FutureCoromandel - "The Coromandel will be New Zealand's most desirable place to live, work and visit" - Thames-Coromandel District Council
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FutureCoromandel Thames-Coromandel District Economic Development Action Plan 2014-2018 “The Coromandel will be New Zealand’s most desirable place to live, work and visit” www.opportunitycoromandel.co.nz
2 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Plan
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 direction 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 3
Contents
Economic development a priority for Council and community............................................................................................................. 3
Section 1: Vision and Outcomes............................................................................................................................................................................. 8
Council Outcomes............................................................................................................................................................................................................ 9
Coromandel Peninsula Blueprint Outcomes................................................................................................................................................................ 9
Relevant Coromandel Peninsula Blueprint Objectives.......................................................................................................................................... 10
New Zealand Government Business Growth Agenda................................................................................................................................................. 10
How it all fits together..................................................................................................................................................................................................... 11
Council Mission and Vision....................................................................................................................................................................................... 11
Government Strategies Coromandel Peninsula Blueprint..................................................................................................................................... 11
Council Strategies & Action Plans............................................................................................................................................................................ 11
Ten Year Plans, Annual Plan, Community Board Plans........................................................................................................................................ 11
Staff work programmes.............................................................................................................................................................................................. 11
Community Outcomes................................................................................................................................................................................................ 11
Local Government, economic development and changes to the Act........................................................................................................................ 12
Our response to the Government's call on local councils to help solve the issue of housing affordability........................................................ 13
What you’ve told us......................................................................................................................................................................................................... 14
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:........................................................................................................................................................ 14
Case Study 1: Up to ten jobs planned for new materials recovery facility at Kopu.................................................................... 16
Section 2: Our Economic Journey Underway................................................................................................................................................... 18
DestinationCoromandel ............................................................................................................................................................................................. 19
ExportCoromandel...................................................................................................................................................................................................... 19
InnovationCoromandel............................................................................................................................................................................................... 19
BusinessCoromandel................................................................................................................................................................................................... 19
TeamCoromandel........................................................................................................................................................................................................ 20
InfrastructureCoromandel.......................................................................................................................................................................................... 20
Case Study 2: Powerco Investing More into the Coromandel.............................................................................................................. 22
Section 3: FutureCoromandel - Strategic Imperatives and Targets...................................................................................................... 24
Our Economic Targets..................................................................................................................................................................................................... 26
Key Project Targets........................................................................................................................................................................................................... 26
Supporting Council Targets............................................................................................................................................................................................ 26
Case Study 3: Substantial economic benefit signalled from Hauraki Rail Trail.......................................................................... 28
4 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Plan
Section 4: Strategic Analysis.................................................................................................................................................................................... 30
Strengths........................................................................................................................................................................................................................... 31
Weaknesses....................................................................................................................................................................................................................... 32
Opportunities................................................................................................................................................................................................................... 33
Threats............................................................................................................................................................................................................................... 33
Case Study 4: Minister likes our ConsentBuilder...................................................................................................................................... 34
Section 5: Action Plan.................................................................................................................................................................................................. 36
DestinationCoromandel ................................................................................................................................................................................................. 37
Goal: We will make the Coromandel the preferred visitor destination in New Zealand................................................................................... 37
Work programme......................................................................................................................................................................................................... 37
ExportCoromandel.......................................................................................................................................................................................................... 39
Goal: 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....................................................................................................................................................................... 39
