THE CANTERBURY REPORT - Canterbury Development Corporation

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THE CANTERBURY REPORT - Canterbury Development Corporation
THE
CANTERBURY
REPORT
PREPARED BY THE CANTERBURY DEVELOPMENT CORPORATION | AUTUMN 2014
THE CANTERBURY REPORT - Canterbury Development Corporation
FUN
FA C T S                                           3.2%                                                        1IN8

       A S NA PS H OT OF                                                                 Employed adults in Greater
                                               Was the unemployment rate in              Christchurch worked in the
       Canterbury                              Canterbury for the December
                                               quarter of 2013 (Census 2013)
                                                                                         Construction industry in 2013
                                                                                         (Census 2013)
                                               Source: Statistics New Zealand            Source: Statistics New Zealand

                                          10,673
                                                                                                             Of the total number
                                                                                                             of hectares that
                  GATE A1                                                                                    grow potatoes in
                                                                                                             New Zealand are
                  ARRIVALS                 Permanent and long-term migrant                                   in Canterbury (as
                                                                                                             at June 2012)
                                           arrivals from overseas to Canterbury
                                           in 2013 (net 4,534) – up from 8,526
                                           the previous year
                                                                                         49.7%               Source: Statistics
                                                                                                             New Zealand
                                           Source: Statistics New Zealand

                                                     5,982
                                           International students in Canterbury
                                           between 1 January and 31 August 2013
                                                                                          52.3%
                                                                                          Of 15 to 29-year-olds in Greater
                                           – up 4.9% from the previous year               Christchurch are men (Census 2013)

         942
                                           Source: Education Counts                       Source: Statistics New Zealand

People who were born in India have                                                Employees working in Aircraft Repair
moved to Greater Christchurch since
March 2011                                                    1,100               and Maintenance in Christchurch City in
                                                                                  February 2013 – 30% of the national total
Source: Statistics New Zealand                                                    Source: Statistics New Zealand

10,578
People in Greater Christchurch cycled to
work on Census day (Tuesday 5 March 2013)
Source: Statistics New Zealand                                                                    39.2%

97
                    Factories and industrial
                    buildings were consented                                             Of Greater Christchurch residents born
                    in Canterbury in 2013                                                in Ireland worked in the Construction
                    Source: Statistics                                                   industry in 2013 (Census 2013)
                    New Zealand                                                          Source: Statistics New Zealand
THE CANTERBURY REPORT - Canterbury Development Corporation
3

THE MACRO VIEW

Welcome to the third                                               as the best place for business, work,                         and capitalise on the unique post-
                                                                   study and living in Australasia. There’s                      earthquake environment. There are
issue of The Canterbury                                            no doubt that the rebuild is driving                          plenty of examples of innovation, with
Report, a Canterbury                                               many aspects of the economy, and                              risk-takers bringing original ideas,
Development Corporation                                            that’s great news. Recently-released                          techniques or technology into this
(CDC) publication                                                  statistics show Canterbury was the                            market. Smith Cranes, who feature in
                                                                   fastest-growing regional economy in                           this Canterbury Report, are one such case.
designed to give the                                               the year to March 2013.
business community                                                                                                               While it’s wonderful that Canterbury is
                                                                   Unemployment is now just above three                          enjoying ‘rock star’ economy status, it
a comprehensive                                                    percent, and history tells us it’s difficult                  also has its risks and challenges. There
overview of the state of                                           to get it much lower than that. This has                      is a danger that, long-term, some
the region’s economy.                                              many positive spin-offs: for example,                         industries will be ‘cannibalised’ as
                                                                   excellent employment opportunities                            workers are persuaded to switch sectors
At CDC we remain fully focused on our                              for both skilled and unskilled labour.                        for lucrative rebuild salaries. There is
vision for the economy of Christchurch:                            This leads to increased migration,                            also the possibility that young people
that in 2031 Christchurch is recognised                            which means new skills, experience                            are drawn out of education pathways for
                                                                   and cultures coming into the region.                          high-paying unskilled labour. And there’s
                                                                   Students in Canterbury can now get                            a risk that we over-cook the housing
                                                                   a part-time job in hospitality again –                        market, driven by short-term demand.
                                                                   thanks to the number of bars, cafes and                       These issues need visibility and careful
                                                                   restaurants popping up – or pick up a                         consideration because the decisions we
                                                                   hammer and work on a construction                             make today shape the future of our city.
                                                                   site for 20 hours a week, to pay for their
                                                                   studies. This will help attract national
                                                                   and international enrolments.

