and less efficient than Te Ahu a Turanga.

3.   Tolling Te Ahu a Turanga could be seen as breaking trust with the community. From inception, the community has had a reasonable expectation that the new road will be toll free.  We are over seven years since SH3 via the Manawatū Gorge was closed.  The replacement road has been proposed, planned, funded, financed and is now largely built.  During that entire time the understanding has been that the road will be free of tolls.  Tolling would impose an unexpected, substantial and sustained impact on many users of this essential east-west link.   

4.   Tolling Te Ahu a Turanga would be unfair on our region.  Our region’s fuel tax and road user charge revenue has helped build freight and passenger transport infrastructure nationwide. The principle of reciprocity, building this road using these same funding mechanisms, is fair and reasonable.

5.   Tolling Te Ahu a Turanga would run counter to our city’s economic growth plans to attract logistics investment.  Locking in additional road use costs for our region, costs not faced in other logistics hubs including Canterbury and Waikato, puts our city and region at a competitive disadvantage.

6.   Tolling Te Ahu a Turanga is unnecessary.  Fuel Tax and Road User Charges are well proven and successful mechanisms for the government to gain revenue to repay debt used to fund the building and maintenance of new roads.  

 

A close up of a signature

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Moved:          Councillor Brent Barrett

Seconded:    Councillor Lorna Johnson

 

Attachments

1.

Notice of Motion: Tolling Proposal for Te Ahu a Turanga: Manawatū Tararua Highway - Officer Advice

 

  

 







 


 

Memorandum

TO:                                Economic Growth Committee

MEETING DATE:           18 September 2024

TITLE:                             International Relations and Education - 6 Monthly Report

Presented By:            Gabrielle Loga, Manager International Relations

APPROVED BY:            David Murphy, General Manager Strategic Planning

 

 

RECOMMENDATION TO Economic Growth Committee

1.   That the Committee receive the report title ‘International Relations and Education – 6 Monthly Report’ presented on 18 September 2024.

 

 

1.         ISSUE

1.1       The purpose of this memorandum is to update the Economic Growth Committee on the 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       This report outlines the key international relations and education activities since April 2024 and provides an updated activity schedule from the International Relations and Education Annual Plan 2024-2025.

3.         International city partnership updates

Mihara, Japan (2019 – 2024)

3.1       In commemoration of the 5th anniversary of the sister city relationship,  Palmerston North city and Mihara city signed a Memorandum of Understanding with the Hiroshima Global Academy, providing an opportunity for Palmerston North high school students to study an International Baccalaureate (IB) programme at Hiroshima Global Academy at no tuition cost for 2-3 years. Mihara will assign an adopted local family to look after the selected student as their own, providing an authentic Japanese cultural experience and extra family support in Hiroshima during the study.

3.2       Officers have worked with Hiroshima Global Academy on a campaign to promote the programme to Palmerston North local high schools. Two international webinars were organised for interested students, parents, and teachers on 7 June and 5 July 2024 in Palmerston North to learn about Hiroshima Global Academy, the IB programme offered as well as the application process.

Figure 1- Mayor of Palmerston North, Mayor of Mihara, and Principal of Hiroshima Global Academy signed the MOU in January 2024

 

3.3       Two teachers from Hiroshima Global Academy travelled to Palmerston North in person from 19 – 23 August 2024. They visited Palmerston North Boys’ High School, Awatapu College, Freyberg High School, and Palmerston North Girls’ High School to present directly to the students about the programme. They also took the opportunity to visit Massey University, UCOL, IPU New Zealand, and the English Teaching College (ETC)while they were here.

3.4       There is potentially an opportunity to set up an annual study program from Hiroshima Global Academy to Palmerston North schools in the future, if capacity allows.

Kunshan, China (1994 – 2024)

3.5       In line with the celebration of 30 years of friendship between Palmerston North and Kunshan, Kunshan Municipal People’s Government sent a delegation to Palmerston North from 17 June to 19 June 2024 to attend E Tipu Boma Agri Summit and explore business opportunities with the city. The delegation was led by Mr Feng Renxin, Chairman of the Standing Committee of Kunshan Municipal People’s Congress.

3.6       Mayor Grant Smith and a small delegation went to Kunshan in January 2024 to progress discussions regarding cooperation in the AgriTech and food science sectors between FoodHQ, Palmerston North and the East China Agricultural Science and Technology Centre, Kunshan – Suzhou.

3.7       On 17 June 2024, with the presence of the Kunshan delegation, Palmerston North City Council held a formal signing ceremony where the two cities’ leading research and development centres agreed to work together on food innovation and technology. A copy of the memorandum of understanding is included as attachment one.

3.8       The Memorandum of Understanding between FoodHQ in Palmerston North and the East China Agricultural Science and Technology Centre in Kunshan (as attached in Attachment 1) will open doors for bilateral cooperation in modern agriculture, smart farming, and talent cultivation for companies, entrepreneurs, and research institutes in both countries.

Figure 2- MOU Signing Ceremony between FoodHQ and ECS-CAAS witnessed by PNCC and Kunshan delegation 2024

 

3.9       In addition to attending the E Tipu Boma Agri Summit, the Kunshan delegation visited Massey University, New Zealand Plant and Food Research, The Factory and Goodman Fielder factory in Longburn. These visits provided the delegation with insights into Palmerston North’s advanced achievements and offers in education, research, innovation and agricultural technology.

3.10     Upon return, Mr Feng Renxin sent a thank you letter to Palmerston North, signalling further collaborative opportunities in trade and agribusiness. A copy of the letter is included as attachment two.

3.11     The Kunshan delegation visit to Palmerston North and the formal signing ceremony in June 2024 was well reported by The NZ Herald, Manawatū Standard, and Chinese media, boosting the publicity and profile of both cities.

3.12     Conversations about subsequent visits from Kunshan – Suzhou to Palmerston North later in 2024 are happening as a direct result of the signed Memorandum of Understanding between FoodHQ and the East China Agricultural Science and Technology Centre.

A group of people in white coats in a laboratory

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Figure 3- Kunshan delegation visited NZ Plant & Food in June 2024

 

Guiyang, China (1992 – 2024)

3.13     Guiyang continues to express its desire to enhance educational collaboration with Palmerston North at all levels.

3.14     At elementary school level, Council’s International Relations and Education Advisor is exploring the partnership opportunity between the Central Primary School of Dula Buyi Village and Whakarongo School as well as other interested primary schools in the Manawatū.

3.15     At high school level, Guiyang is proposing a “Youth Ambassadors Summer Camp” for July 2025 in order to nurture international youth connections and consolidate the 32-year sister city relationship with Palmerston North.  The programme offers to invite up to 20 Palmerston North high school students to participate in a 10-day and 9-night visit to Guiyang during the term 2 holiday in New Zealand. During their time in Guiyang, the students will get to visit scenic spots in Guiyang and colourful Guizhou, explore 23 different ethnic minority cultures and attend Chinese school activities. Council’s International Relations and Education Advisor will continue to further plan and action this programme in 2025.

3.16     At tertiary level, Council is offering support for Massey University School of Agriculture and Environment to revitalise their partnership with Guizhou University and Guizhou Vocational College of Agriculture. 

Missoula, the USA (1982 – 2024)

3.17     Council’s International Relations division was awarded with the US Public Diplomacy Grant to bring Aspen Decker, a Salish representative from Missoula, to Palmerston North from 14-19 June 2024 to co-present with Rangitāne at E Tipu Boma Agri Summit on indigenous practices of food harvesting, consuming and sustainable traditions. Due to logistical issues, Aspen was unable to travel in person and had to send in a short video presentation instead.

3.18     The funding is now earmarked for Missoula Day in November 2024. The proposal is to bring a small indigenous delegation from the Salish Kootenai College, the Native American Centre of University of Montana, and Aspen Decker to Palmerston North to participate in Missoula Day 2024.

3.19     Missoula Children’s Theatre is also looking to take part in the event, working with Aspen Decker to create short plays telling indigenous stories to perform at Missoula Day in Palmerston North.

