FutureCoromandel SUMMARY - Thames-Coromandel District Economic Development Action Plan - Thames-Coromandel District Council
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FutureCoromandel
Thames-Coromandel District Economic Development Action Plan
SUMMARY
2014 -2018
“The Coromandel will be New Zealand’s
most desirable place to live, work and visit”
www.opportunitycoromandel.co.nz
Table of
Contents
Economic development a priority for Council and community....................... 1
Invest in the Coromandel.................................................................................. 2
Our Economic Targets............................................................................................................................................................... 2
Key Project Targets.................................................................................................................................................................... 3
Supporting Council Targets....................................................................................................................................................... 3
Case Study 1: Procurement strategy helps local firm grow capability and jobs ................................... 4
Vision and Outcomes........................................................................................ 6
Council Outcomes..................................................................................................................................................................... 7
Coromandel Peninsula Blueprint Outcomes.............................................................................................................................. 7
Relevant Coromandel Peninsula Blueprint Objectives......................................................................................................... 8
New Zealand Government Business Growth Agenda................................................................................................................. 8
How it all fits together............................................................................................................................................................... 9
Local Government Act 2002 Amendment Act 2012..................................................................................................................... 10
Our economic journey underway.............................................................................................................................................. 12
DestinationCoromandel ....................................................................................................................................................... 12
ExportCoromandel............................................................................................................................................................... 12
InnovationCoromandel......................................................................................................................................................... 12
BusinessCoromandel............................................................................................................................................................ 13
TeamCoromandel................................................................................................................................................................. 13
InfrastructureCoromandel.................................................................................................................................................... 13
Case Study 2: Coromandel Mayor champions new Great Walk............................................................ 14
What you’ve told us........................................................................................... 16
Case Study 3: Substantial economic benefit signalled from Hauraki Rail Trail................................... 18
Our Strategic Direction..................................................................................... 20
DestinationCoromandel - Enhancing our tourism proposition.................................................................................................. 22
ExportCoromandel - Pathway to a prosperous future................................................................................................................ 22
InnovationCoromandel - Building innovation........................................................................................................................... 22
BusinessCoromandel - Doing our business better...................................................................................................................... 23
TeamCoromandel - Working together........................................................................................................................................ 23
StongerCoromandel - Improving access to the Coromandel ...................................................................................................... 23
Case Study 4:Mussels providing economic muscle on the Coromandel.............................................. 24
Key Initiatives - The Action Plan....................................................................... 26
Review the 2020 Tourism Strategy with a view to enhancing the value of our tourism exports................................................. 28
Deliver and implement a Coromandel Harbour Strategy .......................................................................................................... 28
Deliver the Coromandel Great Walks......................................................................................................................................... 28
Facilitate the development of a Coromandel aquaculture strategy............................................................................................ 28
Develop an MOU and joint-work programme with ATEED/Auckland Council........................................................................... 29
Develop a joint economic development work programme with the Hauraki Collective’s post-treaty commercial entity........... 29
Deliver an enabling District Plan............................................................................................................................................... 29
Build the Hauraki Rail Trail extension to Kaiaua....................................................................................................................... 29
Investigate the feasibility of a regular, scheduled air-service between Whitianga and Auckland.............................................. 29
Review broadband infrastructure deficits in a “post RBI” world............................................................................................... 29
Case Study 5: Powerco Investing More into the Coromandel............................................................... 30
Governance....................................................................................................... 32
Rationale for an internal EDA.................................................................................................................................................... 32
Governance role........................................................................................................................................................................ 33
Economic development
a priority for Council and community
The Coromandel Peninsula is the jewel in New Zealand’s crown and is a fantastic place
to live, work or visit. White sand beaches, a warm climate, close to the main centres and
surrounded by native flora and fauna - there’s a place for everyone on the Coromandel.
However, like most regions in New Zealand, economic growth has been static in the
Coromandel. This reality, compounded by the fact our district’s economy is heavily reliant on
the discretionary spend from visitors and holiday-home owners has made our district even
more vulnerable to recessionary pressures.
It is these cold hard facts that have driven our reforms and restructuring at Council, which
has resulted in the average residential rate reducing by 5% over the last three years and
a refocused work programme based on much more conservative growth projections and
priortised investment in strategic initiatives designed to rebuild our economy’s foundations.
Now that we have successfully refocused the Council, we can turn our attention to our
economic development plan.
We have avoided the temptation to develop a generic ‘strategy’ full of jargon, endless words and
unachievable targets.
We have assessed our district’s vital economic statistics, we understand our district’s strengths and
weaknesses and have developed a common-sense and pragmatic action plan that we know will deliver
tangible and meaningful outcomes for the people of the Coromandel.
To ensure we’re not swimming upstream, the Council’s Economic Development Action Plan has been guided
by a number of key documents and strategic directions including:
yy Council’s Mission & Vision statements yy Industry and Government’s
Aquaculture Strategies
yy Council and Coromandel Peninsula
Blueprint Outcomes yy The Crown-Maori Economic
Growth Partnership
yy Government Strategies (The Business
Growth Agenda) yy Auckland City Economic Development Strategy
yy Tourism New Zealand i-SITE strategy
As you will read in this action plan, the Council has already embarked on an ambitious economic
development programme which is yielding results, but we need to do more.
This economic development plan is all about unlocking the Coromandel’s unique economic strengths and
opportunities to create real growth, real jobs and real wealth for all who call this wonderful place home.