                                                                   Of course, we don’t want to become
                                                                   typecast as a ‘construction city.’
                                                                   The ICT, manufacturing, hospitality,
                                                                   retail and healthcare sectors are also
                                                                                                                                 Tom Hooper
                                                                   booming. Many businesses are thinking
                                                                   outside the square to make the most                           Chief Executive — Canterbury
                                                                   of new or different opportunities                             Development Corporation (CDC)

INDEX

The Macro View������������������������������������������������������������������������ 3         Christchurch International Airport������������������������������������������� 12

State of Play������������������������������������������������������������������������������ 4    Rebuild in The Region������������������������������������������������������������ 14

Regional Innovation������������������������������������������������������������������ 6          Smarter Consenting ��������������������������������������������������������������� 16

Employment Mapping�������������������������������������������������������������� 8               Technology and the Primary Sector���������������������������������������� 17

Help4U�������������������������������������������������������������������������������������� 9   Fast Broadband���������������������������������������������������������������������� 18

CEDS Achievements��������������������������������������������������������������� 10

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STATE OF PLAY

Economic Update                              Professional, Scientific and Technical      Performance of Manufacturing
                                             Services (which includes some of the
                                                                                         The BNZ - BusinessNZ Performance of
Economic activity in Christchurch and        sectors supporting the rebuild, such as
                                                                                         Manufacturing Index continues to show
Canterbury continues to show strength,       architects), also grew strongly, with an
                                                                                         strength in Canterbury. The index was at
with output high and growing and very        estimated 8.2 percent growth.
                                                                                         53.0 and 53.7 in January and February,
low levels of unemployment. This activity
                                             Other sectors to experience                 respectively. Any value over 50 indicates
is also reflected in strong retail trade,
                                             strong growth include Retail Trade          expansion. This sector has significant
manufacturing performance and building
                                             (8.2 percent) and Accommodation, Cafes      potential to gain from the rebuild,
activity. Growth rates themselves are
                                             and Restaurants (7.5 percent). This         through providing goods and materials.
beginning to show signs that the rebuild
                                             reflects the recovery in the hospitality
is reaching its peak, or the maximum
                                             sector, confidence in the economy and
output possible given the current level                                                  Labour Force
                                             the fact that residents are starting to
of resources. This high level is likely to
                                             spend money on these areas again. The       The labour force in Canterbury
peak and hold for the next few years as
                                             Healthcare and Social Assistance sector     continued to improve in the December
rebuilds and repairs continue.
                                             also continues to improve.                  quarter. There was a significant
The regional boom has a flow-on impact                                                   reduction in the unemployment rate,
on the whole economy. The Reserve                                                        from 4.2 percent in the September
                                             Value of Building Work
Bank of New Zealand has already tried                                                    quarter to 3.4 percent (with Christchurch
to slow growth with one increase in the      The value of building work fell back        at 3.2 percent). There was an increase in
Official Cash Rate (OCR). Further upward     slightly in the December 2013 quarter,      the number of people employed in the
moves are expected to help keep prices       but remains at a very high level. During    region, up from an estimated 323,800 to
– in particular house prices – in check      the quarter, around $809 million worth      345,000, with a 14,500 increase in the
throughout this vibrant period for the       of building work was done in the region,    working-age population. Information,
local and national economies.                including $484 million of residential       Media and Telecommunications
                                             buildings (compared to $397 million total   and Construction saw the biggest
A real risk factor going forward, which
                                             on average in 2010).                        increases in employment between the
could hamper growth, is accessing
                                                                                         December 2012 and 2013 quarters.
appropriately-skilled labour. A very low     The volume of building work should
                                                                                         The participation rate also increased, to
unemployment rate means available            continue to remain high for the
                                                                                         71.5 percent (from 69.7 percent). More
workers in the city are becoming             foreseeable future, with building
                                                                                         people are confident about the labour
scarcer, which is beginning to push up       consents in the city and region tracking
                                                                                         force situation and are either working
wages throughout the city. Migration         well above average for both residential
                                                                                         or actively seeking work. However, a
will be important in meeting labour          and non-residential building.
                                                                                         continuing low unemployment rate will
requirements, and the positive migration
                                                                                         make sourcing appropriate labour more
trends are a good sign.
                                             Retail Trade                                difficult.

