I hereby give notice that an ordinary meeting of the Economic Development Committee will be held on:

 

Date:                      

Time:

Meeting Room:

Venue:

 

Wednesday, 21 May 2014

9.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Economic Development Committee

 

OPEN AGENDA

 

 

 

MEMBERSHIP

 

Chairperson

Cr Anae Arthur Anae

 

Deputy Chairperson

Cr Ross Clow

 

Members

Cr Cameron Brewer

 

 

Cr Bill Cashmore

 

 

Precious Clark

 

 

Cr Linda Cooper, JP

 

 

Cr Hon Chris Fletcher, QSO

 

 

Cr Denise Krum

 

 

Kris MacDonald

 

 

Cr Dick Quax

 

 

Cr Penny Webster

 

Ex-officio

Mayor Len Brown, JP

 

 

Deputy Mayor Penny Hulse

 

IMSB alternate

David Taipari

 

 

(Quorum 6 members)

 

 

 

Mary Binney

Democracy Advisor

 

14 May 2014

 

Contact Telephone: (09) 373 6211

Email: mary.binney@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 


 

 

TERMS OF REFERENCE

 

 

Areas of Activity

 

·         Providing strategic oversight and direction to economic development in Auckland

·         Management, monitoring and reporting on of the performance of Auckland’s economy and the coordination of Auckland’s Economic Development Strategy

·         Proposing, supporting and reviewing strategic projects and programmes which will deliver on Auckland’s Economic Development Strategy

·         Facilitating partnerships and collaborative funding models to support economic development initiatives

·         Providing a point of engagement for the Council with the government, business and business organisations and local economic development agencies in relation to all economic policy and strategy matters

·         Evaluating the balance of economic development policies, programmes and initiative across Auckland and ensuring an appropriate balance between rural and urban opportunities

 

Responsibilities

 

Within the specified area of activity the Committee is responsible for:

 

·         In accordance with the work programme agreed with the parent committee, developing strategy and policy, including any agreed community consultation, to recommend to the Regional Strategy and Policy Committee

·         Acting as a community interface for consultation on policies and as a forum for raising community concerns, while ensuring community engagement is complementary to that undertaken by local boards

·         Making decisions within delegated powers

 

Powers

 

All powers necessary to perform the Committee’s responsibilities

 

Except:

 

(a)     powers that the Governing Body cannot delegate or has retained to itself (see Governing Body responsibilities)

(b)     where the Committee’s responsibility is limited to making a recommendation only

(c)     where a matter is the responsibility of another committee or a local board

(d)     the approval of expenditure that is not contained within approved budgets

(e)     the approval of expenditure of more than $2 million

(f)      the approval of final policy

(g)     deciding significant matters for which there is high public interest and which are controversial

(h)     the commissioning of reports on new policy where that policy programme of work has not been approved by the Regional Strategy and Policy Committee


Economic Development Committee

21 May 2014

 

ITEM   TABLE OF CONTENTS                                                                                        PAGE

1          Apologies                                                                                                                        7

2          Declaration of Interest                                                                                                   7

3          Confirmation of Minutes                                                                                               7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                7

8          Notices of Motion                                                                                                          8

9          McGuinness Institute TalentNZ project presentation                                               9

10        ATEED Economic Growth Action Plans - Innovation, Skills and Food & Beverage   11

11        Auckland Visitor Plan Refresh and Auckland Business Events Plan                   17

12        Auckland Economic Development Strategy: six monthly implementation update: October 2013 – March 2014                                                                                                       27

13        Local Economic Development Update                                                                      43

14        Productivity Commission Engagement                                                                    71

15        Update on Māori Economic Development Programme                                          73  

16        Consideration of Extraordinary Items 

 

 


1          Apologies

 

At the close of the agenda no apologies had been received.

 

 

2          Declaration of Interest

 

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

 

 

3          Confirmation of Minutes

 

That the Economic Development Committee:

a)         confirm the ordinary minutes of its meeting, held on Wednesday, 19 February 2014, including the confidential section, as a true and correct record.

 

 

4          Petitions

 

At the close of the agenda no requests to present petitions had been received.

 

 

5          Public Input

 

Standing Order 3.21 provides for Public Input.  Applications to speak must be made to the Committee Secretary, in writing, no later than two (2) working days prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

At the close of the agenda no requests for public input had been received.

 

 

6          Local Board Input

 

Standing Order 3.22 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give two (2) days notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 3.9.14 to speak to matters on the agenda.

 

At the close of the agenda no requests for local board input had been received.

 


 

7          Extraordinary Business

 

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

 

(a)        The local  authority by resolution so decides; and

 

(b)        The presiding member explains at the meeting, at a time when it is open to the public,-

 

(i)         The reason why the item is not on the agenda; and

 

(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

 

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“Where an item is not on the agenda for a meeting,-

 

(a)        That item may be discussed at that meeting if-

 

(i)         That item is a minor matter relating to the general business of the local authority; and

 

(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

 

(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

 

8          Notices of Motion

 

At the close of the agenda no requests for notices of motion had been received.

 


Economic Development Committee

21 May 2014

 

McGuinness Institute TalentNZ project presentation

 

File No.: CP2014/09192

 

  

 

Purpose

1.       The McGuinness Institute will provide a presentation to the Committee on its TalentNZ project. The session will be a 30 minute presentation, followed by 10 minutes for questions and discussion.

Background

2.       The McGuinness Institute’s TalentNZ project was inspired by Sir Paul Callaghan, and draws on interviews with 30 high profile New Zealanders, the “30 Kiwis”. It aims to contribute to a discussion on how New Zealand might move towards a talent-based economy by exploring ways to grow, attract, retain and connect talent. 

3.       In June 2014, the Institute will publish a TalentNZ Menu of Initiatives. This resource for councilors and communities will provide information on tools that can be used to develop a talent-based economy by 2020. The menu is being developed through discussion and insights gathered from around New Zealand.

4.       The McGuinness Institute is a non-partisan think tank working towards a sustainable future, contributing strategic foresight through evidence-based research and policy analysis. Wendy McGuinness (Owner and Editor), will facilitate the presentation and discussion.

5.       Wendy McGuinness will be joined by representatives from the 30 Kiwis group, who will highlight perspectives shared in the 2013 TalentNZ Journal, which is a record of the interviews with 30 Kiwis.

 

Recommendation/s

That the Economic Development Committee:

a)      note that one of the nine Auckland Shared Economic Agenda priorities (2014-17) is building, retaining, and attracting talent.

b)      receive the McGuinness Institute presentation.

c)      thank Wendy McGuinness and her co-presenters.

 

Attachments

There are no attachments for this report.     

Signatories

Authors

Melissa Hall - Principal Advisor - Regional Economic Policy Implementation

Authorisers

Harvey Brookes - Manager Economic Development

Claire Gomas - Manager – Economic Development Strategy & Policy

 


Economic Development Committee

21 May 2014

 

ATEED Economic Growth Action Plans - Innovation, Skills and Food & Beverage

 

File No.: CP2014/09327

 

  

Purpose

1.       The purpose of this report is to introduce the ATEED Economic Growth Action Plans– Innovation (Draft), Skills and Food & Beverage report prepared by Auckland Tourism, Events and Economic Development Limited (ATEED) and provided as Attachment A to this report.

2.       The Draft Innovation Plan, Skills Plan and the Food & Beverage Plan developed by ATEED are provided as Attachments 1, 2 and 3 respectively.

3.       Officers from ATEED will provide an accompanying presentation and respond to questions.

 

Recommendation/s

That the Economic Development Committee:

a)      receive the ATEED Economic Growth Action Plans – Innovation (Draft), Skills and Food & Beverage report (Attachment A) from Auckland Tourism, Events and Economic Development Limited, together with copies of the:

i)    Innovation Plan (Draft)

ii)   Skills Plan

iii)   Food & Beverage Plan

b)      receive Auckland Tourism, Events and Economic Development Limited’s accompanying presentation.

 

 

Attachments

No.

Title

Page

aView

ATEED Economic Growth Action Plans - Innovation, Skills and Food

13

bView

Innovation, Skills, and Food and Beverage plans (Under Separate Cover)

 

     

Signatories

Authors

Wayne Brown - Principal Advisor - Regional Economic Policy

Authorisers

Harvey Brookes - Manager Economic Development

 


Economic Development Committee

21 May 2014

 




Economic Development Committee

21 May 2014

 

Auckland Visitor Plan Refresh and Auckland Business Events Plan

 

File No.: CP2014/09326

 

  

 

Purpose

1.       The purpose of this report is to introduce the Economic Development Committee to the recently completed Auckland Visitor Plan Refresh and the Auckland Business Events Plan report, prepared by Auckland Tourism, Events and Economic Development Limited (ATEED) and provided as Attachment A to this report.