The Coromandel really is a sleeping giant, with so much untapped opportunity given its abundance of
natural taonga (treasure), sought after lifestyle, connection and proximity to Auckland, the Waikato and Bay
of Plenty. The majority of our holiday-home owners and tourists already come from these areas.
Our district’s destination brand is “The Coromandel - Good for your soul”, given our natural treasure, it’s easy
to see why the Coromandel is New Zealand’s favourite holiday destination and a sought-after place to live.
At the highest level, our job seems so obvious; we need to create a more diverse and vibrant economy that
attracts new investment, more businesses and more people living and visiting here more often. However, a
non-negotiable for us is making sure we don’t compromise the very things that make the Coromandel so
special in the first place in our quest for economic growth.
It is also true that the Council alone cannot achieve sustainable economic growth without partnerships with
the private sector, Iwi and the community. We need to unlock FutureCoromandel together to guarantee our
district will continue to be the most desirable area of New Zealand in which to live, work and visit.
Mayor Glenn Leach, JP
www.opportunitycoromandel.co.nz 1
Invest in the Coromandel
The Thames-Coromandel District Economic
Development Action Plan has been carefully developed
to ensure it is aligned with Central Government’s
Business Growth Agenda and Aquaculture Strategy, the
Coromandel Peninsula Blueprint and our Council’s own
mission and objectives.
However, more importantly, the action plan has been
developed to facilitate economic growth by capitalising on
our district’s existing strengths and opportunities.
Our ultimate goal is to create an environment where it’s an
easy decision for the private sector to invest in businesses
and jobs on the Coromandel and where it’s an easy decision
for our large non-resident population to spend more time
here, or decide to live here permanently.
If we can facilitate the growth of population and
employment we can create even more vibrancy and
economic viability in our communities. If we can build the
vital infrastructure we need, more people will come and
experience the Coromandel we all already know and love.
Here’s our plan to make it happen.
Our Economic Targets
We are setting six major economic targets to
achieve with the private sector, Iwi and other
public-sector agencies.
These are:
1. An average annual increase in real exports of
greater than 5% (includes tourism) so that the ratio
of exports to GDP is 40% by 2025
2. An average real GDP increase of greater than 2.5%
by the end of 2018
3. A permanent population increase of 2500
by the end of 2018 (as measured in the next
national census)
4. An increase in rateable units of greater than 2.5%
by the end of 2018
5. A 5%+ annual increase in visitor guest nights
6. Increase in employment on the Coromandel by 5%
by the end of 2018
2 FutureCoromandel - 2014 - 18 Economic Development Action Plan Summary
Key Project Targets
There are three anchor projects the Council has
identified that are imperative to the district’s economy.
These are: the Coromandel Great Walks, Coromandel
Harbour Strategy and the Hauraki Rail Trail extension
to Kaiaua/Miranda.
1. The Coromandel Great Walks Business Plan
approved by June 2014
2. Establish the first section of the Coromandel
Great Walks project (Hot Water Beach to Cathedral
Cove) by end of 2015
3. Two new sections of the Coromandel Great Walks
under-construction by the end of 2017
4. The Kaiaua/Miranda to Kopu leg of the Hauraki
Rail Trail completed by the end of 2016
5. The Coromandel Harbour Strategy approved by
June 2014
6. Fast Ferry service established between Auckland
and Coromandel Town (direct) by end of 2018
Supporting Council Targets
The Council plays a major role in economic
development through its normal “business as
usual” operations.
The following internal targets have been set to ensure
Council contributes to economic growth through its day-
to-day business objectives and work programme
1. Increase overall customer satisfaction by 5%
(as measured in the 3 yearly customer survey)
per annum
2. Reduce the number of District Plan activities that
require resource consents by end of 2014
3. Increase CAPEX delivery from 68% to 85% by the
end of 2015
4. Ensure the average residential rate is “on-par” with
the New Zealand “average” by the end of 2018
5. Develop an “ease of business survey” to establish
new benchmarks by end of 2014
3
Case Study 1:
Procurement strategy helps
local firm grow capability and jobs
Thames-based new media technology company Guru Digital Media is
advertising for another IT developer – growing staff numbers from eight
to 17 in little more than a year.
New products are being developed and its client Customers include Southern Cross Hospitals, TCDC,
base now includes private enterprises including Fisher and Paykal and Jucy Rentals.
the country’s largest construction firm and several
In a world of marketing in which approximately
local authorities, thanks in part to partnering
six per cent of the world’s mobile data traffic is
with Thames-Coromandel District Council on the
predicted to be video by 2014, the company
development of some of its products.
has grown to offer these organisations web
Says founder Sean Cuttriss: “TCDC moved its web development, micro-sites and analytics, filming,
and digital services contract from a Wellington firm editing videos in-house, animation, design and
to us based in Thames - from this solid base we’ve illustration and smooth motion video
been able to develop expertise in local government
For TCDC, Guru works with Tairua-based
solutions which means we’ve been able to sell into
communications contractor Alison Smith who
other councils across New Zealand based on our
provides PR, copywriting, photography and content,
experience with TCDC”.
and together with the Communications team, they
Guru Digital Media is a boutique Web and Digital have produced online electronic versions – or
production based agency specialising in New G Books – of brochures and booklets that can be
Media technology. downloaded from the TCDC website.
The digital products offered by Guru have expanded Just over a year ago there were three full time staff
from smooth motion videos and animation to in development including New Media Manager
include HR and e-learning training modules after Corey Sewell, who is self-taught and from Paeroa.
Sean identified a need, letting his staff do the Guru had experienced 200 per cent growth in 2011,
development. The company also develops websites increasing staff from four to nine. Sean and James
for businesses of all sizes, among its services. forecasted another 50 per cent growth in 2012-13,
and has already more than doubled that.