                                             Retail Trade in Canterbury remains
Gross Domestic Product (GDP)
                                             strong. This reflects both an increased     Migration
It is estimated (by Infometrics Ltd) that    confidence in the regional economy,
                                                                                         Migration continues to remain strong for
Gross Domestic Product in Christchurch       as well as increased spending on
                                                                                         the region and city. In February 2014,
city increased by 6.6 percent in the year    replacements and new purchases
                                                                                         there were a net 640 permanent and
ending December 2013. This is a small        following insurance payments.
                                                                                         long-term international residents arriving
reduction in the annual growth rate,         Seasonally-adjusted retail sales in
                                                                                         in Christchurch and 720 in Canterbury.
but is still very strong and comes off an    Canterbury increased by 2.0 percent in
                                                                                         This brings the previous 12-month totals
already very high level of GDP.              the December 2013 quarter, from the
                                                                                         to 4,501 and 5,088 people, respectively.
                                             September 2013 quarter, compared to
The Construction sector experienced the                                                  These new residents will be providing
                                             an increase of only 1.2 percent across
biggest 2012-2013 increase, growing by                                                   valuable labour in Construction and
                                             the country.
a further estimated 15.7 percent.                                                        other sectors experiencing skill shortages.

T HE CANTERBU RY R E PO R T
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Gross Domestic Product                                                                                   Value of Building Work in Canterbury
(Annual average percent change)                                                                          (Quarterly value of work put in place, $000s)

 10.0%                                                                                                    900,000
  8.0%                                                                                                    800,000                                All buildings: Canterbury
                                                         New Zealand                                      700,000
  6.0%                                                                                                                                           Residential buildings: Canterbury
                                                         Christchurch                                     600,000
  4.0%
                                                                                                          500,000
  2.0%                                                                                                    400,000
  0.0%                                                                                                    300,000
 -2.0%                                                                                                    200,000
 -4.0%                                                                                                    100,000
                                                                                                                0
 -6.0%

                                                                                                                          2004 Q1
                                                                                                                          2004 Q3
                                                                                                                          2005 Q1
                                                                                                                          2005 Q3
                                                                                                                          2006 Q1
                                                                                                                          2006 Q3
                                                                                                                          2007 Q1
                                                                                                                          2007 Q3
                                                                                                                          2008 Q1
                                                                                                                          2008 Q3
                                                                                                                          2009 Q1
                                                                                                                          2009 Q3
                                                                                                                          2010 Q1
                                                                                                                          2010 Q3
                                                                                                                          2011 Q1
                                                                                                                          2011 Q3
                                                                                                                          2012 Q1
                                                                                                                          2012 Q3
                                                                                                                          2013 Q1
                                                                                                                          2013 Q3
          2007 Q1
          2007 Q3
          2007 Q4
          2008 Q1
          2008 Q3
          2008 Q4
          2009 Q1
          2009 Q3
          2009 Q4
          2010 Q1
          2010 Q3
          2010 Q4
          2011 Q1
          2011 Q3
          2011 Q4
          2012 Q1
          2012 Q3
          2012 Q4
          2013 Q1
          2013 Q3
          2013 Q4

Source: Infometrics Ltd, CDC                                                                             Source: Statistics New Zealand, CDC

Retail Trade                                                                                             Performance of Manufacturing Index
(Change in seasonally-adjusted retail sales from previous period)                                        (value >50 means expansion,
THE CANTERBURY REPORT - Canterbury Development Corporation
6

REGIONAL INNOVATION

Smith Cranes giving the                       Regional Innovation System), said the       do piling work is that all the equipment is
                                              fact that this innovation came from an      underneath and the house is only about
rebuild a major lift.                         existing company as part of the recovery    a metre off the ground. Guys have to crawl
Following the February 2011 earthquake,       really impressed the judging panel. In      underneath and around the equipment.
Smith Crane and Construction Limited          addition, Cairns said, the technology has
                                                                                          We needed something outside the house
(Smith Cranes) wanted to help with            high export potential and intellectual
                                                                                          so it was all clear underneath and also
the rebuild of the city. With many            property that is able to be protected.
                                                                                          jacked up higher.
years’ experience relocating houses,          The Canterbury Report talked to
Smith Cranes quickly realised that the                                                    We also solved the problem of using
                                              Smith Cranes Managing Director Tim
traditional way of jacking up a house for                                                 long beams in constrained areas. By
                                              Smith about the technology his company
relocation would not be suitable for the                                                  making beams out of little pieces, guys
                                              has developed and how they got it into
scale of repairs needed in Christchurch.                                                  can carry the pieces by hand and don’t
                                              the marketplace.
Instead, the company set about using                                                      need all the space. Boundary fences are
its in-house engineers and knowledge                                                      no longer a problem.”
of the crane industry to develop a new        What is the technology behind
technology to lift a house three metres       the innovation?
                                                                                          How hard was it to get the
off its foundations.                          Smith: “In conventional lifting you         technology into the industry?
Smith Cranes’ idea recently won the           normally jack the houses up on to a
                                                                                          Smith: “We did a lot of research and
CDC Innovation/Technology Award at            trailer to transport them.
                                                                                          development in-house and created the
the 2013 Champion Canterbury Business         That’s great for when you are relocating    first jack after numerous testing without a
Awards. Panel judge Jamie Cairns, who         the house, but the problem you have         contract. We had brought in a test house
is General Manager of CRIS (Canterbury        when you come to repair foundations or      to make sure that we could do the job.

