Section 6: Council Activities

You are here > Home > Council Documents > Plans and Strategies > Community Plan 2009-2019 > Section 6: Council Activities > Economic Growth

Economic Growth

Responsibility

Kate Macnaught (Manager Corporate Strategy and Policy)

Description of service

Funding and oversight of the district economic development and regional tourism contracts under which Venture Taranaki provides a range of programmes, projects and business support.

Economic Development
1. Provides leadership and support for the development and implementation of local, regional and national strategies for the creation of a vibrant and buoyant regional economy.
2. Facilitates, promotes, encourages and supports sustainable business growth, investment and employment opportunities in Taranaki.
3. Supports and recognises the region’s enterprises and assists them to establish, flourish and prosper.
4. Seeks out, attracts and develops those events that have potential to bring significant numbers of external visitors to the region thus raising the external profile of the region.
5. Assists Taranaki to present a strong identity through a coordinated approach to promoting a regional brand.
Tourism
1. Develops and promotes the region to attract high-value visitors from the rest of New Zealand and key offshore markets.
2. Assists local tourism operators to meet the demands of the domestic and international visitor market.

Scale of service

This describes the size and scope of the activity.

$500,000 of grants into the regional economy annually.
Grow Taranaki website and portal - www.taranaki.info.
One social and/or environmental initiative supported annually.
One annual business award function.
Minimum of one feasibility study for project with high impact potential.
Attract or retain five significant events.
Exceed Tourism NZ forecasts for visitor arrivals.
Undertake benchmark surveys to assess perception of Taranaki as “vibrant” place to live, work and play.
Grow external migration numbers and number of people employed year on year.

Rationale for activity

Economic Growth, delivered through Venture Taranaki, is the Council’s direct contribution to stimulating the local economy and as such its direct contribution to the economic well-being of the community. It also makes a substantial contribution to the Skilled Community Outcome through Venture Taranaki’s involvement with skills attraction, training and education activities. The Council funds this activity on behalf of all businesses and residents in the district, because no other local organisation has sufficient representation and resources to do so.

Because economic activity tends to be organised at firm and industry level and many of our industries are regional, a regional view is often taken and responses are carried out in collaboration with other organisations in the region, including the other Taranaki local authorities.

Contribution to Community Outcomes

The Economic Growth activity contributes primarily to the Prosperous Community Outcome and makes significant contributions to the Vibrant and Skilled Community Outcomes. The number of outcome statements it contributes to reflects the high level of importance that the community places on the local economy.

Prosperous

A district that boasts a sustainable, resilient and innovative economy that prospers within the natural and social environment.

P1 Taranaki is an attractive place to work, do business and to visit.

P2 The region is a birthplace of innovation and ideas, where technological developments and opportunities for added value are capitalised on.

P3 Taranaki’s strengths are recognised and diversification of agriculture, business and industry is valued and encouraged.

P4 There is a high level of employment and adequate incomes for all.

P6 People are confident and are happy to invest in the future.

P7 The place of Māori in the local economy is supported.Return to top

Negative impacts on community well-being

There have been some effects of the region’s recent economic success. These include increased traffic flows and parking demand exceeding supply in the Central Business District.

Facing the challenges – assumptions and risks

Assumptions

It is assumed that the economy in the region will grow over the next 10 year period. Annual economic growth will be modest to strong (two per cent to four per cent) as outlined in Treasury forecasts January 2009, over the life of this Community Plan. Whilst recognising that economic growth will be low in the first two years of this plan, it is predicted modest to strong economic growth will have positive flow-on effects for employment and general economic and social well-being in the latter years.

Skill shortages are the result of high economic growth, enhanced by the rate of population aging outpacing slow growth in the workforce, the increasing ease with which skills can relocate to other countries (labour market globalisation) and inconsistent training of new entrants into key trades and professions.

While the economy might see higher unemployment in the short term, skill shortages are seen as a long term chronic issue facing the Taranaki economy.

Risks

The current global economic downturn could affect the rate of growth in Taranaki over the next three years, however key industries such as dairy and energy are strong global sectors. The economy is always subject to interest and exchange rate movement and the Taranaki economy will be influenced by the state of the national and global economy.

Managing risks

Venture Taranaki will continue to monitor issues as they arise in the local economy. The Council has provided the trust with a budget to respond to the new opportunities and threats. In addition to these measures Venture Taranaki is developing a skills strategy to ensure Taranaki businesses have the skilled staff for future growth opportunities.

Levels of service and performance measures

The following levels of service and performance measures outline the objectives we will set and how we will measure our progress.

Levels of service and performance measures

Asset information

Assets required

Venture Taranaki does not reside in Council owned assets. Therefore they do not have an asset management plan or require Council owned assets other that those hired for events in the same way as other users.

Managing improved and/or expanded services

The experience and success of providing a business advisory service which has achieved 100 per cent growth in enquiries as well as providing signposting and referral services for start ups, displays the internal capability of Venture Taranaki to meet the growing needs of business.

Funding

The Council’s portion of the district’s Economic Growth activity is funded from general rates. This, however, represents approximately 70 per cent of Venture Taranaki’s funding. The additional funding comes predominantly from central government. In addition to this revenue, Venture Taranaki also leverages or assists businesses and organisations to obtain funding that is paid direct to them, so does not appear on Venture Taranaki’s accounts.

New Plymouth District Council funds the economic growth it purchases from rates because the benefit is considered to be of general benefit to the community. The nature of the benefits are also designed to assist the business community, making the district more productive and prosperous. This element is addressed in the significant share of the general rate paid for by business.

Funding has been provided to implement the events strategy. This funding will place the level of service for events on a sustainable basis. Events have a positive and measurable effect on visitor numbers, as well as on how the district’s vibrancy is perceived by those living outside it.