General Manager James Pass became part-owner
of the business at Christmas, after initially joining “I’ve had to stop Sean selling,” says James. “The
as Manager of Operations. The pair credit the business has actually wanted us to grow faster than
business’s success to their blend of sales, creativity we have let it.”
and business acumen (Sean) with management,
To assist in the training and management of staff,
processes and marketing expertise (James)
James modified an e-learning module that the
Their wives call it ‘bromance’ but jokes aside, for company developed for New Zealand Hockey,
Sean and James it was a partnership that capitalises and now they’re selling that to Office Max and its
on the market interest in its range of IT solutions. branches nationwide.
Sean, a master salesman and creative person Sean says the Coromandel remains a great place to
with lesser strengths in documentation and live, work and play. He investigated contracting out
management, took a sideways step to maximise on work in cheaper labour markets such as India, where
the skills he identified in business partner James. he said the prices were ‘fantastic’ but soon found out
the pitfalls of working in opposing time zones with
“James joined us as Operations Manager and after
language barriers. He prefers to keep everything
two months I said to him ‘Hey, you would make a
in-house and enjoy a beer on the deck on a Friday
much better GM than me, why don’t you take over
with his staff.
my job.
Regardless of growth, Thames will remain the
“It never was about ego - it’s what’s best for the
company’s base as long as he is involved. “We’re
business,” says Sean. “I’d rather have less of an ego
confident one day we may have account managers
and a better business than a bigger ego and a less
and satellite offices around the world, that’s fine, but
successful business.”
we never want developers outside of Thames.”
Located on the Coromandel, Sean and James can
make Auckland meetings in an hour with no traffic.
4 FutureCoromandel - 2014 - 18 Economic Development Action Plan Summary
5
Vision and Outcomes
Our Vision:
“The Coromandel will be the
most desirable area of New
Zealand in which to live, work
and visit”
6 FutureCoromandel - 2014 - 18 Economic Development Action Plan Summary
Council Outcomes
The Council has established very clear expectations in terms of
what it expects to achieve for the Coromandel - we call these
expectations “Council outcomes”
1. A prosperous district
The Coromandel has a prosperous economy
2. A liveable district
The Coromandel is a preferred area of NZ in which to live,
work, raise a family and enjoy a safe and satisfying life
3. A clean and green district
The Coromandel Peninsula’s natural environment provides
a unique sense of place
Coromandel Peninsula
Blueprint Outcomes
As the region’s multi-agency strategic framework for managing
growth and sustainable development, the Coromandel Peninsula
Blueprint has also been used to set strategic direction for our
Economic Development Action Plan.
The Blueprint sets out four outcomes for the future development of
the Coromandel:
1. Embraces its natural taonga – treasures
2. Diverse and vibrant centres
3. A place where generations can live, work and enjoy
4. Resilient Communities
Outcomes 2 and 3 have been the particular focus of alignment for this
action plan.
Please visit www.tcdc.govt.nz/coroblueprint to read the Coromandel
Peninsula Blueprint.
7
Relevant Coromandel Peninsula Blueprint Objectives
yy Coromandel Town to re-establish itself as a key sea transport link with Auckland* 1
yy Creation of a more diversified economy (not so reliant on peak-summer tourism industry)*
yy Ensuring our communities have access to quality infrastructure including
high-speed broadband*
yy An increase in permanent population to ensure health, transport, recreational and other
services remain viable and cost-efficient (Living is affordable)*
yy Communities are diverse, vibrant and connected*
yy Provide opportunities to appreciate the natural environment*
yy People can settle in the Coromandel and families thrive*
New Zealand Government Business Growth Agenda
The New Zealand Government has clearly articulated its economic development strategy in
“The Business Growth Agenda”.
Our economic development action plan has been formulated to align with relevant parts of this
government thinking, particularly in the innovation, export and infrastructure work programmes.
The Business Growth Agenda focuses on six key “ingredients” businesses need to grow: Export
markets, innovation, infrastructure, skilled and safe workplaces, natural resources, and capital.
Each of these has its own programme of work.
Please visit www.mbie.govt.nz/what-we-do/business-growth-agenda for more information about
the Government’s strategies.
Figure 1: The Thames-Coromandel Economic Development Action Plan is aligned with the export,
innovation and infrastructure components of the Government’s Business Growth Agenda
Export
Markets
Infrastructure Innovation
Skilled
Natural
and Safe
Resources
Workplaces
Capital Markets
* (Coromandel Peninsula Blueprint , 2004)
8 FutureCoromandel - 2014 - 18 Economic Development Action Plan SummaryOur response to the Government’s call on local councils
to help solve the issue of housing affordability.
The New Zealand Government has introduced a number of measures to reduce the
cost of building new houses in New Zealand by focusing on increasing land-supply
and making the RMA processes more efficient.
The Thames-Coromandel District Council has responded to this issue through the
review of our District Plan which is rezoning substantial tracts of land in our growth
hubs, to reduce the number of consents required and to make the plan easier to use
and much more black and white.
Through our Economic Development Action Plan we will investigate other incentives to stimulate building
and population growth including ensuring our development contributions, rates and consent costs are not
barriers to growth in the right places on the Coromandel Peninsula.