3.20     In addition, Missoula Children’s Theatre has been in discussions with Kane Parsons about the possibility of bringing their Little Red Truck programme to the children of Palmerston North in a near future. The discussion is supported by Arts Missoula, the Central Economic Development Agency and Palmerston North City Council. Further details on the Little Red Truck programme are available at: https://www.youtube.com/watch?v=N6ZU0H8aQh0

Wageningen, The Netherlands

3.21     An online meeting was held on 7 December 2023 attended by:

·    Mayor Grant Smith – Palmerston North City Council

·    Mayor Floor Vermeulen – Gemeete Wageningen

·    Professor Chris Anderson – Massey University

·    Mr Marco Otte – Wageningen University and Research

·    Mrs Gabrielle Loga – Palmerston North City Council

·    Mr Kunal Chonkar – Palmerston North City Council

·    Ms Tjitske Zwerver – Gemeete Wageningen

 

3.22     During the 7 December 2023 meeting it was agreed that a ‘University Cities Network’ would be beneficial, providing cities with Agritech focused universities a platform to exchange ideas and address common issues. Universities will gain from student mobility agreements, supported by comprehensive, ongoing exchange programmes and commitments of financial or in-kind support from each member city. Cities will benefit from the influx of international students, researchers and visitors. Cities will also be able to attract talent from a larger pool and retain skilled workers to meet short, medium and long-term labour market needs as well as able to promote the city’s sustainable development objectives and bolster its competitiveness on the world stage.

3.23     A subsequent meeting on 13 August 2024 was attended by:

·    Professor Chris Anderson – Massey University

·    Mr Marco Otte – Wageningen University and Research

·    Mrs Gabrielle Loga – Palmerston North City Council

·    Ms Tjitske Zwerver – Gemeete Wageningen.

 

3.24     During this meeting, it was agreed that the 2025 Aotearoa New Zealand Sustainable Development Goals Summit would be an appropriate opportunity to launch the ‘University Cities Network’.

3.25     A draft proposal paper has been developed between PNCC, Wageningen, Massey University and Wageningen University and Research to identify the unique opportunities for the two cities and two world-class universities to be founding members of an AgriFutures Cities Network (ACN). The name of the network is subject to discussion and change if needed.

3.26     The draft proposal includes a clear statement of purpose, membership criteria, resources required, an implementation plan with expected outcomes and a risk analysis. The tentative plan is to:

·    Submit the final version of the proposal paper to Council by December 2024.

·    Send out invitation to potential members – cities and universities by January 2025

·    Hold a launch ceremony at the Aotearoa New Zealand Sustainable Development Goals Summit in April 2025.

 

3.27     It is proposed that by endorsing this initiative, Palmerston North and Wageningen will be investing in a collaborative network that leverages cutting-edge Agritech innovations to foster sustainable development, create new economic opportunities and enhance resilience and quality of life for our community.

3.28     The next planning meeting and discussion is set to be on 17 September 2024.

4.         kEY international relations events

Visit from the Embassy of the Republic of Cuba 15 April 2024

4.1       His Excellency Mr Luis Morejón Rodríguez arrived as Ambassador of the Republic of Cuba to New Zealand in February 2024. Coinciding with the 25th anniversary of diplomatic relations between New Zealand and Cuba, he paid an official visit to Palmerston North on 15 April 2024.

4.2       During his visit, the Cuban Ambassador met with Mayor Grant Smith to discuss collaborative opportunities in the healthcare sector, dairy sector, and in the art sector.

4.3       He was also given a facility tour of the Fonterra Research and Development Centre and discussed the Cuban dairy sector and the possibility of bringing New Zealand technology to build capability in Cuba.

A group of people standing in front of a building

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Figure 4- HE Ambassador Mr Rodgriguez visited Fonterra R&D Centre in April 2024

 

The Australian High Commission – Prima Facie 10 May 2024

4.4       The Australian High Commission organised a pre-show reception and performance of Suzie Miller’s Prima Facie at Centre Point Theatre on Friday 10 May 2024.

4.5       On behalf of Her Excellency Harinder Sidhu, the Deputy High Commissioner Ms Amy Guihot recognised the efforts of Council for showcasing the city to the diplomatic corps during the 2023 Festival of Cultures and promoting the economic potentials of the city’s key sectors. In her opening remarks, Ms Guihot acknowledged that bringing Prima Facie to showcase a facet of Australian culture to Palmerston North was the High Commission’s response to the city’s international relations efforts.

A group of people standing together

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Figure 5- Mayor Grant Smith, Director Lyndee-Jane Rutherford, and                           Deputy High Commissioner Ms Amy Guihot at the Prima Facie pre-show reception (left to right)

 

4.6       Prior to the reception, Mayor Grant Smith had a discussion with Ms Guihot about the longstanding relationship between New Zealand and Australia and the opportunities of collaboration and exchanges at a city level to deepen the bilateral partnership between the two countries. Ms Guihot believed that with strengths in distribution/logistics, Palmerston North should explore connections with Penrith city and Liverpool city in New South Wales in addition to Launceston, ‘City of Gastronomy’ in Tasmania.

4.7       As a result, Council has made initial contact with Penrith, Liverpool and Launceston. The International Relations division has assisted Te Utanganui Programme Director to organise visits to both Penrith and Liverpool as part of a knowledge acquisition trip to Australia in October 2024 to learn about their intermodal distribution hubs, logistics planning, new technology and implementation of sustainability.

4.8       The October trip to Australia was instigated by KiwiRail and has been organised by the Te Utanganui Programme Director. The primary purpose of the trip is to visit Moorebank intermodal freight hub, where KiwiRail have existing relationships. The trip will also involve discussions with potential investors in Te Utanganui.

Hefei Delegation 21 May 2024

4.9       Following Deputy Mayor Debi Marshall-Lobb’s education delegation visit to China in April 2024, she extended an invitation to a delegation from Hefei city, China to visit Palmerston North in May 2024. The purpose of the visit was to discuss potential collaborative opportunities between the two cities.

4.10     On 21 May 2024, the city welcomed 19 delegates from Hefei, accompanied by World Class Education Limited to Palmerston North City Council. Manawatū District Council’s Mayor Helen Worboys and other representatives from local education providers attended the pōwhiri.  Jerry Shearman, Chief Executive of Central Economic Development Agency, gave a presentation on economic overview and opportunities in the Manawatū region.

4.11     It was encouraging to have Mayor Helen Worboys and Manawatū District Council join international relations activities and promoting the economy.

A group of people shaking hands

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Figure 6- Deputy Mayor D. Marshall-Lobb and councillors welcomed Hefei delegation at Pōwhiri

Yantai Delegation 29 August 2024

4.12     On 25 August 2022, Palmerston North organised a panel discussion on “Positioning your company for growth in China” in collaboration with CEDA and Manawatū Business Chamber. The panellists included:

·    Mr Alistair Crozier - Executive Director of New Zealand China Council

·    Mr Richard Dunsheath Trade Commissioner from New Zealand Trade & Enterprise

·    Mr Kim Scott – Founder of Idea Developments

·    Professor Stephen Kelly – Massey University

·    Mr Brian Zheng – Founder & CEO of Livall Smart Helmet and Helmetphone, a Massey alumnus from China.

 

4.13     The event was attended by officials from the Embassy of the People’s Republic of China and a representative from Yantai Municipal People’s Government. Afterwards, with support by the Embassy of the People’s Republic of China, the Yantai Foreign Affairs Office contacted Palmerston North and made a proposal to explore collaborative opportunities for the two cities.

4.14     After considering Yantai’s city profile (included as attachment 3) and further communication with the Embassy of the People’s Republic of China, Palmerston North is open to consider partnership opportunities for the two cities, starting with the education sector.

4.15     On 29 August 2024, Yantai Municipal People’s Government sent a delegation to Palmerston North for the first time. The delegation was led by Mr Gao Jianguang, Head of the Organisation Department of the Communist Party of China Yantai Municipal Committee.

4.16     The delegation was welcomed by:

·    Ms Debi Marshall-Lobb - Deputy Mayor of Palmerston North

·    Ms Gabrielle Loga – Manager International Relations, Palmerston North City Council

·    Ms Ping Peng – Senior Global Partnerships Advisor, Massey University.

 

4.17     Both cities presented an overview of each city and the respective international relations programme. Deputy Mayor and Mr Gao made remarks on behalf of each city, followed by the signing of a Letter of Intent (included as attachment 4) to explore a cooperative relationship for the purpose of facilitating educational exchanges and promoting collaborative opportunities in the education sector as well as opportunities in other fields such as economic, trade, culture, sports and tourism.

5.         other development opportunities

Fuzhou, China

5.1       Fuzhou city approached Palmerston North through the Embassy of People’s Republic of China for a city partnership after former Prime Minister Chris Hipkins’ visit to China in June 2023.

5.2       Massey University has had partnerships with several institutions in Fuzhou and UCOL expressed interest in the Fuzhou market for their international education programmes. After consulting with the Palmerston North International Education Leadership Group, Palmerston North is open to consider educational partnership opportunities for the two cities, similar to the arrangement with Yantai and Shijiazhuang city.