Work programme......................................................................................................................................................................................................... 39
InnovationCoromandel................................................................................................................................................................................................... 40
Goal: We will pursue innovation in our district to diversify our economy and help grow new innovation & cloud-based industries...... 40
Work programme......................................................................................................................................................................................................... 40
BusinessCoromandel....................................................................................................................................................................................................... 41
Goal: We will be known as an enabling Council for businesses to work with.................................................................................................... 41
Work programme......................................................................................................................................................................................................... 41
TeamCoromandel............................................................................................................................................................................................................. 42
Goal: We will develop strong partnerships the private sector, Iwi, communities and government agencies to
harness our collective energy to achieve mutual goals for the benefit of the Coromandel.............................................................................. 42
Work programme......................................................................................................................................................................................................... 42
StrongerCoromandel....................................................................................................................................................................................................... 44
Goal: We will build infrastructure that is identified as critical to unlock the economic prosperity of the district
and which connects us locally, nationally and globally........................................................................................................................................ 44
Work programme......................................................................................................................................................................................................... 44
Case Study 5: Coromandel Mayor champions new Great Walk.......................................................................................................... 46
Section 6: Governance................................................................................................................................................................................................ 48
Rationale for an internal EDA........................................................................................................................................................................................ 49
Governance role............................................................................................................................................................................................................... 50
Case Study 6: Procurement strategy helps local firm grow capability and jobs
www.opportunitycoromandel.co.nz 5
Section 7: Resources and action plan.................................................................................................................................................................. 54
Commercial and Economic Growth Manager............................................................................................................................................................... 55
High level job description.......................................................................................................................................................................................... 55
Business and Events Development Officer................................................................................................................................................................... 56
High level job description.......................................................................................................................................................................................... 56
2013 Action Schedules..................................................................................................................................................................................................... 56
Administration Deadlines.......................................................................................................................................................................................... 56
DestinationCoromandel............................................................................................................................................................................................. 56
ExportCoromandel...................................................................................................................................................................................................... 56
BusinessCoromandel.................................................................................................................................................................................................. 56
StrongerCoromandel .................................................................................................................................................................................................. 56
2014 Action Schedules..................................................................................................................................................................................................... 57
DestinationCoromandel............................................................................................................................................................................................. 57
ExportCoromandel...................................................................................................................................................................................................... 57
InnovationCoromandel.............................................................................................................................................................................................. 57
BusinessCoromandel.................................................................................................................................................................................................. 57
TeamCoromandel ....................................................................................................................................................................................................... 57
StrongerCoromandel .................................................................................................................................................................................................. 57
2015 Action Schedules..................................................................................................................................................................................................... 58
BusinessCoromandel.................................................................................................................................................................................................. 58
ExportCoromandel...................................................................................................................................................................................................... 58
TeamCoromandel ....................................................................................................................................................................................................... 58
StrongerCoromandel .................................................................................................................................................................................................. 58
2016 Action Schedules..................................................................................................................................................................................................... 59
InnovationCoromandel.............................................................................................................................................................................................. 59
TeamCoromandel........................................................................................................................................................................................................ 59