A house being lifted with Smith Cranes’ synchronised jacking plant

T HE CANTERBU RY R E PO R T
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We approached insurance companies              Were there many changes                     for our technology. It has been good
and told them about our technology, but        between the first design and                to get recognition for the technology
they were all a bit sceptical initially. One   the latest one built?                       and the in-house engineering team we
company was willing to give us a trial         Smith: “Not really; we made a few           have created. It has helped reinforce our
job, which was a complete success. Since       modifications at the start where we had     product development processes.
then we have done about 40 houses. It          a bit of deflection where the trusses       We had an enquiry from the United
took about six months to develop the           dipped a little bit, so we put in a         States following Hurricane Sandy, but
technology and then about another six          pre-camber before the weight of the         that hasn’t been followed through as we
months to get the first job.”                  house. We didn’t want to make the           were struggling to keep up with the jobs
                                               trusses too heavy though.”                  in Christchurch. We needed to focus
How do you prepare for the increase                                                        on the product and doing what we are
in demand?                                                                                 good at here.”
                                               Finally, what has winning the CDC
Smith: “We have now built five to              Innovation/Technology Award at the
keep up with demand. It is about a             2013 Champion Canterbury Business
                                               Awards meant for the business?
month lead time so we can develop
them as we need in our own                     Smith: “It has increased the amount of
engineering workshop.”                         publicity for our technology; it has also
                                               helped us with an increase in referrals

                                                                                                  2014
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EMPLOYMENT MAPPING

New online tool will                           chosen to provide the best value to the       reasonably comprehensive, capturing
                                               widest number of potential users. ECan        all employing units and enterprises with
paint a picture of                             and the local councils in the region are      GST turnover greater than $30,000 a
evolving commercial                            committed to providing the Canterbury         year. The information presented in the
sector.                                        Maps information to the public for the        maps is scaled to Statistics New Zealand
                                               long term. The maps are published             Census Area Units. The maps give an
In the early phases of earthquake              openly, so can be used by anyone.             annual snapshot for each year from 2000.
recovery planning, Canterbury
Development Corporation (CDC)                  These employment maps are being               To view the employment maps, visit
and Canterbury Earthquake Recovery             used to monitor changes in employment         www.canterburymaps.govt.nz/Apps/
Authority (CERA) worked together to            patterns, and in particular as an indicator   CanterburyEmploymentEstimates
investigate the effect of the Canterbury       of earthquake recovery. The monitoring
earthquakes on the Christchurch                of this information can identify trends in
economy. In order to understand the            business location choices as commercial
geographic impacts, a number of data           property is repaired and rebuilt and the
sources were analysed to produce maps          city transitions to a new, more settled,
showing change in the distribution of          urban form. It will provide insight into
economic activity.                             the speed of transition as well as the
                                               distribution patterns of businesses as
Most of the data sources investigated          the city evolves. Of course, only time
had significant limitations, costs or          will tell which commercial developments
interpretation difficulties. One of the        are successful at attracting businesses
data sources used was employment               that suffered dislocation as a result
information collected by Statistics New        of earthquake-damaged premises.
Zealand. Of all the information analysed,      However, this tool will provide us with
this data stood out as providing significant   a good picture of how the commercial
benefits if incorporated into CDC’s regular    aspects of the city are evolving.
economic monitoring programme.
                                               The tool provides employment
Working with Environment Canterbury            estimates based on the Statistics New
(ECan), the employment map is now              Zealand Longitudinal Business Frame
hosted within the online mapping tool,         survey, which is collected each February
‘Canterbury Maps’ (www.canterburymaps.         by Statistics New Zealand and reported
govt.nz). This partnership approach was        in October. The Business Frame is

Screen shots taken from ‘Canterbury Maps’

T HE CANTERBU RY R E PO R T
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HELP4U

