Strategy and Policy Committee 12 April 2017 Report No. 17-55 Information Only - No Decision Required UPDATE ON IMPLEMENTATION OF THE MANAWATU-WHANGANUI ECONOMIC ACTION PLAN 1. PURPOSE 1.1. The purpose of this paper is to update Members on the implementation of the Manawatū-Whanganui Economic Action Plan. This is occurring under the banner of Accelerate25. 2. EXECUTIVE SUMMARY 2.1. The Lead Team has agreed an implementation process. Ministerial interest remains high and Central Government remains closely involved. The Maori Economic Development Strategy - Te Pae Tawhiti was launched in Ohakune in November 2016. 2.2. The Accelerate25 Lead Team met with Minister Bridges in late February 2017 and with Minister Guy in March 2017. 2.3. A number of opportunities are developing and are summarised in the February – March Dashboard report attached at Annex A. 2.4. Of particular note, since the last report to members, is progress in the areas of Tourism and Visitor Services, Land Optimisation, and development of critical elements of business cases for new / improved roading as part of ‘Accessing Central New Zealand’. 3. RECOMMENDATION That the Committee recommends that Council: a. receives the information contained in Report No. 17-55 and Annexes. 4. FINANCIAL IMPACT 4.1. Council is providing $230,000 in the 2016-2017 year to develop and begin implementation of the Manawatū-Whanganui Economic Action Plan. The Ministry of Business Innovation and Enterprise (MBIE) is also providing $80,000 to assist implementation and the costs of launching the Action Plan. A range of specific projects are receiving funding from government. 5. COMMUNITY ENGAGEMENT 5.1. There are a number of vehicles for regular communication with the community. These include a Twitter account @Accelerate_25; a regular e-Newsletter ‘Growing our Region’ (copy of March 2017 is attached at Annex B) is available to subscribers; and information on the Horizons website. 5.2. Horizons have consulted with the public about its role in economic growth and regional prosperity as part of the 2016-2017 Annual Plan process. 6. SIGNIFICANT BUSINESS RISK IMPACT 6.1. There is no significant business risk associated with this report. Update on Implementation of the Manawatu-Whanganui Economic Action Plan Page 1 Strategy and Policy Committee 12 April 2017 7. BACKGROUND 7.1. The Manawatū-Whanganui Economic Action Plan (Action Plan) was formally launched in Whanganui on Friday 12 August 2016. The launch was attended by business and iwi leaders from around the region, together with Ministers Steven Joyce, Nathan Guy and Te Ururoa Flavell, the Mayors of the region and the Chair of the Regional Council. Approximately 250 people were present. 7.2. The Maori Economic Development Strategy - Te Pae Tawhiti was launched in Ohakune on Thursday 3 November 2016 and was attended by Maori leaders, political leaders from around the region and Minister Flavell. 7.3. With changing ministerial portfolios Minister Bridges has now taken the Economic Development Portfolio. 7.4. Implementation of the Action Plan began in November - December 2016 under the banner of Accelerate25. A governance group leads implementation. 7.5. The Action Plan is there for organisations in the region to use and implement. Whilst Accelerate25 will umbrella and help support a number of initiatives it is not there to control or manage all economic development work in the region. It has a specific role around enabling implementation of the action plan. 7.6. A number of implementation actions have specific works streams attached to them led by project teams. These groups are supported by a Programme Director, Craig Nash of Spearhead, to help deliver on key actions. 8. DISCUSSION 8.1. A summary of progress with the opportunities is detailed below and in Annex A. The information below identifies the most significant areas of progress since the last report rather than detailing work for all the opportunities. 8.1.1. Tourism and Visitor Services – This is led through Ruapehu District Council and Visit Ruapehu. i. A consortium of providers have been selected following a public tender to deliver a Manawatu – Whanganui Destination and Market Development Plan. It addresses the first two action plan priorities under this opportunity; to extend the market assessment work already undertaken by Visit Ruapehu; and to prepare a destination and marketing value proposition to better define the region as a tourism destination. Visit Ruapehu are also in the process of establishing a thought leadership group to support the work and are working to ensure active involvement of tangata whenua in the project. ii. The Department of Conservation has moved to the next stage of its formal process to change the Tongariro National Park Management Plan to enable the development of cycle trials in specific areas. This is key to unlocking government investment in the development of a downhill trail from Turoa to Ohakune and potential Horopito to National Park link. iii. The Government’s next funding round for tourism related infrastructure has been announced. There are particular opportunities around facility provision at Whakahoro (on the Whanganui River) and the Manawatu Gorge. More broadly there is an opportunity for Ruapehu District Council to pursue a conversation with government about wastewater infrastructure provision to enable its tourism industry to continue to develop whilst managing the potential environmental impact from wastewater. 