Agenda of Economic Development Committee

Economic Development Committee

20 August 2014

Workforce Roadmap for Auckland Construction and Infrastructure Sector

File No.: CP2014/17506

Purpose

1. To update the Economic Development Committee on the Workforce Skills Roadmap for the Auckland Construction and Infrastructure Sector, including a presentation by the Unitec Institute of Technology on behalf of the Construction and Infrastructure Sponsor Group.

2. The Unitec Institute of Technology will present the summary findings from the preliminary report: Workforce Skills Roadmap for Auckland Construction Sector (2013-2018).

Executive summary

3. The Workforce Skills Roadmap for the Auckland Construction and Infrastructure Industry Sector is a high level “roadmap” of anticipated workforce growth in the Auckland construction and infrastructure industry sector over the next ten years, focusing primarily on industry sector skills growth in the next five years.

4. The Workforce Roadmap is a collaborative project integrating local and central government, tertiary education and vocational training, and business and industry objectives. Council was a primary contributor to the roadmap’s development, providing information on its infrastructure work programme, and access to the Auckland Economic Futures Model to develop the Auckland Construction and Infrastructure Occupation Model (ACIOM).

5. The Workforce Roadmap will:

· close the gap between current and future workforce skills required for key construction and infrastructure projects and economic growth

· build the capability to establish a skilled workforce - a competitive advantage that supports ongoing investment and economic growth

· assist the tertiary vocational education and training providers to better respond to employment growth in the sector

6. The release of the preliminary report Workforce Skills Roadmap for Auckland Construction Sector (2013-2018) is the first step in the process of working collaboratively to build a skilled workforce for Auckland’s construction and infrastructure sector. Further work is underway to build the skills supply pipeline for the construction and infrastructure industry sector.

7. Key highlights from the preliminary report: Workforce Skills Roadmap for Auckland Construction Sector (2013-2018), which is to be tabled at the meeting, include:

· Wall of Work - unprecedented levels of growth in building and construction are forecast in the immediate future in New Zealand, dominated by Auckland

· Significant Growth – this increase in construction activity drives total net growth of 32,000 in construction and infrastructure occupations across the Auckland economy

8. The Committee will be provided with a presentation of the Workforce Roadmap and summary findings by the Unitec Institute of Technology, presenting on behalf of the Construction and Infrastructure Sponsor Group.

Recommendation/s

That the Economic Development Committee:

a) note that the development of the Workforce Roadmap is an example of industry, tertiary vocational education providers, council and central government working together to understand future skills needs, and that further work is being undertaken to build the skills supply pipeline and deliver skills for industry and economic growth,

b) thank the Unitec Institute of Technology/Construction and Infrastructure Sponsor Group representatives for their presentation.

Comments

Background

9. The Workforce Skills Roadmap for the Auckland Construction Sector (2013-2018) is intended as a companion document to Auckland’s Construction and Infrastructure Labour Requirements: 2013-2023, which provides a more detailed breakdown for each occupation in the construction sector and in related supporting occupations. It also provides a ten year outlook and a more general indication of where the industry is heading.

10. Both reports were prepared for the Auckland Construction Sector on behalf of the Construction and Infrastructure Sponsor Group and are publically available on the industry sponsor group website: www.workforceroadmap.org.nz

11. Membership of the Construction and Infrastructure Sponsor Group:

· Primary contributors: Fletcher Building, Hawkins Construction, Dominion Constructors Ltd, Naylor Love Construction, New Zealand Transport Agency, Auckland Council.

· Secondary contributors: Building and Construction Industry Training Organisation (ITO), Competenz, Infrastructure ITO, Manukau Institute of Technology, Tertiary Education Commission, Skills Organisation, Unitec Institute of Technology, Building and Construction Productivity Partnership, Ministry of Business, Innovation and Employment.

Strategic context

12. Well-functioning labour markets and availability of skilled employees are important factors of economic performance as highlighted in the Auckland Plan and Auckland Economic Development Strategy. Global and domestic competition for skills and talent can result in skills shortages or a mismatch between skills supply and demand, impacting key infrastructure projects and limiting productivity.

13. International best practice highlights the development of industry led workforce strategies, including sector specific ‘workforce roadmaps’ that use demand driven analysis based on investment plans to forecast labour force and skills requirements, and help inform the alignment of education and training funding to industry need.

14. The Workforce Skills Roadmap delivers on Tertiary Education Strategy 2014-2019, which sets out the Government’s long term strategic direction for tertiary education, by supporting business and innovation through the development of relevant skills, and improving outcomes for all. The roadmap is intended to assist the tertiary vocational education and training providers to better respond to skilled employment growth in the sector.

15. The roadmap approach of bringing together industry representatives to give a clear and informed statement of their skilled labour requirements, and forming an alliance of tertiary vocational education and training providers to deliver these skills, can be used to forecast labour and skills requirements in other key sectors.

16. The Workforce Roadmap supports the investment of the council, and other regional partners with construction and infrastructure work programmes, including the delivery of a residential construction workforce.

Methodology

17. Council supported the development of the Workforce Roadmap and the Auckland Construction and Infrastructure Occupation Model (ACIOM) which underpins the roadmap, providing information on its infrastructure work programme, and access to the Auckland Economic Futures Model (EFM) owned and used by council.

18. The ACIOM is an extension to the EFM. It translates estimates of total employment growth generated by the EFM and the projections of industry activity into estimates of growth in occupations in the construction and infrastructure industry sector, and in related supporting occupations in the wider Auckland economy.

19. The roadmap modelling can be used to forecast labour and skills requirements in other key sectors.

Key findings

20. Key highlights from the preliminary report: Workforce Skills Roadmap for Auckland Construction Sector (2013-2018), include:

· Wall of Work - unprecedented levels of growth in building and construction are forecast in the immediate future in New Zealand, dominated by growth in Auckland

· Significant Growth – this increase in construction activity drives total net growth of 32,000 jobs in construction and infrastructure occupations across the Auckland economy

− New house building - more than doubles over the next decade, including an increase in apartments

− Infrastructure investment increases - led by roading, electricity and water

− 70% of all residential growth over then next decade occurs in the first five years

− 69% of total employment growth is driven by residential construction

Next steps

21. The Construction and Infrastructure Sponsor Group is seeking endorsement from the Hon Steven Joyce, Minister for Economic Development, and Minister for Tertiary Education, Skills and Employment, and a roundtable discussion on the Workforce Roadmap’s key messages, their impact on the construction and infrastructure industry sector and wider economy and the alignment of vocational education provision in Auckland that will support this employment growth.

22. The alliance of tertiary vocation education and training providers have established a joint working group and are developing a Construction and Infrastructure Sector Skills Supply Plan for Auckland. This will inform investment planning and alignment of existing funding for the tertiary vocational education and training sector.

23. The Alliance is exploring opportunities to leverage construction and urban development projects to boost required construction and infrastructure skills development and local employment opportunities within the projects.

24. This project approach will also link to the two Auckland based consortia for the Maori and Pasifika Trades Training initiative, both working towards the end goal of sustainable employment in the construction and infrastructure and related industries:

· A consortium led by the Southern Initiative will provide infrastructure trades training for around 200 Maori and Pasifika people aged 18-34 over three years.

· A consortium involving the Manukau Institute of Technology, the Unitec Institute of Technology, and Te Wananga o Aotearoa (with Skills, Competenz and BCITO as industry-facing partners) will provide construction and construction services (eg plumbing, electrical) trades training for around 650 students.

25. The Alliance has initiated early work at shaping a ‘joined up’ approach to better meet industry demand across Auckland – for instance, a common curriculum for plumbing training has begun between Skills, MIT and Unitec is being piloted and it is aniticipated this approach will be extended to other trades shortly.

26. Additionally, the Mayor’s Youth Employment Traction Plan is focusing on construction and infrastructure as one of four key sectors to boost youth employment and skills.

27. The Workforce Roadmap will be regularly updated to reflect changes in the construction and infrastructure industry sector.

Consideration

Local board views and implications

28. Boosting youth skills and employment is a priority for many local boards, and further work is underway to build the skills supply pipeline for the construction and infrastructure industry sector. This will deliver skills for industry and economic growth, including in local board areas. Young people and employers in the four local boards in the Southern Initiative area will benefit from linkages to the Maori and Pasifika Trades Training initiative. Occupation data is not available by local board area through the Auckland Construction and Infrastructure Occupation Model (ACIOM).

Māori impact statement

29. There is an opportunity to leverage construction and urban development projects to boost skills development and local employment opportunities, with links to the Auckland based consortia for the Māori and Pasifika Trades Training initiative, and the Mayor’s Youth Employment Traction Plan which focuses on construction and infrastructure as one of four key sectors.

Implementation

30. Further work is underway to build the skills supply pipeline for the construction and infrastructure industry sector, and deliver skills for industry and economic growth. This includes linkages to the Auckland based consortia for the Maori and Pasifika Trades Training initiative, and the Mayor’s Youth Employment Traction Plan which focuses on construction and infrastructure as one of four key sectors.

Attachments

There are no attachments for this report.

Signatories

Author

Lisa Endersby - Principal Advisor

Authorisers

Claire Gomas - Manager – Economic Development Strategy & Policy

Harvey Brookes - Manager Economic Development

Economic Development Committee

20 August 2014

Feedback for Proposed Long-term Plan 2015-2025 Performance Measures

File No.: CP2014/16434

Purpose

1. To receive an overview of the performance information review process and outline the process to finalise the LTP 2015-25 performance information and targets.

2. To provide feedback on the performance measures proposed by the business in order to aid the development of the measures in the draft LTP 2015-25.

Executive summary

3. Following the process agreed at the Finance and Performance Committee meeting on 19th June 2014, the business have developed a draft set of proposed Levels of service statements and performance measures for the groups of activities that are relevant for this Committee (Resolution no. FIN/2014/37).

4. This performance information is currently being reviewed by officers and internal stakeholders. Our intention is to collate all feedback from this committee and our internal process and provide this to the business.

Recommendation/s

That the Economic Development Committee:

a) receive the draft level of service statements and performance measures for the Regulation groups of activity.

b) provide feedback on the proposed statements and measures, either through this committee meeting or subsequently by emailing longtermplan@aucklandcouncil.govt.nz .

Comments

5. The Performance Measure work-stream is conducting a council and CCO wide review of performance measures for the Long-term Plan 2015-2025. This process was outlined and agreed at the Finance and Performance Committee on 19th June 2014 (Resolution no. FIN/2014/37).

6. The intended outcome of this in-depth review is that there will be a succinct set of community focused performance measures for each group of activities proposed for the draft LTP, which is aligned to the Auckland Plan.

7. This work needs to be substantially completed (including political engagement) by the end of October 2014 to support publication of the draft LTP for public consultation in early 2015.

8. The business has completed an in-depth review of their level of service statements and measures and these have been provided in an attachment to this report. This performance information is currently under review by key internal stakeholders and officers, including IMSB.

9. Feedback provided through this committee, our internal processes and IMSB, will be provided back to the business for them to finalise their proposed performance information.

10. These performance measures will have targets that will reflect the intended levels of service to be delivered by the council and CCOs and which will align with financial budgets. These targets will be discussed at the budget committee workshops in September 2014.

11. The Budget Committee will review the entire suite of measures and targets proposed for inclusion in the LTP 2015-25 between September and October 2014. The Budget Committee will adopt the measures and targets on 5th November 2014.

Consideration

12. Performance Information proposed for the following groups of activities is included in Attachment A;

a) Tourism, Major Events & Industry Development

b) Investment

c) Waterfront development and Property development

d) Regional planning and Local planning

13. The internal review is considering feedback to the business to ensure that the business:

a) reduce the number of measures that are reported at the LTP level where possible,

b) reduce an over-reliance of survey related measures, especially at a local level, where sampling errors are significant, and

c) include only those measures that have a robust reporting methodology in place and are important is describing the Council’s performance.

Local board views and implications

14. Local boards are currently in the process of providing feedback on performance measures at Local Boards Workshops and meetings through August. This feedback will be used in finalising the performance information. Once the Budget Committee have endorsed the performance measures, we will engage with Local Boards to determine their targets. This is expected to take place in September 2014.

Auckland Plan Alignment

15. In developing performance measures, we are ensuring alignment of levels of services with Auckland plan outcomes and targets which have been set.

16. The performance measures will be considered only for those levels of services that directly contribute to or enable an Auckland plan target to be met.

Māori impact statement

17. The draft and existing Maori outcome related performance measures that are being reviewed. Te Waka Angamua and IMSB are part of the key stakeholders group for this work-stream and are providing feedback and support on that part of the review. The feedback received will be used to further develop the current draft performance information.

Implementation

18. No significant implementation issues are applicable.

Attachments

No.	Title	Page
a View	HPO & Planning LoS & LTP Measures	15

Signatories

Author

Taryn Crewe, Financial Planning Manager – Council Parent

Authorisers

Matthew Walker - Manager Financial Plan Policy and Budgeting

Warren Maclennan - Manager North West Planning

Economic Development Committee

20 August 2014

Integrated business precinct plan: industrial south Auckland

File No.: CP2014/15171

Purpose

1. To inform the Economic Development Committee of the draft integrated business precinct plan and ask the committee to endorse the draft for public consultation.

Executive summary

2. The zoned industrial areas identified within the draft Integrated Business Precinct Plan (IBPP) make a significant contribution to the Auckland economy. The Auckland plan anticipates that a quarter of the additional jobs that will be needed in Auckland by 2041 will be provided in south Auckland.