Council Mission
and Vision
How it all fits together Government Strategies
Coromandel Peninsula
Blueprint
The Thames-Coromandel District Economic
Development Action Plan is just that, an action
plan, and as the diagram illustrates, is aligned
with our district’s and Government’s strategic Council Strategies &
direction, bringing alignment to our economic Action Plans
development programme to ensure maximum
synergies with other agency and Council
work programmes. Ten Year Plans, Annual
Figure 2: How our strategies, plans and Plan, Community
work programmes deliver a better future for Board Plans
the Coromandel
Staff Work
Programmes
Community
Outcomes
9Local Government, economic development and
changes to the Act
In 2012 the Government changed the purpose of Local Government, removing all
references to Local Government promoting the economic, social, environmental and
cultural wellbeing of its communities.
We are now required to meet the current and future needs of communities for good-
quality local infrastructure, local public services, and performance of regulatory
functions in a way that is cost-effective for households and businesses.
This Economic Development Action Plan clearly focuses on our local needs, based on
feedback from our communities, research from the business community and direction
from our elected members.
Specifically, what local infrastructure - both hard infrastructure and soft infrastructure
- the Thames-Coromandel District needs to meet the current and future needs of our
communities, to ensure vibrant, sustainable and resilient communities into the future.
The Action Plan also recognises that Council plays a major role in economic
development through its normal “business as usual” operations. Elements of this
Action Plan focus on Council doing its business in a more effective and efficient way.
This is ultimately about us delivering a more effective service to our ratepayers and
communities.
It is for these reasons that we believe that our Economic Development Action Plan is
consistent with the new purpose of Local Government.
10 FutureCoromandel - 2014 - 18 Economic Development Action Plan SummaryThe sought-after Signature Class Vehicles are produced at the
Toyota Factory in Thames, New Zealand.
11Our Economic Journey Underway
The Council has already implemented significant programmes
and completed substantial projects over the last few years
to support the development of our economy, including
the following:
DestinationCoromandel
yy Events Strategy: A new Events Strategy has been approved
with new funding sources to create more off-peak events.
www.tcdc.govt.nz/eventstrategy
yy Local Events: We’ve established a dedicated community
board events funding and criteria
yy Tourism: Restructured Destination Coromandel (DC) to focus
on delivering more effective and successful visitor marketing
yy Tourism: More funding has been invested into Destination
Coromandel and our Visitor Information Centres
yy Future Growth: Completed the Marine Precinct Plan
for Whangamata
yy Freedom Camping: Freedom camping has been
opened up on the Coromandel bringing new business to
Coromandel retailers
yy Closer Partnerships: We’re working with Destination
Coromandel and our Visitor Information Centres on joint
promotions and projects (e.g. the annual Summertimes
campaigns www.tcdc.govt.nz/summertimes)
ExportCoromandel
yy New industry support: We’re marketing the tender
opportunity for the new fish farming zone in the Hauraki Gulf
www.tcdc.govt.nz/aquaopportunity
yy Aquaculture: Sugarloaf has been selected by the Council as
the preferred location for aquaculture wharf expansion
InnovationCoromandel
yy IT Cluster & Software Development: We procure
many of our software and IT services locally, which is
creating real jobs and real opportunity for the Peninsula
www.tcdc.govt.nz/business
yy IT Cluster: We’re selling our locally developed Online
Submissions System to other Councils and looking to sell our
ConsentBuilder online building consent portal and integrated
processing system - refer to www.tcdc.govt.nz/business for
more information
12 FutureCoromandel - 2014 - 18 Economic Development Action Plan SummaryBusinessCoromandel
yy Cutting the Red Tape: We’ve got staff set up as Business Brokers to
‘account manage’ new business start-ups through Council’s permits,
licences and consents processes
yy Cutting the Red Tape: We’ve introduced a more proactive and flexible
Development Contributions Policy and reviewing our District Plan
yy Funding Grants: We’ve introduced Business Grants to help new
businesses to the Coromandel create employment
yy Investment Opportunities: A Property Strategy has been completed
and is now being implemented
yy New Funding Sources for Local Economic Development: We’ve
Establishment of a new “Local ED” activity in the 2012 Ten Year Plan for
use to support local E.D. initiatives when required
yy Joint-Marketing: We’re marketing business opportunities on the
Coromandel on behalf of the private sector - www.tcdc.govt.nz/business
yy Investment Profiles: We’ve established a new Business section on
our website at www.tcdc.govt.nz/business and economic profile at
www.opportunitycoromandel.co.nz
TeamCoromandel
yy Organisational Restructure: We’ve created a leaner, more effective and
efficient organisation which is closer to the community and more able to
deliver Council’s ‘outcomes’
yy More Affordable Rates: We’ve delivered a -5% average rates reduction
over three years and have adopted a prudent 2012 - 2022 Ten Year Plan
yy New Strategies: A Disability Strategy and Positive Ageing Strategy have
been completed and are now being implemented
yy New Philosophy: We’ve delivered a community governance project
to empower local communities and area offices to get on with
local development
yy New Roles: We’ve created new Area Manager and Community
Development roles to work with groups and businesses to achieve
positive outcomes for our district at a local level
yy New Technology: A new TCDC intranet to improve the organisation’s
communication and effectiveness
InfrastructureCoromandel
yy Hauraki Rail Trail: Stage one is completed linking Thames with Paeroa,
Te Aroha and Waikino
yy Walkways: Stage 1 - Moana Anu-Anu Harbour Walkway in Whangamata
yy Future-Proofing for Economic Growth: Thames Wastewater
Treatment upgrade www.tcdc.govt.nz/thameswastewater and
the Coromandel Wastewater Treatment Plant Upgrade Stage one -
www.tcdc.govt.nz/corowastewater
yy Playgrounds: We’ve completed the Tairua Youth Zone and Children’s
Playground upgrades which are proving to have positive local economic
implications for the town
13Case Study 2:
Coromandel Mayor champions
new Great Walk
Thames-Coromandel District Council has allocated budget to
conduct a feasibility study on building the country’s 10th Great
Walk on the Coromandel Peninsula.