StrongerCoromandel................................................................................................................................................................................................... 59
2017 Action Schedules..................................................................................................................................................................................................... 59
StrongerCoromandel .................................................................................................................................................................................................. 59
2018 Action Schedules..................................................................................................................................................................................................... 59
InnovationCoromandel.............................................................................................................................................................................................. 59
StrongerCoromandel .................................................................................................................................................................................................. 59
Case Study 7: From Basics to Glamping - camping is alive and well on the Coromandel ..................................................... 60
6 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Plan
Appendix 1: The trends and numbers.................................................................................................................................................................. 62
Key tourism trends........................................................................................................................................................................................................... 62
Cruise ship trends............................................................................................................................................................................................................ 63
The Maori economy......................................................................................................................................................................................................... 64
Maori population ........................................................................................................................................................................................................ 64
The Maori at economy at a glance............................................................................................................................................................................. 64
Accounting for the 2006-2010 growth....................................................................................................................................................................... 65
Maori Science and Innovation.................................................................................................................................................................................. 65
Aquaculture growth on the Coromandel...................................................................................................................................................................... 66
Coromandel and regional numbers:......................................................................................................................................................................... 66
Forecast growth:.......................................................................................................................................................................................................... 66
The Regional Economy.................................................................................................................................................................................................... 67
The Coromandel Economy.............................................................................................................................................................................................. 68
GDP by industry.......................................................................................................................................................................................................... 68
2012/13 Percentage of GDP by Industry..................................................................................................................................................................... 69
GDP by year.................................................................................................................................................................................................................. 69
Employment by industry............................................................................................................................................................................................ 70
Employment by year................................................................................................................................................................................................... 71
Number of Businesses................................................................................................................................................................................................ 72
Unemployment and population rates...................................................................................................................................................................... 72
Appendix 2: Priority work programme, budgets and strategic alignment........................................................................................ 73
Appendix 3: Local government’s role in economic development.......................................................................................................... 80
So what is Local Government’s Contributions to Economic Growth?...................................................................................................................... 80
www.opportunitycoromandel.co.nz 7
Section 1 Vision and Outcomes
Our Vision:
“The Coromandel will be the most
desirable area of New Zealand in
which to live, work and visit”
www.opportunitycoromandel.co.nz
8 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Plan
Council Outcomes Coromandel Peninsula Blueprint
The Council has established very clear expectations in
Outcomes
terms of what it expects to achieve for the Coromandel -
we call these expectations “Council outcomes” As the region’s multi-agency strategic framework for managing
growth and sustainable development, the Coromandel Peninsula
1. A prosperous district Blueprint has also been used to set strategic direction for our
The Coromandel has a prosperous economy Economic Development Action Plan.
The Blueprint sets out four outcomes for the future development
2. A liveable district
of the Coromandel:
The Coromandel is a preferred area of NZ in which to live,
work, raise a family and enjoy a safe and satisfying life 1. Embraces its natural taonga – treasures
3. A clean and green district 2. Diverse and vibrant centres
The Coromandel Peninsula’s natural environment
provides a unique sense of place 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.
www.opportunitycoromandel.co.nz 9
Relevant Coromandel Peninsula
Blueprint Objectives
yy Coromandel Town to re-establish itself as a key sea
transport link with Auckland
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”. Export
Our economic development action plan has been formulated to Markets
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” Infrastructure Innovation
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
http://www.mbie.govt.nz/what-we-do/business-growth-agenda Natural
Skilled
and Safe
for more information about the Government’s strategies. Resources
Workplaces
Figure 1: The Thames-Coromandel Economic Development Action Plan is
aligned with the export, innovation and infrastructure components of the Capital Markets
Government’s Business Growth Agenda
10 FutureCoromandel - 2014 - 18 Economic Development Five Year Action PlanCouncil Mission
and Vision
Government Strategies
Coromandel Peninsula
How it all fits together Blueprint
The Thames-Coromandel District Economic Development Action Plan is just
that, an action plan, and as the diagram below illustrates is aligned with our
district’s and Government’s strategic direction, bringing alignment to our Council Strategies &
economic development programme to ensure maximum synergies with
other agency and Council department work programmes.
Action Plans
Figure 2: How our strategies, plans and work programmes deliver a better future for
the Coromandel
Ten Year Plans, Annual
Plan, Community Board
Plans
Staff work programmes
Community Outcomes
www.opportunitycoromandel.co.nz 11Local 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.
12 FutureCoromandel - 2014 - 18 Economic Development Five Year Action PlanOur 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.