5.3       Fuzhou has invited Mayor Grant Smith to attend the Fuzhou Tourism & Culture Festival and 2024 Friendship Cities Festival from 21 – 24 November 2024. Further detail of the invitation is included in a separate report to Council meeting on 4 September 2024 titled “International travel proposed for Mayor – November 2024”.

Kurihara, Japan

5.4       Ms Natsumi Kobayashi, an officer from Kurihara city, Miyagi prefecture was seconded to New Zealand on a three-month study tour. While attending English courses, Ms Kobayashi also connected with various councils for knowledge acquisition in the area of supporting migrants and international workers in the city.

5.5       Ms Kobayashi visited Palmerston North in July 2024 and met with Council’s Community Development and International Relations divisions.

5.6       Both Palmerston North and Kurihara have a blend of city and rural living with strengths in agricultural and livestock industry. Ms Kobayashi was impressed with the cutting-edge agricultural technology created and available in Palmerston North.

6.         international education updates

Waseda programme

6.1       As a result of our 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 group study programme for students from Waseda University’s network of affiliated schools in 2023 and beyond.

6.2       A fourth cohort of 15 students undertook a three-week programme in Palmerston North from 4 - 24 August 2024. The participating schools were Awatapu College, Palmerston North Boys High School, and Palmerston North Girls High School. The students study English, attend regular classes, participate in extracurricular activities and live with homestay families.

6.3       The tertiary providers are also showcased. The cohort spent an afternoon at Massey University touring various facilities such as lecture theatres, the library and recreation centre.  They met with international staff who introduced them to the tertiary education system in New Zealand and the study options available in the region. The students also took part in an ‘Amazing Race’ challenge around campus and a Kahoot quiz for Massey-themed prizes. They had an afternoon excursion to UCOL Te Pūkenga and were welcomed with a Mihi Whakatau. This was followed by an introduction to the Student Connect Hub, a comprehensive campus tour and participation in an interactive, hands-on cooking class with the Chef and Hospitality lecturers.

6.4       A fifth cohort of 15 students will undertake a two-week programme in Palmerston North from 23 March to 5 April 2025.

Vietnamese Master Agent Visit and Sector Update event 14 June 2024

6.5       AU Hannah Co. Limited is Palmerston North’s master agent in Vietnam. In December 2023, with the support from Council, the company secured funding from Education New Zealand for a marketing campaign focused on promoting Palmerston North, Manawatū, and the local education providers to the Vietnamese market.

6.6       The funded campaign included the following offline and online events:

·    Studying High School in New Zealand – Offline event on 6 January 2024

·    The Differences and Advantages of Single-sex Education – Online event on 24 February 2024

·    Discover Life and Study Experience in Palmerston North – Online event on 16 March 2024

·    Popular Courses at Massey University – Online event on 13 April 2024.

 

6.7       In June 2024, Mr Allan Mai, Director, accompanied students and their families to visit Palmerston North in order to promote the city as a preferred study destination for them. Mr Mai also met and visited individual schools including Awatapu College, Palmerston North Girls’ High School and Palmerston North Boys’ High School.

6.8       During his visit to the city, Mr Mai presented the final report on the successful marketing campaign to the International Education Manawatū (IEM) group and the International Education Leadership Group (IELG). The campaign provided Vietnamese students and parents accurate, valuable and practical insights on studying opportunities in the Manawatū. The outcome of the campaign was very encouraging with a total market reach of over 200,000, including 127 event attendees and 3 long-term enrolments in 2024. More detail is included in the written report in attachment 5.

SIEBA Conference 25-26 June 2024

6.9       SIEBA (Schools International Education Business Association of New Zealand) is the recognised peak body for the international education school sector in Aotearoa New Zealand. Its purpose is to provide leadership and support for a high quality and sustainable international education sector for New Zealand schools. Currently SIEBA has over 400 member schools across the country.

6.10     Council’s Manager International Relations was invited to participate in a panel discussion at the SIEBA hui, a two-day biennial gathering of over 250 institutions specialising in international education. The panel discussion’s topic was on regional collaboration and international education.

6.11     Council’s International Relations division holds the function of coordinating, supporting and advising the local international education sector in enhancing the study experience in Palmerston North and promoting the city as a preferred study destination. The city works collaboratively with various regional/city partners in:

·    Organising community events to welcome and integrate international students into the fibre network of the local community.

·    Responding to marketing opportunities for the region and following up with potential leads as well as connecting suitable opportunities with education providers.

·    Applying for regional funding for collaborative projects.

 

A person holding a microphone and sitting next to another person

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Figure 7- Ms Gabrielle Loga, Manager International Relations presented at 2024 SIEBA Hui

6.12     Presented alongside Christchurch Educated, the support for international education of Council was also recognised as robust, inclusive and innovative. The outcomes of the concerted effort include the success of various funded regional projects with Education New Zealand to promote Palmerston North, Manawatū and coordinating educational delegation visits to the city over the last two years.

6.13     The panel acknowledged some key challenges in fostering regional collaboration in the coming years are:

·    to bring together diverse stakeholders with varying priorities and agendas.

·    to enhance capacity of education providers and quality homestay network to meet increasing demands while ensuring sustainability for New Zealand education.

·    to organise direct feedback loops with international students to understand their needs and improve on their study experience.

·    to handle resource constraints and ensure effective resource allocation.

Global Ambassador Programme

6.14     Applications for the 2024/25 Global Ambassador Programme opened on 19 August and closed on 13 September 2024. Shortlisted applicants will be interviewed and up to five Global Ambassadors will be appointed by the end of September 2024.

6.15     The Global Ambassadors will:

·    Take an active role in showcasing Palmerston North to important visitors and diplomats.

·    Learn about our international partnerships and the role of the Welcoming Communities programme through public events and festivals.

·    Receive Council support to plan and manage their own student event.

·    Share our city’s story with the world.

 

6.16     The programme aims to empower local talent and support local initiatives with links to our international relations goals and community development goals in the Oranga Papaioea City Strategy and plans.

6.17     This programme is jointly managed by Council’s International Relations and Education Advisor and Community Development Advisor (Welcoming Communities).

7.         Next steps: Updated annual plan 2024 – 2025

 Proposed timeline

Planned activities

Partners to work with

 

 

 

 

August 2024

 

Waseda Study Group – 2nd intake for 2024

 

 

 

 

 

 

 

HiGA visit

 

 

 

 

 

 

 

Global Ambassadors Programme 2025

 

 

 

 

 

Yantai Delegation Visit

 

Awatapu College

Palmerston North Girls’ High School

Palmerston North Boys’ High School

Massey University

UCOL

Waseda affiliated schools

 

Hiroshima Global Academy

PNGHS - PNBHS

Awatapu College

Freyberg High School

 

 

 

Marcomms team

Welcoming Communities

 

 

 

Embassy of People’s Republic of China

Yantai People’s Municipal Government

 

September 2024

Event ‘Pōwhiri – Welcoming newcomers’ 14 Sept 2024

 

 

 

Event ‘EU NZ FTA and Horizon Fund’

16 Sept 2024 (tentative)

 

To replace Event ‘The Effects of EU-NZ FTA’

 

 

 

 

 

Event ‘ASEAN – Open Doors for AgriTech’ – a market information session and networking opportunity for local businesses interested in one of the key strategic partners for New Zealand.

19 Sept 2024

 

Welcoming Communities

Rangitāne iwi

 

 

EU Delegation Ambassador

CEDA

Manawatū Business Chamber

FoodHQ

Massey University

 

 

 

ASEAN Business Council NZIIA Palmerston North

ASEAN Committee in Wellington

Ministry of Foreign Affairs and Trade

CEDA

Manawatū Business Chamber

October 2024

 

Engage with Penrith, Liverpool, and Bradfield Development Authority to assist with Te Utanganui Sydney Knowledge Acquisition Trip 3-4 Oct

 

 

 

 

 

 

Latin American and Spanish Film Festival – showcasing Latin cultures

 

 

 

 

 

 

 

 

Diwali Mela – Festival of Light

2 Nov 2024

 

CEDA

Australian High Commission

Penrith Mayor’s Office

Liverpool Mayor’s Office

Bradfield Development Authority

 

 

 

Shaun Kay, Palmerston North Arts Ambassador

Manawatū Multicultural Council

Embassy of Cuba

Embassy of Peru

Embassy of Argentina

Other Latin American embassies

 

PNCC Events Team

High Commission of India

High Commission of Republic of Fiji

High Commission for Malaysia

Singaporean High Commission

Embassy of Republic of Indonesia Manawatū Multicultural Council

Local communities: Indian, Nepalese, Sri Lanka, Fijian, Bangladeshi, Indonesian

 