2.       Officers from ATEED will provide an accompanying presentation and respond to questions on the report which was written and authorised by:

Author/s             Jason Hill, Manager – Tourism, ATEED

Authorisers        Steve Armitage, Head of Corporate and Council Relations, ATEED

 

Recommendation/s

That the Economic Development Committee:

a)      receive the Auckland Visitor Plan Refresh and Auckland Business Events Plan report (Attachment A) from Auckland Tourism, Events and Economic Development Limited.

b)      note that ATEED has recently undertaken a refresh of the Auckland Visitor Plan (AVP 2021) resulting in some changes to key targets and markets and segments of focus.

c)      note that as a result of recent changes by MBIE to the way in which visitor expenditure data is measured, changes have been made to the visitor spend targets tied to the AVP 2021 and that these will be reflected in the ATEED SOI, the Auckland Council 2014/15 Annual Plan and the next Long Term Plan.

d)      note that ATEED has recently adopted a new Business Events Plan aimed at growing Auckland as a destination for Business Events (conferences, conventions, exhibitions, incentives etc.).

e)      note that ATEED will be seeking additional funding over and above current LTP funding of $5.9m over the period through to 2020/21 through the LTP process to support the implementation of the refreshed AVP 2021 and the Business Events Plan.

f)       receive Auckland Tourism, Events and Economic Development Limited’s accompanying presentation.  

 

Attachments

No.

Title

Page

aView

Auckland Visitor Plan Refresh and Auckland Business Events Plan

19

bView

Auckland Visitor plan (Under Separate Cover)

 

     

Signatories

Authors

Wayne Brown - Principal Advisor - Regional Economic Policy

Authorisers

Claire Gomas - Manager – Economic Development Strategy & Policy

Harvey Brookes - Manager Economic Development

 


Economic Development Committee

21 May 2014

 








Economic Development Committee

21 May 2014

 

Auckland Economic Development Strategy: six monthly implementation update: October 2013 – March 2014

 

File No.: CP2014/09446

 

Purpose

1.      The purpose of this report is to provide a six monthly progress update report on the implementation of the Auckland Economic Development Strategy (EDS), since the annual update report in September 2013.  This update provides an overview of the work of Auckland Council, its economic development CCOs (Auckland Tourism, Events and Economic Development (ATEED) and COMET Auckland) and central government agencies, during the period October 2013-March 2014.

Executive summary

2.       The EDS was launched in September 2012 and has five strategic priorities supported by four cross cutting themes.

3.       A key focus of the last six months has been the mid-course assessment of the EDS.  This was undertaken by Council, central government officials and business leaders in order to develop a prioritised shared agenda for the EDS’s future implementation. 

4.       The shared economic agenda for Auckland 2014-17 identifies nine priorities (see attachment A).  Progress is being made with central government on confirming the actions under these priorities.   Resources will need to be reallocated to fund the delivery of the agenda and implementation will be prioritised within existing economic development activities as part of the Long Term Plan (LTP) 2015-2025 development.

5.       EDS implementation highlights from the last six months grouped under the shared economic agenda priorities include:

Build the Auckland business proposition for a business friendly city

·    The Proposed Auckland Unitary Plan (PAUP) was notified for submission on 30 September 2013 with an accompanying business friendly document.  Submissions closing on 28 February 2014 and are currently being reviewed. 

·    Local board economic overviews have been completed for all 21 local boards and distributed.  The Franklin, Papakura, Whau and Waitemata City Fringe Local Economic Development Action Plans have been adopted and implementation is underway. 

·    Two ballots for new Business Improvement District (BID) establishments were successful for Devonport and State Highway 16 (an amalgam of Helensville, Kumeu, Huapai, Riverhead, Kaukapakapa, Waiuku and Parakai). 

·    A new cost benefit analysis primer for the Council has been developed with training and assistance provided across the organisation, including the assessment of the suitability of proposed or adopted projection evaluation techniques. 

Supporting more Auckland businesses to innovate and grow

·    Stage one of the Wynyard Quarter Innovation Precinct (now called “Grid Auckland”) has been delivered with ATEED taking a lease in the existing Lysaght and Polperro buildings.  BizDojo with support from The Icehouse have been appointed to establish and operate the hub.

·    ATEED co-sponsored the second China Business Summit in October 2013, hosted a Chinese business delegation to the Asia Pacific Economic Cooperation (APEC) meeting in February 2014 and established a new China Business Advisory Group.

·    ATEED in partnership with the Auckland Chamber of Commerce delivered the 2013 Business Awards programmeThe awards attracted more than 100 entries from businesses across a wide range of industries.

Raise youth/rangatahi employability

·    The Mayor’s Youth Employment Traction Plan was developed which aims to lift youth employment, through Council leadership, a Youth Traction Hub and employer engagement. 

·    The COMET Auckland Youth Employability forum, in partnership with the Auckland Chamber of Commerce, which used new research to identify priorities to lift the employability of Auckland’s youth.

Build, retain and attract talent

·    ATEED have signed contracts with Education New Zealand (ENZ) for an International Education Joint Venture, with funding of $250,000 confirmed. 

Increase Auckland’s visibility

·    In November 2013 ATEED and the Heart of the City (HOTC) launched the new Auckland brand campaign ‘Akl – The Show Never Stops’ into the local market, gaining significant media pick up and stakeholder feedback.

·    The weekend of 14 to 16 February 2014 was the biggest in Auckland since the finals weekend of Rugby World Cup 2011, with around 200,000 people attending major events.

Support growth and improved performance of Māori businesses

·    Stage one of the Māori Economic Development Programme was completed in December 2014, with work underway on stage two.

 

Recommendation/s

That the Economic Development Committee:

a)      receive the Auckland Economic Development Strategy six monthly implementation update report: October 2013 – March 2014.

 

 

Comments

Economic Development Strategy

6.       The EDS was launched in September 2012 and has five strategic priorities (refer Figure 1), supported by four cross cutting themes: sustainable eco-economy, iwi/ Māori economic powerhouse, innovative and rural maritime economy and diverse, ethnic economy. 

7.       The EDS formally acknowledges the need for an economic step change in Auckland through its ambitious targets around internationalisation.  It seeks to achieve this through an average annual increase in regional exports of greater than 6 per cent, an average annual real GDP increase of greater than 5 per cent and average annual productivity growth of greater than 2 per cent.  These are reported on annually.

8.       The Auckland economy is showing signs of more sustained and broad based recovery with GDP growth of 2.9 per cent in the year to December 2013. 

9.       It should be noted other progress reporting occurs via the Auckland Plan Annual Implementation Update report and ATEED and COMET Auckland’s reports to the CCO Governance and Monitoring Committee.  Information from ATEED, COMET Auckland and Economic Development is also reported six monthly to local boards.

 

Figure 1: EDS Strategic Priorities

New Auckland Shared Economic Agenda

10.     A key focus of the last six months has been the mid-course assessment of the EDS, under the guidance of global city development expert Greg Clark.  This was undertaken by Council, ATEED, COMET Auckland, central government officials and business leaders in order to develop a prioritised shared agenda for the EDS’s future implementation.  The purpose of this assessment was to identify a smaller number of collectively agreed actions that will bring a focus and momentum to the implementation of the EDS in the shorter term (e.g., within a three year period). 

11.     This assessment resulted in the development of a nine point shared economic agenda for Auckland as shown in figure 3.  More detail on the agenda is provided in attachment A.  This agenda focuses the 2014-17 implementation of the EDS on impactful priorities to position Auckland as a globally competitive city.  This agenda was endorsed by the Economic Development Committee in February 2014 and progress made over the last two months is captured in this report.

12.     Resources will need to be reallocated to fund the delivery of the agenda and implementation will be prioritised within existing economic development activities in the LTP 2015-2025 development.

Figure 3: Auckland Shared Economic Agenda 2014-2017

AUCKLAND SHARED ECONOMIC AGENDA 2014-2017

A new Auckland Leadership Team

Raise youth/rangatahi employability

Build, retain and attract talent

Build the Auckland business proposition for a business-friendly city

Boost the investment rate into Auckland’s economy and infrastructure

Supporting more Auckland businesses to innovate and grow

Increase Auckland’s visibility

Make sure the right infrastructure is planned for and in place

Support growth and improved performance of Maori businesses

 


EDS Work Programme

13.     The EDS work programme is developed, delivered and supported by Auckland Council, its CCOs and external partners, including central government agencies, the education sector and business community.  Particular reference is made to the activities of ATEED and COMET Auckland as Council’s lead delivery partners.

14.     This report provides an update on progress of the implementation of the EDS during the period October 2013-March 2014.  Key achievements are grouped below by EDS Strategic Priority area with the nine EDS priority actions highlighted.  Commentary is added on the progress against the shared economic agenda priorities where available.

Strategic Priority 1: Business Friendly and Well-functioning city

15.     The following EDS initiatives contribute to the implementation of the Shared Economic Agenda’s focus on a new ‘Auckland Business Leadership group (BLG)’; ‘Build the Auckland proposition for a business-friendly city’ and; ‘Optimising Auckland’s platform for growth’.

Business friendly

16.     The Economic Development Committee in February 2014 endorsed a business friendly framework to monitor business friendliness in Auckland.  Work is now underway to identify new and improved/business specific measures through projects such as the LTP measurement review and to identify relevant external measures.  A final business friendly dashboard is expected to be reported to the July 2014 meeting of the Economic Development Committee.

17.     A new BLG is in the process of being established for Auckland, chaired by the Chief Executive of the Auckland Chamber of Commerce.  The aim of the BLG is to lift the performance of the Auckland economy through its leadership contribution and its skills and knowledge, directed towards:

·    driving the new shared economic agenda

·    proactively promoting Auckland to the world, and

·    providing advocacy and case making with Government and the community.