3. With increasing pressures for alternative land uses in and around the IBPP industrial areas there is a need to support the industrial areas in a coordinated way so that they can continue to contribute to the delivery of the economic priorities of the Auckland Plan, Auckland’s Economic Development Strategy and the Southern Initiative.

4. The draft IBPP has been developed to provide a framework to support business and employment growth and inform the strategic approach to the future supply of industrial land to meet anticipated need. The draft sets out a vision and high level actions that are required in order to work towards achieving the IBPP’s objectives.

5. Following the agreement of the Economic Development Committee the draft IBPP will be subject to a period of consultation prior to being reported back to the committee and local boards.

Recommendation/s

That the Economic Development Committee:

a) endorse the draft Integrated Business Precinct Plan: industrial south Auckland, (Attachment A) for consultation.

Comments

Why have an integrated business precinct plan

6. In 2012, the industrial locations within the IBPP area contributed an estimated $18 billion towards Auckland’s GDP, employed 149,154 people (23% of Auckland’s total employment), and has seen employment grow by 27.5% since 2002.

7. The Auckland Plan anticipates that an additional 276,700 jobs will be needed in Auckland by 2041. A substantial share of these jobs (51%) will be located in central Auckland with a further 25% in south Auckland.

8. With increasing pressure for alternative land uses in and around the IBPP industrial locations, there is a need to support Auckland’s industrial areas in a coordinated way so that they can continue to contribute to the delivery of the economic priorities of the Auckland Plan, Auckland’s Economic Development Strategy and the Southern Initiative.

9. In order for the southern industrial precincts to continue to make a significant contribution to the regional economy and realise their future potential in the context of a growing residential population we need to co-ordinate

· the efficient use and supply of brownfield and greenfield industrial land

· improve transport infrastructure

· encourage high quality amenity in industrial areas

· align growth with planned investment

· develop partnerships with and between businesses and educators

10. The draft IBPP has been developed to provide a coordinated framework to support business and employment growth within the Proposed Auckland Unitary Plan, including zoned light and heavy industrial areas located south of central Auckland and to inform the future release of industrial land to meet forecast demand.

Process to date

11. The following diagram outlines the process that has been followed for the preparation of the draft IBPP.

12. A project team was established to inform and guide the development of the draft IBPP. The project team was drawn from across council and included representatives from Auckland Transport (AT) and Auckland, Tourism, Events and Economic Development (ATEED). The project team prepared topic reports and topic based sessions were held to help identify issues and opportunities for the IBPP area.

13. In addition to the project team a working group of local board members has been established to ensure that the relevant local boards were able to input into the development of the draft IBPP, and steer the strategic direction of the IBPP. This will ensure that the plan responds to the priorities of the local board’s as defined in the emerging and adopted Local Board Plans.

14. To further identify the key issues and opportunities facing the IBPP area, an informal consultation process was undertaken to gain the views of businesses within the scope of IBPP. This included a series of workshops held with business associations, and Auckland International Airport as well as telephone interviews with businesses. A summary of the main issues identified during this informal consultation process is included within the draft IBPP at appendix 6.

Key components of the draft IBPP

15. The draft IBPP includes the following key sections:

· Vision for the IBPP area

· Issues and opportunities for the industrial south

· The spatial strategy for the industrial south

· High level actions for the industrial south

· Appendices

o Strategic context

o Economic characteristics of the IBPP area

o Key sectors within the IBPP area

o Industrial change in the IBPP area 2002-2012

o Informal consultation findings

Spatial strategy

16. The draft IBPP sets out a spatial strategy for the zoned industrial areas in south Auckland. The key elements of the spatial strategy are identified in the diagram below.

Vision for the IBPP

17. The draft vision within the draft IBPP is as follows:

“Auckland’s southern industrial locations will continue to be diverse, innovative and sustainable locations that provide opportunities to a local workforce, take advantage of transport connections, maximise trade and export opportunities and act as a key driver for the Southern Initiative and wider Auckland economy”.

18. This vision is supported by the following high level actions that will help to form the implementation plan for the IBPP once adopted.

o support continued growth of industrial activities in the Airport area, East Tamaki, Wiri and the industrial areas at Takanini, Drury, Papakura, and Pukekohe

o retain industrial zoned land and promote the identification of further industrial land to support the objectives of the Auckland Plan

o work with business to manage the reverse sensitivity issues associated with differing adjacent land uses i.e. heavy industrial to light industrial to mixed use/residential areas

o support the retention of heavy and light industrial businesses in the IBPP area

o support the key sectors identified in the industrial zones

o promote the industrial south as a place to do business and invest

o support local boards in developing and promoting the zoned industrial areas and the opportunities within them

o develop a partnership between local employers and education providers to ensure that skills and training needs for businesses are met now and in the future

o promote the efficient movement of people and goods through a range of transport options

o align growth with infrastructure planning

Consultation

19. Consultation on the draft IBPP is proposed to occur during September and October 2014. The focus of the consultation will be to connect with iwi, existing businesses in the zoned industrial areas (by presenting to Business Associations and companies previously consulted on during the informal consultation process), and key stakeholders including Auckland International Airport, Auckland Chamber of Commerce, and the Employers and Manufacturers Association (EMA).

20. This will occur through meetings and events as well as direct communication using an e-flyer.

21. Once the engagement period is over, the feedback will be reviewed, grouped into themes and amendments to the draft IBPP will be discussed with the local board working group and project team, prior to presenting back to Local Board’s and the Economic Development Committee.

Consideration

Local board views and implications

A working group has been established with representatives from the following local boards, Maungakiekie – Tamaki, Howick, Otara – Papatoetoe, Mangere – Otahuhu, Manurewa, Papakura and Franklin. The draft IBPP has been presented to the working group prior to reporting to the Economic Development Committee.

Māori impact statement

The identified spatial strategy may impact on Māori as a result of the identification of areas that could present opportunities for future industrial land supply. As a result iwi will be consulted during the consultation period to ensure that any potential impacts are properly considered in the development of the IBPP.

Implementation

The draft IBPP sets out a number of high level actions and more detailed actions that will help to achieve the aspirations set out within the draft IBPP. These actions represent the implementation plan for the IBPP.

Attachments

No.	Title	Page
a View	Auckland's industrial south: draft integrated business precinct plan	25

Signatories

Author

John Norman - Strategic Planner Local Economic Development

Authorisers

Janet Schofield - Business Area Planning Manager

Harvey Brookes - Manager Economic Development

Economic Development Committee

20 August 2014

Auckland Council

Auckland’s Industrial South

Draft Integrated Business Precinct Plan

August 2014

1. Contents

Introduction.. 3

The vision for the industrial south.. 4

Issues and opportunities for the industrial south.. 5

1. Business growth and employment 5

2. Infrastructure (excluding transport) 5

3. Transport infrastructure. 6

4. Skills and Training. 7

5. Availability of Land for heavy and light industry. 7

6. Quality of the business environment 8

The spatial strategy for the industrial south.. 9

Draft high level actions for the industrial south.. 11

Appendix 1. 17

Strategic context 17

National and regional economic development agendas. 17

Auckland Council plans and strategies. 17

The Auckland Plan.. 17

Auckland’s Economic Development Strategy. 18

The Proposed Auckland Unitary Plan.. 18

Local board plans. 19

Transport 19

The Southern Initiative. 19

Other relevant strategies and plans. 20

Māngere-Ōtāhuhu Area Plan.. 20

Pukekohe Area Plan.. 20

Draft Ōtara – Papatoetoe Area Plan.. 21

East Tamaki Business Precinct Plan.. 21

Auckland International Airport Masterplan.. 22

Upper North Island Ports study. 22

Appendix 2. 24

Auckland’s industrial south.. 24

Economic characteristics of the integrated business precinct plan area. 31

Business Size in the IBPP area. 33

GDP output 34

Appendix 4. 35

The key sectors within the integrated business precinct plan area. 35

Manufacturing in the IBPP area. 35

Wholesale trade sector in the IBPP area. 35

Transport postal and warehousing sector in the integrated business precinct plan Area 36

Appendix 5. 37

Industrial Change in the IBPP Area 2002 - 2012. 37

Industrial change within the mature industrial zone. 37

Industrial change within the South central and industrial expansion zone. 39

Industrial change within the peripheral and future urban zone. 40

Appendix 6. 43

Informal engagement findings. 43

Accessibility. 43

Company internal infrastructure costs and investments. 43

Clustering and collaboration.. 44

Staff skills and employee availability. 44

Infrastructure. 45

Business growth and support for growth.. 45

Introduction

This Integrated Business Precinct Plan (IBPP) provides a framework to support business and employment growth on zoned light and heavy industrial land^{^[1]} located south of the Auckland CBD (appendix 2). It seeks to support the growth and development of the industrial locations in a co-ordinated manner. Enabling these locations to continue to contribute to the delivery of the economic priorities of the Auckland Plan, Auckland’s Economic Development Strategy and the Southern Initiative, so that they continue to play a strong role in the region’s economy and the economic growth of Auckland and New Zealand.

As outlined in appendix two the IBPP area comprises approximately 4044 hectares^{^[2]} or 50% of the industrial land in the Auckland region. With nearly 150,000^{^[3]} employees in 2012 the IBPP area has seen employment grow by 27.5% since 2002.

The Auckland Plan anticipates that an additional 276,700 jobs will be needed in Auckland by 2041. A substantial share of these jobs (51%) will be located in central Auckland with a further 25% in south Auckland^{^[4]}. A substantial share of these jobs will be located in the business areas within the CBD, CBD fringe and the industrial areas located south of the CBD including East Tamaki, Penrose, Mt Wellington, Auckland International Airport and environs, Wiri, Takanini, and Hunua Road.

There is currently a scarcity of industrial land within the region to accommodate our future supply needs. With increasing pressure for alternative land uses in and around some of the industrial locations in south Auckland there is a need to develop an integrated plan to support the industrial sector in south Auckland and ensure that the economy continues to provide a range of employment choices for the region’s residents.

In 2012, areas zoned light and heavy industrial accounted for 23% of the region’s total employment. In order for the southern industrial precincts to continue to make a significant contribution to the regional economy and to realise their future potential we need to consider how to support the precincts / areas in a co-ordinated way that will:

· help to make efficient use of available greenfield and brownfield sites;

· improve public transport services, vehicle access and connectivity to the industrial precincts;

· support the efficient movement of high value added goods and services for export;

· improve access to ancillary services and facilities for the industrial areas;

· encourage high quality amenity within the industrial areas;

· align with Auckland Council and Council Controlled Organisation infrastructure investment;

· improve planning and delivery of infrastructure and services to support future growth;

· develop partnerships with the business community and education providers;

The aim of the IBPP is to ensure Auckland’s southern industrial locations to continue to grow and develop, and to enable the industrial locations to be internationally competitive, high performing locations.

The vision for the industrial south

Based on the comments received from the targeted engagement with businesses during the drafting of the draft IBPP (outlined in appendix six) the vision for Auckland’s industrial south is that:

Auckland’s southern industrial locations will continue to be diverse, innovative and sustainable locations that provide opportunities to a local workforce, take advantage of transport connections to maximise trade and export opportunities and act as a key driver for the Southern Initiative and wider Auckland economy.

The key high level outcomes for the Integrated Business Precinct Plan are that:

· development and employment growth is fostered through the retention, expansion and attraction of businesses

· a partnership exists between the local employers and education providers to ensure that skills and training needs for businesses are met now and in the future

· the efficient movement of people and goods is facilitated through a range of transport options

· development within the zoned industrial locations ensures the delivery of a strong, export focused manufacturing base while allowing supportive services to co-locate

· infrastructure needs cater for business growth and that reliable and continuous services are delivered

· industrial locations are protected allowing for renewal and improvement of existing industrial activity

· industrial land supply is maintained in order to meet the future requirements of businesses in the area and enable the IBPP area to continue to drive industrial growth and productivity within Auckland.

· industrial buildings are fit for purpose maximising the use of land

Issues and opportunities for the industrial south

The industrial locations that make up the IBPP area are key contributors to the Auckland and New Zealand economy. The concentration of industrial activities within the IBPP area enables businesses to be close to customers and suppliers creating efficiencies in the supply and manufacture of goods. The ability for businesses in the IBPP area to access export markets due to their proximity to Auckland International Airport the two inland ports at Wiri (Wiri Inland Port) and Church-Nielson Street (MetroPort) and the Ports of Auckland are key advantages that help to sustain the attractiveness of the industrial locations to business.

The ability for the industrial location’s to change and adapt, by responding to market needs, and providing high quality buildings and suitably sized sites to enable new business to invest in the area, will be key to sustaining the attractiveness and competitiveness of the industrial locations. While there are locations that have little capacity for future growth in terms of land availability the IBPP area does have locations that will deliver new industrial space. This will help Auckland to meet the estimated need for industrial / business land up until 2040.

This section of the IBPP identifies some of the key opportunities and challenges that exist within the area as a whole to help inform the actions and sustain south Auckland as a key industrial location for Auckland and New Zealand.

1. Business growth and employment

The IBPP area is considered to include the prime industrial and manufacturing locations within the Auckland region. The attractiveness of these locations is primarily due to the proximity of Auckland International Airport, two inland ports and road and rail providing links to markets and suppliers to the south and north of Auckland.