November 2024

Event ‘Pōwhiri – Welcoming newcomers’ 16 Nov 2024

 

 

Missoula Day 23 November

 

Hosting Missoula Indigenous delegation to Palmerston North

 

 

 

 

 

 

Support the 17th International Hydrocolloids Conference

Welcoming Communities

Rangitāne

 

Palmy BID

Arts Missoula

Destination Missoula

Embassy of the USA

Missoula Children’s Theatre

Salish Kootenai College

University of Montana

 

 

Riddet Institute

Massey University

 

 

December 2024

 

Event ‘Building Youth Engagement in sister city relationships, international policy and global citizenship’

 

 

 

NZIIA Palmerston North

UCOL

Massey University

IPU NZ

January 2025

Lunar New Year Celebration

PNCC Events Team Manawatū Multicultural Council

Chinese Community

Vietnamese Community

Korean Community

Embassy of People’s Republic of China

Embassy of Socialist Republic of Vietnam

Embassy of Republic of Korea

Singapore High Commission

High Commission for Malaysia

 

 

February 2025

 

2025 Festival of Cultures:

Day 1 – City tour themed ‘Sustainability’ TBC

Day 2 – World Food, Craft and Music Fair

 

Members of the diplomatic corps

CEDA

Manawatū Multicultural Council

PNCC Events Team

 

March 2025

Holi – Festival of Light

 

 

 

 

 

 

Waseda Study Group – 1st intake for 2025

 

 

 

 

 

 

 

 

 

 

Taipei Smart Cities Summit & Expo 2025

 

Manawatū Multicultural Council

PNCC Events Team

High Commission of India

 

 

Awatapu College

Nga Tawa Diocesan School

Palmerston North Girls’ High School

Palmerston North Boys’ High School

Massey University

UCOL

Waseda affiliated schools

 

TCA

Taipei Economic & Cultural Office in Wellington

Palmerston North start-ups and tech companies

 

April 2025

 

Application for Prime Minister Scholarships – Cultural Competence Development Tour

 

Application for Prime Minister Scholarships – Emergency Management Tour

 

Education New Zealand

 

 

 

Education New Zealand

Manawatū-Whanganui Civil Defence Emergency Management Group

May 2025

 

 

June 2025

NZ-China Mayoral Forum TBC

 

Global Cities NZ

The Chinese People's Association for Friendship with Foreign Countries (CPAFFC)

Embassy of People’s Republic of China

Ministry of Foreign Affairs and Trade

 

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 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 objectives in:   

2.  Mahere whakawhanake ohaoha

2.  Economic Development Plan

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

1.

MOU FoodHQ - ECS-CAAS, Kunshan Suzhou

 

2.

Thank You Letter from Mr Feng Renxin - Kunshan Delegation 2024

 

3.

Yantai City Profile

 

4.

Letter of Intent with Yantai City

 

5.

AUH Marketing Campaign Final Report - Manawatū

 

  

 













































 

Memorandum

TO:                                Economic Growth Committee

MEETING DATE:           18 September 2024

TITLE:                             International Trip to China - April 2024

Presented By:            Councillor Debi Marshall-Lobb

APPROVED BY:            Waid Crockett, Chief Executive Officer

 

 

RECOMMENDATION TO Economic Growth Committee

1.   That the Committee receive the report titled ‘International visit to China - April 2024’ presented on 18 September 2024.

 

 

1.         ISSUE

1.1       On 6 March 2024, Council approved the Deputy Mayor to travel to China from 11 - 25 April 2024 to join the World Class Education delegation to Hefei, China and to cover up to $400 travel costs associated with this trip.

1.2       This memorandum reports back on outcomes of that visit.

Mā te kimi ka kite, mā te kite ka mōhio, mā te mōhio ka mārama

Seek and discover; discover and know; know and become enlightened

 

2.       background

2.1       The Director of World Class Education invited me to accompany their Education Delegation to China in order to give prominence to the City’s support of our schools and wider community. I was chosen because of my educational background (Retired Primary and Secondary School Principal, former ministerial appointee of the New Zealand Teachers’ Council and current Secondary School educator) as well as being Deputy Mayor.

2.2       The trip resulted in several Memoranda of Understanding (MoUs) between the participating Palmerston North schools and the partner schools. These agreements outline plans for student exchange programmes, aiming to enhance educational outcomes for both parties.

2.3       The trip was funded collectively by Awatapu College, Palmerston North BoysHigh School, Palmerston North GirlsHigh School, Queen Elizabeth College, Whakarongo Primary School and World Class Education.

 

 

2.4       As stated on Palmerston North City Council’s (Council) website:

Palmy is a growing hub of international activity and networks. We are home to world-class education and research institutes, international firms and businesses in trade. We welcome students from all over the worldPalmerston North City Council has an important role in helping our city become more internationally connected, competitive, and vibrant.”

2.5       Hence, this position corresponds with the objectives of the trip and also the Council’s goal to be an innovative and growing city: a globally connected city that fosters opportunities for local people, businesses and organisations.

 

3.       trip report

Purpose of the Trip:

•       To establish and consolidate strategic cooperative partnerships with schools in Changchun City, Wuxi City, Jiaxing City, and Hefei City.

•       To foster friendly and sister inter-school relations between primary and secondary schools.

•       To promote study trips, winter and summer camp activities for Chinese and New Zealand students.

•       To encourage educational exchanges and visits, including teacher and school student exchange programmes, and to organise high-level forums on educational topics.

Palmerston North Participants and Schools:

•       Mary Cherian, International Director - Awatapu College

•       Minnie Young-Wilson, International Director - Palmerston North BoysHigh School

•       Lina Hong, Director - International, Palmerston North GirlsHigh School

•       Sarah Lassen, Deputy Principal - Queen Elizabeth College

•       Jaco Broodryk, Principal - Whakarongo Primary School

•       Shirley Urquhart, Administration Manager - World Class Education

•       Wendy Jochem, Director - World Class Education

Other Participants and Schools:

•       Antoinette Walters, International Director - Waiuku College

•       Stuart Kelly, Principal - Waiuku College

•       Robert Gilbert, Principal - Papanui High School, Christchurch

•       Jo Hunnikin, Principal - Waimate High School

Itinerary, Feedback and Photos

3.1       Attached is the travel itinerary (Attachment 1), feedback from school representative (Attachment 2) and photos (Attachment 3).

 

4.       KEY FINDINGS

4.1       Cultural Exchange and Mutual Learning:

4.2       Both the local schools and partner schools gained valuable insights into each others educational systems and cultural contexts. This exchange fostered mutual respect and understanding, paving the way for future collaborations.

Benefits of Educational Delegation Trips:

4.3       Educational delegation trips offer multifaceted benefits, including improved teaching practices, the fostering of international partnerships, and enhanced student learning outcomes and experiences.

Insights:

4.4       World Class Education Limited have a well-established network and relationships with schools in China and provided a well-planned trip with multiple opportunities to meet school officials, parents and students.

4.5       Our school representatives were all experienced, diligent and professional educators who superbly promoted their schools and community; they also supported each other in a manner that was cooperative and collaborative.

4.6       The schools we visited were welcoming and genuinely interested in Palmerston North schools and our city.

 

5.       RECOMMENDATIONS

Promoting Local Schools to Overseas Schools and their Students:

5.1       Promoting local schools to overseas schools and their students can strategically enhance educational opportunities, cultural diversity, and boost the local economy.

Suggest Palmerston North City Council considers:

1.         Continuing to support and promote our local schools to cities with which they/we have formal relationships.

2.         Look to develop a dedicated International section with a Education sub-set on our councils website with information about our schools, highlighting their strengths and successes.

3.         Where possible consider sending representatives to accompany local educational delegations to showcase the schools and interact directly with potential schools, students, families, civic leaders, and related organisations.

4.         Collaborate on joint projects or initiatives that can raise the profile of our city and local schools internationally.

5.         Take opportunities domestically within the City/region to welcome and host visiting schools, educators, and associated guests.

 

6.       ACKNOWLEDGMENTS

6.1       I would like to thank the following people and schools:

•       Wendy Jochem, Director of World Class Education for the Invitation to accompany the Delegation and for the opportunity to have such a positive experience to promote our city and schools.

•       Mary Cherian of Awatapu College.

•       Minnie Young-Wilson of Palmerston North Boys’ High School.

•       Lina Hong, Palmerston North Girls’ High School.

•       Sarah Lassen of Queen Elizabeth College.

•       Jaco Broodryk of Whakarongo Primary School.