18.     Council participated in the Local Government New Zealand Core City business friendly project during 2013.  This resulted in the development of local government business friendly guidelines.  These were launched in February 2014 in Auckland at the metropolitan mayors meeting.  Case studies included from Auckland were; the Waterview Tunnel; Auckland Transport Workplace Travel Planning; University of Auckland move to Newmarket and; increasing Broadband up take.  A national webinar took place in March 2014 highlighting key case studies, with Economic Development presenting on Broadband.

19.     Through Council’s Organisational Transformation project a number of initiatives have taken place that utilise digital technology.  This includes a new business portal on the Council website, this was developed in conjunction with business users of the website.  It creates a one stop shop for business information, making it easier and quicker for businesses to find out what they need to know see www.aucklandcouncil.govt.nz/businessandeconomy.  A number of mobile phone applications have been created including one that makes it more efficient for builders to communicate with the Council.  A new complaints process has been developed, that will create a culture of learning from complaints, improved reporting and identification of common and key issues that will contribute to continuous process improvement.


Infrastructure

20.     Progress with delivering an integrated transport system includes commencement of the construction of the Waterview connection, agreement of the preferred option for the East-West Link and advancement of the planning for the City Rail Link (CRL).  In March 2014 the Notice of Requirement to designate the land required to build, operate and maintain the CRL was recommended approval by the five independent commissioners who heard Auckland Transports’ planning application. 

21.     The PAUP was notified for submission on 30 September 2013, with submissions closing on 28 February 2014.  Prior to the close of submissions Council worked with the Auckland Chamber of Commerce and the Northern Employers and Manufacturing Association (EMA) to develop a Business Friendly Unitary Plan document that ‘talked to business’.  This was well received by the business community. 

22.     Economic Development has been working with Chorus to schedule meetings with the managers of Auckland BIDs in line with the rollout and availability of fibre in business areas.  This is to generate awareness, understanding and effective use of Ultrafast Broadband (UFB) and technology.  The remainder of BIDs will be scheduled into the programme as UFB becomes available in their areas to ensure that messaging is relevant to each area.  Officers have also assisted Chorus in engaging with local boards on annual updates regarding the UFB programme and the next set of meetings is currently being scheduled.

23.     Economic Development continues to work with WiFi service provider Tomizone to improve quality of service of the Auckland WiFi in public open spaces.  Stability issues have been addressed across the network including Onehunga, St. Heliers and Otahuhu.  Work is also continuing on the rollout of WiFi to the City Centre and Newmarket and it is anticipated that the network in Newmarket will be completed and the service live by mid to late 2014 and in the CBD by late 2014.

Local economic development

24.     Two ballots for BID establishments were successful for Devonport and State Highway 16 (an amalgam of Helensville, Kumeu, Huapai, Riverhead, Kaukapakapa, Waiuku and Parakai).  The Onehunga Business Association has undertaken a process to expand their existing BID boundaries.  A ballot was undertaken in March 2014 which showed a positive response to this expansion.  The Wairau Valley Business Association was formed.

25.     Local board economic overviews have been completed for all 21 local boards and distributed across Council.  The Franklin, Papakura, Whau and Waitemata City Fringe Local Economic Development Action Plans have been adopted and implementation is underway.  The Kaipātiki, Otara-Papatoetoe and Albert-Eden Local Economic Development Action Plans are in development. 

26.     An Integrated Business Precinct Plan (IBPP) is being developed for the industrial zones in the south of Auckland.   This will provide a coordinated framework to enable Auckland’s southern industrial precincts to continue to grow and develop and move them towards being internationally competitive, high performing locations.  Discussions with key stakeholders have included amongst others Auckland International Airport (particularly regarding future development plans), services, logistics and manufacturing companies and industry groups. It is anticipated that a draft IBPP will be completed in June 2014.  Industrial Area studies have also commenced for Morningside and Normanby Road Industrial Areas. 

Policy advice

27.     An officer led Business Land Working Group was established in March 2014 to co-ordinate and advance policy implementation in business land, with representation from across Council and relevant CCOs.  The first task of the group has been to investigate priority areas for new business land that will be enabled through the future urban zone proposed in the PAUP, this will be completed by May 2014.

28.     Council’s Chief Economist Unit has provided analysis on the performance of the Auckland Economy through the Auckland Economic Quarterly newsletter and monthly economic publications, as well as through internal and external presentations.  The biannual Housing Matters publication was launched in December 2013 with a detailed assessment of Auckland’s housing market.  These publications are completed in conjunction with a series of economic presentations to external groups including; the University of Auckland, Deutsche Bank, various Credit Rating agencies and the New Zealand Herald.

29.     A new cost benefit analysis primer for the Council has been developed with training and assistance provided for the organisation including the assessment of the suitability of proposed or adopted projection evaluation techniques.  This has included a review of the PAUP section 32 reports and the completion of cost benefit analysis on various regulatory tools including height restrictions, minimum apartment sizes and the cost of growth study.  Further work is in the pipeline for density constraints.   The Unit has also been involved in the alternative transport funding group, providing economic advice on the options for addressing the identified transport funding deficit; and is leading work in conjunction with the New Zealand Treasury on establishing a regulatory land use index for New Zealand.

 

Strategic Priority 2: Innovation Hub of Asia Pacific

30.     The following EDS initiatives contribute to the implementation of the Shared Economic Agenda’s focus on ‘Supporting more Auckland businesses to innovate and grow’.

31.     Good progress has been made on stage one of the Wynyard Quarter Innovation Precinct (WQIP).  ATEED has taken a head lease on the existing Lysaght and Polperro buildings to accelerate precinct operations and take advantage of the strong demand of potential tenants.  In March 2014, The BizDojo with support from The Icehouse was appointed as Hub operator for the precinct, now called ‘GRID AKL’.  Fit-out of Level 1 of the Polperro building has been completed with the first tenants moving into the flexible workspace in early April 2014.  GRID AKL is hosting the Auckland Start-up Weekend from May 9-11 followed by the formal GRID AKL opening on May 15.  ATEED is continuing to work with government agencies, including Callaghan Innovation, on opportunities to connect GRID AKL with government initiatives to leverage outcomes for Auckland.

32.     ATEED sought feedback on the draft Auckland Innovation Plan via the interactive dialogue portal - www.aucklandinnovation.co.nz.  The plan is part of an open sourced approach to establish opportunities, priorities and actions and ATEED’s role in Auckland’s innovation.  Submissions closed at the end of March 2014 with more than 1,150 visits to the website and 37 comments or contributions.  Feedback is currently being reviewed with the final plan due for publication at the end of June 2014.  ATEED will run a workshop with the Internationalisation and Innovation Steering Group in May to get their input/views on the draft plan, further development and execution.  Another report on this agenda discusses the Auckland Innovation Plan in more detail.

33.     Innovation Stations are being investigated for major (metro) centres or to link with concentrations of Information Technology and niche manufacturing industry.  Needs assessments are currently being prepared for Papakura and Maungakiekie-Tamaki local boards.  The Airport precinct is already developing a private sector led co-working space. These innovation stations would link to existing innovation hubs at WQIP and the Foodbowl (in the Airport precinct) to extend the reach of innovation networks and activity.


Key sector activity

34.     The Auckland Tertiary Education Network (ATEN) has progressed the development of an initial work programme, affirming its commitment to three agreed projects relating to innovation and skills.  The ATEN is also very keen to explore better engagement with Council on public transport issues and with ATEED on the development of its international education plan.  ATEN members recently agreed to minor changes in the network’s operating model aimed at facilitating greater sector leadership of the agenda and work programme.

35.     ATEED continues to work with Callaghan Innovation and the FoodBowl – Te Ipu Kai to progress activities associated with the FoodBowl’s change in ownership and governance structure.  To the year end March 31, the FoodBowl reported 227 business contacts with possible new product development (NPD) projects and 185 engagements converted to projects.  ATEED have developed a Food and Beverage Sector Action Plan which will be presented within another report on this agenda.

36.     As part of the Aquaculture Policy Project Phase one, ATEED is working with the Aquaculture Working Group to agree an interim aquaculture policy with the Department of Conservation that will ease the transfer of animals across the country.  Commencing late April 2014 the Ministry for Primary Industries consulted on the land based aquaculture review.  This will be followed with workshops in May 2014.  ATEED will continue to work with Auckland businesses to help source research and development funding critical for the commercialisation of land-based aquaculture as well as maximise any new opportunities that arise.  

37.     ATEED is developing a discussion paper outlining the next steps for the development of the Auckland Screen and Digital Strategy following central government’s decision to increase screen incentive levels, effective April 1 2014.  A business case reviewing Auckland screen fees and charges is also underway with recommendations due by June 2014

38.     The final 2013 Westpac Auckland Business Awards took place at the Trusts Arena in Henderson in October 2013 with 520 attendees.  The aim of the awards is to aim to build business capability and encourage growth.  The 2013 awards attracted more than 100 entries from businesses in a wide range of industries including recruitment, health and nutrition, construction and environmental services.  The following supreme winners were announced in October 2013; North, Partners Life, a Takapuna-based life insurance company; South, GMP Pharmaceuticals from East Tamaki; West, Western Gas Limited from Henderson and; Central, Localist.  Following a review by ATEED of the Business Awards programme, ATEED will partner with the Auckland Chamber of Commerce to deliver the awards in 2014 and beyond.  The Chamber previously delivered the central awards.