Growing to an                                Expect the unexpected – adapt
                                             and respond
international business
                                             “Pre-earthquakes, everything was tracking
... with some help along                     to plan. We were growing, had two
the way.                                     full-time employees and a paid advisory
                                             board. Then everything changed.
Kay Poulsen has learned a lot on the
roller-coaster business start-up journey.    We lost our offices and for six months
What started as an idea to help people       volunteered alongside the Student
better navigate the health system has        Volunteer Army and Red Cross, using
turned into a business, ready to go          our database to match displaced
global. She now has five full-time staff     patients with their health service
and a professional advisory board,           providers. Nurse Maude, meanwhile,
and revenue has grown 100 percent            tested our software under licence.
on average year-on-year for the past         This stress-testing demonstrated how
five years.                                  productive and reliable Help4U’s Aesop
                                             software really was and gave me clarity;
Poulsen shares some of her key
                                             this is what I was destined to do and it
learnings to encourage other                                                               Help4U Managing Director Kay Poulsen
                                             had global potential.”
entrepreneurs to take advantage
of the business support available.                                                         white papers published and we have
                                             Be open to, and invest in, good advice        received international recognition, most
                                                                                           recently in the Ageing Asia Investment
Turn your idea into a business plan          “In late 2011, Nurse Maude put out a
                                                                                           Forum: 2014 Eldercare Innovation Awards.
                                             tender for a system which would be 10
“I was working in the health sector so
                                             times the scale of our current database       My advice: Be open to advice, even if
knew the industry, but not how to turn
                                             and system. Intimidating for a small          it seems scary and hard. Investing in
my idea into an actual business. I did
                                             company with no tender experience! CDC        good quality coaching and advice is
market research during a part-time
                                             referred us to a roundtable of business       just that: an investment. You have to
Masters of Business Administration
                                             experts (a service now called ‘Amplifier’).   follow through and do the work to get
(MBA), and developed a pilot service
                                             This group supported discussions with our     the value.”
during Canterbury Development
                                             business banking manager to establish
Corporation’s (CDC) New Zealand Trade                                                      You may be eligible for up to 50
                                             what financial resources we needed to
and Enterprise (NZTE)-funded High-Tech                                                     percent co-funding for business
                                             deliver on the tender.
Launch Programme (then New Zealand’s                                                       capability training or coaching under
leading technology start-up programme)       Late 2012, we had won the tender! We          the Regional Business Partnership.
in 2006.                                     appointed a new advisory board – using        To find out what business support CDC
                                             a formal recruitment process – to             can help you with, phone 03 379 5575
This helped me nail our Unique Selling
                                             support our global ambitions, challenge       or email cdc@cdc.org.nz.
Proposition (USP); how to communicate
                                             me, and had the right fit with the            For more information about CDC,
it (the ‘Elevator Pitch’); and build
                                             company and each other.”                      visit www.cdc.org.nz
a realistic business plan. Over the
following two years, we refined our
service and got our first customers on       Enjoy the journey – there WILL be
board. In June 2009, I took the plunge to    ups and downs
work in the business full-time and take it
                                             “Our health navigation services and
to the next level. Deep breath . . . ”
                                             products have now been demonstrated
                                             in New Zealand and we have the
                                             company structure to support our growth
                                             plans. It certainly helped to have our

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CEDS ACHIEVEMENTS

      Christchurch Economic Development Strategy (CEDS) was launched in April 2013. It details all of the economic
     development projects in the city and their lead agencies. The CDC website (www.cdc.org.nz) is updated quarterly
               with progress reports. A summary of project updates to December 2013 is provided below.

‘The Big 5’ GDP Game Changers

MAXIMISING EARTHQUAKE           EFFECTIVE WATER           IMPROVING PRODUCTIVITY        SUCCESSFUL CENTRAL        INCREASED IMPORT & EXPORT
RECOVERY OPPORTUNITIES       RESOURCE MANAGEMENT            THROUGH INNOVATION         CITY DESIGN AND BUILD        DISTRIBUTION NETWORKS

  Achievements
                                                                                                                                  LEAD
  PRIORITY   ACHIEVEMENT
                                                                                                                                 AGENCY

             Christchurch City Council adopted the Edgeware Village and Ferry Road Master Plans in December 2013.
                                                                                                                                  CCC
             Seven suburban centre master plans have now been adopted.

             Lyttelton Port has reclaimed 4.7ha of the targeted 10ha to use for critical port infrastructure. At a time when
             the Lyttelton Port is working to address capacity constraints in the container terminal, the reclamation is now      LPC
             being utilised to support the terminal.

             A specific China engagement strategy for the Core Cities Network was endorsed by the Metro Mayoral Forum.           LGNZ

             To date, the 10 Canterbury Water Management Strategy Zone Committees have approved more than $2.6m
                                                                                                                                 ECAN
             of environmental restoration projects.

             The Hurunui-Waiau Regional Plan was made operative in December and decisions on the proposed
             Land and Water Regional Plan were notified. These plans fulfil statutory requirements to put in place               ECAN
             environmental limits and address over-allocation.

             As at 30 November the Crown had purchase agreements in place for 60.5 percent of the land required for
             the city’s Anchor Projects. This includes the Bus Interchange (99%); Convention Centre Precinct (73.3%); Top         CERA
             of East Frame (99.8%); Central Library (74.1%); and the Justice and Emergency Services Precinct (92.2%).