www.opportunitycoromandel.co.nz 13What 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 us to do “Do our business better as a district Council”
business on the Coromandel”
“Establish account management of new business
“Waikato ‘Economic Development Agency’ structures enquiry and trouble-shoot resource management
in the Waikato make no sense to the private sector” issues”
“Get more people living here and visiting here more “Reduce compliance and rates costs”
often = more jobs, greater visitor numbers”
“Build strong partnerships with business
“Ensure high-speed broadband was available and associations and key private sector employers”
that new housing developments did not have wait for
“space” at the exchange to encourage more visits by
holiday home owners for long weekends, commuters
and IT boutique businesses operating “in the cloud”
“Ensure the District Plan is enabling sensible
development and the zoning was aligned with
existing structure and spatial plans”
“Focus on transport corridors to effectively make it
easier for “Aucklanders” to get to the Coromandel - by
sea and road”
“Focus on tourism and aquaculture infrastructure
needs”
“Target our holiday home owners to spend more time “Facilitate private sector collaborations”
on the Coromandel and look at higher conversion to
permanent population”
“Promote our district’s economic opportunities”
“Focus on key anchor projects - Coromandel Walks,
Coromandel Wharf and Auckland Fast Ferry”
* Comments taken from the TCDC Economic Development Survey 2013
14 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Planwww.opportunitycoromandel.co.nz 15
Case
Study 1:
Up to ten jobs planned for new materials recovery
facility at Kopu
A brand new materials recovery facility will be established in privileged to be working in an area that is home to me and our very
Kopu - with up to 10 new jobs - following the award of Smart large whanau,” he said.
Environmental Ltd as the winning contractor for joint collection of
“Smart Environmental has a number of plans to contribute to the
solid waste in Thames-Coromandel, Matamata-Piako and Hauraki.
clean green and beautiful area that is the Thames Coromandel.” We
Owned by “local” Thames-born Grahame Christian, Smart will be undertaking the construction of a new materials recycling
Environmental is New Zealand’s largest privately owned Waste and facility (MRF) in Kopu at the Carter Holt Harvey site and this will
Recycling Company and won the contract over two other tenders create up to 10 new jobs,” he said. “The new wheelie bins and crates
received following a call last year for expressions of interest. will ensure that even more recyclables are collected and processed
and are not landfilled.
The new materials recovery facility (MRF) will be established at the
Carter Holt Harvey site on Ngati Maru Highway and will include an “We are absolutely delighted to have won this contract back again,
educational facility and new machinery to further the district’s goal it has been a nervous time for all of us and in particular for those
of waste minimisation under a joint Council Waste Management whose jobs were affected. Certainty of employment and keeping
and Minimisation Plan (WMMP). together in what has been a high performing team for the past 16
years means a huge amount to all of us.
The facility will be built at no cost to ratepayers, it will be owned
and operated by Smart Environmental Ltd and will not preclude “There is no doubt that our long standing relationship with Council
other community-based providers from establishing waste and the Community has served us all well and we are grateful for a
reduction initiatives with other materials not economically viable further 10 year term.”
for Smart Environmental.
Alongside Smart Environmental, all councils will continue to
Among other improvements already announced as part of the new stimulate community enterprise in the field of waste reduction.
contract is a fortnightly wheelie bin collection for all recyclables “The contract makes room for other providers in our community if
other than glass, with the green bin used for glass only in order to they have practical and economically viable initiatives for diverting
reduce contamination of recyclables by broken glass. waste,” says TCDC Solid Waste & Asset Database Manager Craig
Goodwin. “We already support numerous community-based
Mr Christian - the company’s Managing Director - owns a
initiatives that educate, reduce waste to landfill and provide
property in Whangapoua, and says the joint contract award has
employment in our district, and this will continue,” he says. “This is
provided certainty for locally employed members of the Smart
an industry that has experienced huge change and improvement
Environmental team and leads to this exciting new project and
over recent years and we expect there’ll be more opportunity in
further job creation for a place he loves.
future for reliable, established community organisations that have
“As a local, born in Thames where my mother was also born and an interest in the field of waste reduction and can deliver initiatives
a home at Whangapoua where my father was born, I feel so alongside Smart Environmental.”