 

Strategic Priority 3: Internationally Connected and Export Driven

39.     The following EDS initiatives contribute to the implementation of the Shared Economic Agenda’s focus on ‘Increasing Auckland’s visibility’ and ‘Boosting the investment rate into Auckland’s economy and infrastructure’.

40.     A refreshed Global Engagement Strategy is being developed as part of the review of Council’s International Relations, focusing on a global visibility and global partnership approach and aimed at positioning Auckland in the global economy. 

41.     Planning is underway for the Mayor to lead a delegation of senior officials to Singapore in June 2014 to participate in the World Cities Summit as part of a three year campaign to position Auckland in the global economy and win the Lee Kuan Yew World Cities Award.  This activity will raise Auckland’s global visibility and enable senior Council officials to interact with more than 250 cities from around the world.


42.     International engagement in the last six months has included targeted outbound activity, for example Council representation at both the Brisbane Asia Pacific Cities Summit in Kaohsiung, Taiwan and the Japan Asia Pacific Cities Summit in Japan.  Auckland-based activity included multiple inbound delegations, official and cultural visits.

43.     ATEED’s China Business Advisory Group held its inaugural meeting in November 2013, focusing on issues faced by Chinese investors in New Zealand.

44.     ATEED co-sponsored the second China Business Summit in October 2013 and hosted a Chinese business delegation to the Asia Pacific Economic Cooperation (APEC) meeting in February 2014. 

45.     During the America’s Cup Challenge in San Francisco, ATEED developed a business programme engaging potential investors into Auckland and identified partners Auckland companies could potentially export to or partner with.  During this period around 200 investors and entrepreneurs were hosted and /or met with by ATEED.  Details of the companies involved remains commercial in confidence to allow for deals to be brokered. Results have included one multinational establishing in Auckland post event, with three in the pipeline.  Of the entrepreneurs hosted during the America's Cup, six have since visited Auckland and three more are in the pipeline.  An informal ambassador' progamme is in formation, with an inaugural event held in San Francisco in November 2013. 

46.     The connections and opportunities in San Francisco continue to be developed and converted both by the team in Auckland as well as in the Bay Area through ongoing engagement with key partners, New Zealand Trade and Enterprise (NZTE), Immigration New Zealand and the Ministry of Foreign Affairs and Trade.  ATEED to continue to work on converting these new connections (1,600 across all agencies) into deals or other economic activity of value to Auckland.

47.     The approach from ATEED to develop an Auckland Investment Office (AIO) was endorsed by Auckland Council and communicated to all CCO's.  Current state analysis data collection is underway by ATEED looking across the Council family.  The governance structure is also being re set. 

48.     ATEED has exceeded set targets for the Regional Business Partner (RBP) programme, delivered on behalf of NZTE and Callaghan Innovation.  For the year ending March 31, 670 businesses were actively managed through the programme and approximately $4million worth of TechNZ vouchers issued to Auckland businesses.

49.     In January 2014 ATEED transferred the Business Mentors New Zealand contract to the Auckland Chamber of Commerce.  ATEED made 405 mentor matches to the year end January 31 2014.   

Strategic Priority 4: Grow Skills and a Local Workforce

50.     The following EDS initiatives contribute to the implementation of the Shared Economic Agenda’s focus on ‘Raising youth/rangatahi employability’ and ‘Building retaining and attracting talent’.

Raising youth/rangatahi employability

51.     The Mayor’s Youth Employment Traction Plan was developed which aims to lift youth employment, through Council leadership, a Youth Traction Hub and employer engagement.  The multi-stakeholder Hub is to be based at ATEED, another report on this agenda discusses ATEED’s role and activity in skills in more detail.  Central government agencies are showing interest in joining the Traction Hub where there are links to existing work and businesses are creating roles for young people and considering employer pledge options.

52.     Economic Development and agencies are building a shared evidence base for the Auckland skills and labour market.  For example COMET Auckland launched a new website www.learningauckland.org.nz; the website allows people to see updated education and skills data and actions underway for Auckland.  An updated snapshot of skills and education was published in October 2013. 

53.     The Auckland Skills Steering Group (ASSG) multi-stakeholder platform is developing a Skills Dashboard to support its monitoring and oversight role, which is expected to finalised in June 2014. In February, Cabinet agreed to publish a dashboard of the 10 Better Public Service result areas for Auckland – including two skills result areas - and noted the role of the Auckland Skills Steering Group in contributing agency alignment to deliver skills and workforce outcomes at the regional level.

54.     The ASSG’s alignment project aims to improve youth transitions into further education, training and employment.  Māori and Pasifika are priority groups.  Since its September 2013 inception, this multi-stakeholder project, sponsored by the Ministry of Education, has improved agency coordination through regular meetings and information sharing.  Examples include new data shared by the ministries of education and social development; an overview of Auckland youth transitions initiatives; and central government official’s engagement in range of Council projects at regional and local board levels.  Project implementation for the remainder of 2013-14 will focus on a draft stakeholder engagement plan, with a specific focus on employer engagement, and further scoping pilot activity in Māngere-Ōtāhuhu.

55.     The COMET Auckland Youth Employability forum, in partnership with the Auckland Chamber of Commerce, was held in November 2013.  Participants considered options for improving youth employability, based on findings from research with Auckland employers and young people. COMET Auckland is now working with partners to scope an employability skills framework that could be used in education and training to recognise student’s soft skills.

56.     Auckland schools were recognised for a third year in a row as having the country’s top young entrepreneurs at the Young Enterprise Scheme (YES) National Awards held in December 2013.  Six Auckland schools were prize winners on the night, including ACB Dogs of Pakuranga College who received third place for the YES Company of the Year Award.  Approximately 1,100 students from 34 Auckland schools took part in the programme in 2013.  The 2014 YES programme includes 40 schools.  To date, three ‘E-days’ (Enterprise Days) have been held in the Auckland Central, South and North regions.  The day comprises of full day workshops in which students learn about the programme, brainstorm ideas on how to market and produce their products before pitting those ideas in a ‘Speed Coaching’ session with local business people.

Build, retain and attract talent

57.     As Statistics New Zealand data and evidence from business representative organisation surveys shows, demand for skilled workers is rising in line with business confidence.  Projects to grow talent in line with this priority are largely sector-led, in partnership with Auckland businesses and education and training providers.

58.     Council is contributing to the Auckland Construction and Infrastructure Sector Skills and Occupations model, which uses demand-driven analysis, based on investment plans, to forecast labour demand.  This Unitec and industry-led project will support the development of sector-specific workforce strategies and a skills pipeline for the industry.  Unitec expects to be able to share a draft report with the project team soon, with a final report expected by mid-2014.  Other project stakeholders include the Ministry of Business, Innovation and Employment and the Manukau Institute of Technology. 

59.     ATEED has signed a contract with ENZ for an International Education Joint Venture project commencing April 1 2014.  The project aims to establish an Auckland international education leadership group; investigate feasibility of an inter-regional partnership programme; undertake feasibility of establishing an international education programme for high growth sectors – linking students into high growth sectors; and completing a capacity study of Auckland’s international education sector.


60.     Skilled migrants and returning New Zealanders remain an important complement to the domestic labour pool. A Council group, led by Community Development, has reviewed its migrant attraction, settlement and retention role over the last six months. This is informing Council’s engagement with Immigration New Zealand on new partnership arrangements, as reported to the Regional Strategy and Policy Committee in April 2014.  Officers are working with Immigration NZ on the scope of the partnership agreement.

61.     The Auckland Economic and Strategic Action Leadership Team (ESALT) is implementing its 2013/14 action plan. This includes a project to encourage international student retention through a series of workshops.  Auckland Chamber of Commerce has facilitated an initial workshop and the Mayor will address an international student group in June. Work is ongoing across other sectors, for example ICT, where ATEED is working with firms and government agencies to grow the domestic pipeline, and complement this with offshore talent.

Other activity

62.     Related skills and local workforce projects includes COMET Auckland-supported financial and family literacy projects in South Auckland and Tamaki, and work to articulate Auckland Council's role in the education and skills eco-system, using the Auckland Plan transformational shifts as a framework.  Council’s Community Development and Safety Committee and Economic Development Committee will receive a report on the education and skills narrative in June and July2014y respectively.

63.     COMET is also supporting the STEM (science, technology, engineering and mathematics) alliance which is collaboration between businesses, Crown Research Institutes, educators, government, and philanthropy.  The Alliance plans to support more Auckland students develop science citizenship and prepare for the global economy through STEM education.  A symposium focused on investment in growing STEM capability in schools will be held later in 2014.

Strategic Priority 5: Vibrant, Creative World City

64.     The following EDS initiatives contribute to the implementation of the Shared Economic Agenda’s focus on ‘Increasing Auckland’s visibility’.