  ECONOMIC UPDATE

  A bi-annual update on the economy of Christchurch, the 74 projects in the economic
  development strategy, along with some economic forecasts from the CDC team.

  Details: 8am, Tuesday 27 May 2014. For more information email: samantha.sellars@cdc.org.nz

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11

Keeping The City Competitive

                                                  SUPPORTING                             MAKING IT EASIER
            WORKFORCE                                                                                                          INVESTMENT VEHICLES
                                                  INNOVATION                             TO DO BUSINESS

                                                  CONNECTIONS &                                                                BUSINESS
            INFRASTRUCTURE                                                               SECTOR DEVELOPMENT
                                                  BUSINESS NETWORKS                                                            DEVELOPMENT

 Achievements
                                                                                                                                            LEAD
 PRIORITY   ACHIEVEMENT
                                                                                                                                           AGENCY

            Cabinet has agreed to provide capital funding of $18.9m to CPIT to expand its trade training facilities, with payment to be
                                                                                                                                             TEC
            made in two tranches of $9.45m. The first tranche payment was received in early December.
            The southern arm of the Health Hub is operational, serving both the Canterbury District Health Board (CDHB) and
                                                                                                                                            CDHB
            Canterbury industry involved in the Health sector.
            Sensing City’s second pilot project, launched in Christchurch in December 2013 by Ministers Joyce and Brownlee, is a
                                                                                                                                           SENSING
            Health Informatics project that will use commercially available, easy to deploy and relatively low-cost technology to create     CITY
            more granular environmental and individual health data than is currently available.
                                                                                                                                           MBIE &
            A business case for the pilot plant for New Zealand Food Innovation South Island has been submitted to MBIE.                    CDC
            The Council’s Director of Building Control and City Rebuild Peter Sparrow has taken up his role, along with the
                                                                                                                                             CCC
            appointment of six Unit Managers who oversee a new structure for the Building Control Group.
            A group of representatives from the six largest councils in New Zealand (including Christchurch) has produced a set of
                                                                                                                                            LGNZ
            Business Friendly Guidelines. The Guidelines will be launched at the next Metro Mayoral Forum.
            Consent has been granted subject to conditions for the Southern Motorway Stage 2, to extend the Motorway to (join
                                                                                                                                            NZTA
            State Highway 1) just south of Templeton and four-lane the State Highway to Rolleston.
            The Land Use Recovery Plan (LURP) has been finalised and came into effect in December 2013. The Plan amends the
            Regional Policy Statement to describe the priority development areas over the next 10-15 years. It also describes the key
                                                                                                                                            ECAN
            infrastructure investments to be made to support such development, and also contains statutory provisions to enable
            brownfield development and intensification within existing urban areas.
            As at 31 December 2013: Completed 341 SCIRT projects worth $276.3m; Laid 44 km of fresh water pipe – that’s 64
            percent of the freshwater damage repaired; Laid 258km of wastewater pipe – 39 per cent of the damage; Laid 14 km of
                                                                                                                                            SCIRT
            stormwater pipe – 52 per cent of required repairs; Laid 341,419 square metres of road pavement. That’s only 26 percent
            of the work to be done. Another 112 SCIRT projects worth $582m are underway.
            A Digital Leaders Forum (DLF) has been established for the Canterbury region to ensure we have a stakeholder-led                CDC &
            approach to our Digital Strategy. The first meeting of the Forum was held in November 2013.                                    ENABLE

            China Southern Airlines charter secured for the Chinese New Year. Fiji Airways adding more capacity to Christchurch, with
                                                                                                                                             CIAL
            direct onward access to Hawaii and LAX.
            The Government has approved a capital investment of $260m to support the rebuild of the University of Canterbury’s
                                                                                                                                             TEC
            Science and Engineering facilities.
            During 2013 five central-city hotels and one apartment complex opened. In 2013 an average of eight new cafes, restaurants
                                                                                                                                             CCT
            and bars opened each month. The number of hospitality premises operating in Greater Christchurch now stands at 838.

 Complete Projects
            Establish the southern delivery arm of the National Health Innovation Hub.                                                      CDHB

            Develop a set of guidelines for Business Friendly Cities, based on the Core Cities research, to assist in benchmarking and
                                                                                                                                            LGNZ
            information-sharing between cities to improve council services.