Mayor Glenn Leach told Wilderness To build the track, Leach envisions drawing
Magazine the idea of a Great Walk on the on volunteers from around Coromandel
Peninsula has been kicking around for and engaging school leavers and the
decades, but has never taken off. unemployed and teaching them new skills
along the way.
“Community groups have been working hard
on building tracks around the Peninsula and He said many older retired or semi-retired
have vision for more in their areas,” Leach local residents would get involved with the
said. “They’re enthusiastic people and we project bringing important know-how.
don’t want to undermine them in any way,
Leach aims to have the feasibility study
we want to work with them.
completed by September and will then meet
“This project is about creating a world- with community groups, iwi, business, DoC
class multi-day walk that links strongly and others to discuss the project’s strategy
with towns and communities on the and principles.
Coromandel to drive economic development
March next year Leach wants to be ready
through tourism.
to take a detailed proposal to Wellington
“Imagine building a walking track from the to request funding and support from
top of the Peninsula down to Waihi across the Government.
to Karangahake Gorge, taking coastal routes
“I believe this is the sort of initiative that
and along the spine of the ranges linking all
Government can’t walk away from,” Leach
our towns on the east and west coasts.
said. “The economy has been in decline for
“Much of the track already exists; it’s about quite some time now and we’re stepping up
joining them all up.” to the plate and saying things might not get
better for a long, long time so let’s get in and
Leach wants the “central artery” to be a
do something that’s real while we can.
grade 1, two metre wide track with lower
grade tracks branching off it. “This could be the 10th Great Walk in New
Zealand and one that is north of Taupo
Rather than building new huts along the
where the bulk of the population is. Ten
track, Leach said local communities will
years down the road I see this as being the
provide accommodation.
biggest income for the Peninsula.”
“We have 55 per cent absentee home owners
Before entering politics, Leach ran Aotearoa
on the Peninsula,” he said. “We could utilise
Adventures, an outdoor adventure company
these homes.”
that ran guided trips into the Kaimanawa
and Kaweka Ranges.
Shakespeare Cliff look-out overlooking
Flaxmill Bay, south of Whitianga
14 FutureCoromandel - 2014 - 18 Economic Development Action Plan Summarywalks picture
15What you’ve told us
From discussions with the community and the business
sector, here’s a snapshot of what we’re hearing and
what’s shaping our action plan and thinking:
“Cut the red tape and make it easy for “Coromandel
Focus on key anchor projects -
Walks, Coromandel
us to do business on the Coromandel”
Wharf and Auckland Fast Ferry”
“Agency’ “Do our business better as a district
Waikato ‘Economic Development
structures in the Waikato
make no sense to the private sector” Council”
“visiting
Get more people living here and “new
Establish account management of
here more often = more jobs, business enquiry and trouble-
greater visitor numbers” shoot resource management issues”
“wasEnsure high-speed broadband “Reduce compliance and rates costs”
available and that new housing
developments did not have wait for
“space” at the exchange to encourage “business
Build strong partnerships with
more visits by holiday home owners associations and key private
for long weekends, commuters and sector employers”
IT boutique businesses operating “in
the cloud”
“sensible
Ensure the District Plan is enabling
development and the zoning
“toFocus on transport corridors was aligned with existing structure
and spatial plans”
effectively make it easier
for “Aucklanders” to get to the
Coromandel - by sea and road”
“Focus on tourism and aquaculture
“spend
infrastructure needs”
Target our holiday home owners to
more time on the Coromandel
and look at higher conversion to “Facilitate private sector
permanent population” collaborations”
“Promote our district’s economic
opportunities”
Comments taken from the TCDC Economic Development Survey 2013
16 FutureCoromandel - 2014 - 18 Economic Development Action Plan Summary17
Case Study 3:
Substantial economic benefit
signalled from Hauraki Rail Trail
Hauraki Rail Trail is drawing a wealthier than average clientele
who have each contributed on average $108.25 expenditure while
enjoying the sights on a day trip to the attraction, preliminary
research shows.
Almost half the 200 or more cyclists interviewed wineries and accommodation providers along
as part of interim research by the University of the way.
Waikato earned above or significantly above the
“The research confirms they’re out there with
country’s average income, a highly sought after
family and friends to enjoy the landscape. The
market anywhere in the world.
caveat is they want to cycle in good weather.”
With thousands of riders expected in the coming
Almost three quarters of cyclists had stayed at
few years the report gives encouraging signs
their own home prior to their day of cycling but
of a significant economic impact from the trail,
4.5 per cent of those interviewed had chosen
says TCDC Communications and Economic
to stay a night prior to their ride in motel
Development Manager Ben Day. “An economic
accommodation. After cycling the trail, eight
impact like this will create meaningful, real jobs,
per cent of those interviewed had booked into
over time.”
a motel for a night. Other accommodation
The research was gathered since September last included hotels, farm stays, backpackers, holiday
year and is an intercept survey, with interviewers homes and friends’ homes.
stationed on the trail collecting information from
Good research is important not just in terms of
riders on randomly selected days.
understanding economic impacts of the trail,
A representative sample of more than 200 rider numbers and their spend but in fine tuning
people showed a total expenditure of almost the marketing of the trail.