Within the IBPP area employment growth has continued to increase over the ten years between 2002 and 2012. This has been as a result of a change away from manufacturing to more service sector jobs, as well as the provision of new industrial and business space in East Tamaki, Auckland International Airport, Wiri and Takanini.

Due to the large concentration of manufacturing companies within these industrial locations, there are a high number of export generating businesses in the area, as well as firms operating business to business and accessing New Zealand domestic markets. As a result, there are opportunities to support future business growth through improved export capability, innovation and new product development.

While there is a degree of competition between the industrial areas within the IBPP area, the close proximity to competitors and suppliers is a key benefit to companies within the IBPP area. As a result there is an opportunity to create a strong brand for the IBPP area and in turn the individual industrial locations. This will enable the promotion of the industrial locations as attractive places for employees to work in, and signposting companies to where certain sectors are well represented to support the benefits of agglomeration and clustering.

2. Infrastructure (excluding transport)

The reliability of the supporting infrastructure is an important issue for businesses within the IBPP area. The Auckland Plan realises the opportunity to improve the sequencing of infrastructure with land use to serve future projected growth.

The Auckland Council 2013 Capacity for Growth report shows that the IBPP area has the potential to accommodate growth of industrial activities, however the identification of further industrial land will be required in order to meet long term industrial land needs as Auckland grows. It is therefore, important to ensure that the planning and delivery of infrastructure does not restrict the potential for economic growth. and that current needs are accommodated while also planning for the future.

As new sites become available for industrial use, the opportunity to future proof sites to allow for future tenants / developers to install the required infrastructure will be essential. This will also help reduce the costs to tenants of having to retrofit infrastructure such as ultra-fast broadband into sites.

Future planning within the IBPP area will need to identify existing infrastructure assets and corridors to determine if there are any possible conflicts between existing infrastructure and the proposed land use. It will therefore be important to engage with infrastructure providers to co-ordinate and phase investment in areas to ensure that the correct infrastructure is in place in the right locations at the right time and that opportunities to resolve issues on existing industrial areas are addressed.

3. Transport infrastructure

At present the movement of goods is reliant on the current rail network, state highways and the following key arterial roads:

· Church - Neilson Streets

· South Eastern highway

· Ti Rakau Drive

· Te Irirangi Drive

· Great South Road

A key issue for the IBPP area is the efficient movement of people and goods. As Auckland develops the ability for the transport network to accommodate growth is a key issue for the region. Therefore, it will be important for any future growth and demand to be planned and catered for. Businesses operating in the IBPP area have a part to play in managing the demand on the transport network to reduce the reliance on private vehicles, in order to reduce congestion, which in turn will help to save business the costs associated with transporting goods. Tools such as workplace travel plans should be encouraged and used to help make the network more efficient by reducing the reliance on private vehicles.

Providing connections between business areas and to residential areas in the IBPP area is critical for the continued viability of the IBPP area. The continued implementation of currently planned projects such as AMETI, upgrading the Mill Road corridor, and the East – West Connections will help to deliver improved connectivity across the IBPP area.

Public transport must meet the needs of the workforce to make it a viable alternative to the private car and free up space on the transport network. Opportunities to increase the frequency of bus routes serving the business areas from the surrounding residential areas should be investigated as surrounding areas develop and residential densities increase. In addition to this improving the attraction of walking and cycling as a means to replace short trips by the private car in our industrial areas should be investigated.

4. Skills and Training

Access to a skilled workforce is important to potential investors as well as existing businesses. The need to invest in people and grow skills within the workforce is identified as a priority within Auckland’s Economic Development Strategy (EDS). The EDS has identified the following key initiatives to support skills development in the Auckland region:

· facilitate better agency and service alignment to improve capacity building and service delivery in the skills and education pipeline;

· identify critical skill shortages and create a better match between skills supply and demand

· facilitate the attraction and retention of skilled workers in key industries

· facilitate tertiary education organisations to work collaboratively with industries to improve the relevance and responsiveness of educational programmes.

To ensure that the work force is appropriately skilled to access jobs within the IBPP area, opportunities to improve information flows between education and training providers (including schools, universities, industry training organisations) and employers should be investigated. This should complement other activities that the council and training organisations are taking to address skills issues in the region and specifically in the southern area as part of the Southern Initiative.

5. Availability of Land for heavy and light industry

The continued availability of industrial land will be vital to help sustain a strong regional economy, and provide a range of job opportunities to the city’s residents. In order to ensure that Auckland is able to do this we need to:

· protect existing land identified for heavy and light industrial uses within the Proposed Auckland Unitary Plan (PAUP) from non-industrial uses such as non-ancillary office, retail and residential

· identify the opportunities for new light and heavy industrial land to ensure that the city has a ready supply of available industrial land to meet our future needs.

The Auckland Council Capacity for Growth results report 2013, identifies that there is approximately 741ha of vacant land^{^[5]} and a further 1038ha of vacant potential^{^[6]} land within the zoned industrial areas that make up the IBPP area. Table 1 below shows how this capacity is split between the three spatial areas identified in the IBPP.

Table 1: Capacity for growth within IBPP area

Source: Capacity for Growth Study 2013 (Proposed Auckland Unitary Plan)

The capacity for growth study highlights the lack of available land within the mature industrial areas in the north of the IBPP and the availability of land within the central southern expansions area and the peripheral areas of Takanini, Papakura, Pukekohe, Glenbrook and Waiuku within the southern zone. Over 60% of vacant capacity is located in the southern area highlighting the opportunity that this area has to bring new industrial land forward in the long term. However, the ability for this capacity to accommodate some of Auckland’s industrial land need and be developed into letable space will be determined by the market and whether the land is available at the right time and in the right place.

Auckland Council should therefore continue to investigate opportunities to provide more industrial land within the future urban zone or enable more efficient use of existing industrial land should be investigated as part of the area planning process to ensure that the IBPP area can continue to contribute to meeting the demand for industrial land within the Auckland region.

6. Quality of the business environment

Visual amenity, physical amenities such as cafes and the natural environment all contribute to the quality of the business environment. Some of the industrial land in the IBPP area is adjacent to sensitive areas which, if protected, can add amenity value to the business environment. It is therefore important to maintain visual amenity in the industrial areas to ensure that they are attractive to customers, investors and the workforce. As sites are redeveloped / developed careful consideration should be given to the treatment of entrance areas, roads and built form. Landscaping should be used to soften the appearance of large buildings and storage yards to help improve the streetscapes.

Some of the industrial areas are already improving the quality of the business environment current projects include:

· Greenmount Landfill future park (East Tamaki)

· Highbrook parkland developments (East Tamaki)

· Otara lake and Waterway (East Tamaki)

· Manukau Harbour walkway (Mahunga Drive).

Physical amenities within the industrial areas will help to support their viability. As areas develop and grow there will be increasing demands for day care centres, gyms and other facilities. Facilitating the delivery of these in appropriate locations adjacent to the zoned industrial areas will help to maintain the attractiveness of the industrial areas to businesses and their employees.
The spatial strategy for the industrial south

The diagram below sets out a broad spatial strategy for the IBPP area.

The key elements of the spatial strategy are:

Mature industrial zone

This area incorporates some of Auckland’s oldest established industrial areas. Due to the limited availability of greenfield land within this zone, the strategy here is recommended to be protection, retention and intensification of industrial zoned land. This is important due to the high land values and pressures for other non- industrial uses in these areas.

South central and industrial expansion zone

This area incorporates the key industrial areas of Auckland International Airport and the airport corridor (ascot park), East Tamaki and Manukau/Wiri. The strategy here is to focus on the retention and intensification of industrial zoned land and the facilitation of the development of new greenfield industrial land adjoining these existing areas.

Peripheral and future urban zone

This area incorporates the well established and emerging industrial areas at, Takaninni, Papakura, Drury, Pukekohe, Glenbrook and Waiuku. These locations provide opportunities for future industrial land supply for Auckland.

Economic Development Committee

20 August 2014

Draft high level actions for the industrial south

In order to support the delivery of the vision for the industrial locations within the IBPP area the following draft high level actions have been developed. These draft actions indicate a range of activities that will support the desired outcomes and vision for the IBPP area:

1. support continued growth of industrial activities in the Airport area, East Tamaki, Wiri and the industrial areas at Takanini, Drury, Papakura, Pukekohe

2. retain industrial zoned land and promote the identification of further industrial land to support the objectives of the Auckland Plan.

3. work with business to manage reverse sensitivity issues associated with differing adjacent land uses i.e. heavy industrial to light industrial to mixed use/residential areas

4. support the retention of heavy and light industrial businesses in the IBPP area

5. support the key sectors identified in the industrial zones

6. promote the industrial south as a place to do business and invest in.

7. support local boards in developing and promoting the zoned industrial areas and the opportunities within them

8. develop a partnership between employers and education providers to ensure that skills and training needs for businesses are met now and in the future

9. promote the efficient movement of people and goods through a range of transport options

10. align growth with infrastructure planning.

To assist in the delivery of the high level actions, the table below sets out detailed actions that will need to be taken to support and grow the IBPP area.

Draft high level action	Draft detailed action (subject to consultation)	Indicative Lead (subject to consultation)	Time frame
Support continued growth of industrial activities in the Airport area, East Tamaki, Wiri and the industrial areas at Takanini, Drury, Papakura, Pukekohe	1) work with businesses to seek better public transport connections between existing and planned residential areas and places of work / study in the southern area	Auckland Transport, Auckland Council, Business Associations	1-3 years
	2) investigate the opportunities for the future supply of industrial land as part of a wider strategy for the business land supply in Auckland.	Auckland Council	1 year
Continue to retain industrial zoned land to ensure there is sufficient supply of land available with appropriate access and infrastructure in place	Advocate for land-use policies that safeguard the continuing use and development of industrial activities on the industrial land and specialised industrial precincts in the IBPP area	Business Associations, Auckland Council (including Local Boards)	ongoing
	Monitor the uptake and supply of industrial zoned land.	Auckland Council,	Every two years
	Work with infrastructure providers (gas, electricity) to advocate for reliable and adequate supply to industrial locations	Auckland Council	ongoing
Work with business to manage the reverse sensitivity issues associated with differing adjacent land uses i.e. heavy industrial to light industrial to mixed use/residential areas	Prepare information and advice on managing impacts on neighbours.	Business Associations	1 - 3 years
Support the retention of heavy and light industrial businesses in the IBPP area.	Investigate the potential to develop business-friendly regulations that optimise the conditions in which business growth can occur.	Auckland Council	1 – 3 years
	Further development of the export base, particularly in construction and engineering, food and beverage, health technologies and niche manufacturing, which are the internationally competitive sectors that are most strongly represented in the IBPP area	ATEED	1 – 5 years
	Improve the promotion of business support and growth support initiatives that are delivered by the public sector. Work with providers and business associations to better signpost businesses to these initiatives and other support programmes.	ATEED	1 – 5 years
	Investigate feasibility for localised incentive schemes to help support business growth activities in the industrial locations.	ATEED Auckland Council	1 – 5 years
Support the key sectors identified in the industrial zones.	1) Define pathways for firms to the Auckland and national innovation centres and support services that assist commercialisation and business growth	ATEED, Business Associations	1 – 5 years
	2) Within the regional and national innovation framework, support innovation that strengthens sectors in which firms in the IBPP area have a competitive advantage such as construction and engineering, food and beverage and niche manufacturing.	ATEED	1 – 5 years
	3) Ensure that businesses are linked to innovation networks and funding regionally and nationally.	ATEED, Business Associations	1 – 5 years
	4) Support BID expansion in the industrial areas (where proposed) to facilitate networking and help facilitate collaboration.	Auckland Council	1 – 5 years
	5) Support planning strategies and rules that preserve industrial land for industrial activities within the IBPP area.	Auckland Council, ATEED, Business Associations	1 – 5 years
Promote the identification of further industrial land in order to support the objectives of the Auckland Plan	Ensure that area plans and strategic land use planning policies protect existing industrial zoned land for industrial purposes and plan for new areas of greenfield industrial land where appropriate.	Auckland Council	1 – 5 years
	Work with landowners to ensure that a range of industrial site sizes are available.	Auckland Council, ATEED	1 – 5 years
Promote the industrial south as a place to do business and invest in.	Undertake a review every two years of the IBPP area to monitor change and the market perception of the industrial locations including their capacity for future development.	Auckland Council	Every two years
	Provide new locations for industrial land in close proximity to good transport networks and allow for the ability to expand existing locations	Auckland Council	5 – 10 years
	Develop a marketing proposition for the identity and branding of precinct areas to attract new businesses to the IBPP area	ATEED, Auckland Council (Local Boards)	1 – 5 years
Support local boards in developing and promoting the zoned industrial areas and the opportunities within them	Local Boards to encourage investment in the IBPP areas to create business growth opportunities by: · supporting the take up of ultra fast broadband · business place making through partnerships between Auckland Council and private investors · infrastructure and facilities provision (e.g. for the visitor economy) · supply chain linkages (e.g. to Auckland airport) · advocating for safe walking routes to increase accessibility to open spaces, town centres and local café’s.	ATEED, Auckland Council (Local Boards)	1 – 5 years
	Seek to promote future industrial growth in the southern local board areas to ensure that there is a continued supply of well connected greenfield and brownfield land available to the Industrial sector.	Auckland Council (Local Boards)	1 – 5 years
	Investigate industrial locations that are in transition to identify areas that may benefit from more detailed specific land use planning in the future.	Auckland Council	1 – 5 years
Develop a partnership between local employers and education providers to ensure that skills and training needs for businesses are met now and in the future	Improve information flows between education and training providers (including schools, universities, industry training organisations) and employers.	Auckland Council, ATEED	1 – 5 years
Promote the efficient movement of people and goods through a range of transport options	Work with businesses to seek to create more capacity on the rail network for rail freight and commuters.	Auckland Transport, Kiwi Rail	1 – 5 years
	Work with businesses to support the outcomes of the AMETI, East - West Connections, Mill Road Corridor projects.	Auckland Transport, Business Associations	1 – 5 years
	Advocate and support the programming and delivery of key arterials such as the Pukekohe Eastern Arterial	Franklin Local Board,	1 – 10 years
	Advocate for workplace travel plans and assist business in developing such plans.	Auckland Transport, Business Associations	1 – 5 years
	Businesses to support the business case for rail improvements including City Rail Link, electrification to Pukekohe and a third main rail line.

