Tai Tokerau Northland Regional
Growth Study report
Questions and Answers
1. What are the Regional Growth Studies designed to do?
The Regional Growth Studies are designed to identify and prioritise economic opportunities for
local stakeholders, investors, and the Government. The studies seek to identify the sectors and
commercial opportunities in each region that have the potential to sustainably grow incomes, jobs
and investment. The studies identify what is most needed to achieve these outcomes, what the
constraints to economic development are, and what is required to enable regional businesses and
investors to realise the opportunities.
2. How many studies are being done and in which regions?
The Regional Growth Studies Programme builds on the East Coast Potential Study completed
early in 2014. The Northland study was released today, and two further studies are currently being
undertaken in the Bay of Plenty and Manawatu-Whanganui.
3. Who wrote the Northland report and who funded it?
The study is an independent report written by consulting firm MartinJenkins Associates Ltd under
contract to the Ministry of Business, Innovation and Employment (MBIE). The report was jointly
funded by MBIE and the Ministry for Primary Industries (MPI).
4. Why was Northland chosen as a region to study?
It was identified as one of the regions with lower than average incomes and employment outcomes.
The primary sector presents a number of opportunities and the Government is convinced that better
business, job growth and a higher standard of living for the region’s residents are possible.
5. Why are there no studies being done in South Island regions?
The Government is initially focusing on those regions with the greatest need to improve employment
and incomes. These North Island regions have pockets of the highest social and economic
deprivation in the country. The South Island currently has very low unemployment and is seeking
workers to move there
6. What involvement has the region had in the development of this report?
There has been considerable regional involvement in the development of the study.
The Terms of Reference for the study were discussed with regional representatives to ensure that
the report was going to provide useful evidence to either challenge or validate what the region
considered to be its regional strengths and its economic development priorities.
A regional project steering group comprising regional and Government representatives was formed
to keep the project on track.
A Northland Technical Advisory Group (TAG) of 14 people was formed to provide key regional sectoral
expertise and oversight into the report during its development to ensure that knowledge held by
local businesspeople and stakeholders was integrated with official data.
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The independent consultants who wrote the report undertook more than 100 interviews in the
region across a wide range of sectors including businesses, local and regional government, education
providers and iwi/Māori to inform the report.
7. What has the Northland study found?
While the report recognises that there is no “silver bullet” or industry that will transform the
Northland economy, it recognises that the Northland region has significant untapped potential. This
will be achieved by lifting productivity and profitability of the region’s current sectors and addressing
a number of cross-sectoral areas such as education and skills achievement levels, transport,
communications and water management infrastructure.
The region’s economic development agency (Northland Inc) is working with New Zealand Trade and
Enterprise to facilitate and co-ordinate activity that will bring investors into the region.
8. What did the Study identify as the biggest constraint on the current and future economic
prospects on the region?
The greatest constraint on current and future economic prospects will be the availability of
appropriately skilled workers to meet the potential for growth from the key sectors. This is because
the working age population in the region is shrinking, there are perceptions that there are few
attractive jobs and career paths in key primary industries, and many young people in Northland are
disengaged from education and employment.
9. How is the Government currently supporting investment and growth in the regions?
The Government has a significant number of programmes and funding streams that, while nationally
based, effectively support regional economic development. The regional growth studies will enable
the better targeting of these initiatives and funding streams.
For example central Government has made and is planning significantly more investment in land
transport and telecommunications infrastructure, education and training, and the primary sector
including Māori agribusiness though programmes such as the Sustainable Farming Fund, Primary
Growth Partnership and the Māori innovation Fund.
Many of the Government’s Business Growth Agenda (BGA) actions will benefit New Zealand’s
regions.
For example, the Government is making a significant investment to improve connectivity
everywhere, through Ultra-Fast and Rural Broadband. Callaghan Innovation is working across the
whole innovation system to help businesses be more innovative and derive greater returns from
that innovation. NZTE’s regional investment attraction programme will help regions to encourage
investment from domestic and international firms.
In addition, there are a range of national initiatives to lift skills and employment levels through
programmes such as the Māori and Pasifika Trades Training.
Northland is benefitting from all of these initiatives including:
›› the Puhoi to Wellsford Road of national significance
›› the Northland Twin Coast Cycle Trail – Pou Herenga Tai National cycle trail
›› Ultra-fast broadband in Whangarei and increased broadband speeds across Northland
›› Youth Guarantee fees-free tertiary training and trades academies for at-risk young people
›› Maori & Pasifika trades training
›› Petroleum and mineral exploration
›› Acquaculture reform
›› NZTE’s Regional Investment attraction programme
›› Te Ture Whenua Maori Land Act reform
The actions in the BGA aim to increase local skills, improve local infrastructure, enable more
sustainable use of local natural resources, and facilitate local business innovation.
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The Regional Economic Activity Reports and the Regional Growth Studies help debates between
councils, iwi, businesses, education providers and other organisations on how they can grow their
regional economy and raise the standard of living in their area.
10.What is the Government doing to support Māori economic development in Northland?
The Crown and Māori have entered into an economic growth partnership - He kai kei aku ringa –
which provides a blueprint for a productive, innovative, and export-oriented Māori economy. This
includes a review of the Te Ture Whenua Māori Act, to look at how Māori land can be best used.
The Government and other Māori and non-government agencies are working to support Māori
agribusinesses to become more productive, innovative and export driven.
There are also Government initiatives working with local Māori assisting them to improve the
productivity of a range of Māori agribusiness and to grow Māori tourism. These include a number of
initiatives supported by MPI to increase the productivity and profitability of a range of Māori farming
and forestry enterprises.
The Government’s support through the Te Hiku Social Development and Wellbeing Accord is also
aimed at improving economic and social outcomes for iwi in the Far North. This is an opportunity
to pilot new ways of strengthening iwi/Māori enterprises to improve community and economic
outcomes that will benefit the whole region.
Lifting the skills of Māori will improve productivity, create better incomes and create more Māori
entrepreneurs – this is especially vital in Northland where Maori are the most likely to generate their
own economic activity.
BGA actions aimed at improving education and training outcomes for Māori include:
›› Improving Māori and Pacific school leaver achievement
›› The Youth Guarantee Scheme
›› The $43 million Māori and Pacific Trades Training initiative, which is currently being rolled out
across the country and is operating in Northland focusing on trades training in the construction
and primary industries
›› Refocusing the polytechnic sector on skills for regions, and rebooting apprenticeships.
11. What is the Government doing to prevent depopulation in regions like Northland?
The most effective way of keeping and attracting people to regions such as Northland is through
economic development – particularly economic development that will lead to increased employment
and incomes.
The region has a relatively higher proportion of older and younger people with a lower than average
working age population. There will also be an increasing demand for labour. The region’s own labour
supply will be insufficient to meet forecast demands.
Extending the rollout of rural and ultrafast broadband will enable people to be able to remain in the
region to undertake study and to operate businesses from within the region.
The Government’s investment attraction programme is designed to bring capital, expertise and
routes to market into regional economies. Northland has many attractive attributes that would draw
both investment and migrants to the region.
The report identifies a number of potential projects and programmes that have the potential to
substantially lift employment opportunities in Northland.
12. What happens next?
The study identifies a number of potential opportunities that have implications for a range of
stakeholders including central and local government, iwi/Māori, industry groups and businesses.
Central government agencies, led by MBIE and MPI, will be working with the region (local
government/Māori/business) to establish and implement a Northland Regional Economic Action Plan
that will be supported and led by joint Ministers.
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