Tourism and visitor

65.     Auckland took the third spot in Mercer’s 2014 Quality of Living rankings for the second year in a row in February 2014.  Mercer praised Auckland for its high quality of living and its ranking reinforces New Zealand as an attractive destination for overseas expatriates.  Auckland was also rated as one of the world’s top ten cities to visit in Lonely Planet’s best in travel 2014, published in October 2013. 

66.     In November 2013 ATEED and the Heart of the City (HOTC) launched the new Auckland brand campaign ‘Akl – The Show Never Stops’ into the local market, gaining significant media pick up and stakeholder feedback.

67.     A refresh of the Auckland Visitor Plan was approved by the ATEED Board on March 28.  The plan will be presented as part of another agenda item for this meeting. 

68.     February 2014 was a record-breaking month for international visitor arrivals and Auckland had an unprecedented 93 per cent hotel occupancy rate and an increase in the average room rate of nearly $15. 

69.     ATEED’s international marketing activities saw a series of tourism campaigns launched into the Australian  market during October and December 2014, most notably the ‘Everyday a different story’ self-drive hero campaign.  The campaign leveraged a combined spend of $3million with partners Tourism New Zealand, Qantas, Flight Centre Australia and participating Regional Tourism Organisations in the Upper North Island Strategic Alliance.  The campaign returned positive results with a 55 per cent increase in Flight Centre sales and 9,040 Qantas bookings made.

70.     As part of ATEED’s ongoing work to maximise the performance of the iSITE network, iSITEs are now structured into three categories (large, small and satellite) which will lead to greater efficiencies and cost savings.  There are no impacts on levels of service.

Major events

71.     ATEED’s three major social anchor events – Diwali Festival, Lantern Festival, Pasifika Festival – were successfully delivered over the reporting period with the Diwali Festival attracting the largest audience to date. The weekend of 14 to 16 February 2014 was the biggest in Auckland since the finals weekend of Rugby World Cup 2011, with around 200,000 people attending major events in Auckland.  This included the delivery of the Auckland Lantern Festival, facilitation support to the Eminem concert and delivery of the National Rugby League (NRL) Nines event. 

72.     Evaluation of ATEED’s major events portfolio to March 21 2014 shows that the target for visitor nights generated by major events has been exceeded (up 10,000) and $21.5million of the $40m Return on Regional Investment (RORI) target has been achieved.  Based on the remainder of the portfolio, it is envisaged that all targets will be comfortably achieved by year end.

73.     A Terms of Reference was agreed between ATEED and World Masters Games 2017 Limited in the second quarter outlining roles, funding, reporting requirements and key performance indicators.

74.     Regional Facilities Auckland (RFA) summer 2013/14 line-up of Auckland-exclusive international music events generated more than 126,000 visitor nights and made a contribution to regional GDP of $14.6 million.

Other

75.     The Tamaki Makaurau Volcanic Field UNESCO World Heritage proposal strategic case cost benefit and multi-criteria analysis has commenced.  Engagement with central government, the Tamaki Collective and cross-stakeholder engagement on weighting project attributes has been completed.  ATEED and the Tamaki Collective participated in a UNESCO workshop in April 2014.  This is the subject of the discussion at the central government-local government forum in June 2014.

76.     Development of an Auckland Arts and Culture Strategic Action Plan (ACSAP) to integrate arts and culture into everyday lives continues.  The ACSAP has been developed through engagement with a large number of Arts and Culture sector stakeholders, including Local Boards and community groups, under the leadership of a cross-sector steering group.  This approach has fostered a strong sense of ownership of the proposed goals and actions. Engagement is currently taking place with Local Boards given a large degree of interest from Boards who wish to align their Local Board Plans to the Arts and Culture Strategic Action Plan.  A draft plan is due to be reported to the June 2014 Arts, Culture and Events Committee seeking approval to undertake public consultation.

Facilitating an Iwi-Māori economic powerhouse

77.     Facilitating an Iwi-Māori economic powerhouse is cross-cutting theme that goes across all the priorities of the EDS.  It also contributes to the implementation of the new Shared Economic Agenda, in particular ‘Raising youth/rangatahi employability’ and ‘Support growth and improved performance of Māori businesses’ focus areas. 

78.     In order to coordinate efforts in these areas, a Māori Economic Development programme is being developed for the Auckland Council family. This is discussed in a verbal update to this Committee.  Other specific Māori economic development actions that are currently underway are discussed below.


79.     A Papakura Māori economic development programme has been established.  The programme aims to support Māori businesses in the Papakura Local Board area to enhance their competitiveness and economic performance.  The programme has been initially funded by the Local Board.  This has seen the establishment of the Papakura Māori Enterprise Association in order to implement the programme and carry it forward in the long term and will be looking to have delivered a training symposium and networking events during the middle of 2014.

80.     Auckland Council International Relations, Waterfront Auckland and the Mayor promoted the Waka Guest cultural tourism event to Auckland-based Chinese media and tourism companies and the Chinese market.  The project won runner-up in the Air New Zealand April 2014 Sister Cities Commercial and Business Project award category.

81.     Work on developing a Māori signature event continues with ATEED, Council’s Community Development, Arts and Culture team and Te Waka Angamua with a view to agree an approach to inform an ATEED feasibility by the first quarter of 2014.  Feedback from these sessions has been beneficial: firstly to stock-take the existing Māori event landscape and understand the Māori event calendar and secondly, to begin to develop a strategic framework to facilitate a joint understanding of what a Māori signature event should deliver.  Mana whenua consultation was undertaken during November and December 2013 and future engagement activity will seek to build on this.

82.     ATEED continues to support and facilitate the development of the “Rangitoto-Motutapu Haerenga - A Journey through Sacred Islands” in conjunction with Ngai Tai, Ngati Whatua, the Department of Conservation and Fullers.  A timetable around the product’s development has been confirmed with the lead up to TRENZ 2014 taking place mid-May 2014.  This includes completion of the new wharf, Haerenga signage, volunteer familiarisation tours and a media launch.

83.     ATEED provides a dedicated resource to support Māori tourism development, grow engagement, market share and sales.  Planning is underway for the delivery of the 2014 Māori Tourism Trade Day to be held in June 26.  The Trade Day will be delivered in partnership with New Zealand Māori Tourism, Air New Zealand, Poutama Trust and the Auckland Museum.

84.     Progress is being made in developing digital infrastructure for Māori, including supporting Nga Pu Waea to roll out ultrafast broadband to Marae and the Manaiakalani project that is leveraging digital technology to drive improved educational outcomes in the Tāmaki area.

85.     On June 18 ATEED together with partners Callaghan Innovation, Te Puni Kokiri and Treasury will host a Māori Economic Growth Forum to facilitate partnerships that support and enable Māori business growth. 

86.     COMET Auckland has delivered a number of initiatives that contribute to Māori outcomes, including distributing the Tamaki Makaurau Māori Education Snapshot by mailout and presentations to various Marae across Auckland.  A second hui was held with Mana Whenua, Taurahere and Māori organisations to identify the key issues and aspirations for Māori education initiatives.  The groups agreed to form a joint steering group who are tasked with meeting in early 2014 to formulate the nature of the relationship and plan shared objectives.

Local board views and implications

87.     Council’s Local Economic Development Department reports to local boards six monthly on its activities delivering the agreed local economic development work programme. 

88.     Economic development overviews have been prepared by Council for all local boards and provide information on the unique pattern of local economic activity, population, skills, workforce, employment, sector strengths, key linkages and business growth trends.  The overview can be a tool for the local board to influence others and improve understanding of the strengths, challenges and opportunities within the local economy.

89.     Council’s economic development team continues to work with local boards on their local board plan development processes, including attending community consultation events, providing feedback on initiatives suggested, local place-making initiatives and projects such as Youth Connections. 

90.     COMET Auckland have also provided advice and expertise on skill needs for the Franklin, Whau and Papakura Local Boards.  The half year reports of the Legacy CCOs (including COMET Auckland) are provided to local boards for their information via the Local Board Services Department.

91.     Through its Local Board Engagement Plan, ATEED maintains an open dialogue with local boards through a range of mechanisms including:

·    Six monthly reporting of activity to Local Boards.

·    Annual invitations to Local Board Chairs and portfolio leads to attend ATEED Board meetings and discuss key opportunities and issues.

·    Regular attendance of the ATEED Chief Executive at the local board Chairs Forum.

·    Ad-hoc engagement on issues of particular relevance to local boards e.g. the Franklin Local Board was heavily involved in the delivery of the ITM 400 (V8 supercars) event. 

92.     ATEED undertook a significant programme of consultation with local boards over March 2014 to brief Board Chairs and economic development portfolio holders on ATEED’s vision, purpose and work programme for the next three years.  The intention of the workshops was to inform the development of both local board plans and ATEED’s SOI and Business Plan.  The north, south and west workshops were particularly well attended with high levels of engagement and idea exchange.  Since the workshops ATEED staff have engaged in detailed discussions about local board plan priorities with a number of local board advisors.

93.     A local economic development workshop is being held on the 16 May 2014 with elected representatives, ATEED and Council.  Another report on this Committee agenda discusses this workshop and the local economic development work programme in more detail.