Economic Development Committee

20 August 2014

Appendix 1

Strategic context

National and regional economic development agendas

The New Zealand Government has identified four key priorities with the aim of delivering a stronger and more prosperous New Zealand these priorities are:

· responsibly managing the Government’s finances

· building a more productive and competitive economy

· delivering better public services within tight fiscal constraints

· supporting the rebuilding of Christchurch

In order to work towards the delivery of the “building a more productive and competitive economy” priority the Government has identified six key areas under a business growth agenda. These are:

1. building export markets

2. building capital markets

3. building innovation

4. building skilled and safe workplaces

5. building natural resources

6. building infrastructure^{^[7]}

At both a regional and national level the industrial precincts identified within this IBPP will all have a role to play in contributing to the outcomes of these six areas.

Auckland Council plans and strategies

At a regional level, the Auckland Plan, Economic Development Strategy and the Proposed Auckland Unitary Plan (notified on 30 September 2013) are key documents that provide a framework for Auckland’s regional economic development. They seek to lift Auckland’s productivity through a series of objectives and accompanying actions.

The Auckland Plan

The Auckland Plan sets the strategic direction for Auckland to realise the city’s ambition to become the world’s most liveable city. It sets out a high-level development strategy, identifying the existing and future location of residential, business, industrial activities and rural production, in order to direct and co-ordinate decision making by Auckland Council and other parties through to 2041.

The relevant objectives within the Auckland Plan are to:

· increase Auckland’s business innovation and export strength,

· develop world – class infrastructure and world class urban centres; and

· develop a skilled and responsive labour force^{^[8]}

The Auckland Plan seeks to develop the Auckland economy into one that delivers opportunity and prosperity for all Aucklanders and New Zealand. In order to achieve this, the plan identifies the following targets:

· to improve Auckland’s OECD ranking of cities (GDP per capita) of 69^th place in 2011 by 20 places by 2031

· increase annual average productivity growth from 1% p.a. in the last decade to 2% p.a. for the next 30 years

· increase annual average export growth from 3% p.a. in the last decade to 6% p.a. for the next 30 years

· increase annual average real GDP growth from 3%p.a. in the last decade to 5% p.a. for the next 30 years

· ongoing provision of planned and serviced capacity for group 1 business land, including large lots, to meet 5 yearly demand as assessed by annual surveys.

In order to achieve these targets the Auckland Plan notes that there needs to be a fundamental structural shift in the economy from an inwardly focused economy that is import led to one which is export driven.

The Auckland Plan predicts that the number of people employed in the industrial sector will increase by 40% between 2007 and 2041.

The development strategy outlined in the Auckland Plan identifies the city centre and the area covered by the Southern Initiative as the two key areas that will make the greatest difference to Auckland and New Zealand’s future well being.

Auckland’s Economic Development Strategy

In order to achieve the economic goals set out in the Auckland Plan the Economic Development Strategy identifies five economic priorities, these are to:

· grow a business-friendly and well-functioning city

· develop an innovation hub of the Asia Pacific rim

· become internationally connected and export-driven

· enhance investment in people to grow skills and a local workforce

· develop a creative, vibrant international city.

The Proposed Auckland Unitary Plan

The Proposed Auckland Unitary Plan is a statutory document, which brings together the existing district and regional plans and policies from the former legacy councils into one document. Once it becomes operative, the Unitary Plan will become the land use planning rule book for Auckland, setting out the policies, objectives, zones and rules that will guide and shape the future development of the region.

The draft Auckland Unitary Plan was put out for public comment in March 2013 and over 20,000 people had their say. The notified version of the Unitary Plan was released in September 2013.

Local board plans

Local board plans are a guiding document for each local board area. They set out a three year plan for the local board areas and are developed by the local boards and reflect the priorities and preferences of the community.

Transport

Auckland’s Integrated Transport Programme (ITP) sets out the 30-year investment programme to meet the transport priorities outlined in the Auckland Plan across modes covering the responsibilities of all transport agencies. The ITP informs the Regional Land Transport Programme (RLTP) which sets priorities for spending for the next three years.

While there are many components to the ITP there are a number of key transport projects that impact on the southern industrial areas these are:

· The East - West Connections

· Auckland – Manukau Eastern Transport Initiative (AMETI)

· South Western Multi Modal Airport Rapid Transit (SMART)

· City Rail Link

· Mill Road Corridor

These projects seek to improve the connections between areas for both commuters and freight.

The Southern Initiative

The Southern Initiative is one of the two big place – based initiatives identified within the Auckland Plan. It covers the local board areas of:

· Māngere-Ōtāhuhu

· Ōtara Papatoetoe

· Manurewa

· Papakura.

The aim of the Southern Initiative is to deliver a long term programme of co-ordinated investment and actions to bring about transformational social, economic, and physical change within the area.

The initiative is primarily focused on delivering social outcomes to improve the quality of life and well-being within the area. While the initiative has a 30 year timeframe the following areas have been identified as priorities:

· ensuring strong family attachment and early intervention for children before school

· providing clear pathways and support for young people to achieve education and employment

· creating an outstanding international gateway and destination area

· promoting economic development and jobs for local people

· increasing public transport services and encouraging increased use of public transport

· housing development in Māngere and Manurewa.

Other relevant strategies and plans

Māngere-Ōtāhuhu Area Plan

Area plans provide the next level of detail from the Auckland Plan. They identify land use planning issues, challenges and opportunities at the local board level.

The Māngere-Ōtāhuhu Area Plan outlines how the Māngere-Ōtāhuhu area is envisaged to change over the next 30 years. It sets out the key moves, desired outcomes and supporting actions to assist in achieving the vision for Auckland and Māngere-Ōtāhuhu, as set out in the Auckland Plan and by the Māngere-Ōtāhuhu Local Board within their local board plan.

The area plan for Māngere-Ōtāhuhu identifies the following six key moves that will help to transform the area into one where people want to continue to live, work and play as well as attract visitors to the area. The six key moves are:

1. revitalise and enhance Māngere-Ōtāhuhu’s centres: Māngere Bridge, Favona, Māngere East, Māngere and Ōtāhuhu

2. provide for a multi – modal rapid transport corridor and improved public transport network to the airport, CBD and the local and wider region

3. improve the water quality of the Manukau Harbour and promote opportunities for appropriate public access to the coast

4. promote Māngere-Ōtāhuhu’s business and Auckland Airport as the local regional employment, tourism and recreation destinations and gateway to Auckland

5. progressively enhance Māngere and Ōtāhuhu residential areas through comprehensive redevelopment, planning and partnerships with major landowners

6. recognise the Kaitiaki role of Mana Whenua, while conserving, supporting and celebrating Māngere-Ōtāhuhu’s rich heritage resources and its distinctive Pacifica, European, Asian and multicultural identity.

In regard to economic outcomes the Area Plan states that Māngere-Ōtāhuhu is a strategically significant employment area that continues to grow and provide skilled job opportunities for local people. A key action identified in the Area Plan is to grow a regional employment hub adjacent to Auckland International Airport.

Pukekohe Area Plan

The Pukekohe Area Plan outlines how the Pukekohe area is envisaged to change over the next 30 years. It sets out the key moves, desired outcomes and supporting actions to assist in achieving the vision for Auckland and Pukekohe, as set out in the Auckland Plan and by the Franklin Local Board within their local board plan.

The area plan for Pukekohe identifies the following nine key moves that will help to transform the area into a vibrant and dynamic satellite town offering a range of employment and residential opportunities, excellent transport connections and infrastructure, open space and recreation facilities and a thriving local economy. The nine key moves are:

1. provide for growth in the Future Urban Zone

2. enable at least 100ha of new business land

3. electrification of the rail line from Papakura to Pukekohe (with potential station at Paerata)

4. improve accessibility and connectivity throughout Pukekohe and Paerata

5. support land development around Pukekohe train station

6. investigate tertiary education opportunities

7. protect and enjoy Pukekohe Hill, Tuhimata Bluff and Pukekohe east crater

8. maintain and improve Pukekohe’s environmental quality and special ecological areas, including the Tuatenui and Whangapouri streams

9. develop town centre character guidelines

Draft Ōtara – Papatoetoe Area Plan

The draft Ōtara – Papatoetoe outlines how the Otara - Papatoetoe area is envisaged to change over the next 30 years. It sets out the key moves, desired outcomes and supporting actions to assist in achieving the vision for Auckland and Otara - Papatoetoe, as set out in the Auckland Plan and by the Otara Papatoetoe Local Board within their local board plan.

The draft area plan for Otara - Papatoetoe identifies the following nine key moves:

1. Value and protect Ōtara-Papatoetoe’s heritage, culture and identity in partnership with mana whenua and the community.

2. The landscape, cultural, and ecological values of the Ōtara-Papatoetoe area, particularly Ōtara Lake and waterways, and Puhinui are recognised, protected and enhanced.

3. Transition Manukau from a city centre to a vibrant metropolitan centre.

4. Ōtara (Ōtara town centre to Ōtara Lake) transformation and business and community partnerships.

5. Strengthen and enhance the vitality of Old Papatoetoe and Hunters Corner town centres.

6. Maintain and strengthen the economic role of the East Tāmaki, Manukau Central, Bairds Road and Lovegrove Crescent industrial areas as key employment areas for Ōtara-Papatoetoe’s residents.

7. Ōtara-Papatoetoe has safe, accessible and high quality parks and community facilities.

8. Make transport more accessible and safer for Ōtara-Papatoetoe residents, with particular emphasis on walking, cycling and public transport.

9. Utilities and services that support Ōtara-Papatoetoe’s growing population.

East Tamaki Business Precinct Plan

The East Tamaki Business Precinct Plan was developed in 2012, it provides the framework for the renewal and on- going development of the East Tamaki business precinct.

The vision for the East Tamaki Business Precinct Plan is for the area to be a:

diverse, innovative and sustainable hub of high value manufacturing, with a productive industrial workforce, and is the driver of growing export capability and markets.

The precinct plan identifies the following key outcomes for the precinct:

· development and employment growth in the precinct is fostered through the retention, attraction and expansion of businesses;

· infrastructure needs are delivered for anticipated business growth and quality. reliable and continuous services are delivered

· international export markets are identified and accessed

· business management capability is expanded through targeted business support programmes;

· existing international networks are identified and developed to facilitate growth in export capacity

· businesses have the capability to assess emerging technologies, innovate undertake product development and commercialise to market

· a partnership exists between the local employers and education providers to ensure the skills and training needs required by business within the precinct for their existing and future employers is met

· the majority of the workforce continue to live locally

· sustainable business practices are adopted by all businesses in East Tamaki leading to cost efficiencies in energy, transport and other uses. Resulting in reduced impacts on the natural environment

· land uses in East Tamaki underpin business to business activity growth

· development in the precinct ensures the continuance of a strong, high value, export – focused manufacturing base while allowing supportive services to co-locate

· connections are provided that promote business to business activities and land uses both within the precinct and beyond

· the efficient movement of both goods and people is facilitated

· the East Tamaki area is an environment that is attractive for businesses to locate and employees to work.

Auckland International Airport Masterplan

Auckland International Airport (AIA) has ambitious plans to grow and develop the airport into a key business location for New Zealand and has developed a masterplan that sets out the airport’s growth ambitions.

In 2010 employment in the airport corridor was 21,000 this is predicted to grow to between 26,500 and 29,500 by 2021 and between 29,000 and 36,700 by 2031^{^[9]}.

The AIA masterplan identifies a strategy to redevelop the Airport around 6 areas as follows:

· The Quad – an area of office accommodation with hotel accommodation and retail.

· The Common – 111ha of recreation and heritage attractions.

· Altitude – an area based around entertainment, retail and education focused on airport users including tourists, airport workers and trade workers.

· The Landing –approximately 140ha of greenfield land for a warehouse and logistics location

· Cargo North - an area aimed at logistics and freight forwarders who require access to ground handling and customs services.

· Cargo South – providing facilities for aviation support businesses such as flight catering and aeronautical engineering.

Upper North Island Ports study

The final report of the independent ports technical study produced by Price Waterhouse Coopers, and sponsored by the Upper North Island Strategic Alliance (UNISA) was completed in 2013.