8.1.2. Land Use Optimisation – There are a number of primary sector initiatives underway regionally - in Whanganui led by Whanganui and Partners; in Taumarunui led by the Ruapehu A25 Ag team; in the Rangitikei led by Rangitikei District Council; and across the Update on Implementation of the Manawatu-Whanganui Economic Action Plan Page 2 Strategy and Policy Committee 12 April 2017 region led by the Primary Sector Reference Group. There is a high degree of energy and active support and involvement from the Ministry for Primary Industries. i. The Primary Sector Reference Group (PSRG) is focussed on three key areas – AgriTech and in particular links to Massey and associated Crown Research Institutes; water from a regional resource assessment scale down to opportunities around stock water reticulation and small scale irrigation; and farm business mentoring. A plan for the next year is in place. ii. As part of New Zealand Agri-Investment Week and Central Districts Field Days (13-18 March) a Hackathon (www.hackathonmanawatu.nz) was held supported by Microsoft and Building Clever Companies. The project brought together developers, programmers and the generally ‘tech savvy’ with farmers looking for technical solutions to on farm problems. A group of six consortia presented to a dragons den covering a variety of issues from on farm connectivity to effluent and water management. iii. Also at the Central Districts Field Days two workshops were held on the opportunities and benefits of stock water reticulation. These will be followed by four further workshops around the region during winter. iv. The Primary Sector Reference Group has met with the General Manager of the Red Meat Profit Partnership (RMPP). The RMPP has been working on a number of the key issues that are described in the Manawatu – Whanganui Action Plan at a national level. In particular they have a strong stream of work looking at extension services and information / knowledge transfer. Follow up discussions are underway with the RMPP and MPI on the potential to grow the work carried out by RMPP on around 80 pilot farms nationally to a wider regional and national audience. v. The Ruapehu A25 Ag primary sector team has developed a business case for extension services aimed primarily at younger farm owners and farm managers. The business case has been approved in principle and final funding details are being negotiated with MPI. vi. Whanganui & Partners has formed a project team called the Rural Enterprise Group. An exciting development for this team is the opportunity to grow berry production in the wider Whanganui area, particularly strawberries and blueberries. Development of a business case has been funded by Government. vii. In Rangitikei the Rangitikei District Council, working with its community, has started a pre-feasibility study for the use of reticulated water in the Tutaenui catchment. 8.1.3. Manuka Honey i. The latest set of factsheets produced by MPI is attached at Annex C. 8.1.4. Business Process Outsourcing : Call Centres – This area will continue to be led by the respective Economic Development Agencies in the region. i. Two new call centres have been secured in the region with one opening in April 2017. 8.1.5. Te Pae Tawhiti i. Significant work is underway across the range of opportunities including working with land trusts and Maori landowners around the primary sector, honey production and tourism related activities. Significant initiatives are being considered around Mother Aubert on the Whanganui River and in relation to tourism in the Ohakune area. Update on Implementation of the Manawatu-Whanganui Economic Action Plan Page 3 Strategy and Policy Committee 12 April 2017 ii. In Whanganui development of Te Manu Atatu is being progressed – it is planned to be a Maori business innovation hub and will be an anchor project for the Whanganui Innovation Quarter. iii. Ngati Rangi recently held their 2017 Community Jobs and Careers Expo. Over 200 people attended, 24 job interview results and 40 jobs were advertised. 8.1.6. Skills and Talent Enabler i. A project team has been established through UCOL, Talent Central and the Ministry for Social Development. This team is being joined by a member of the regional EDA staff group. 8.1.7. Distribution and Transport Enabler i. Whanganui Port revitalisation is being led by Whanganui District Council and is progressing towards the next stage business cases. Port development is focussed on a number of zones including wharf facilities (currently being renovated) for coastal shipping, a zone for boat building and servicing, and a recreational boating zone. A draft Master Plan is currently out for public consultation, submissions closed on 3 February 2017. Work continues to progress via a series of workstreams. A final business case is expected in June 2017. ii. The New Zealand Transport Agency (NZTA) is leading the development of new roading alongside the Regional Land Transport Committee. NZTA has held the first round of workshops to develop the five stage business cases for the Regional Ring Road under a project called ‘Accessing Central New Zealand’. iii. The strategic business case has been completed. iv. The strategic business case identified three key issues for the regional ring road: a. Poor access into and out of key destinations; b. land use development is outpacing the strategic transport network; and c. the increase in vehicle size is causing pinch points on the network. v. The strategic business case was approved by NZTA’s Value Add Committee / National Land Transport Advisory Group in December 2016. vi. The combined committee agreed to all recommendations and the business case will now be advanced in three tranches: a. Programme Business Case for the majority of the programme. b. Detailed business case for SH3/54 – Kairanga – Bunnythorpe Road. c. Detailed business case for SH3 (Napier Road). The key piece of work now is to ensure alignment of business cases for local road development with development of the State Highway network and production of a schedule of works and costings for completing the business planning process. vii. 9. COMMENT 9.1. Central Government remains strongly committed and involved with implementation. The region can expect Ministers to return to the region at regular intervals to check-in on implementation. 10. CONSULTATION 10.1. An implementation communications plan is under development. Update on Implementation of the Manawatu-Whanganui Economic Action Plan Page 4 Strategy and Policy Committee 12 April 2017 11. SIGNIFICANCE 11.1. This is not a significant decision according to the Council’s Policy on Significance and Engagement. Nic Peet GROUP MANAGER STRATEGY & REGULATION Michael McCartney CHIEF EXECUTIVE ANNEXES A Action Plan Progress Dashboard - February-March 2017 B Growing Our Region e-Newsletter - March 2017 C MPI Manuka Honey Science Programme Factsheet - December 2016 Update on Implementation of the Manawatu-Whanganui Economic Action Plan Page 5
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