Maori impact statement

94.     Implementation of the EDS includes the key policy objectives of the Council to advance the area of Maori economic development.  In particular the Auckland Plan’s transformational shift to ‘Significantly shift Māori social and economic well-being’ and the strategic direction to ‘enable Māori aspirations through recognition of the Treaty of Waitangi and customary rights’.  The Māori Plan for Tāmaki Makaurau also sets out the Independent Māori Statutory Board’s (IMSB) priorities for Māori economic development.

95.     The output from the recent EDS mid-course review has identified the need to prioritise support to grow and improve the performance of Māori businesses.  This involves working in partnership, particularly with Māori, to identify and develop initiatives around investment, skills development and tourism opportunities.

96.     In a partnership between Te Waka Angamua and Economic Development and with input from the IMSB, Council is leading the development of the Māori Economic Development Programme to draw together the strategic approach to Māori economic development.  Stage one of this project has been completed and a verbal report to this Committee’s agenda will update on stage two of the work.

Implementation

97.     The new shared economic agenda for Auckland will need resources reallocated to fund the delivery of the agenda.  Implementation will be prioritised within existing economic development activities as part of the development of the LTP 2015-2025.

 

Attachments

No.

Title

Page

aView

Shared Economic Agenda for Auckland 2014-2017

41

     

Signatories

Authors

Stephanie Jowett - Principal Advisor

Authorisers

Claire Gomas - Manager – Economic Development Strategy & Policy

Harvey Brookes - Manager Economic Development

 


Economic Development Committee

21 May 2014

 

Shared economic agenda for Auckland 2014-2017

Priorities 

Rationale and action

1. A new Auckland Leadership Team

Delivering economic growth needs a new partnership between business, Auckland Council and Government. This will be achieved through:

·    Establishing a new Auckland Leadership Team consisting of the Mayor, ATEED Chair, Chief Executives of Chamber of Commerce and EMA, Committee for Auckland, Māori corporate leaders, chief executives of major corporates and multinational businesses, Ministers

·    Identifying and animating a wider network of champions

The leadership team will agree a common prioritised agenda, proactively sell Auckland to world, and provide advocacy and case making with government, media and community.

 

2. Raise youth/rangatahi employability

 

Auckland’s youth need to be employable if they are to compete effectively in the labour market and obtain productive employment. This will require:

·    Negotiating a new funding model that combines skills, social welfare and benefits, and private sector resources.

·    Scaling up the number of opportunities for young people to gain work experience.

·    Developing and actively communicating a new Employers’ Pledge to give status and weight to this commitment.

 

3. Build, retain and attract talent

Auckland’s businesses need a skilled labour force if they are to compete effectively in the global economy. This will require:

·    Encouraging our businesses to invest in skills.

·    Thoroughly understanding Auckland’s skills shortages and ensuring training provision and immigration policy parameters can respond to these needs quickly.

·    Delivering an orchestrated campaign to attract international talent, students and institutions matched to Auckland’s future skills needs.

 

4. Build the Auckland business proposition for a business-friendly city

Auckland needs to be recognised as a business destination nationally and internationally. This will require:

·    The development of Auckland’s business proposition that effectively leverages its unique attributes.

·    Delivering a targeted global business marketing campaign.

·    Auckland Council and Government honouring the promise to be business-friendly, both in terms of service provision to business and the establishment of a well-functioning city in terms of its economic infrastructure.

 

5. Boost the investment rate into Auckland’s economy and infrastructure

Auckland needs international/national investment to finance economic growth, stay competitive and to provide the economic infrastructure required for it to be the world’s most liveable city. This requires:

·    On-going effective communication of the value of international investment and Auckland’s commercial opportunities.

·    The development and leveraging of a full range of funding options, including: PPPs, iwi partnerships, alternative funding, commercial partnerships, tax incremental financing (TIFs), network charging.

·    Powering up the Auckland Investment Office to promote an investment pipeline.

 

6. Supporting more Auckland businesses to innovate and grow

Auckland’s firms need to innovate to remain internationally competitive for the long term. This will require:

·    The appointment of an Innovation Champion for Auckland.

·    The development of a high visibility campaign to promote the benefits of innovation and entrepreneurship.

·    Creating and connecting spaces for innovation and entrepreneurship, including maximising the opportunity of Wynyard Quarter, the innovation corridor and the CBD.

 

7. Increase Auckland’s visibility

Despite our wealth of assets and history, Auckland needs to increase its international visibility and relevance. This requires:

·    Transforming our existing partner city relationships to a new global partnership programme, to increase Auckland’s exposure and esteem in the global economy.

·    Effectively telling Auckland’s story in a way that leverages our distinctive advantages (e.g., indigenous peoples, volcanoes, oceans, food, sport).

·    Identifying how Auckland’s identity can be significantly leveraged by iconic statements (events / festivals / buildings / acts).

 

8. Make sure the right infrastructure is planned for and in place

The growth of Auckland’s economy is currently constrained by housing, transport and availability of employment land. Overcoming these barriers requires:

·    Promoting and accelerating key housing, employment land, transport projects that are needed to meet the growth potential of Auckland.

·    Developing and adopting a new implementation model to achieve growth in key locations – CBD and metropolitan centres.

·    Leveraging the fibre network to its full potential.

 

9. Support growth and improved performance of Māori businesses

An iwi/Māori economic powerhouse is an essential part of Auckland’s future global competitiveness. This requires:

·    Supporting Māori businesses to grow.

 

 


Economic Development Committee

21 May 2014

 

Local Economic Development Update

 

File No.: CP2014/09606

 

  

Purpose

1.       This report outlines the framework for delivering local economic development (ED), and updates the committee on local ED activities over the last 12 months. It highlights the concerns of local boards about local ED implementation raised as advocacy items and limits to programmes due to reliance on discretionary funding. 

Executive summary

2.       Economic development is a key consideration for local boards. All 21 local boards have included a theme around the economy in their draft local board plans.

3.       A number of departments of Auckland Council and its Council Controlled Organisations (CCO’s) provide local ED services; these include the Economic Development department within council, ATEED, COMET and Community Development Arts and Culture (CDAC).

4.       A framework outlining how local ED services are planned and delivered has been developed and is described in this report.

5.       There has been significant activity in local ED over the last 12 months.

6.       Four local ED action plans have been adopted by local boards; these are Franklin, Waitematā (city fringe), Whau and Papakura. Draft plans are in process for Orakei, Kaipatiki, Ōtara-Papatoetoe and Albert-Eden. We expect to develop plans for, Māngere-Ōtāhuhu, Manurewa, Rodney and Henderson-Massey in FY14/15. Development of plans is dependent on local boards allocating funding. Subsequent delivery of actions depends on allocating resources across Auckland Council, its CCO’s and by external partners, and seeking funding from the governing body, local boards or partners.

7.       Prioritisation by local boards following development of local ED action plans has resulted in targeted local ED initiatives in FY13/14. These include, for example, a Māori ED programme in Papakura, tertiary hub investigation in Franklin, retail best practice guide in Orakei, water allocation study in Franklin, needs assessment for an innovation hub in Maungakiekie-Tāmaki and New Lynn metro development projects in Whau.

8.       ATEED contributes to local economic development through the delivery of business growth programmes and business attraction and investment activity. In addition ATEED’s focus on growing the visitor economy and building a world class major events portfolio brings a range of social and economic benefits to Auckland. As well as supporting the development of local economic development plans, ATEED reports its contribution to local economic development through in ATEED’s six monthly reports to local boards. A summary and examples of ATEED’s contribution to local economic development is attached in Attachment A and is further illustrated through a scorecard of metrics produced for six monthly reports to local boards, broken down by local board area, attachments B to E.

9.       Funding for local ED activities is currently from local board discretionary funding. This limits the scale of projects that can be supported. Local boards have provided feedback to the governing body on the local board funding policy review.

10.     Through their advocacy to the governing body, local boards have expressed concerns about the ability to implement local ED initiatives. It is expected that some of these concerns will be addressed through the CPO review, CCO review and Long Term Plan (LTP) processes.


 

 

Recommendation/s

That the Economic Development Committee:

a)      receive the report and the additional summary report and findings of the local economic development workshop on 16 May 2014.

 

Comments

 

Importance of Local Economic Development to Local Boards

11.     Economic Development (ED) is a key consideration for local boards across the region. Among other things, local boards want to encourage investment, advocate for access to education and training programmes for local people and stimulate economic activity through the business sector. They are concerned with providing attractive business environments within town centres and industrial precincts. These aspirations are described in the draft local board plans (2015-2018).

12.     Access to skills development programmes and to job opportunities is frequently raised by residents in submissions on local board plans. Economic development has appeared as a core theme in the majority of local board plans.

Local Economic Development Framework

13.     A number of areas of Auckland Council and its CCO’s provide local ED services; these include the Economic Development department within council, ATEED, COMET and CDAC.

14.     A framework outlining how local ED services are planned and delivered has been developed and is supported by council departments, CCO’s and Local Board Services. This work resulted in the Local Board Economic Development Toolbox that is appended as Attachment F. The toolbox was circulated to all local board members in March 2014.

Developing a sound information base

15.     Economic development (ED) overviews have been prepared for all local board areas.  Each overview outlines the current economic picture in the local board area, recent trends, and identifies particular strengths or points of difference in comparison to the Auckland region. It is primarily a data driven view drawing on the statistics available covering a range of indicators including demographics, incomes and housing, education and skills, employment and occupation, sectoral strengths, business growth and development trends.