The primary objective of the study was to develop a credible and consistent understanding of the upper North Island’s freight and port supply chain system. The study concluded that:

· there is strong growth projected in the three Upper North Island (UNI) ports over the next 30 years. All three UNI ports (covering the Port of Auckland, Port of Tauranga and the Whāngārei Ports) will be required to meet the projected need over this period

· a rapid and ongoing increase in trans-shipping means that pressure is likely to be more on port infrastructure than on distribution networks and land transport infrastructure to these ports

· pressure on land transport infrastructure is likely to be driven by non-port traffic, competing land uses, and (potentially) reverse sensitivity. General congestion may be a factor in the medium to longer term, which will impact ports as users of the transport network

· the UNI port network has the capacity to meet the projected freight task, provided that efficiency gains, incremental investments in infrastructure and the uptake of already consented works are undertaken in a planned and timely manner

· the development of inland ports can help drive efficiencies in the distribution network, and aid competition and substitutability between ports

· a third rail line between Southdown and Wiri (dedicated to freight) is at the strategic planning stage and if it were to proceed, it could provide some additional capacity to address emerging rail congestion issues. However, over the longer term, further works are likely to be required. This portion of the network is currently under pressure as it must cope with rail freight between the Port of Auckland and Wiri, Port of Tauranga and Metro port, as well as commuter traffic on the southern and eastern lines Auckland Transport also plans to increase the frequency of passenger services once electrification is complete. Further increases in frequency are planned once the City Rail Link (CRL) is completed

· over the next 30 years, the most efficient and cost effective options for meeting the projected freight task are likely to be based around improved efficiency, incremental growth at each port, planned improvements in the land transport system, complemented by changes in relative prices that direct customers to where spare capacity exists in the UNI port system.^{^[10]}

Appendix 2

Auckland’s industrial south

For the purposes of the Integrated Business Precinct Plan (IBPP) the industrial south includes the industrial precincts that are zoned for either light or heavy industrial uses within the Proposed Auckland Unitary Plan (2013) as shown on Map 1 below.

The areas main transport connections are via State Highway 1, State Highway 20, Great South Road and the North Island Main Trunk line to Pukekohe and beyond. These transport connections provide access to the various industrial precincts in the area.

Auckland’s southern zoned industrial precincts equate to approximately 4,171ha of business zoned land representing 62% of the Auckland total^{^[11]}.

In developing the IBPP area the industrial zones that are the focus of the IBPP have been divided into three areas of industrial activity as identified in map 2. The three areas have been determined on the basis of their age and capacity for future growth rather than on industrial output or scale. These sub-areas are:

Mature Industrial Zone incorporating Auckland’s oldest established industrial areas of:

· Glen Innes

· Lunn Avenue (Mount Wellington)

· Mount Wellington North

· Ellerslie

· James Fletcher Drive / Mahunga Drive

· Vestey Drive

· Onehunga / Penrose

· Otahuhu

· Carbine Road

South central and industrial expansion zone incorporating the areas of:

· Auckland International Airport and Ascot Park

· East Tamaki

· Wiri

Peripheral and future urban zone incorporating:

· Ardmore Airport

· Belgium Street (Waiuku)

· Cornwall Road (Waiuku)

· Kitchener Road (Waiuku)

· Glenbrook

· Crown Road

· Hingaia Road

· Manukau Road

· Norie Road (Drury)

· Paerata Road

· Red Hill (Hunua Road)

· Takanini

· Takanini South

Split across the northern and central zones there is a core cluster of industrial zoned land incorporating, Carbine Rd, Ellerslie, Onehunga-Penrose, Otahuhu, Portage Rd, Auckland International Airport and Ascot Park, East Tamaki and Wiri. This industrial circle is a prime location for industry as all these areas benefit from easy access on to the Southern Motorway (SH1), State Highway 20, the rail network and the two inland ports at Metro port and Wiri and proximity to Auckland International Airport. This core transport infrastructure provides links to the rest of New Zealand and international markets. This, combined with a concentration of a skilled workforce in the areas around the precincts, makes these industrial precincts attractive to businesses and investors.

As a result these industrial precincts have some of the largest New Zealand businesses located within them including, Pacific Steel, Fisher and Paykel Healthcare, Fisher and Paykel appliances, Tip Top, Griffins, Fonterra, Mainfreight, and Auckland International Airport who contribute a significant amount to the regional and national economic output.

While for the purposes of the IBPP they fall within two areas, the importance of these areas as a group has been recognised in developing the actions within the IBPP.

Map 1 Proposed Auckland Unitary Plan 2014 heavy and light industrial zones

Map 2 Integrated business precinct plan sub areas

Economic Development Committee

20 August 2014

Economic characteristics of the integrated business precinct plan area

In 2012 the key zoned industrial locations in the IBPP area comprised 12,631 businesses employing 154,459 people^{^[12]}. The IBPP industrial locations make up approximately:

· 24% of Auckland’s total employment

· 54% of Auckland’s total manufacturing employment

· 55% of Auckland’s total transport, postal and warehousing employment

· 46% of Auckland’s total wholesale trade employment

· 45% of Auckland’s total electricity, gas, water and waste services employment.

Figures 1 and 2 illustrate the industrial structure of employment and businesses in the IBPP area. Manufacturing is the largest employing sector, comprising approximately 25% of all employment. This is followed by wholesale trade (16%), transport, postal and warehousing (11%), and construction (8%).

Figure 1 Employment by industry sector in the IBPP area 2012

Source: Statistics New Zealand Business demographic dataset

22% of Auckland’s manufacturing businesses, 23% of Auckland’s wholesale trade businesses and 12% of transport, postal and warehousing businesses are located in the zoned light industrial and heavy industrial areas in south Auckland^{^[13]}.

52% of employees within the IBPP area are employed in either the manufacturing, wholesale trade or transport, postal and warehousing sectors,

As a whole, total employment in the IBPP area has continued to grow. The central area has grown at a faster rate than the other two zones as a result of the investment being made at East Tamaki, Wiri and the Airport, with the provision of more industrial space in these greenfield locations, whereas the northern and southern areas have experienced a slower growth rate in employment numbers.

Figure 2 IBPP area 2012 employment count as a % of Auckland employment count

Source: Statistics NZ Business Demography dataset

Figure 3 Employment Growth in the IBPP area and sub-zones 2000 - 2012

Source: Statistics NZ Business Demography dataset

Business Size in the IBPP area

The IBPP area reflects the regional economy in regard to the size of businesses with the area being dominated by small and medium sized enterprises (SME’s) and owner operators with 46% of businesses employing between 1 and 19 employees. However the IBPP has a larger proportion of businesses employing between 20 and 99 people (11%) and large companies employing over 100 people (1%).

Figure 4: Size of businesses by employees in the IBPP area 2012

Figure 5: Size of businesses by employees in Auckland 2012

Source: Statistics NZ

GDP output

The IBPP area is estimated to have contributed $18 billion to the regional GDP^{^[14]} in 2012, an increase from an estimated $15.8 billion in 2002. This equates to an average annual increase of 4% which is above the average for Auckland as a whole.

Figure 5 below shows the estimated modified GDP for the three zones within the IBPP area. This shows that the northern area has the largest estimated GDP of $8.4 billion, and the Central area has an estimated GDP of $8.1 billion. The southern area’s GDP is significantly less at $1.4 billion in 2012.

This highlights the importance of the northern and central area industrial zones to the regional and national economy.

Figure 5: IBPP Modified GDP

Appendix 4

The key sectors within the integrated business precinct plan area

The three largest sectors in the IBPP area as a whole are manufacturing, wholesale trade and transport, postal and warehousing. This section of the IBPP looks at these key sectors and identifies the key subsectors within them to be able to identify in what sub-sectors businesses and employment is concentrated.

Manufacturing in the IBPP area

The manufacturing sector comprises approximately 25% of all employment within the zoned industrial areas. Table 2 identifies the top ten manufacturing activities within the IBPP area which themselves contribute 9% of the areas employment and 36% of the sectors employment in the area.

Table 2: Ten Largest Manufacturing Activities by Employment in the IBPP Area 2012

Source: Statistics NZ Business Demography dataset

There is a broad range of manufacturing within the IBPP area with the majority (64%) of employment activity located outside the top 10 sectors.

Wholesale trade sector in the IBPP area

The wholesale trade sector contributes 16% of the IBPP total employment. Table 2 illustrates the type of activity occurring within this sector in 2012 through identifying the 10 largest sub-sectors of employment, which themselves contribute 10% of total employment in the IBPP area.

Table 3 Ten largest wholesale trade activities by employment in the IBPP Area 2012

Source: Statistics NZ Business Demography dataset

Some concentration exists within this sector as the top ten activities contribute 64% of wholesale trade employment. Within this 40% is within the top five sub-sectors. These include other specialised industrial machinery and equipment wholesaling, other electrical and electronic goods wholesaling, other hardware good wholesaling, other wholesaling and other grocery wholesaling.

Transport postal and warehousing sector in the integrated business precinct plan Area

The transport, postal and warehousing sector contributes 11% of the total employment in the IBPP area. Table 4 illustrates the type of activity occurring within this sector in 2012. The sector is strongly concentrated in a few key sectors, with 96% of employment contained within the top ten activity types.

There is a high amount of employment concentration within the sector with 29% of employees working in Airport related activities, highlighting the importance and dominance of Auckland International Airport within this sector.

The freight sub sectors are also very dominant with a total of 38% of the sectors employees employed in either road freight transport (21%) or freight forwarding services (17%).

Table 4 ten largest transport postal and warehousing activities by employment in the IBPP Area 2012

Source: Statistics NZ Business Demography dataset

Appendix 5

Industrial Change in the IBPP Area 2002 - 2012

The industrial structure of the zoned industrial areas that make up the IBPP area has changed between 2002 and 2012. Total employment increased by 26,935 or 21% between 2002 and 2012, with the construction (19%), professional, scientific and technical services (19%), administrative and support services (14%), and wholesale trade (16%), sectors accounting for 60% of this increase.

In terms of overall employment the manufacturing sector’s share of employment has decreased from 31% of total employment in the IBPP area in 2002 to 26% of total employment in 2012. Wholesale trade, and transport, postal and warehousing have remained stable at 16% and 11% respectively. Construction, professional, scientific and technical services and administrative and support services have all increased their respective shares.

The steady decline in employment within the manufacturing sector reflects a more general trend that is being experienced regionally as employment within the Auckland economy re-orientates towards the service sector. In addition to this there is a trend towards more specialised, niche manufacturing and knowledge based markets as acknowledged in the Auckland Economic Development Strategy.

Industrial change within the mature industrial zone

Within the three IBPP industrial zones the northern area has experienced a strong decline in manufacturing employment, and transport, postal and warehousing. There has been a shift in employment away from manufacturing towards the construction and admin and support services sectors. In addition to this the area has seen strong growth in employment within the retail sector. Computer and computer peripherals retailing (Church – Neilson St), furniture retailing (Mahunga Drive / James Fletcher Drive), supermarket and grocery stores (Lunn Ave) and tyre retailing (Ellerslie) all show a trend upwards between 2000 and 2012.

The growth in retail employment has predominantly been experienced within the Lunn Avenue and Onehunga industrial areas. A growing retail sector within these areas presents a risk to these two industrial locations as the increasing amount of retail within these areas could increase commercial rents. In the long term this could force industrial activities to relocate to other areas in Auckland or leave Auckland altogether. This will result in a loss of industrial land that can be used for industrial purposes.

Within the mature industrial zone there is a noticeable trend away from manufacturing towards other sectors due to the locations proximity to the CBD and potentially as a result of increasing land values. This is despite being in close proximity to the Ports of Tauranga inland port at Church – Nielson Street.

The Ellerslie industrial area is one of the most diversified industrial areas within the IBPP area with the majority of employment growth being seen in the accommodation and food services, professional, scientific and technical services and administrative and support services. Figure 6 shows the trend away from the main sectors within the IBPP area.

Figure 6: Ellerslie employment growth trend

Source: Statistics NZ Business Demography dataset

This trend towards other industrial sectors will need to be acknowledged in order to effectively plan for the infrastructure needs of the growth sectors. This has been reflected in the notified draft Unitary Plan which has zoned the Ellerslie area as light industrial.

The Onehunga area has seen manufacturing in steady decline and limited employment growth within the wholesale trade sector. Despite the global financial crisis and the slowdown in construction since 2008, employment within the construction sector has continued to grow and, as the sector sees more activity, this is likely to continue into the future.

Figure 7: Onehunga employment growth trend

Source: Statistics NZ Business Demography dataset

The majority of growth within Onehunga has been within the construction sector but as with Ellerslie, Onehunga has seen significant growth in sectors outside the main IBPP sectors notably within the professional, scientific and technical services sector. This highlights the changing nature of the northern zone of the IBPP area.

The Otahuhu area is more reflective of the industrial make-up of the IBPP area as a whole. With the largest employing sectors being manufacturing, wholesale trade and transport, postal and warehousing. The area has however seen manufacturing employment slightly decline over the period since 2000. The transport, postal and warehousing and wholesale trade sectors have seen growth in employment numbers. Figure 8 below shows the employment growth trends for the Otahuhu area.

Figure 8: Otahuhu employment growth trend

Industrial change within the South central and industrial expansion zone

The South central and industrial expansion zone has experienced a significant amount of growth over the ten year period from 2002. This has been focused primarily within the East Tamaki area, however as Auckland International Airport releases further land as part of the implementation of its airport masterplan further employment growth will be experienced within the airport area where it is envisioned 140ha of greenfield land will be redeveloped for warehouse and logistics operations. It is estimated that the delivery of this masterplan will directly contribute a further 5,710 jobs^{^[15]} to the regional economy.