            Prepare a Land Use Recovery Plan (LURP) to provide certainty about future land use patterns in Greater Christchurch.            ECAN

            Reduce the barriers for local construction SMEs wanting to form collaborative agreements to build scale and compete for        CECC &
            large projects during the rebuild, and develop best-practice guides for collaborative arrangements (ERP7).                      CDC

            Develop an integrated domestic and international terminal at Christchurch International Airport.                                 CIAL

                                                                                                                                  AU T U M N 2 0 1 4
12

CHRISTCHURCH INTERNATIONAL AIRPORT

Christchurch Airport                          February 3 was a red-letter day for the        “Over the past decade, the South Island
                                              airport, with the arrival of the first China   has been the brand engine room for
taking off.                                   Southern Airlines flight. The direct           New Zealand in China. Images of our
One year ago, the new integrated              flight from Guangzhou brought 228              breath-taking scenery – mountains,
terminal at Christchurch International        Chinese visitors to celebrate Chinese          lakes, wide blue skies, green open
Airport was completed and officially          New Year in the South Island and               spaces and adventure-based culture –
opened, to widespread praise from             marked the first time a Dreamliner has         attract Chinese travellers, which is good
visitors and awards from industry peers.      flown commercially to Christchurch,            for the whole country.
                                              highlighting the increasing numbers
The terminal was four years in                                                               “Over the past couple of years, the
                                              of Chinese visitors choosing the South
development, longer than expected                                                            number of Chinese visitors visiting the
                                              Island over the north.
through 11,000 earthquakes and three                                                         South Island has grown substantially.
“once-in-a-hundred-years snow storms”         New Chinese travel regulations have            Over the past year, there was a 72
and Chilean volcanic ash clouds. Despite      prompted a short-term dent in the              percent increase in Chinese tourism
all that, the project was completed on        overall number of Chinese tourists             expenditure in the South Island, which
the budget set in 2009.                       coming to New Zealand, though those            can only mean mutual economic benefit.
                                              who do come are staying longer to              We are working hard to continue to
Passenger numbers were dented by              experience the South Island, which is          deliver increasingly high levels of visitor
the 2011 earthquakes, with the airport        outperforming the rest of the country,         satisfaction and deliver Chinese visitors
losing about half a million passengers        according to Tourism New Zealand.              directly into the heart of New Zealand’s
a year, through the city losing facilities                                                   brand imagery.”
and events which used to bring in large       Christchurch Airport Chief Executive
groups of domestic and international          Malcolm Johns says the company’s               New statistics reveal recent records
visitors. A good example is the impact        ‘Welcome China’ strategy is focused on         set at Christchurch Airport – total
of losing the convention centre, which        building international arrivals from China     passenger movements recorded the
prior to the earthquakes Christchurch         to New Zealand via Christchurch.               best December since 2009 and a
had a 40 percent market share of New                                                         record month for domestic passenger
                                              “It is a fact that the number of
Zealand conventions.                                                                         movements, better than any single
                                               Chinese visitors to the South Island
                                                                                             month since March 2010. The week
However, passenger numbers are                of New Zealand continues to grow,
                                                                                             ending December 22 was the busiest
slowly but surely heading back in             out-performing the national trend,”
                                                                                             the airport has had for total passenger
the right direction.                          says Mr Johns.
                                                                                             movements since immediately after the

New Christchurch International Airport terminal

T HE CANTERBU RY R E PO R T
13

major 2011 earthquake. January 2014             “The recent additional flights from          an independent international passenger
was the busiest month for international         Perth and Singapore, as well as Japan        survey show Christchurch Airport to be
passengers in two years.                        charters, have added to increased            the best airport in Australasia for the
                                                volumes. Overall, aircraft are fuller than   past nine quarters – including five when
Mr Johns says Christchurch Airport’s
                                                last year too, adding to the increase.”      the terminal was a construction zone.
growth is a key pillar of tourism recovery
in the South Island.                            In the first year of the new terminal’s      To learn more about Christchurch
                                                operation, the airport has welcomed          International Airport, visit
“Benefits go beyond just tourism,
                                                new services – Christchurch to Perth         www.christchurchairport.co.nz
as many industry sectors benefit from
                                                direct; summer charters from six
improving volumes and increasing
                                                different Japanese cities; Singapore
access to the island via the airport –
                                                Airlines double daily services
airfreight users and the education sector,
                                                across much of summer; and a new
for example. Christchurch Airport is very
                                                Christchurch to Kapiti service.
focused on seeking the right partners,
in the right places to drive growth,”           The successes continue. As well as
he says.                                        numerous awards, quarterly results of

                                                                                                 CHRISTCHURCH ECONOMIC
                                                                                                  DEVELOPMENT STRATEGY

                                                                                                Develop an integrated domestic
                                                                                                  and international terminal at
                                                                                                Christchurch International Airport

                                                                                                      100% COMPLETE

China Southern Airlines arrivals, February 3, 2014

                                                                                                                      AU T U M N 2 0 1 4
14

REBUILD IN THE REGION

This section focuses on the region’s key public-owned assets and how they are progressing with rebuild and
redevelopment plans. In this edition, we shine the spotlight on Canterbury District Health Board; University
of Canterbury; and Lincoln University.