$24,000 giving a mean expenditure of $108.25
“The Principal Trail Manager and operators can
each, the draft report shows.
understand who we’re currently reaching and
It showed 133 of those interviewed were aged who we need to reach,” says Mr Day.
between 46 and 65 years. Some 31 per cent
‘It’s early days but there seems to be four distinct
of a representative sample of riders earned
types of riders emerging based on common
above average income and 14.5 per cent earned
characteristics. The information gleaned allows
significantly above average income.
marketers of the trail to group consumers and
“It confirms our prediction of the target market pitch the messaging right.
that most would be of middle age to a slightly
For example, baby boomers that aren’t looking
older age group. Globally that is a very attractive
for anything too adventurous may differ from
type of visitor to reach, which is why cycleways
the families cycling the trail, which won’t be
are great. They offer something active to baby
necessarily looking for wineries but more family
boomers, who generally seek nothing too
activities.”
arduous or adventurous, and cycleways fit into
that.” On the Hauraki Rail Trail - 10,000 cyclists in one
section of trail during January alone
Auckland, at 23.7 per cent, drew the most visitors
to the trail followed by visitors from Hamilton The Karangahake Gorge section of the Hauraki
at 14.5 per cent and, closer to home, Te Aroha Rail Trail drew 10,000 cyclists in the month of
who made up just fewer than 11 per cent and January.
Tauranga 9.1 per cent of those interviewed on
The trail’s Principal Trail Operator says forward
the trail.
bookings for March, April and May are really
Good exercise, fun with friends and family, a positive as people plan their trip in the cooler
sense of freedom and a good way to enjoy months of summer.
landscapes were the reasons given by cyclists
Electronic counters have been installed in other
interviewed on the Hauraki Rail Trail. The trail
sections of the trail which should soon give
takes riders through farmland, over historic
similarly reliable figures on numbers of people
bridges and through tunnels and alongside
using other sections of the trail including from
rivers in a serene setting with local eateries,
Thames to Paeroa.
18 FutureCoromandel - 2014 - 18 Economic Development Action Plan Summary19
Our Strategic Direction
To deliver a FutureCoromandel; a district which
continues to be the most desirable place to live, work
and visit, our Economic Development Action Plan
focuses on six strategic directions which drives our
thinking and our work programme.
20 FutureCoromandel - 2014 - 18 Economic Development Action Plan SummaryThe Toyota Signature Class Factory is a major employer in Thames
21DestinationCoromandel -
Enhancing our tourism
proposition
We will make the Coromandel the preferred visitor
destination in New Zealand.
Tourism is a major export earner for the Coromandel,
but we want more of the pie and we want it spread
out over longer seasons not just squeezed into just 3
months of summer.
We want to build new tourism product based on the
infrastructure we’ve already got and invest more into
strategic destination marketing.
ExportCoromandel -
Pathway to a prosperous future
We will focus on facilitating growth in our district’s
core-export industries as a primary means to grow
jobs and incomes in the Coromandel.
Export markets and an export focused local
economy will create a pathway to a more prosperous
FutureCoromandel. Our aquaculture, forestry, tourism
and manufacturing industries are major pieces of
this puzzle.
InnovationCoromandel -
Building innovation
We will pursue innovation in our district to diversify
our economy and to help grow new innovation &
cloud-based industries.
With the Rural Broadband Initiative rolling out, more
businesses and staff operating “in the cloud” and more
IT companies able to operate in areas that offer more
lifestyle opportunities, the Coromandel is perfectly
positioned to capture more of this market. We already
have a growing IT cluster on the Peninsula which
testifies to these trends.
22 FutureCoromandel - 2014 - 18 Economic Development Action Plan SummaryBusinessCoromandel -
Doing our business better
We will be known as an enabling Council for
businesses to work with.
As a Territorial Authority we know we play a
major role in economic development, we can
encourage it and we have the power to get
in the way and stop it. We are committed to
a programme to improve the way we do our
business to ensure we are encouraging the
private sector to invest in our district to create
businesses and therefore jobs.
TeamCoromandel -
Working together
We will develop strong partnerships with
the private sector, Iwi, communities and
government agencies.
We can’t do it alone; we must harness our
collective energy to achieve mutual goals for the
benefit of the Coromandel.
StongerCoromandel -
Improving access to the
Coromandel
We will build and maintain infrastructure that
is identified as critical to unlock the economic
prosperity of the district and which connects
us locally, nationally and globally.
Our Economic Development Action Plan places a
real focus on transport corridors by land, sea and
air to give people even more of an excuse to live,
work and visit here.
We want straighter roads, with no one-lane
bridges, more passing lanes, commuter ferries
direct from Auckland and a regular scheduled air-
service between Whitianga and Auckland.
23Case Study 4:
Mussels providing economic muscle on
the Coromandel
OP Columbia Whitianga provides career path in sustainable industry. At only 23, Emily
Clark and boyfriend Chris Pascoe are about to spend their third summer in the Whitianga
house they bought together when real estate prices began dropping to a reasonable level.
The young couple were good friends at gathered at Ninety Mile Beach in Northland.
Mercury Bay Area School where they took They work like efficient little water pumps,
part in the Marine Academy and Marine filter feeding nutrients until they reach
Studies programme before joining hundreds maturity about two years later.
of locals employed in the aquaculture
Low in fat, calories and cholesterol and high
industry on the Coromandel.
in iron, protein and essential Omega-3 fatty
Inside the OP Columbia building on the acids, New Zealand Greenshell Mussels
corner of South Highway in Whitianga, Emily contain over three times the haem iron of
greets visitors to the company and sizes rump steak on a per gram basis and are
them up for gumboots, white overalls and a probably the cheapest form of protein in the
hair net before leading them to the upstairs supermarket in New Zealand. Six medium
viewing window overlooking the factory. sized mussels provide approximately 25 per
cent of an adult’s daily protein.