Within the South central and industrial expansion zone the manufacturing sector has remained relatively stable with limited growth. However as figure 9 shows the area has experienced significant growth within the construction, wholesale trade, transport, postal and warehousing and admin and support services sectors.

The majority of employment growth within the transport, postal and warehousing sector has been experienced within the airport area with this area alone accounting for 56% of the sectors jobs within the IBPP area in 2012.

East Tamaki has been the main driver of the growth in the admin and support services sector accounting for 74% of the employment growth in this sector between 2000 and 2012. This growth has been concentrated within the labour supply services sector.

Figure 9: IBPP central area employment growth trends by sector

Source: Statistics NZ Business Demography dataset

Industrial change within the peripheral and future urban zone

The Peripheral and future urban zone has seen manufacturing employment decline slightly since 2000, however the majority of manufacturing employment is located at the Glenbrook steel mill which has been relatively stable over the period. New Zealand Steel’s parent company potentially will acquire part of the Pacific Steel mill operations employment may well increase slightly in the future. The construction and wholesale trade sectors have seen consistent employment growth as has the retail trade sector.

Figure 10 IBPP central area employment growth trends by sector

Source: Statistics NZ Business Demography dataset

Economic Development Committee

20 August 2014

Appendix 6

Informal engagement findings

As part of the development of the draft IBPP an informal engagement exercise was carried out this included:

· targeted workshops with Business Associations and key stakeholders such as Auckland International Airport

· targeted telephone interviews carried out across a broad range of businesses within the industrial precincts to identify key issues that were being faced by companies located within the IBPP area

· one on one meetings with other stakeholders.

In addition to the targeted engagement literature review was also undertaken to draw on other consultation and research findings from previous studies on the industrial areas by national government agencies, Auckland Council and Auckland Council Controlled Organisations such as Auckland Transport and Auckland Tourism and Economic Development.

The key crosscutting issues raised by industrial business that have been identified through this informal process are as follows:

Accessibility

An accessible location was considered to be vital for businesses that choose to locate within the IBPP area. This is not just due to a need to be in close proximity to transport networks to transfer goods and access clients and customers but is also important to ensure that staff and suppliers have easy and efficient access to the business. This is especially important in light of the fact that employees are coming from localised pools within the southern and eastern parts of Auckland. Therefore the ability for employees to get to work easily is a significant reason for companies to locate within the IBPP area.

Proximity to the airport is seen by many of the businesses contacted as a key reason to locate in the IBPP area. It enables businesses to access overseas clients and partners while also moving goods quickly to and from Auckland. This is particularly important for export businesses of all sizes.

Company internal infrastructure costs and investments

The consultation found that many manufacturing companies (regardless of size) consider their operations to be capital intensive with high cost equipment, large floorspace requirements, and a need for bespoke plant. This therefore requires fit for purpose premises.

As a result of these specific requirements companies feel that when they are moving into locations they experience a more complex permitting process than would otherwise be faced for general commercial or office premises resulting in more financial costs to them as well as a longer lead in time .The consultation highlighted the fact that consenting requirements were considered to directly impact on how quickly companies are able to grow and the locations that they will consider if they are required to move locations.

Businesses commented that they felt there was little support for company growth in general. In order to address this two suggestions were made to assist businesses.

i. there needs to be special provision for capital intensive businesses in the tax laws to have speeded up depreciation. This would free up cash quicker and be able to write off machinery faster as technology changes faster than the rate of depreciation.

ii. there needs to be a specialist bank that understands sector issues as the banking industry doesn’t seem to be supportive to anything except lending against land.

Clustering and collaboration

Companies cited that being near to like-minded businesses allowed for collaboration on transport issues, supply issues and specialised staff skill issues. Secondly the benefits of locating in close proximity to suppliers and clients were seen as being important to businesses in terms of development and growth.

However given the above there was a view from companies located outside areas covered by business associations and business improvement districts that better collaboration could take place if companies were aware of the companies and businesses that were around them.

Staff skills and employee availability

Two key issues were identified by companies in regard to skills and employee availability. Firstly companies considered that there was insufficient availability of technical staff within the Auckland region and New Zealand generally. Secondly companies felt that low level skilled staff are very difficult to screen for reliability, which means that companies can waste money on training and development of staff who are unreliable and are unable to be retained in the long term.

In order to address the lack of technically skilled staff, companies felt that International recruitment processes for specialized personnel could be speeded up for businesses in order to tackle the problem in the short term.

Staff turnover was on the whole stated to be low by companies. However, what turnover there was related to:

i. active poaching of technical skilled staff – welders, fitters and turners, toolmakers, CNC operators through to design engineers etc. Both within New Zealand and Australia where wages are more attractive

ii. an increase in senior management, professionals and specialized international sales people moving employment, initiating a ripple effect of movement across this type of employment. It was predicted we will see more of this as the economy grows again.

Recruitment for some of the specialized professionals and technical skills is reported as being more difficult. Finding the right skills and experience was stated to be an issue. This pertains to engineers food technologists specialized welders etc. These comments often came from companies that exported, or had a significant export component.

Overseas recruitment is considered to sometimes be the only option for technical specialties not supported here in New Zealand or when there is a shortage of skills such as engineering.

Infrastructure

Power and power supply was the most frequently noted infrastructure issue after access. Many companies are high power users and stated it was a very important resource in their functioning. None specifically mentioned volume, but there were comments on power outages and fluctuations and having to install boosters and triple phase power into their sites.

Companies highlighted situations when they have had to put in place transformers and power backup facilities to manage high power usages and continuous supply. Companies talked about having to put in triple phase power to their premises when they moved in. It was suggested there could be some onus on landlords and property investment companies to provide basic fit for purpose buildings.

Lack of amenities and open spaces around the areas were mentioned and there was suggestions relating to the availability of better quality cafés and parks within walking distance.

Continued gas supply issues was referred to as a concern in the future, but no specifics other than aging pipes and the outage in 2012 were given.

Business growth and support for growth

Growth was generally spoken of as a positive and achievable issue. No company assumed growth was going to be easy but all indicated it would happen. Many comments were made about both the lack of and confusion about business development support.

The removal of the international marketing grant was considered to be a barrier as this has meant smaller companies outside of the fast 500 list of clients no longer get support to access international markets.

Companies feel that research and development support is difficult to obtain as there is a lot of emphasis on the research element and not so much on the development side. In addition to this companies felt that the process for applying for grants had become onerous and complex.

Economic Development Committee

20 August 2014

Auckland Global Engagement Update

File No.: CP2014/17396

Purpose

1. To inform the Economic Development Committee about the:

i) refreshed strategic direction for council’s global engagement

ii) implementation of the refreshed global engagement programme for council including the progression of a:

· Council-wide Global Engagement Framework that ensures an umbrella view and consistent approach to council’s global engagement;

· Tripartite Economic Alliance between (sister cities) Auckland, Guangzhou and Los Angeles;

· Global Visibility Strategy/Framework;

· China Strategy; and

· Review of the management of Auckland Council’s 19 formal international partnerships to ensure activity aligns with our strategic direction.

iii) proposed Mayoral outbound programme developed to support council’s global engagement in FY2014-15.

Executive summary

2. A key priority of both the Auckland Plan and the Auckland Council Economic Development Strategy (EDS) is to enhance Auckland’s international connectivity and improve Auckland’s export performance. Achievement of both goals will require significant and sustained international engagement in order to make Auckland a connected, competitive, and internationally-visible city.

3. A wide range of activities has been undertaken to internationalise Auckland since the formation of the new Auckland Council in 2010 (including large-scale trade missions). This activity has been useful in highlighting areas of further potential and opportunity. In order to recognise these opportunities and compete with other successful middle-weight cities, it was timely for Auckland to review its global activity. In response to this, the International Relations unit, in consultation with key stakeholders, developed a refreshed strategic direction for council’s global engagement.

4. The refreshed direction seeks to refine and articulate council’s international engagement objectives across the whole organization towards raising the profile of Auckland in the global economy. We seek to achieve this through a global partnership and global visibility approach, for example, through strategic participation in key global forums and city networks.

5. This paper provides an overview for the Economic Development Committee of the refreshed strategic direction and outlines a change in focus for achieving this. A further paper seeking approval for the new strategic direction, as well as the Mayor’s outbound programme for FY2014-15, will be prepared for this Committee in October 2014. Approval will then be sought from the Auckland Development Committee.

6. The refreshed strategic direction for council’s global engagement is aligned with Auckland’s shared economic agenda (January 2014), specifically priority seven: Increase Auckland’s visibility, but more broadly to a number of the agenda priorities including brand, skills, investment and business, and supporting the Māori economy.

7. Implementation of the global engagement programme will be led by council’s International Relations unit. Key outputs for the next financial year will include development of a council-wide Global Engagement Framework, a tripartite economic alliance between the sister-cities of Auckland, Guangzhou and Los Angeles, and a Global Visibility Strategy/Framework for Auckland Council.

8. The new strategic direction also proposes a mayoral outbound programme in FY2014-15 developed to support the global engagement programme for council.

9. The refreshed strategic direction for council’s global engagement has been developed for the whole council family in collaboration with a range of stakeholders including CCO’s. Oversight of the strategic direction and work programme will be led and implemented by the International Relations unit in collaboration with CCO’s, in particular ATEED to ensure work programme alignment.

10. The council’s global engagement programme will be implemented within existing budgets. It is anticipated that Auckland will accrue significant value and benefits from a concerted focus on developing strategic global partnerships and increasing Auckland’s global visibility and profile.

11. A key outcome from the council’s return on investment in the global engagement programme will be an increase in Auckland’s international connectivity and global visibility (Auckland Plan and Auckland Economic Development Strategy goals).

Recommendation/s

That the Economic Development Committee:

a) support the refreshed strategic direction for council’s global engagement

b) support implementation of the refreshed strategic direction for council’s global engagement including the progression of a:

· Council- wide Global Engagement Framework that ensures an umbrella view and consistent approach to council’s global engagement;

· Tripartite Economic Alliance between (sister cities) Auckland, Guangzhou and Los Angeles;

· Global Visibility Strategy/Framework;

· China Strategy; and

· Review of the management of Auckland Council’s 19 formal international partnerships to ensure activity aligns with our strategic direction.

c) support the proposed mayoral outbound programme in FY2014-15.

Comments

Refreshed strategic direction and global engagement programme

12. The Mayor’s vision for Auckland is to be the world’s most liveable city (Auckland Plan 2012). The Auckland Plan and the Auckland Council Economic Development Strategy seek to create an Auckland that is internationally connected and export driven, as well as a vibrant, creative international city. Achievement of these goals will require significant and sustained international engagement in order to make Auckland a connected, competitive, and internationally-visible city.

13. Maintaining relationships in international markets is essential to doing business. This has been, and remains, a core part of Auckland Council’s global activity. To date, council’s global engagement has been necessarily reactive and focused on managing civic / business delegations and activity in relation to Auckland Council’s 19 formal international partnerships (sister cities), combined with several international trade missions.

14. Continuing to maintain a civic role in managing Auckland’s 19 formal international partnerships remains important. However we are also operating in a global economy where international connections are possible to attain anywhere, at any time. To make the most of opportunities that exist in the current global environment, council will benefit from engaging beyond the traditional sister-city work programme. Such a shift will enable the organization to sharpen the scope of its work towards enhancing the profile and visibility of Auckland on the international stage by participating in a wider range of global partnerships. In particular, through the building of strategically-relevant global partnerships (for example in the growth markets of ASEAN) and engaging with existing global city networks (for example, the World Cities Network and the C40 Climate Leaders Group). These opportunities are currently being investigated to assess the value and alignment with Auckland’s refreshed strategic direction.

15. Guided by the refreshed strategic direction, Auckland Council – led by the International Relations unit - will seek to build the city’s position in the global economy by pursuing, creating and managing strategically-relevant global partnerships, and by disseminating Auckland’s story (including our unique Māori identity) through these global networks and partnerships. Through a collaborative council-wide approach we will help sell and promote Auckland to the world. We will do this by connecting with cities and regions to help build trade, and by complementing and supporting the work of the Auckland Investment Office and ATEED to attract foreign direct investment into Auckland.

16. Work will be undertaken to identify strategic global forums and initiatives that help enhance Auckland’s opportunities. This will include a programme of best practice and city building exchanges with other cities in areas of commonality, especially innovation, trade, urban design and the environment. Further, work will be undertaken to raise Auckland’s position in international rankings by supporting individual council campaigns, supporting council’s participation in global awards (for example the Lee Kuan Yew World Cities Prize 2016), and by raising positive perceptions of Auckland in international networks.

17. The council’s civic responsibilities to its 19 formal international partnerships will continue to be appropriately managed and in many instances the nature of engagement with existing sister cities will be aligned with the new strategic direction.

18. Advancement of the council’s global engagement programme will provide an opportunity to highlight and promote our Māori identity and culture, and create opportunities for Māori and Māori business through council’s global engagement activities. By ensuring Māori businesses and Māori stakeholders are fully engaged and participating in council’s global engagement activities we can ensure positive outcomes for Māori and for Auckland.

19. Implementation of the global engagement programme will be led by the International Relations unit, and will include the progression of, for example, a council-wide Global Engagement Framework; a tripartite economic alliance between Auckland, Guangzhou and Los Angeles; a Global Visibility Strategy/Framework; a China Strategy; and a review of the management of Auckland Council’s 19 formal international partnerships to ensure activity aligns with council’s strategic direction.