16.     This evidence base has been useful for local boards in considering the future focus in support of local economic development.  For example:  

·    The Rodney economy is characterised by small scale operations, with a high number of small businesses and self-employed people

 

·    In Devonport-Takapuna, the highest proportion of school leavers of all local board areas achieved at least the basic qualification of NCEA Level 2 in 2012

 

·    The main sectors by employment in Henderson-Massey are those related to servicing the local population (such as education, health, residential care, local government)

 

·    The Orakei local board area has the 4th highest number of businesses in Auckland

 

·    One in five manufacturing jobs in Auckland is in Maungakiekie-Tāmaki

 

·       Over three-quarters of jobs in Māngere-Ōtāhuhu are in firms with over 20 employees

 

·       Franklin local board area has the most diversified economic structure in Auckland.

 

In addition to the economic facts and trends, each overview reflects the economic priorities of the Local Board Plan and includes an initial assessment of the strengths, challenges and opportunities within the local economy.

 

Agreeing forward work programmes: Local ED Action Plans 

17.     The ED overviews are being used by local boards in the development of local ED action plans. The action plans are a collation of current and planned local economic development activities led or championed by the local board and are created in consultation with stakeholders including the Business Improvement Districts (BIDs), Auckland Council departments, ATEED and other CCOs, training and education providers, sector groups and government departments.

18.     A local ED action plan provides a comprehensive list of actions that the local board can undertake, support, advocate and monitor. Where action plans have been developed they have provided a basis for strategic advice to the new Local Board Plan (2015-2018) process and are a prioritised work programme for local economic development in the area.  The work programme is monitored in the six-monthly reports to local boards.

To date, Local ED Action Plans have been completed for Franklin, Papakura, Waitematā (city fringe) and Whau Local Boards:

Action plans are currently being developed or finalised for Orakei, Albert-Eden, Kaipatiki and Ōtara-Papatoetoe Local Boards. 

In 2014/15, action plans are scheduled for Rodney, and, dependent on Southern Initiative (TSI) or local board funding, Māngere-Ōtāhuhu, Manurewa, Maungakiekie-Tāmaki and Henderson-Massey.

 

Local delivery of ED initiatives

19.     New initiatives that are underway driven from the completed (or near finalised) local ED action plans include:

·       Franklin: A feasibility study is underway for the enhanced local provision of tertiary education in Franklin; a study is being initiated on the water supply issues for the horticulture sector in Franklin.

 

·       Orakei: Best practices in town centre retailing was identified and priority actions for business associations recommended.

 

·       Papakura: A Māori ED programme has been approved which involves working with iwi and Māori businesses to establish a Māori Enterprise Association, supported by research, networking and business facilitation initiatives.

 

·       Whau: Actions under the ‘New Lynn Metro’ projects banner are being pursued to capitalise on the investments made in New Lynn to establish it as a metropolitan centre.

 

·       Waitematā: A project is being initiated on the commercial property market drivers and trends in the city fringe.

 


20.     Recent ED initiatives delivered in local board areas that do not have approved local ED action plans include:

·       Regional scoping work is currently underway for small scale innovation hubs based within regional centres, with links to Auckland’s overall innovation network.  At a local level, a needs assessment is currently being undertaken within Maungakiekie-Tāmaki.  

·       Customer intercept surveys were undertaken in the three main town centres within the Maungakiekie-Tāmaki local board area (Glen Innes, Onehunga and Panmure) on satisfaction with the town centre, reasons for visiting and customer experience.

·       A Wairau Valley business scoping project was undertaken to understand the business base in the area and has resulted in a business association being formed and strong contacts made between local businesses and the Kaipatiki Local Board.

·       Assistance for Youth Connections programme (CDAC) and ‘business breakfast’ networking in Puketāpapa.

 

Local economic improvement projects

21.     The Local ED team has worked in partnership with City Transformation, Auckland Transport, Parks and Property on capital projects in business areas where there are strong economic benefits, including:

·       Gateway and signage projects in the Hunters Corner town centre

·       Wiri business precinct signage

·       North Davies Avenue project to develop linkages with the major Manukau city centre developments, including the new MIT Campus, redevelopment of Hayman Park, the rail and bus interchange and the new Auckland Transport car park building

·       Ōtara Linkages project to improve sightlines and physical connections between the MIT campus and Ōtara town centre

·       Pedestrian and streetscape improvements and signage refurbishment in East Tāmaki

·       Refurbishment of the Clevedon District Centre in partnership with the Clevedon Business Association and Franklin Local Board, including Wi-Fi service, digital equipment  and flexible floor layout for either business or community use.

 

ATEED local ED activity

22.     ATEED contributes to local economic development through the delivery of business growth programmes and business attraction and investment activity. In addition ATEED’s focus on growing the visitor economy and building a world class major events portfolio brings a range of social and economic benefits to Auckland. As well as supporting the development of local economic development plans, ATEED reports its contribution to local economic development through in ATEED’s six monthly reports to local boards. A summary and examples of ATEED’s contribution to local economic development is attached in Attachment A, and is further illustrated through a scorecard of metrics produced for six monthly reports to local boards, broken down by local board area, attachment B to E.

 

Local ED leadership and planning

23.     An integrated business precinct plan (IBPP)  for the industrial south is being developed which will:

·       Provide a coordinated framework to ensure the zoned industrial locations continue to play a strong role in the region’s economy and the economic growth of Auckland and New Zealand.

·       Assist in growing and developing the zoned industrial locations in a coordinated manner.

·       Set out a vision for the industrial south in order to support the Mayors vision for Auckland as “the World’s most liveable City.”

·       Identify high level actions to support the vision.

 

24.     The plan covers industrial-zoned land under the Proposed Auckland Unitary Plan (PAUP) in Maungakiekie-Tāmaki, Māngere-Ōtāhuhu, Howick, Ōtara-Papatoetoe, Manurewa, Papakura and Franklin.

25.     The local ED team provides policy advice and input to Area Plans, and has been actively involved in development of the Māngere-Ōtāhuhu, Hibiscus and Bays, Devonport-Takapuna and Ōtara-Papatoetoe Area Plans. These plans are spatial-based with high level actions.

26.     A Local ED Action Plan is a much more detailed, economic outcome-focused plan with implementable actions that identifies ‘interested parties’ for delivery. 

27.     We have also provided economic input for the Pukekohe area plan, K Rd and Newton precinct plans, and the Three Kings centre plan.

 

BID partnership programme

28.     The Business Improvement District (BID) Partnership Programme approach is a public-private partnership between business associations that have a commitment to develop and promote their local business environment and Auckland Council. In work to date since Auckland Council was established there has been a focus on sharing best practice and developing consistent governance, processes and practices across the region’s 46 (soon to be 48) BIDs.

29.     Each BID has signed a Partnering Agreement with Auckland Council. These agreements define the relationship between Auckland Council and individual business associations operating as BIDs. Several have also signed a discretionary Memorandum of Understanding (MOU) with their local board. The MOU is an opportunity to agree mutual goals and objectives and to support each other’s programme of work where applicable. 

30.     BID Partnership Advisors provide strategic advice to BIDs and hold monthly networking meetings for BID managers and interested business associations that focus on professional development and sharing information and best practice. Recent topics covered have been:

·        Safety and security case studies

·        Auckland Transport importance of good parking in our centres

·        AGM checklist and meeting procedures

·        ATEED local events, regional website launch and local business support

·        Ultrafast broadband and Wi-Fi

·        Social enterprises

·        Using ‘Marketview’ retail spend data for strategy development and  business attraction

·        Media awareness

·        Website – how to review, improve and evaluate

·        Using information from local ED overviews and opportunities to engage with local ED action plans  

·        Regional business mentor programme

·        Input to a range of policy and bylaw reviews and Auckland Council plans

·        Bulk buying opportunities for insurance

 

31.     There is much activity happening with the establishment of new BID areas (including North-west and Devonport). Several other locations are actively working with the BID team on preparatory work towards establishment. Existing BIDs undertaking expansion ballots in 2014 have included Ōtāhuhu and Manukau Central.

 

Work programmes for FY14/15 and ongoing

32.     We are currently starting the planning cycle with local boards to scope work programmes for the FY14/15 year. Where a local ED action plan has been completed, the prioritised actions from this plan are used as the basis for the work programme. Where there is no action plan, we hold a planning workshop with the local board to discuss potential actions and priorities from their draft Local Board Plan or Area Plan.

Consideration

Local board views and implications

33.     Local boards provided advocacy items to the governing body for the Annual Plan 2014/15. These advocacy items were considered by the 8th May 2014 Budget Committee. Full details of the advocacy items by local boards to the governing body and its CCO’s were included in the attachments to the ‘Annual Plan 2014/2015 – local board advocacy’ report

34.     One of the common advocacy items across local boards was:

·    Implementing local economic development plans including tourism initiatives

35.     A workshop on local ED was held on 16th May and the additional summary report on the discussion and findings from the workshop will be distributed to ED Committee members at this committee meeting.

Maori impact statement

36.     Each local ED action plan considers Māori ED under the Economic Development Strategy (EDS) cross-cutting theme ‘Iwi/ Māori economic powerhouse’.