•       and Shirley Urquhart, of World Class Education.

•       Stuart Kelly and Antoinette Walters of Waiuku College; Robert Gilbert of Papanui High School, and Jo Hunnikin of Waimate High School.

•       David Bovey, Rector-Palmerston North BoysHigh School.

•       Tracey Walker, Principal-Palmerston North GirlsHigh School.

•       Gary Yeatman, Principal-Awatapu College.

•       Chris Moller, Principal-Queen Elizabeth College.

•       Jaco Broodryk, Principal-Whakarongo Primary School.

•       Mayor Grant Smith, Elected Members of Council, Council Staff- especially Margaret Hunt, Kunal Chonkar and Sheila Monaghan.

 

7.       NEXT STEPS

7.1       The on-going partnership between Palmerston North and China should continue to support the initiatives that further develop our relationship.

7.2       No further actions are required from this visit.

 

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?

No

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:   

14. Mahere mana urungi, kirirarautanga hihiri

14. Governance and Active Citizenship Plan

Facilitate international economic and educational partnerships for the city.

 

Contribution to strategic direction and to social, economic, environmental and cultural well-being

The delegation visit helped to promote the city’s positive international reputation, demonstrated Palmerston North’s commitment to international collaboration and friendship, exchanged best practices and explored opportunities to enhance economic, educational, cultural and community cooperation.

 

Attachments

1.

Delegation Trip to China - Itinerary

 

2.

Delegation Trip to China - School Feedback

 

3.

Delegation Trip to China - Photos

 

  

 

 


 

 


 















 

Memorandum

TO:                                Economic Growth Committee

MEETING DATE:           18 September 2024

TITLE:                             Palmerston North Quarterly Economic Update - September 2024

Presented By:            Stacey Andrews, City Economist

APPROVED BY:            David Murphy, General Manager Strategic Planning

 

 

RECOMMENDATION TO ECONOMIC GROWTH COMMITTEE

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 18 September 2024.

           

1.         introduction and purpose

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

1.2       The quarterly economic update is prepared in-house, utilising 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), ‘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       The memorandum concludes with a summary of the economic outlook for the city and the wider New Zealand economy.

2.         Quarterly economic Update

2.1       Infometrics reports that Palmerston North GDP fell by -0.8% over the year to June 2024 as the New Zealand economy hit the bottom of the economic cycle.  This compares with a -0.2% contraction in GDP nationally.  Statistics New Zealand GDP data for the June quarter 2024 is not released until 19 September. 

 

2.2       Annual inflation (as measured by the Consumer Price Index) eased to 3.3% in the June quarter as the economy continued to contract in response to higher interest rates and a further pullback in spending across the economy. Inflation is heading in the right direction, with the Reserve Bank of New Zealand (RBNZ) stating that inflation is likely to have fallen back within range in the September quarter.  This is positive, as banks move to reduce interest rates to households and businesses.  Six-month mortgage rates have fallen to 6.85% at the time of writing, with two-year rates falling below 6.0%.

2.3       In response to falling inflationary pressures and weaker economic activity than anticipated, the RBNZ dropped the Official Cash Rate (OCR) by 25 basis points to 5.25% in the August 24 Monetary Policy review.  This follows a policy rate of 5.5% in place since May 2023.  The OCR is now forecast to fall sooner than indicated at the release of the May Monetary Policy Statement (MPS).  Figure 1 illustrates the difference in the OCR track between the RBNZ’s May and August Monetary Policy Statements.   

2.4       Figure 1:  RBNZ OCR projections – Aug MPS vs May MPS

 

 

 

 

 

 

 

 

 

 

2.5       While headline inflation is forecast to have fallen back into the RBNZ 1%-3% range in the September quarter, electricity costs have risen sharply due to low lake levels and disrupted gas supplies.  To date, commercial consumers have taken the brunt of these higher costs with electricity prices rising 9.7% overall over the year.  Limited gas supplies have been a dominant driver of these higher energy costs with gas prices to the commercial sector increasing 22.4% over the year, curtailing production in some cases due to elevated production costs.    

2.6       Household energy costs have been less affected but have still increased by +4.0% over the year to June 2024.  To put this in context, household electricity costs increased by 3.5% while household gas prices increased by 8.5% over the year.  While the RBNZ is likely to look through any increases in costs driven by the current energy supply shortage, price stability in energy markets is central to the competitiveness of the productive sector. Stable prices will also reduce pressure on household budgets to support recovery of the New Zealand economy.  

2.7       The New Zealand population is estimated by Statistics NZ to have grown by 1.8% over the year to June 2024, with growth slowing to just 0.1% in the June quarter 2024. While annual population growth remains elevated, the more recent slowdown in population growth is explained by a decline in net international migration to 73,300 over the June 2024 year.  This is down from the record high of 136,600 posted over the year to October 2023.  While easing relative to recent highs, current net international migration remains well above the long-term trend.

2.8       The first set of Estimated Resident Population figures for the city based on the 2023 Census have not yet been released, however secondary data implies that the population of the city continues to grow.  Primary health enrolments in Palmerston North increased by +1,625 over the year to August 2024 (+2.1%). 

2.9       This implied population growth, alongside the current contraction in annual GDP, indicates falling GDP per capita in Palmerston North and across much of New Zealand.  GDP per capita figures will be updated post the release of the Estimated Resident Population data series due in October 2024.

Business and jobs

2.10     There were 8,184 businesses in Palmerston North in June 2024; an increase of 121 businesses from the previous year.  This is an increase of +1.5% over the year, compared with +1.9% growth in business counts, nationally. 

2.11     Non-residential consents totalled $104.4m in the city over the year to July 2024.  This is a decrease in value of -45.9% compared with the July year 2023 and compared with a decrease of -12.1% nationally.  This negative growth follows a record breaking level of non-residential construction investment in 2023.  Specifically, non-residential consents totalled $192.0m in the July year 2023, with construction of health and education buildings hitting record values of $40.6m and $81.7m respectively.  More positively, construction of factories, and industrial and storage buildings increased by 55.4% over the year to July 2024, reaching a total of $51.8m. 

2.12     The findings of the Seek Employment report for July 2024 are mixed.  The Manawatū Region continues to see an annual decrease in jobs advertised, down -29% compared with the year ended July 2023.  In contrast, job advertisements in the Region increased +10% from June to July, implying some strengthening in employment intentions.  Nationally, advertised jobs fell -29% over the year, with a monthly increase of +3% between June and July 2024. More broadly, the employment report indicates an increase in advertised jobs for construction workers (+14%) and consumer service workers (+10%) in regional areas in July 2024, compared with June 2024.  Indicators that reflect changing employment intentions will be monitored and reported on through the quarterly reporting series.   

2.13     At the time of writing, filled jobs and earnings data for the June quarter are not available.  The latest data to the year ended March 2024 indicates that filled jobs by workplace address decreased by -3.0% to a total of 45,619 over the year with jobs by place of residence up by 1.0% to 35,518.  This compares with +2.0% growth, nationally.  The impacts of the economic slowdown on employment and earnings levels in the city is an important indication of economic wellbeing. 

2.14     The annual average unemployment rate published by Infometrics remained at 4.5% in the city in the June quarter 2024.  This compares with an annual average unemployment rate of 4.2% nationally.  In contrast, quarterly unemployment rate figures from Infometrics cite an unemployment rate of 4.4% in Palmerston North in the June quarter, compared to 4.5% unemployment nationally.  The national unemployment rate for the June quarter compares with the Statistics NZ national unemployment rate of 4.6%. 

2.15     The number of MSD jobseeker beneficiaries in Palmerston North increased by 321 over the year to June, to a total of 3,180.  This is an +11.3% increase on the previous year, compared with a +13.5% increase, nationally. Of this increase, 192 people were receiving the benefit due to health conditions and disability. 

2.16     The number of people receiving the Jobseeker benefit increased across all age groups in Palmerston North and nationally over the year to June 2024.  Jobseeker beneficiaries aged between 18-24 years increased by 93 in the city (+13.7%), compared with an increase of 12.8% nationally.  The number of Jobseekers beneficiaries aged 25-39 increased by 87 (+8.8%) compared with a +9.6% increase nationally, while recipients aged 40-54 years and 55-64 years each increased by 69 in the city over the June 2024 year (+9.2% 40-54 years; +15.8% 55-64 years).  This compares with an annual increase of +9.6% in Jobseeker recipients aged 40-55 years and an +8.0% increase in Jobseeker benefit recipients aged 55-64 years, nationally.   