Work clobber on the factory floor is anything
but glamorous. But Emily has found a Not that Emily eats a lot of mussels. “I just
career job at OP Columbia and loves the see too many of them every day,” she admits
“professional but relaxed” atmosphere. Over with a smile. But she still gets a kick out of
the years she rose through the ranks from seeing New Zealand mussels on menus
cleaner on the night-shift, working 12.30am when holidaying overseas.
to 5.30am - “the hours sounded good as it
Emily is among 120 employees at the OP
meant I could sleep in and get days free to
plant with another 20 joining for seasonal
go to the beach” - to opener on the factory
work after Christmas.
floor, to her role now as Quality Co-ordinator.
Openers are paid by the number of mussels
Standing at the viewing window inside the
they open, and work for their spot on the
OP Columbia factory is like spying on the
table - a coveted, moneymaker of a job that
inner workings of a human bee hive. Rows
requires skill and speed.
of white-clad processing workers - openers,
they are called - sweep whole mussels from a All the mussels here were grown in Wilsons
fast-moving conveyor belt and deftly ‘shuck’ Bay and Coromandel Harbour, at farms
the shells open in milliseconds. They leave such as Gulf Mussel Farms where Emily’s
the meat in a half shell for markets in North partner Chris makes his living as a farmer on
America, Europe and Australia and Asia, or the water.
completely remove the shell to produce
At OPC there are all sorts of skill sets required
meat mostly destined for markets in Spain.
for the company to succeed, including
Ear plugs or i-pods are worn to protect accountants, scientists, workers on the
workers’ hearing from the din of machinery factory floor, marketers and mussel farmers.
spitting out mussels in varying stages of The industry has spawned numerous side
processing that includes cleaning, a heat businesses including tourist operators
shock to open the shells, shucking, quality offering guided fishing tours around the
inspection, a spiral freezer, a weigh head, a mussel farms and even some innovative
bagging machine and finally to being boxed start-ups from the waste produced at OPC.
for export.
Says OP Columbia Managing Director
All the mussels processed here are locally Andrew Selby: “A lot of development is going
grown. Coromandel green-lipped mussels on here and with that will come a lot of
are cultivated on the rope from mussel spat local employment.”
24 FutureCoromandel - 2014 - 18 Economic Development Action Plan Summary25
Key Initiatives -
The Action Plan
There’s much to accomplish in five years - but we’re up for it
and we know our community and business sector are too.
26 FutureCoromandel - 2014 - 18 Economic Development Action Plan SummaryA & G Price is a major employer in Thames
and manufactures parts for heavy industry
27Here are our main priorities: and create vibrant communities and the
Government’s objective to grow tourism
Review the 2020 Tourism exports through the development of new
international standard-product.
Strategy with a view to
enhancing the value of our Facilitate the development
tourism exports of a Coromandel
Tourism plays a major role in our economy. With aquaculture strategy
the recent restructure and rebuilding of our
Regional Tourism Organisation (RTO), Destination Aquaculture has ambitions to be a billion dollar
Coromandel, it is time for the 2020 Tourism industry by 2025 and the New Zealand Government
Strategy to be reviewed by our RTO with a vision wants real exports to grow by 5-7% per annum;
to grow our industry, especially outside of the Coromandel aquaculture plays a major role in this
peak-summer season. ambition. We need to step up our involvement to
facilitate a strategic plan for the growth in all facets
The New Zealand Government’s Business Growth of the industry including training, science and
Agenda is focusing on tourism as a major export support industries.
earner for New Zealand. The Coromandel is a big
part of our country’s tourism offering. We will develop and implement an industry-led
Aquaculture Strategy with the Coromandel Marine
Farmers’ Association, Waikato Regional Council,
Deliver and implement a ATEED and Aquaculture New Zealand.
Coromandel Harbour Strategy
We will deliver a strategy that prioritises investment
Establish an IT Hub in Thames,
in our ageing and over-capacity harbour facilities in Whitianga and Whangamata
the Coromandel Harbour to:
We have a growing software industry cluster on the
yy Enable aquaculture industry expansion at Coromandel which we want to continue to foster
Sugarloaf to meet the industry’s growth and nurture with a purpose-built or retro-activated
yy Give improved access to good recreational facilities with access to ‘dark fibre’ and clever people
boating facilities to cater for the locals and the sharing resources and ideas.
huge surge in demand from visiting boaties
The Government’s Business Growth Agenda has
fishing off the mussel lines in the Hauraki Gulf
a focus on building innovation infrastructure
yy Attract a direct fast ferry from Auckland and encouraging business innovation, we think
to encourage commuters to live on the Thames IT cluster will deliver even more jobs
the Peninsula and to improve tourism for the district as entrepreneurs and business
connections with Auckland owners look to service clients “in the cloud” from
lifestyle-positive locations.
Deliver the Coromandel
Great Walks Develop an MOU and joint-
work programme with
The Coromandel Great Walks Project aims to link
the whole district through a variety of ‘great’ walks ATEED/Auckland Council
around the coastline and across the spine of
Auckland provides the Coromandel with the
the Coromandel.
greatest opportunity to grow its economy. We
already have strong historic and contemporary
The project will create a world-class multi-day walk
links with the city; we share many ratepayers, Iwi
that links strongly with towns and communities on
affiliations, and economic interests.
the Coromandel to drive economic development
through tourism.