16 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Planwww.opportunitycoromandel.co.nz 17
Section 2 Our Economic
Journey Underway
18 FutureCoromandel - 2014 - 18 Economic Development Five Year Action PlanThe 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 InnovationCoromandel
yy Event Strategy: A new Events Strategy has been approved yy IT Cluster & Software Development: We procure
with new funding sources to create more off-peak events many of our software and IT services locally, which is
www.tcdc.govt.nz/eventstrategy creating real jobs and real opportunity for the Peninsula
www.tcdc.govt.nz/business
yy Local Events: We’ve established a dedicated community
board events funding and criteria yy IT Cluster: We’re selling our locally developed Online
Submissions System to other councils and looking
yy Tourism: Restructured Destination Coromandel (DC) to
to sell our ConsentBuilder online building consent
focus on delivering more effective and successful visitor
portal and integrated processing system - refer to
marketing
www.tcdc.govt.nz/business for more information
yy Tourism: More funding has been invested into Destination
Coromandel and our Visitor Information Centres
BusinessCoromandel
yy Future Growth: Completed the Marine Precinct Plan for
Whangamata yy Cutting The Red Tape: We’ve got staff set up as Business
yy Freedom Camping: Freedom camping has been Brokers to ‘account manage’ new business start-ups
opened up on the Coromandel bringing new business to through Council's permits, licences and consents processes
Coromandel retailers yy Cutting The Red Tape: We’ve introduced a more proactive
yy Closer Partnerships: We’re working with Destination and flexible Development Contributions Policy and
Coromandel and our Visitor Information Centres on joint reviewing our District Plan
promotions and projects (e.g. the annual Summertimes' yy Funding Grants: We’ve introduced Business Grants to help
campaigns www.tcdc.govt.nz/summertimes) new businesses to the Coromandel create employment
yy Investment Opportunities: A Property Strategy has been
ExportCoromandel completed and is now being implemented
yy New Funding Sources For Local Economic Development:
yy New industry Support: We’re marketing the tender
We’ve established a new “Local ED” activity in the 2012
opportunity for the new fish farming zone in the Hauraki
Ten Year Plan for use to support local E.D. initiatives when
Gulf www.tcdc.govt.nz/aquaopportunity
required
yy Aquaculture: Sugarloaf has been selected by the Council as
yy Joint-Marketing: We’re marketing business opportunities
the preferred location for aquaculture wharf expansion
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
www.opportunitycoromandel.co.nz 19TeamCoromandel
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
20 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Planwww.opportunitycoromandel.co.nz 21
Case
Study 2:
Powerco Investing More into the Coromandel
More than $30m of electricity upgrades and construction work Some of the projects completed in the past five years include:
is expected to be invested into the Coromandel in the next four
Rebuilding the Whitianga substation
years to cater to future population growth.
Refurbishing Whitianga to Coromandel 66,000 volt line. This
Almost $10m of this work will be done in the 2013/2014 financial
means there are two different power lines running to Whitianga.
year. It includes: These lines have the capacity to be increased to 110KV if the
demand is needed in the future.
$2.2m Reconducting work between Coroglen to Kaimarama
Refurbishing Kopu to Coroglen line
$2.75m Upgrading the Thames Substation
New line from Coroglen to Kaimarama capable of operating
$4.4m Constructing a new Kopu to Kaueranga 110KV line
110.000 volts
The work is being done by Powerco, the utility company that has
New 66,000 volt cable from Kopu to Thames
been providing electricity to the Coromandel since 2004.
Upgraded Tairua substation
“We’ve been developing and future proofing our assets around
Thames-Coromandel since we came into the region,” says Created secondary supply to Coromandel Town from Thames via
Powerco Chief Executive Neil Barbour. Thames Coast Rd.
“We compare how we provide electricity to our customers All this work ensures that customers around the Coromandel
like building a highway,” says Mr Barbour. “We are building for experience fewer power cuts. Back in 2007 the average customer
traffic levels that will occur in the next 20 - 25 years. We see the here experienced about six power cuts a year totalling 33 hours
Coromandel as an area where population growth is going to take without electricity.
off in the not too distant future and we need to be prepared for
In 2013 Powerco says on average customers should only
that market.”
experience 210 minutes without power from planned outages or
Powerco has spent $30m upgrading the electricity networks in power cuts.