 

Earnings and income

2.17     Earnings data for the city for the June 2024 quarter will be released 10 September. Latest earnings data for the city for the March quarter indicated strong earnings growth with annual earnings up +9.3% over the March 2024 year.  This compares with an +8.6% increase nationally.  As explained in section 2.19, we expect the rate of earnings growth to have started to ease over the later part of the June 2024 year.  However, the flow through of wage agreements to pay packets, and the lingering impacts of wage pressure from 2023, are expected to have continued to boost overall earnings in the city and nationally over the June 2024 year.    

2.18     The elevated wage growth of the 2022/23 financial year is reflected in the Statistics NZ median salary and wages data, with median earnings in the city increasing by +7.0% over the year to a total of $65,000. This compares with a +6.9% increase nationally to reach a median salary of $66,770.   Growth in earnings, both in the city and nationally, continued to reflect the elevated wage inflation that prevailed over the period due to tight labour market conditions and strong demand, alongside large scale sector wage agreements settled in 2022 and 2023.

2.19     Early indications of easing wage growth are reflected in the Quarterly Economic Survey (QES) for ordinary time hourly earnings, and the Labour Cost Index (LCI) for the June 2024 year.  These measures of wage growth indicate that ordinary time hourly earnings increased by +5.0% over the June 2024 year, compared with a +6.9% increase the previous year. According to the LCI, wage growth was particularly strong in the ‘health care and social assistance’ sector (+8.1%) and the ‘education and training’ sector (+7.8%) as pay agreements rolled through into salaries.  Further easing of wage growth is expected in 2024 and into 2025.  

Spending

2.20     Retail spending increased by +0.4% in the city over the year to July 2024, to a total of $1,500m ($1.5b). This compares with a +1.7% increase in retail spending nationally.  Retail spending is in dollar value and does not account for the impact of inflation on the purchasing power of consumers. 

2.21     As discussed earlier in this report, the annual rate of inflation over the year to June 2024 was 3.3% with an increase in average household living costs of 5.4% over the year.  The annual rate of growth in living costs is slowing from previous highs, however annual retail spending versus the rate of inflation continues to reflect negative real growth in spending over the year. 

2.22     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 -8.4% over the year to July 2024, with spending on ‘Arts, recreation and visitor transport’ down -5.2% over the same period.

2.23     New car registrations in Palmerston North fell by -6.2% over the year to June 2024 compared with an -11.7% decrease nationally.  The number of new commercial vehicle registrations also fell over the year, down -13.5% in the city versus the previous year. This compares with a decrease of -21.5% nationally. 

2.24     Tourism spending in the city has been impacted by a pullback in spending by domestic travellers.  According to the Tourism Electronic Card Transactions (TECT) series, domestic tourism spending in Palmerston North fell -2.5% over the year to June 2024 to a total of $276.7m. This compares with a -2.8% fall nationally.  In contrast, local international tourism spending was up from the previous year, increasing by +15.8% to $26.6m.  This compares with a +16.6% increase in international tourism spending, nationally.  

2.25     The annual change in guest nights is also a useful indicator of tourism activity in the city and across the country.  Over the year to July 2024, guest nights in the city decreased by -8.5% to a total of 422,000.  This compares with a +4.0% Increase, nationally.  Reflecting the downturn in domestic tourism, guest nights from domestic travellers fell by -12.3% in Palmerston North over the same period, compared with a -4.4% decrease nationally.  In contrast, guest nights from international travellers increased +11.3% in the city over the year, compared with a +25.3% increase, nationally. 

Housing

2.26     Corelogic has introduced a new house price index referred to as the Hedonic Home Value Index (HPVI).  According to the HPVI, the median value of houses in the city increased by +2.5% over the year to July 2024.  This compares with a +2.9% increase nationally, over the same period. The HPVI indicates that house prices in Palmerston North have fallen -17.1% from their 2022 post-COVID peak.  This compares with a -15.8% fall, nationally.  A limited set of data is currently available from the HPVI.  As more detailed information becomes available, this will be included in the quarterly economic update for the city,    

2.27     Mortgage lending increased to $6.7 billion in the July month 2024, compared with $5.0 billion in July 2023.  This represents a 33.1% increase in monthly lending versus July 2023.  Mortgage lending to owner-occupiers and investors increased the most, up $932m (+32.8%) and $512m (+60.0%) respectively.  Lending to first home buyers lifted by $177m (+14.3%) over the same period, while mortgage lending for business purposes was up $32.0m (+50.0%).  While it is early days in terms of the housing market, easing financial conditions and improved affordability due to lower house prices are expected to boost investment in the housing market.     

2.28     Mortgage lending to investors increased to 20.5% of total lending in July 2024, up from 15.4% in January 2023.  This compares with a 10-year average of 22.3%.  Investor lending is generally expected to strengthen in response to the restoration of interest deductibility as well as pent-up demand for new housing driven by population growth and improving financial conditions. 

2.29     Home ownership remains more affordable in Palmerston North than many other parts of the county, with the average house price equal to 5.1 times the average income in March 2024. This compares with the average house price of 6.9 times the average income, nationally.

2.30     Rental price increases continue to exceed CPI, with prices in the city rising +5.7% to $486 per week over the year to June 2024.  This compares with a +6.4% increase nationally to $568.  Over the same period, the number of properties rented increased by +2.4% in Palmerston North, compared with a +3.4% increase nationally.  As at June 2024, 8,067 homes were rented in the city.  

2.31     Renting a home in Palmerston North remains more affordable than in much of New Zealand, with annual average rent making up 19.8% of annual household income, compared with 22.1% 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 21.2% and 21.7% of the average household income, respectively.

2.32     The number of households on the public housing register in Palmerston North fell by -81 (-12.9%) over the year to June 2024.  This compares with a -7.3% fall nationally.  Anecdotally, some of the decrease in the number of families on the register may be explained by the increased level of evidence required to prove housing need, as well as a change in prioritisation to families with children.   

2.33     There were 408 consents for new dwellings issued in Palmerston North over the year to July 2024, down -8.5% compared with the previous year.  This compares with a -22.0% decline in new dwelling consents nationally.  The decrease in planned residential construction has been driven by unsupportive financial conditions, high development costs, and weak capital gains.  A pullback in central government investment in residential development is also weighing on levels of residential development.  Improving financial market conditions, alongside the recovery of broader economic conditions, are expected to support levels of residential investment. 

2.34     Data for the 2023 calendar year estimates that a total of 314 of the 424 dwellings consented over the year will add to the housing stock of Palmerston North (74.1%).  This data series is being developed manually, with the purpose of providing greater detail about additions to the total dwelling stock in the city.  This series removes ‘relocates’ moved outside the city, adds in ‘relocates’ coming into the city from other parts of New Zealand, and removes ‘uplifts of dwellings’. Officers are currently preparing quarterly estimates of net dwellings. This data will be included in future quarterly updates for the city.

 

 

3.         Palmerston North electronic card spending report – June 2024

3.1       Total electronic card spending fell by -0.3% in the June quarter 2024 to a total value of $366.0m.  This compares with a +0.3% increase in spending nationally. This growth in spending is below the 3.3% rate of annual inflation, indicating negative real growth.  

3.2       Over the year to June 2024, electronic card spending in Palmerston North reached $1.501 billion, an increase of +0.6% from the previous year.  This compares with a +2.0% increase nationally over the same period.  Of this total, 56.0% continues to be spent in the city centre. 

3.3       Spending in the city centre increased by +0.7% over the year.  Discretionary spending was most affected by the pullback in consumer demand with ‘Home & recreational retail’ spending down -10.4% and ‘Arts, recreation & visitor transport’ spending falling -5.0% over the year.  This trend continues to be consistent with electronic card spending data for many parts of the country, where spending on non-essential goods and services has come under pressure from the continuation of elevated household costs and uncertainty around wider economic conditions.  

3.4       Spending on essential items continues to increase as households and businesses reduce spending on discretionary expenditure.  Spending on ‘groceries and liquor’ was the highest growth sector in Palmerston North, up +6.6% compared with the previous year.  The trend for grocery spending was similar for the city centre and New Zealand, up by +8.5% and +7.1% respectively over the year.   

3.5       Spending on ‘cafes, restaurants, and bars’ fell below the rate of inflation over the June year, increasing by 1.7% in the city compared with annual inflation of 3.3%.  The trend was similar in the central city and across New Zealand, rising by 2.8% and 2.5% respectively.  This pullback in discretionary spending is expected as the New Zealand economy emerges from economic recession.   