20. Work aligning to the new direction has already begun, and includes.

· Tripartite Economic Alliance with Los Angeles and Guangzhou: A tripartite economic alliance with Auckland’s sister-cities of Guangzhou and Los Angeles (who are also mutual sister-cities) is in development. This is a targeted and significant opportunity that will help to open doors for Auckland to economic, trade, and investment opportunities with two key strategic trading partners. The objective of the alliance is to expand potential economic activity and job growth through joint initiatives and cooperation in the trade, investment, and innovation space - identified in collaboration with Auckland’s stakeholders – and implemented in partnership with the Guangzhou and Los Angeles.

This will be the first time all three cities have been involved in a tripartite agreement and it is seen as setting a new benchmark for how cities can leverage specific targeted economic outcomes for mutual benefit, as well as, engage and collaborate in the 21^st century. Support has been received from the business community and central government for developing this initiative.

· Global Visibility: Mayoral and senior official attendance at the World Cities Summit in Singapore in June 2014 commenced the strategic programme to raise Auckland’s global visibility. The World Cities Summit is a global platform where government leaders and industry experts address liveable and sustainable city challenges, share urban innovation projects and forge new partnerships. The World Cities Summit provided an opportunity to promote the Auckland story, create connections and discuss best practice with over 120 Mayors and city leaders from 250 cities and engage with Singapore-based investors to encourage further investment in Auckland. In addition, the Summit also provided the opportunity to position Auckland for entry into the Lee Kuan Yew World City Prize in 2016 - the pre-eminent world cities prize.

Mayoral outbound programme for FY2014-15

21. The Mayor’s 2013 economic policy includes a commitment to refocus and resource Auckland’s international relations efforts on economic and investment driven approaches, targeting increased links and promotional activity with major trading and investment partners.

22. As part of the refreshed strategic direction, a proposed mayoral outbound programme for FY2014-15 has been developed to support council’s global engagement programme.

23. The outbound programme is currently under consideration but is likely to include:

· a short visit (approximately one week) to Taiwan, Japan and China (four cities in total) accompanied by a targeted delegation (2014) to leverage specific opportunities including to support ATEEDs tourism promotion in Taichung around the Baseball World Cup, ICT opportunities in Fukuoka, and to sign the tripartite agreement with both the Guangzhou and Los Angeles Mayor’s while in Guangzhou

· attendance at the World Cities Summit Mayors Forum in New York (2015), in conjunction with the first Tripartite Summit (in Los Angeles), and a potential trade mission to Los Angeles and San Francisco as part of the agreed activity under the tripartite agreement

· attendance at the Asia Pacific Cities Summit (APCS) and Mayors Forum in Brisbane, Australia (2015) to investigate an Auckland bid to host the APCS.

24. The mayoral outbound programme for FY2014-15 is still to be finalised and will include opportunities for Councillor and senior official participation. The programme of activities will be reported to the Committee for approval in October 2014.

25. Additional global engagement opportunities may arise for the Mayor over the financial year; however the recommendations for global engagement would represent a programme of activity that aligns with our refreshed strategic direction.

Outcomes

26. Outcomes sought from the refreshed strategic direction for council’s global engagement include:

· Enhance Auckland’s global profile and reputation as a globally competitive and innovative city

· Establish and deepen civic, business and people-to-people opportunities through council’s strategic global partnerships and global city networks

· Effective participation in strategic global networks and awards (and/or global awards won) of value to Auckland

· Improved global rankings support and enhance Auckland’s visibility and reputation

· Connected and growing Auckland-based businesses, entrepreneurs and investors to global trade and investment opportunities .

· Improved access and application of knowledge, best practice and expertise to support the goal of making Auckland the world’s most liveable city.

Consideration

Local board views and implications

27. The refreshed strategic direction for council’s global engagement will take into account participation of, and outcomes for, local boards as appropriate.

Māori impact statement

28. The refreshed strategic direction for council’s global engagement is aligned with the shared economic agenda for Auckland. Māori participation and outcomes are integral to a number of the nine priorities of the shared agenda, in particular relating to brand, visibility, skills, investment and business. Work will be undertaken with Māori business, cultural and iwi representatives on various aspects of council’s global engagement programme, including outbound trade missions, potential membership of city networks (for example C40 Cities Climate Leadership Group) and on Auckland’s application for the Lee Kuan Yew Prize 2016.

Stakeholder consultation

29. The refreshed strategic direction for council’s global engagement has been developed by the International Relations unit in consultation with council stakeholders, Auckland Tourism Events and Economic Development (ATEED), Waterfront Auckland (WA) and Auckland Transport (AT). Key stakeholders, including the Ministry of Foreign Affairs and Trade (MFAT), New Zealand Trade and Enterprise (NZTE), the Independent Māori Statutory Board (IMSB), Greg Clark (Global Cities Expert), The Ice House, the Auckland Chamber of Commerce, and the Employers and Manufacturers Association (EMA), have been consulted in the development of this strategy.

30. Further stakeholder consultation will be undertaken as appropriate in relation to specific initiatives in council’s global engagement programme.

Attachments

There are no attachments for this report.

Signatories

Author	Sanchia Jacobs - International Relations Specialist
Authorisers	Harvey Brookes - Manager Economic Development

Economic Development Committee

20 August 2014

Māori Economic Development Programme

File No.: CP2014/17869

Purpose

1. The purpose of this report and presentation is to update the Economic Development Committee on the progress of developing a Māori Economic Development Programme for the Auckland Council family.

2. An initial draft of the programme will be presented in order to seek feedback and endorsement from the committee regarding the proposed approach.

Executive summary

3. The Auckland Economic Development Strategy (‘EDS’) includes a cross cutting theme of “facilitating an Iwi/Māori economic powerhouse”, which draws together the strategic approach to Māori economic development in Auckland. In addition to the EDS, the need to facilitate Māori economic prosperity and form relationships with Māori as part of Tāmaki Makaurau’s economic development are key aspects of the Auckland Plan, the Māori Plan for Tāmaki Makaurau, and the Council’s Long-term Plan. These documents also highlight the untapped economic potential of the unique identity and values of Māori.

4. To guide and advance Auckland Council’s efforts in this area, Te Waka Angamua, in collaboration with the Council’s Economic Development Department, has engaged the Tuia Group to scope out and design a Māori Economic Development Programme for the Auckland Council family.

5. In December 2013 the Committee received a presentation on Stage One of this project from the Tuia Group. This included details around scoping, current state analysis, the establishment of project governance and outcomes from stakeholder workshops. Since this time, development work has progressed and extensive interaction with staff from relevant Council departments and the Council Controlled Organisations has been undertaken.

6. This report now updates the committee on progress since January 2014 and the approach that will be finalised as Stage Two. The outcomes of Stage Two to date include the proposed programme of action and identification of the key priority areas that will form the work streams within this. A presentation from Te waka Angamua will describe theses aspects to the Committee.

Recommendation/s

That the Economic Development Committee:

a) endorse the proposed approach to developing a Māori Economic Development Programme for the Auckland Council family.

Comments

Discussion

Background

7. The Auckland Council is committed to meeting its responsibilities under the Treaty of Waitangi (Te Tīriti o Waitangi) and its broader legal obligations to Māori. It recognises these responsibilities are distinct from the Crown’s Treaty obligations and fall within a local government / Tāmaki Makaurau context. The Council works to ensure its policies and actions consider the protection and recognition of Māori rights and interests within Tāmaki Makaurau, and how to address and contribute to the needs and aspirations of Māori.

8. These commitments are articulated in the council’s key strategic planning documents - the Auckland Plan and the Long-term Plan 2012-2022. “Te Hau o Te Whenua, Te Hau o Te Tangata - A Māori identity that is Auckland’s point of difference in the world” is an overarching outcome of the Auckland Plan. The Auckland Economic Development Strategy (‘EDS’) supports the Auckland Plan and includes a cross cutting theme of “facilitating an Iwi/Māori economic powerhouse”, which draws together the strategic approach to Māori economic development in Tāmaki Makaurau.

9. Other key documents supporting this vision, and that include recognition of Auckland Council’s legal responsibilities and obligations to Māori, include the Māori Plan for Tāmaki Makaurau and Auckland Council’s mana whenua agreements.

10. The council is subject to a wide range of legal obligations in relation to the Treaty of Waitangi and to Māori as a people. There is no one source of the council’s legal obligations and these arise in different ways under a wide range of legislation. In responding to the council’s commitment and legal obligations, Auckland Council has developed a Māori Responsiveness Framework focused on enhancing and guiding the Auckland Council family’s commitment to Māori.

11. The council also recognises the important role the Independent Māori Statutory Board (‘IMSB’) plays in advocating for issues of significance for Māori and ensuring Council fulfils its statutory obligations to Māori, including statutory provisions related to the Treaty of Waitangi. Auckland Council is committed to working with the IMSB to achieve its purpose, particularly in the area of Māori economic development.

Māori Economic Development

12. In late 2012, Auckland Council and the IMSB commissioned a report to review existing plans and strategies relevant to Māori economic development in Tāmaki Makaurau, and to identify areas of strategic alignment^{^[16]}. This work helped to highlight the variety of activity (either underway or proposed) and provided a strategic framework aligned to the EDS to focus the efforts of the Auckland Council family. While some progress had been made it was clear that there was still a need to consolidate efforts and to prioritise actions to help facilitate improved implementation.

13. Te Waka Angamua and the Council’s Economic Development Department have now taken forward the initiative to develop a consistent programme that will help guide and advance all of the efforts of the Council family. In October 2013 Tuia Group were commissioned to design and develop a comprehensive Māori Economic Development Programme and to help build the capacity of the Council family to deliver on Māori economic development outcomes.

14. In December 2013 the Committee received a presentation from the Tuia Group on Stage One of this project, which included information on scoping, current state analysis, the establishment of project governance and outcomes from stakeholder workshops. This work has included extensive interaction with staff from relevant Council departments and Council Controlled Organisations (‘CCOs’).

15. Maori Economic Development excludes projects related to Marae Development or Papakainga Development. This has been a conscious decision based on the premise that both areas are of such significance for Auckland Council, that they have their own programmes. It is recognised that there are benefits attributable to both these programmes that will be of an economic development nature, and an overview of some of that work is identified below.

Progress Update – Stage Two (design)

16. Stage Two of this project has focused on the detailed design of a Māori Economic Development Programme for the Auckland Council family. This work 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. Tuia Services have played an important role in facilitating this work on Council’s behalf. While this work is still being refined as a final document, the detail for this activity has been identified for wider discussion and confirmation

17. To date the immediate priority areas to advance, which have been identified as foundation work streams for the Māori Economic Development Programme, include:

1. Enabling Whānau to set the foundations for their own economic engagement and reach ‘te puawaitanga o te tangata’

- Invest and support in educational outcomes as foundations for sustainable economic development

- Establish post education employment opportunities across Council and its contracted service providers

- Providing support for discussion, research and promotion of successful Māori education models and approaches

2. Engaging with Tribal entities to leverage economic opportunities which exemplar Auckland’s unique Māori identity

- Develop a tourism approach that incorporates the natural water features of both Harbours creating a unique to Tāmaki Makaurau.

- Establish a Cultural centre as part of the development of the Waterfront area

- Providing for a Māori Signature event to be held on a two yearly basis

To partner with Māori in land a property

§ Establish a process to engage Māori in land disposal and acquisition. This will include, but not be limited to inclusion of Treaty settlement requirements

§ Provision of governance and management training which supports capability development for Māori across business sectors, including property management

3. To strengthen Māori Business

- Work with central government agencies to develop and maintain Māori business intelligence systems for Tāmaki Makaurau (including companies, land trusts and incorporations, PSGEs, MIOs etc)

- Provide a forum for Māori businesses to support and engage with each other across sectors

- Develop a Māori business database and analysis for Tāmaki Makaurau

- Facilitate Māori business development programmes to be offered to new/ existing Māori businesses

- To use the Haere Whakamua social enterprise model to establish and support new Māori business opportunities

18. In terms of a Programme of Activities, the following table summarises current activities occurring across the Council family:

Action area

Timeframe

Council/ CCO responsibility

Whānau economic engagement

· Support establishment of Tāmaki Education forum

· Graduate employment programme

· Cadetship programme

· Identify and support successful Maori education models

· Youth connection scheme

July 2014 – on-going

March 2014 – July 2015

June 2014 – on-going

June 2013 - current

COMET, TWA

Council Family

Comet, TWA

CDAC

Tribal economic opportunities

4. Establishing an entity to support Waka tourism on the waterfront

5. Supporting the development of Iwi coastal management plans

6. Development of land acquisition and disposals processes

7. Engagement in Papakainga & Marae development

8. Community arts development

February 2014 – December 2014

January 2014 – June 2015

March 2014 – on-going

July 2013 – on-going

March 2014 – on-going

TWA

TWA/ Enviro. Strat. & Policy

TWA/ ACPL

Council Family

CDAC

Strengthen Māori business

· Iwi historic education contracting

· Central govt. engagement

· Haere Whakamua social enterprise programme

· Māori Economic Development forum

· Establish Māori business development approach

June 2014

February 2014

July 2013

June 2014

March 2014

TWA, CDAC

TWA/ ED/ ATEED

CDAC/ TWA

ATEED/ ED

TWA/ ED

19. As part of the Long Term Plan (LTP) development, Te Waka Angamua and Economic Development have worked across the Council family to propose a series of activities to continue to increase the Māori Economic Development suite of activities. While the LTP has yet to be finalised it is important to indicate that the activities have been classified on the basis of the three workstreams above.