Thames, Tairua, Whitianga and Coromandel over the past 7 years
“We have to be accountable to our customers and the Commerce
(2005 - 2013). In order to do this they had to develop and plan for
Commission about delivering on this,” says Mr Barbour. “Powerco
easements to get power poles across some pretty rugged terrain
is also acutely aware that a reliable supply of electricity underpins
throughout the Coromandel.
economic confidence and growth. It means the difference
As well as working with landowners, DoC and iwi it had to gain between deciding to expand or not and we're committed to
resource consents from our Council and the Regional Council. ensuring the Coromandel continues to grow and prosper."
22 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Planwww.opportunitycoromandel.co.nz 23
FutureCoromandel -
Section 3 Strategic Imperatives
and Targets
24 FutureCoromandel - 2014 - 18 Economic Development Five Year Action PlanTo deliver a FutureCoromandel; a Coromandel which is the most desirable place to live, work
and visit, our Economic Development Action Plan focuses on six strategic imperatives which will
drive our action plan and work programme:
1. DestinationCoromandel
We will make the Coromandel the preferred visitor destination in New Zealand
2. ExportCoromandel
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
3. InnovationCoromandel
We will pursue innovation in our district to diversify our economy and to help grow new innovation-based industries
4. BusinessCoromandel
We will be known as an enabling Council for businesses to work with
5. TeamCoromandel
We will develop strong partnerships with the private sector, Iwi, communities and government agencies to harness our
collective energy to achieve mutual goals for the benefit of the Coromandel
6. StrongerCoromandel
We will build infrastructure that is identified as critical to unlock the economic prosperity of the district and which
connects us locally, nationally and globally
www.opportunitycoromandel.co.nz 25Our 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
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
26 FutureCoromandel - 2014 - 18 Economic Development Five Year Action Planwww.opportunitycoromandel.co.nz 27
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 as part of interim research by the University of Waikato earned above or significantly
above the country’s average income, a highly sought after market anywhere in the world.
With thousands of riders expected in the coming few years the report gives encouraging signs of a significant economic impact from the
trail, says TCDC Communications and Economic Development Manager Ben Day. “An economic impact like this will create meaningful, real
jobs, over time.”
The research was gathered since September last year and is an intercept survey, with interviewers stationed on the trail collecting
information from riders on randomly selected days.
A representative sample of more than 200 people showed a total expenditure of almost $24,000 giving a mean expenditure of $108.25
each, the draft report shows.
It showed 133 of those interviewed were aged between 46 and 65 years. Some 31 per cent of a representative sample of riders earned
above average income and 14.5 per cent earned significantly above average income.
“It confirms our prediction of the target market that most would be of middle age to a slightly older age group. Globally that is a very
attractive type of visitor to reach, which is why cycleways are great. They offer something active to baby boomers, who generally seek
nothing too arduous or adventurous, and cycleways fit into that.”
Auckland, at 23.7 per cent, drew the most visitors to the trail followed by visitors from Hamilton at 14.5 per cent and, closer to home, Te
Aroha who made up just fewer than 11 per cent and Tauranga 9.1 per cent of those interviewed on the trail.
Good exercise, fun with friends and family, a sense of freedom and a good way to enjoy landscapes were the reasons given by cyclists
interviewed on the Hauraki Rail Trail. The trail takes riders through farmland, over historic bridges and through tunnels and alongside rivers
in a serene setting with local eateries, wineries and accommodation providers along the way.
“The research confirms they’re out there with family and friends to enjoy the landscape. The caveat is they want to cycle in good weather.”
Almost three quarters of cyclists had stayed at their own home prior to their day of cycling but 4.5 per cent of those interviewed had
chosen to stay a night prior to their ride in motel accommodation. After cycling the trail, eight per cent of those interviewed had booked
into a motel for a night. Other accommodation included hotels, farm stays, backpackers, holiday homes and friends’ homes.
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