3.6       ‘Other consumer spending’ increased for a second consecutive quarter in Palmerston North, up 14.9% compared to the June 2023 year.  This growth was stronger in the city centre, rising 67.1% over the year compared with national growth of 4.7%.  It is worth noting that ‘other consumer spending’ makes up just 0.1% of total spending, with the highest spending categories being ‘groceries and liquor’ (33.1%) and ‘home and recreational retail’ (30.3%). 

3.7       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 June 2024.  This compares with 81.3% over the year to June 2023.   

3.8       The annual inflation rate to June 2024 was 3.3%, indicating a real decline in spending across retail precincts in the city except for the Palmerston North City Centre and Terrace End.  Over the year, spending in the City Centre and Terrace End precinct increased by 3.4%, marginally exceeding the annual rate of inflation.

3.9       The Quarterly Economic Card Spending Report for June 2024 is attached as Appendix 2.

4.         Economic outlook

4.1       Short term challenges persist in 2024. The longer term outlook is growing more positive, however, as the economic fundamentals of the city and the region continue to boost resilience, inflation tracks lower, and interest rates look set to fall for the remainder of 2024 and into 2025. 

4.2       Retail interest rates are tracking downwards in response to an improved OCR track, signalling an easing of cost pressures for businesses and households.  While this is positive, the impact of higher interest rates will take time to unwind as fixed interest rates continue to weigh on disposable incomes, global growth remains weak, net migration into the country slows, and lower government spending further subdues demand across the economy.  As a result, GDP growth is forecast to remain weak with the RBNZ projecting annual growth of -0.4% over the 2024 calendar year.  Next year presents a more positive scenario with annual GDP growth projected to rise to 3.3% in 2025.

4.3       While challenges remain, there is much to be positive about, as reflected in the latest ANZ Business Outlook Survey.  The August 2024 survey found that business confidence has soared to the highest level in a decade, lifting 23 points to +51 in August with firms’ expected own activity jumping to a seven-year high of +37.  Expectations of price increases were also weak, lessening any concerns of inflationary pressure.  As indicated in the survey, the positive result is coming off a period of very weak activity, therefore, while the expectation of an improvement in conditions is positive, these expectations are expected to take time to cycle through to actual economic activity.

4.4       The sharp deterioration of the New Zealand economy, beyond the expectation of the RBNZ over the 2024 winter, has led to the expectation of earlier and deeper interest rate cuts than previously signalled.   Higher interest rate cuts at pace will boost economic activity as the RBNZ works to stimulate demand to match supply capacity across the New Zealand economy.  The economic outlook has turned a corner. 

 5.        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:   

2.  Mahere whakawhanake ohaoha

2.  Economic Development Plan

 

Contribution to strategic direction and to social, economic, environmental and cultural well-being

 

 

Attachments

1.

Palmerston North Economic Growth Indicators (as at September 2024)

 

2.

Palmerston North Quarterly Economic Card Spending Report - June 2024

 

  

 



















 

Memorandum

TO:                                Economic Growth Committee

MEETING DATE:           18 September 2024

TITLE:                             Road Maintenance Contract - 6 Monthly Update

Presented By:            Glen O'Connor, Manager - Transport and Development

APPROVED BY:            Chris Dyhrberg, General Manager Infrastructure

 

 

RECOMMENDATION TO Economic Growth Committee

1.         That the Committee receive the report titled ‘Road Maintenance Contract – 6 Monthly Update’ presented on 18 September 2024.

 

 

1.         ISSUE

1.1       In March 2022, the report titled ‘Road maintenance Contract Update’ was presented to the Infrastructure Committee.  In this meeting the Committee resolved:

“to receive further six-monthly reports on the work programme and performance of the road maintenance contract.”

1.2       This report provides the latest six-monthly update on the work programme and performance of the road maintenance contract, using information up to the end of July 2024.

 

2.         BACKGROUND

Road Maintenance Contract

2.1       Council entered Contract 3938 (Road Maintenance, Renewal, and Capital Improvement Services) with Fulton Hogan in March 2021.  The contract commenced on 1 July 2021 with an initial term of three (3) years, with two (2) right of renewals for three (3) years each.

2.2       In May 2024 Council approved entering the first three-year renewal term of the Contract with Fulton Hogan from 1 July 2024 through to 30 June 2027.  As part of this process, Council renewed the street lighting and street sweeping components of this contract for an initial one-year term. Further renewals of these two contract components will be contingent on Fulton Hogan meeting key performance indicators around these services.  Officers are now in the bedding down of this extension period. 

Contract Works

2.3       Works delivered by the road maintenance contract can be split into operations/maintenance and renewals/capital spend areas, with each funding area having key deliverable areas.

Operations and Maintenance include:

·    Footpaths

·    Pavement

·    Drainage

·    Traffic Services i.e. signals, street lighting, sweeping etc.

 

Renewals and capital include:

·    Pavement reseals

·    Pavement rehabilitations/ replacements

·    Drainage

·    Footpaths

·    Structural – i.e. bridges etc.

 

3.         ROAD MAINTENANCE CONTRACT six MONTHLY UPDATE as at 31 July 2024

3.1       Below is an update on the contract deliverable areas as listed above. 

3.2       NZ Transport Agency Waka Kotahi (NZTA) typically funds approximately 51% of Council’s land transport programme.  Council is expecting confirmation from NZTA of their total funding share in early September 2024 for the 1 July 2024 to 30 June 2027 period.  The road maintenance contract scope of works will be adjusted to fit the available funding and subsequent levels of service required by Council.  Due to this funding uncertainty, it has not been possible to confirm the exact scope of some work programmes delivered under the Road Maintenance Contract.

Operations and Maintenance

3.3       Footpaths

·    The city-wide footpath maintenance work programme for 2023/24 was complete and the available budget has been fully expended.  The 2024/25 footpath maintenance works will be dependent on available budgets.  Early indications from NZTA are that their funding in this area is likely to be minimal.

 

 

 

3.4       Pavement

·    The programme of work for pre reseal repairs (i.e. potholes, pavement defect repairs etc.) and other reactive maintenance work to the city’s road pavement was completed for 2023/24.  The budget for this area was exceeded so Officers worked to offset this by reprioritising works in other maintenance areas.

3.5       Drainage

Road Sweeping and Sump Clearing

·    The kerb sweeping and sump cleaning was completed in the 2023/24 year, noting that the budget allocation in 2023/24 was not sufficient to meet the desired level of service.  As a result, the service was completed on a reactive basis.

·    The budget allocation for this area has been increased in the 2024/34 Long-term Plan to gain an improved level of service.  The 2024/25 street sweeping programme is being finalised, as it is dependent on NZTA funding.  This includes a higher level of sweeping during seasonal fluctuations (winter and leaf fall etc).

·    It should be noted that the sweeping services delivered by Council’s contractor, as with many other components of this contract, are paid for on a measure and value basis.  In short, Council contractors get paid for each kilometre of road swept.  A yearly/monthly programme of kilometres/streets to be swept is established, based on available budget. Council’s contract does not have a lump sum price from our contractors for sweeping where they, for instance, remove all leaf fall within a specific time period, or to a specified standard.  Council’s contractors get paid, once Officers have established that this sweeping work has been completed to the required standard, for the kilometres that Council requested they sweep.

·    In July 2024 Officers undertook three quality audits of completed sweeping areas and no quality issues were observed, nor was any rework required.

3.6       Traffic Services

Road Marking

·    The programme for road marking work throughout the city for 2023/24 was completed and the available budget was fully expended.  There was a focus on Stop/Give-ways and pedestrian marking only due to limited budget. 

Streetlights

·    The initial night survey to inspect the functioning of individual streetlights was undertaken in July 2024.  This audit indicated that, at the time of this survey, our cities streetlight network is over 95% lit, thus compliant with the applicable AUS/NZ Standard.

·    Specifically, the audit detailed that there are 235 lights out on the network.  These are now being inspected to identify if the fault with these is a luminaire type issue or a network issue.

·    Council recently received 400 new street light luminaires and 131 of these have been installed.  This leave 269 luminaires in stock, which will be used to replace the lights that are out on our network, as required.

·    An additional stock of 300 new luminaires is due to arrive in September or October 2024.  Once the ongoing luminaire failure rate, established through streetlight night surveys over the next 12 months or so, is confirmed, Officers will be able to confirm the required number of luminaires that needs to be held in stock.

Powerco (streetlight network electricity suppliers)

·    Officers have met with Powerco (the network power supplier to our streetlights) to discuss how improvements and efficiencies can be achieved across the multiple parties involved with the streetlighting assets.  This includes how a quicker resolution to network faults can be achieved.