We have a lot to offer Auckland, her residents and
visitors. It’s time we worked more closely with
The project fits well with the Coromandel
Auckland to deliver mutually beneficial outcomes.
Blueprint’s stated objectives to connect
28 FutureCoromandel - 2014 - 18 Economic Development Action Plan SummaryDevelop a joint economic The airfield and runway are large enough to take
regular scheduled air services now.
development work programme
with the Hauraki Collective’s Review broadband
post-treaty commercial entity infrastructure deficits in a “post
Over 150 years of historical grievance with the RBI” world
Crown will be settled shortly by Iwi and Hapu
of the Hauraki region, which will enable our It is critical that the Coromandel is not left behind
Tangatawhenua in a way to re-start their economic in the world of ultra-fast broadband, as without this
journey and to pick up the momentum that commodity, our economy will falter. What does a
was taken from them. Our job is to understand post RBI world look like and what are the gaps and
Iwi’s economic ambitions and assist with the the opportunities to provide broadband?
implementation of their strategies where they
need us. New building incentive package
Deliver an enabling District Plan We have plenty of capacity in our infrastructure
services in many towns, especially on the eastern
We are on track to deliver a District Plan that is an sea board. One of our goals is to grow our
enabler of economic growth with ambitious zoning population and rateable units to ensure our rates
for future growth, fewer resource consents and a requirements are spread across more people and to
document that is easier to use and interpret. take advantage of this infrastructure capacity.
With changes also coming from Central Therefore, we will investigate developing a package
Government to the RMA, our District Plan will need of incentives to encourage new residential building
to be flexible and adaptable. where we have capacity and where we are also re-
zoning land in the new District Plan to a ‘residential’
zone.
Build the Hauraki Rail Trail
extension to Kaiaua Possible incentives to stimulate new building
development could include:
The Hauraki Rail Trail is already creating jobs and
bringing wealth to the region; to make it really yy Introducing reductions in rates or rates
work for us we need to build the section (stage 2) holidays
from Kopu to Kaiaua to make the Coromandel a yy Reduce the user-pays component of building
destination and not just a gateway. and resource consent fees
yy Reducing development contributions
The closer we can get the trail to Auckland the yy Packaging Council-related new building costs
better and the sooner we can make the entire Trail into one fixed price with longer repayment
a genuine 2 or 3 day experience, the more domestic terms
and international visitors we can attract.
yy Introducing new ‘fast-consent’ processes for
“off-the-plan” buildings and houses
Investigate the feasibility yy Establish key account managers to work with
of a regular, scheduled air- developers and building companies
service between Whitianga yy Establish a joint-marketing fund to partner
with real estate agents and developers to
and Auckland assist in profiling the district’s real estate
Our eastern-seaboard has the land, the consented opportunities
property developments and the infrastructure Get the full picture
capacity to take an increase in population. A regular
air-service to Whitianga would open up this part of Read the full Economic Development Action Plan
the Coromandel to not only more visitors, but also at www.tcdc.govt.nz/ed for more information
make it more viable for people to live or commute about these initiatives and to review the full work
from here. programme and project milestones.
29Case Study 5:
Powerco Investing More into
the Coromandel
More than $30m of electricity upgrades and construction work
is expected to be invested into the Coromandel in the next four
years to cater to future population growth.
Almost $10m of this work will be done in the Some of the projects completed in the past
2013/2014 financial year. It includes: five years include:
yy $2.2m Reconducting work between yy Rebuilding the Whitianga substation
Coroglen to Kaimarama
yy Refurbishing Whitianga to Coromandel
yy $2.75m Upgrading the 66,000 volt line. This means there are
Thames Substation two different power lines running
to Whitianga. These lines have the
yy $4.4m Constructing a new Kopu to
capacity to be increased to 110KV if the
Kauaeranga 110KV line
demand is needed in the future
The work is being done by Powerco, the
yy Refurbishing Kopu to Coroglen line
utility company that has been providing
electricity to the Coromandel since 2004. yy New line from Coroglen to Kaimarama
capable of operating 110.000 volts
“We’ve been developing and future proofing
our assets around Thames-Coromandel since yy New 66,000 volt cable from Kopu
we came into the region,” says Powerco Chief to Thames
Executive Neil Barbour.
yy Upgraded Tairua substation
“We compare how we provide electricity
yy Created secondary supply to
to our customers like building a highway,”
Coromandel Town from Thames via
says Mr Barbour. “We are building for traffic
Thames Coast Rd
levels that will occur in the next 20 - 25 years.
We see the Coromandel as an area where All this work ensures that customers around
population growth is going to take off in the the Coromandel experience fewer power
not too distant future and we need to be cuts. Back in 2007 the average customer here
prepared for that market.” experienced about six power cuts a year
totalling 33 hours without electricity.
Powerco has spent $30m upgrading the
electricity networks in Thames, Tairua, In 2013 Powerco says on average customer
Whitianga and Coromandel over the past 7 should only experience 210 minutes without
years (2005 - 2013). In order to do this they power from planned outages or power cuts.
had to develop and plan for easements to
“We have to be accountable to our
get power poles across some pretty rugged
customers and the Commerce Commission
terrain throughout the Coromandel.
about delivering on this,” says Mr Barbour.
As well as working with landowners, DoC and “Powerco is also acutely aware that a reliable
iwi it had to gain resource consents from our supply of electricity underpins economic
Council and the Regional Council. confidence and growth. It means the
difference between deciding to expand or
not and we’re committed to ensuring the
Coromandel continues to grow and prosper.”
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