37.     For example, Papakura Local Board prioritised and funded development of a Papakura Māori ED Programme. This includes actions to address issues and opportunities highlighted at a Hui and Iwi/ Māori business meeting in late 2013. To date, this has led to the establishment of a Māori Enterprise Association (MEA). The MEA will initially focus on business capability support, mentoring and business showcasing.

38.     Māori ED programmes at a local level are targeted at businesses. Actions align with and complement regional Māori ED programmes.

Implementation

39.     Some activities are delivered as part of core services by ATEED, the ED department within council, CDAC and COMET. Core services include updating ED overviews and the business growth and capability service offered by ATEED. We also seek to align with the investment and development plans of external partners, such as tertiaries and industry groups.

40.     However, implementation of specific programmes is constrained by the need to seek funding from (limited) discretionary local board funding.

41.     The local ED team within council is small and the programme currently relatively modest. Similarly, ATEED is also facing constraints. There is a need to prioritise and phase ED initiatives. The local ED action plan is one mechanism for doing this.

42.     Through their advocacy to the governing body, local boards have expressed concerns about the ability to implement local ED initiatives. It is expected that some of these concerns will be addressed through the CPO review, CCO review and Long Term Plan (LTP) processes.


 

Attachments

No.

Title

Page

aView

ATEED local ED activity

51

bView

Local Board scorecard - West FY14 YTD

53

cView

Local Board scorecard - south FY14 YTD

55

dView

Local Board scorecard - Central FY14 YTD

57

eView

Local Board scorecard - North FY14 YTD

59

fView

Local Board ED Toolbox

61

     

Signatories

Authors

Janet Schofield - Business Area Planning Manager

Authorisers

Harvey Brookes - Manager Economic Development

 


Economic Development Committee

21 May 2014

 

ATEED local ED activity

 

 

  

Building a Culture of Innovation and Entrepreneurship locally

1.       ATEED works with local industry to build a culture of innovation and entrepreneurship across the city to reinforce the image of Auckland as an innovation hub of the Asia-Pacific rim, encouraging further investment into Auckland and into innovation. This activity is delivered primarily through ATEED’s 4 area offices (north, west, south and central).

2.       ATEED’s area offices promote the growth and development of local businesses through the Regional Business Partner program. This nationally funded programme provides business support and development programmes that build the capability of businesses and increases business’ state of readiness to export, through NZTE training vouchers and Callaghan Innovation research and development funding respectively.

3.       ATEED’s area offices also actively engage with local tertiary institutions and collaborate with Business Improvement Districts. Area offices deliver and support a wide range of local business events and networking initiatives that foster networks and provide general and niche support for local companies, and work with other agencies to signpost local companies to the most appropriate source of support.  

4.       While Auckland’s innovation activity spans the city ATEED is currently supporting a range of initiatives across local areas, with examples as follows:

·    Albany - a memorandum of understanding with Massey University covering the potential development of the Albany Campus as an innovation hub;

·    Takapuna – ATEED is facilitating the “Techapuna” initiative aimed at increasing the number of export-focused high-tech companies through networking and sharing ideas;

·    Central - Grid AKL (Wynyard Quarter Innovation Precinct)

·    Mangere – Te Ipu Kai (The FoodBowl).

5.       ATEED has partnered with the Auckland Chamber of Commerce to deliver delivering the Westpac Auckland Business Awards programme from 2014 onwards, with the joint intention of shaping a programme which will drive the pursuit of excellence and innovation in growth businesses among business throughout Auckland.

Growing a Skilled Workforce locally

6.       ATEED delivers the Lion Foundation Young Enterprise Scheme across the region. The scheme encourages year 12 and 13 students to embrace innovation and business, and is one of a number of programmes that helps to create a pathway to employment for local young people. In 2014 a total of 41 schools across Auckland are taking part in the YES programme. ATEED is keen to expand the number of schools taking part in the programme and is working with local boards to leverage the relationships that schools have with local board members.

Attracting Business and Investment locally

7.       Regionally, the attraction of more large businesses, and a focus on inward investment, is crucial if Auckland’s economic growth goals are to be achieved.  The objective is for Auckland to be recognised as a key Asia-Pacific destination for business and investment opportunities in key growth sectors.

8.       At the local level ATEED’s activity is evident in the Aroha Auckland programme that works with Auckland based multi-national businesses and investors to retain and grow their business. Examples include NZ Steel and BOC Gas in the Franklin Local Board area.

9.       ATEED also supports the promotion of Auckland as an international study destination. Local schools, universities and private training establishments benefit from fees paid by international students.

10.     ATEED operates Auckland’s regional film office (Film Auckland) which each year issues filming permits for dozens of international and local productions. Film Auckland staff help producers tap into Auckland (and New Zealand's) vast network of experienced and innovative film industry professionals, benefitting the local economy.

Growing the Visitor Economy locally

11.     ATEED’s Tourism Development Team works across Auckland’s local board areas to support the delivery of the Auckland Visitor Plan. This plan aims to grow Auckland’s visitor economy by encouraging visitors to do more and stay longer in the Auckland region.

12.     ATEED works closely with local tourism operators and regional cluster groups to identify and promote local areas as distinctive destinations within Auckland, and so attract visitors into local areas. As part of its delivery of the Regional Business Partners Programme (see above) ATEED also provides local tourism operators with access to business capability funding (via NZTE). Examples of regional cluster groups which ATEED has helped to facilitate include Matakana Coast & Country (Rodney), Howick Tourism Steering Committee (Howick), and Destination Great Barrier Island (Great Barrier).

13.     ATEED provides advice and information to visitors about local areas and their attractions through appropriate marketing channels including the 8 i-SITEs within the region and Auckland’s official visitor information website (aucklandnz.com).

Delivering a World Class Major Events Portfolio locally

14.     ATEED is responsible for the attraction and delivery of major events that align with Auckland’s Major Events Strategy (MES). The MES identifies four key outcomes which are sought from major events: the ability to expand Auckland’s economy, increase visitor nights, enhance Auckland’s liveability and increase international profile. While major events are not delivered in each local board area, they generate significant social and economic benefits to the Auckland.

 

 

 

 

 


Economic Development Committee

21 May 2014

 


Economic Development Committee

21 May 2014

 


Economic Development Committee

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Economic Development Committee

21 May 2014

 

Productivity Commission Engagement

 

File No.: CP2014/09322

 

  

Purpose

1.       The purpose of this report is to inform the Committee of a proposed session with visiting staff of the Productivity Commission being planned for mid-June, 2014.  The session will include a presentation from the Commission on their role and function, key areas of enquiry relevant to Auckland, future work programme and opportunities for collaboration.

2.       It is anticipated that the session will be of interest to the Committee and Councillors are invited. The date and time of the session is pending and Councillors will be advised by the Economic Development Committee’s Democracy Advisor.

Comments

3.       The Productivity Commission’s “principal purpose … is to provide advice to the Government on improving productivity in a way that is directed to supporting the overall well-being of New Zealanders, having regard to a wide range of communities of interest and population groups in New Zealand society” (New Zealand Productivity Commission Act, 2010). To fulfil this purpose, the Commission:

•     undertakes in-depth inquiries on topics referred to them by the Government (their core business);

•     carries out productivity-related research that assists improvement in productivity over time; and

•     promotes understanding of productivity issues and productivity related matters.

4.       Past inquiries include Local Government regulation and housing affordability which have been highly relevant to the Auckland Council. Current inquiries include regulatory institutions and practices, and productivity in the service sector.

5.       The Economic Development Strategy sets “an average annual productivity growth greater than 2 per cent”. Through our shared economic agenda, and the focus on improving labour productivity through adopting new technology and lifting education and skills levels we will be contributing to improving our targets. The planned session will provide an opportunity to discuss these matters directly with Commission staff.

 

Recommendation/s

That the Economic Development Committee:

a)      note that further information will be circulated by the Economic Development Committee’s Democratic Advisor.

 

 

Attachments

There are no attachments for this report.    

Signatories

Authors

Wayne Brown - Economic development

Authorisers

Claire Gomas - Project Leader – Economic Development Strategy

Harvey Brookes - Manager Economic Development

 


Economic Development Committee

21 May 2014

 

Update on Māori Economic Development Programme

 

File No.: CP2014/09430

 

  

Purpose

1.       To provide the Economic Development Committee with a verbal update on the Māori Economic Development Programme.

Executive summary

2.       In October 2013 the Tuia Group were commissioned to design and develop a comprehensive Māori Economic Development Programme for Auckland Council, and to help build the capacity of the Council family to deliver on Māori economic development outcomes.

3.       Mike Taitoko (Director, Tuia Group) will provide an update on Stage Two (design) of the Māori Economic Development Programme, following the initial update on Stage One (project establishment) that was provided in December 2013.

4.       Stage Two of this project has progressed with extensive stakeholder engagement with the intention of aligning and prioritising current areas of work, and in particular, identifying key areas of new effort and the resource requirements of these.

 

Recommendation/s

That the Economic Development Committee:

a)      receive the presentation.

 

 

Attachments

There are no attachments for this report.    

Signatories

Authors

David Taylor - Principal Advisor

Authorisers

Harvey Brookes - Manager Economic Development