20. Associated with these priority areas is the need to develop guidelines and tools to assist Council departments and CCOs and strengthen the Council family’s Māori economic development capability. Other aspects of the programme that will include the alignment of programme, responsibilities, and deliverables and timeframes which will be managed across the Council family.

21. Stage Three commenced in June and involved the detailed implementation of specific parts of the programme. This has initially required communication and awareness of specific parts of the programme, and discussion with the Council family to align their Māori economic development priorities. In some areas (e.g. tourism) working groups have been convened to engage in implementation. This will be enhanced once the Long Term Plan programme has been confirmed. There is also a clear need to establish an evaluation methodology to assess the progress and the value-add of the different work streams outlined in the programme.

22. This work is also intended to support the Crown-Māori Economic Growth Partnership ‘He Kai Kei Aku Ringa’. To achieve this, an agreement has been made between Auckland Council and MBIE’s Māori Unit to build working relationships and to share information. To date there have been two engagement meetings where the efforts of both parties have been discussed in order to seek alignment and collaboration.

23. In July, Council hosted the Ministry of Business Innovation and Employment’s (MBIE) He Kai Kei Aku Ringa (Māori Economic Development Strategy) Māori Board. Executive representation from Council and its CCO’s included Economic Development, ATEED, COMET, Auckland Investment Limited, CDAC, and the Chief Economist. The IMSB Chair, Board Member and Chief Executive provided a non-Council perspective on economic development activities carried out by Council and its CCO’s. Key discussion points with MBIE included, but were not limited to the following:

· The Auckland Council approach to supporting Māori Economic Development including the work carried out to date to identify the priority area’s for Māori Economic Development.

· IMSB perspectives on the key areas of focus for Auckland Council in the Māori Economic Development area, and how it will support and monitor those key focus areas.

· The role of the He Kai Kei Aku Ringa Māori Board in supporting Māori Economic Development nationally, and ways to potentially engage with the activities here in Auckland.

· The Boards recognition of Auckland’s unique urban and rural make up requiring a comprehensive approach to enabling Māori Economic Development.

24. It is proposed that another Hui between Council and the He Kai Kei Aku Ringa Board at a time where Council can report on progress since this first Hui.

Consideration

Local board views and implications

25. The proposed programme will help support Māori economic development within Local Boards through an outline of existing activity and proposed activity that will help inform future local economic development initiatives. For example, Papakura Local Board has recently designed a Māori Economic Development programme that could be replicated across other local board areas. 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 in order to enable the programme to begin to deliver outcomes in the short term. Already the programme has seen the establishment of the Papakura Māori Enterprise Association in order to implement the programme and carry it forward in the long term.

Māori impact statement

26. This work is in direct response to Auckland Council’s responsibilities under the Treaty of Waitangi (Te Tiriti o Waitangi) and its broader legal obligations to Māori. The proposed Māori Economic Development Programme will seek to ensure the economic policies and actions of Auckland Council will consider the protection and recognition of Māori rights and interests within Tāmaki Makaurau. It will also seek to address and contribute to the economic needs and aspirations of Māori within the context of the Auckland Council family’s mandate and responsibilities.

General

27. The development of the Māori Economic Development Programme will identify resource and budget implications in order to inform departmental budget allocations and potential implications for next Auckland Council Long Term Plan (2015/25).

28. There are no direct financing and resourcing implications associated with this report, however the final programme will outline specific resource and budget details.

Implementation

29. Officers, lead agencies and partners will continue to implement policies and projects to progress Māori economic development in Tāmaki Makaurau, and will report updates as required.

Attachments

No.	Title	Page
a View	Te Whai Rawa Programme of Action Stage Two Scoping	87

Signatories

Authors	Bernard Te Paa – Pae Urungi Tuhono, Māori Outcomes Manager – Te Waka Angamua
	Ta’ala Shane Ta’ala - Kaihautu, Senior Advisor Māori Outcomes - Te Waka Angamua
Authorisers	Johnnie Freeland - Pae Arahi Matua Manager - Te Waka Angamua
	Harvey Brookes - Manager Economic Development

Economic Development Committee

20 August 2014

The Auckland Regional Partnership Agreement between the Auckland Council, ATEED and Immigration New Zealand

File No.: CP2014/17691

Purpose

1. To inform the Economic Development Committee of the Auckland Regional Partnership Agreement for the attraction and retention of migrants between the Auckland Council, Auckland Tourism, Events and Economic Development (ATEED) and Immigration New Zealand, Ministry of Business, Innovation and Employment.

2. This report mirrors the parallel report received by the Community Development and Safety Committee on 13 August 2014.

Executive summary

3. Auckland Council, ATEED and Immigration New Zealand are jointly developing the Auckland Regional Partnership Agreement for the attraction and retention of migrants. The Agreement is an operational arrangement intended to increase collaborative working across the staff of member organisations.

4. The purpose of the Auckland Regional Partnership Agreement is to establish a new way of working collaboratively to improve and lift the contribution of migrant attraction, retention and settlement within Auckland.

5. The Auckland Regional Partnership Agreement is a three year relationship agreement at the operational level commencing from 2014, reflecting the shared priorities of Auckland Council, ATEED and Immigration New Zealand. It will identify how to leverage tools and resources that Immigration New Zealand can provide to support the Auckland Council and ATEED’s key sectors of priority for migrant attraction, settlement and retention. Research intelligence and best attraction and retention practices across regional, domestic and international settings will be shared under the Agreement.

6. Recommendations from the final Auckland Regional Settlement Strategy action plan reports as well as the MartinJenkins report on the review of the Auckland and Wellington Regional Settlement Strategies were considered in the development of the Auckland Regional Partnership Agreement for the attraction and retention of migrants.

Recommendation/s

That the Economic Development Committee:

a) note that Auckland Council group officers are working with Immigration New Zealand to finalise the Auckland Regional Partnership Agreement.

b) note the Auckland Regional Settlement Strategy community and economic action plan reports and their recommendations.

Discussion

7. Auckland Council, Auckland Tourism, Events and Economic Development (ATEED), and Immigration New Zealand are jointly finalising the Auckland Regional Partnership Agreement for the attraction and retention of migrants. The Agreement is an operational arrangement intended to increase collaborative working across the staff of member organisations.

8. Progress on the Regional Partnership Agreement and Settlement Action Plans was reported to the February 2014 meetings of the Community Development and Safety Committee and the Economic Development Committee.

9. This report mirrors the parallel report received by the Community Development and Safety Committee on 13 August 2014. Together these reports replace the previously proposed report to the Regional Strategy Committee.

Background

The purpose and priorities of the Auckland Regional Partnership Agreement

10. The purpose of the Auckland Regional Partnership Agreement is to establish a new way of working collaboratively to improve and lift the contribution of migrant attraction, retention and settlement within Auckland. It will identify how to leverage tools and resources that Immigration New Zealand can provide to support the Auckland Council group’s key sectors of priority for migrant attraction, settlement and retention.

11. The priorities of the Auckland Council group are based on Auckland-specific plans and strategies, which include the Auckland Plan, the Auckland Economic Development Strategy, the Shared Economic Agenda, the Thriving Communities Strategic Action Plan, and ATEED’s Business and Competitiveness Framework. The Skilled and Safe Workplaces work stream in the government’s Business Growth Agenda is an overarching strategy for Immigration New Zealand to secure the skills and investment New Zealand needs.

12. The Auckland Regional Partnership Agreement is a three year relationship agreement at the operational level commencing from 2014. The agreement reflects shared priority areas for collaboration in the 2014/2015 financial year

13. In this Agreement, Immigration New Zealand and the Auckland Council group will share research intelligence and best attraction and retention practices across regional, domestic and international settings.

Auckland Regional Settlement Strategy final reports and recommendations

14. Central and local government and business agencies have collaborated since 2007 to implement the Auckland Regional Settlement Strategy, to support better settlement and economic outcomes for new migrants in Auckland. The strategy and its associated action plans were completed in June 2014.

15. The action plan final reports highlighted recommendations for central and local government to:

· consider further strengthening collaboration with a clear purpose to support migrant settlement and retention

· consider the development of a language approach so that information and resources can be provided in a more consistent way

· consider economic attraction, settlement and retention actions and models that would showcase best practice, and address the information and knowledge barriers for both employers and migrants, with the goal of helping to improve labour productivity

· investigate potential gaps and opportunities available to Auckland businesses and skilled migrants. Should, for example, an OMEGA-type mentoring/internship organisation be considered as a possible solution for maximising migrants’ skills’ use in Auckland, then an appropriate business model would need to be developed first, with input from former OMEGA board members

· organise more civic engagement events for international students and migrants

· consider developing a 2015 Westpac Business Award to showcase best practice for hiring and retaining skilled migrants, and frame this around innovation to address areas of skills shortage and increase business growth.

16. The recommendations of the Auckland Regional Settlement Strategy action plan reports have been considered during the shaping of Regional Partnership Agreement priorities. Summaries of the action plan reports are attached to this report for information.

The MartinJenkins Review report and recommendations

17. In 2013, Auckland Council, Hutt City Council and Immigration New Zealand commissioned MartinJenkins to complete an independent review of the both Auckland and Wellington Regional Settlement Strategies. The review made recommendations for future arrangements that could follow the completion of the Auckland and Wellington Regional Settlement Strategies. These include that:

· the national settlement strategy be refreshed with the addition of a stronger ‘economic lens’, and a broader focus, covering attraction, settlement and retention, as well as enhanced monitoring and evaluation

· separate strategies and approaches for regions, reflecting distinctive regional contexts be considered. These could be supported by streamlined and future-proofed governance arrangements that respond to variations in both national and regional priorities and resources

18. Immigration New Zealand enters into ‘Regional Partnership Agreements for Settlement’ with regions. The content of the Agreements should be ‘bespoke’ for each region, influenced and determined by unique regional contexts, and priorities

19. As part of the proposed Regional Partnership Agreement approach, Immigration New Zealand would coordinate central government relationships and actions nationally, and the regional partner would coordinate regional relationships and actions (including regional offices of central government, NGOs and private sector representatives) The development of the Auckland Regional Partnership Agreement has been informed by the recommendations outlined in the MartinJenkins review report.

Consideration

Local board views and implications

20. The Auckland Regional Partnership Agreement expects to have a particular focus on the City Centre Masterplan and the Southern Initiative. This is to support international students and young migrants residing in, mainly but not limited to, the Waitemata Local Board, and the local boards in the Southern Initiative area including Mangere-Otahuhu, Otara-Papatoetoe, Manurewa and Papakura Local Boards.

Māori impact statement

21. The Auckland Regional Partnership Agreement expects to collaborate on Auckland’s plan to build a culture of respect and learning between Tāngata Whenua and Tāngata Hou in the workplace and in community settings in Auckland. It will also continue to broker opportunities for migrants to enhance their understanding of Te Ao Māori, and gain an appreciation of kaitiakitanga.

Implementation

22. There are no implementation issues to address

Attachments

No.	Title	Page
a View	Community Settlement Action Leadership Team summary report	99
b View	Economic Settlement Action Leadership Team summary report	111

Signatories

Author

Wayne Brown - Principal Advisor - Regional Economic Policy

Authorisers

Claire Gomas - Manager – Economic Development Strategy & Policy

Harvey Brookes - Manager Economic Development

[1] Proposed Auckland Unitary Plan (2013) light and heavy industrial zones

[2] Balderston, K and Fredrickson, C (2014). Capacity for Growth Study 2013 (Proposed Auckland Unitary Plan): results, Auckland Council technical report, TR2014/010

[3] 149,154 employees (NZ Stats Business Demographics for 2012)

[5] Vacant (business): Defined as capacity (in hectares) of business zoned parcels that are currently wholly vacant (no buildings/structures):within the Auckland Council Capacity for Growth results report 2013.

[6] Vacant potential (business): Defined as vacant potential is the measure of the vacant portion of parcel that is currently zoned for business use and is not already occupied in some way by a building. Generally this portion of the site is unoccupied and could be used for further development. Auckland Council Capacity for Growth results report 2013.

[7] New Zealand Government: The Business Growth Agenda Progress report 2013

[9] Auckland Airport Future Economic Impact Assessment (Auckland Airport 2010)

[11] Capacity for Growth Study Auckland Council 2012

[12] NZ Stats Business Demography dataset 2013

[13] NZ Stats Business Demography dataset 2013

[14] GDP calculated by aligning the Employment Count data for each area to the Infometrics employment dataset (which combines LEED and Business Demographics)

[15] Insight Economics: Estimating the Regional Economic Importance of Auckland Airport 2014.

[16] Alignment of Māori Economic Development Activity. WHK for Auckland Council (December 2012)

Chairperson	Cr Anae Arthur Anae
Deputy Chairperson	Cr Ross Clow
Members	Cr Cameron Brewer
	Cr Bill Cashmore
	Member Precious Clark
	Cr Linda Cooper, JP
	Cr Hon Christine Fletcher, QSO
	Cr Denise Krum
	Member Kris MacDonald
	Cr Dick Quax
	Cr Penny Webster
Ex-officio	Mayor Len Brown, JP
	Deputy Mayor Penny Hulse

Authors	Rachael Logie – Senior Economist
Authorisers	Geoff Cooper – Chief Economist
	Harvey Brookes - Manager Economic Development