·    Data indicates that over the 12 months from 1 July 2023 to 30 June 2024 there was approximately 272 reported faults that were deemed network (Powerco) faults, once inspected.  These faults included a variety of repairs from fuse replacements to extensive traffic management, excavations and repairs of cables and poles within road reserves.  Some of these faults can be intermittent and only become apparent during certain wet or windy conditions, for instance.  These faults were recorded as resolved within the following timeframes:

Approximately 33% (91 faults) of these were resolved within one week

Approximately 24% (65) were resolved between one week and one month

Approximately 38% (103) were resolved between one month and two months

Approximately 4% (10) of these issues took between two months and four months resolve.

Approximately 1% (3) of these issues took longer than four months resolve.

·    Officers continue to work with all parties involved in this process to tighten up the resolution and reporting timelines.

Capital

3.7       Pavement Reseals

·    The 2023/24 resurfacing programme of more than 30 streets is complete, with some minor loose chip removal continuing as these chip sealed surfaces bed in.

·    Preparation for the 2024/25 resurfacing programme is underway with site validation and pre-seal repairs commencing.

3.8       Pavement Rehab

·    Sections of Railway Road, between Tremaine and the rail overbridge, requires a complete pavement rehabilitation, due to weak underlying soils, poor subgrade and extensive heavy vehicle traffic.  The total cost of this work is over $4M, and as such it is being delivered in stages.  Construction of the first stage was completed in May 2024, with the balance of the work planned for 2024/25.

3.9       Drainage

·    The kerb and channel replacement in Jasper Place was completed in March 2024. 

3.10     Structural

·    Concrete lining of the Highbury Avenue bridge culvert was completed.  This is to future proof this multiplate bridge culvert in consideration of the Amberley bridge culvert failure being of a same structures type.

·    Amberley Avenue culvert replacement continues with this work programmed for completion in mid-2025.

3.11     Footpaths

·    This programme of renewal work for footpaths throughout the city was completed by 30 June 2024.  Street trees and roots are a major consideration in this work with the focus being on renewing the areas of most need that are not impacted by trees.

·    Addressing the footpaths affected by trees requires more planning and consideration of the trees themselves, which is why they are not being considered this financial year unless urgent.

·    The extent of the 2024-2025 footpath programme will be confirmed when available NZTA funding is known.

 

4.         NEXT STEPS

4.1       Continue to work with Fulton Hogan to ensure delivery of the programme of works covered by the Road Maintenance Contract.

4.2       Continue to prioritise works with most impact as required to ensure the programme is delivered within timeframes and budget provisions.

 

5.         Compliance and administration

Does the Committee have delegated authority to decide?

Yes

Are the decisions significant?

No

If they are significant do, they affect land or a body of water?

No

Can this decision only be made through a 10 Year Plan?

No

Does this decision require consultation through the Special Consultative procedure?

No

Is there funding in the current Annual Plan for these actions?

Yes

Are the recommendations inconsistent with any of Council’s policies or plans?

No

The recommendations contribute to Goal 1: An Innovative and Growing City

The recommendations contribute to the achievement of objectives in   Transport

The objective is: Develop, maintain, operate, and renew the active and public transport network to deliver on Council goals, the purpose of this plan, and the Government Policy Statement on Transport.

Contribution to strategic direction and to social, economic, environmental, and cultural well-being

The road maintenance contract is a key delivery vehicle towards having safer, well maintained, and well utilised transport network.

 

Attachments

NIL  

 


 

Committee Work Schedule

TO:                                Economic Growth Committee

MEETING DATE:           18 September 2024

TITLE:                             Committee Work Schedule - September 2024

 

 

RECOMMENDATION TO Economic Growth Committee:

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

 

Committee Work Schedule – September 2024

 

Estimated Report Date

Subject

Officer Responsible

Current Position

Date of Instruction &
Clause no.

1

18 Sep 2024

Presentation: Chamber of Commerce

 

 

 

2

18 Sep 2024

Presentation:
Palmy BID

 

 

 

3

18 Sep 2024

Quarter 4 Economic Report April-June 2024

General Manager Strategic Planning

 

Terms of Reference

4

18 Sep 2024

International Relations 6 Monthly report

General Manager Strategic Planning

 

Terms of Reference

5

18 Sep 2024

Tamakuku Terrace – Design guidelines review

General Manager Infrastructure

 

Terms of Reference

6

18 Sep 2024
20 Nov 2024

PNAL – Annual Report for 2023/24

General Manager Corporate Services

Report not available until Oct

Terms of Reference

7

18 Sep 2024
20 Nov 2024

Parking Framework – Draft for consultation

General Manager Strategic Planning

Workshop Sep 2024

 

8

20 Nov 2024

Presentation: The Factory

 

 

 

9

20 Nov 2024

CEDA – Annual Report for 2023/24

General Manager Strategic Planning

Waiting on audit

Terms of Reference

10

20 Nov 2024

PNAL – Statement of Expectation for 2025/26 – 2027/28

 

General Manager Corporate Services

 

Terms of Reference

11

20 Nov 2024

PNCC Events - Annual Summary of Economic Impact and Benefits 2022/23

General Manager Customer & Community

 

25 October 2023
Clause 60-23

12

20 Nov 2024

Manawatū Regional Economic Structure Report (2 yearly)

General Manager Strategic Planning

 

30 August 2023
Clause 35-23

13

20 Nov 2024

Quarter 1 Economic Report Jul-Sep 2024

General Manager Strategic Planning

 

Committee Terms of Reference

14

20 Nov 2024

Streets for People Update (6 monthly)

General Manager Infrastructure

 

Terms of Reference
28 February 2024
Clause 18-24

15

20 Nov 2024

Featherston Street – report back on functionality of road

General Manager Infrastructure

 

Council
5 June 2024
Clause 98-24

16

20 Nov 2024

Featherston Street – concept design options – shared walkway/ non-separated cycleway

General Manager Infrastructure

 

Council
5 June 2024
Clause 98-24

17

20 Nov 2024

Streetlight Timing and Cost Report Re city-wide survey, upgrades to additional streets and replacement of bulbs and stock

General Manager Infrastructure

 

19 June 2024 Clause 43-24

18

20 Nov 2024

Tamakuku Terrace Update (6 Monthly)

General Manager Infrastructure

 

Terms of Reference

19

20 Nov 2024

City Central Indicative Business Case (CCIBC) Update

General Manager Infrastructure

 

19 June 2024 Clause 42-24

20

20 Nov 2024

Economic Profile: Logistics and distribution (3-yearly)

General Manager Strategic Planning

 

30 August 2023 Clause 35-23 Schedule

21

26 Feb 2025

Road Maintenance Contract (six-monthly report on work programme and performance)

General Manager Infrastructure

 

16 March 2022 Clause 4-22

22

1 Apr 2025

Tamakuku Terrace Update (6 Monthly)

General Manager Infrastructure

 

Terms of Reference

23

1 Apr 2025

Featherston Street – report back on functionality of road

General Manager Infrastructure

 

Council
5 June 2024
Clause 98-24

24

1 Apr 2025

Vogel Street Safety Improvements Update

General Manager Infrastructure

 

12 April 2023 Clause 14-23

25

1 Apr 2025

City Economic Structure Report (annually)

General Manager Strategic Planning

 

Rec 1c of the Community Grants & Events Funding Review – May 2021

26

1 Apr 2025

PN Aiport – Six Month Report and draft SOI

General Manager Corporate Services

 

Terms of Reference

27

1 Apr 2025

Quarter 2 Economic Report October-December 2024

General Manager Strategic Planning

 

Terms of Reference

28

1 Apr 2025

CEDA – Six Month Report and draft SOI 2025-28

General Manager Strategic Planning

 

Terms of Reference

29

1 Apr 2025

International Relations and Education Activities – 6 months update

General Manager Strategic Planning

 

Terms of reference Council Clause 203-23

30

1 June 2025

PNAL – Final Statement of Intent for 2025/26 to 2027-28

General Manager Corporate Services

 

Terms of Reference

31

1 June 2025

CEDA – Final Statement of Intent for 2025/26

General Manager Strategic Planning

 

Terms of Reference

32

1 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

33

2024/25

Economic Profile: Agri-food (3 yearly)

General Manager Strategic Planning

 

30 August 2023 Clause 35-23

34

2025/26

Economic Profile: Tourism (3 yearly)

General Manager Strategic Planning

 

30 August 2023 Clause 35-23

35

Early 2025

New Zealand Food Awards – Annual Report

General Manager Customer & Community

 

31 May 2023 Clause 88.12-23

36

Early 2025

Annual Snapshot of Economic indicators for the city

General Manager Strategic Planning

 

30 August 2023 Clause 35-23