  BIGGER AND BETTER CANTERBURY DHB HEALTH FACILITIES AND SERVICES STARTING TO TAKE SHAPE

  There are some exciting projects in the   Burwood Hospital are completed.              redevelopment will include an acute
  pipeline as Canterbury DHB continues                                                   services building with operating theatres
                                            The work at Burwood, combined with
  to work towards improving facilities                                                   and inpatient beds; a helipad; an
                                            the redevelopment of Christchurch
  and services for over 500,000 people                                                   expanded intensive care unit; purpose-
                                            Hospital, is New Zealand’s largest ever
  who count on us.                                                                       designed space for children; a new
                                            health-related building project, which
                                                                                         Emergency Department; Assessment
  The CDHB worked quickly after the         will cost in total more than $650 million.
                                                                                         Units; and a Radiology Department.
  2010 and 2011 earthquakes, which
                                            Progress to date at Burwood
  critically damaged a number of its 200                                                 Works planned for facilities around
                                            includes the demolition of some
  buildings, including 12,000 hospital                                                   the region include redevelopments at
                                            buildings, creation of new carparks and
  rooms, to open a new Acute Medical                                                     Kaikoura, Rangiora, Hillmorton, Akaroa
                                            addition of a temporary main entrance
  Assessment Unit, two new wards and                                                     and Ashburton.
                                            and reception.
  an outpatients building. About $120
                                                                                         To learn more about the Canterbury
  million has been spent on repair works    Work is on track for the redevelopment
                                                                                         DHB, visit www.cdhb.health.nz
  and new projects to date.                 of Christchurch Hospital, which is set
                                            for completion in 2018. A design and
  The elderly and those needing
                                            project management team has been
  rehabilitation services will be big
                                            appointed to complete designs for
  winners next year when the first of the
                                            the new facilities, gain consents and
  ward blocks in the redevelopment of
                                            clear the way for construction. The

  Artist impression of the proposed new entry to Burwood Hospital

T HE CANTERBU RY R E PO R T
15

BUSY YEAR FOR UNIVERSITY OF CANTERBURY

The University of Canterbury               has also begun on the expansion           To learn more about the
(UC) is embarking on a period of           and modernisation of College of           University of Canterbury, visit
transformation as it takes advantage       Engineering facilities.                   www.canterbury.ac.nz
of the opportunities created by the
                                           Vice-Chancellor Dr Rod Carr says the
earthquakes of 2010 and 2011 to
                                           projects will not only transform the
redevelop its campus.
                                           University’s learning environment,
Following the Government’s                 but will also enhance the University’s
commitment to invest up to $260            continued support of the renewal
million in the University, remodelling     of Christchurch.
and remediation has stepped up a
notch. Remediation work on the History
and the Business and Law buildings,
Ilam Homestead and Central Lecture
Theatres has been completed.

Over the summer break the Science
lecture theatres were demolished to
make way for a new Regional Science
and Innovation Centre, which will
position UC as an international centre
of excellence in science. Planning         Artist impression of the proposed Regional Science and Innovation Centre

LINCOLN UNIVERSITY MOVES WITH THE TIMES TO EMBRACE CHANGE

As New Zealand’s specialist land-based     around food production, commerce,         DairyNZ; Landcare Research; and Plant
university, Lincoln is involved with the   environmental impact and living well      and Food Research. 2014 will see
sectors that sit at the very heart of      on our planet.                            development of this global centre for
the New Zealand – and Canterbury’s                                                   research and education excellence.
                                           In 2013 an announcement was made
– economy. Recently, this long-
                                           regarding the development of a world-     Lincoln’s new research strategy will also
established institution has been making
                                           class hub at Lincoln – a partnership      commence implementation in 2014.
some changes.
                                           between five founding organisations:
                                                                                     To learn more about Lincoln
This year the university is teaching a     Lincoln University; AgResearch;
                                                                                     University, visit www.lincoln.ac.nz
new range of bachelor’s degrees that
focus on the specialist knowledge
and skills needed for careers in the
land-based industries. Work is also
underway on reforming the vocational
and post-graduate qualifications. All
these new qualifications are highly
relevant to industry – and address                                                   New Restaurant and Function Centre
the bigger issues facing the world                                                   at Lincoln University

                                                                                                                 AU T U M N 2 0 1 4
16

SMARTER CONSENTING

Strong leadership                            robust city which provides great places to
                                             live, work, visit, invest and do business.
means smart decisions
                                             Improved forecasting systems are
for building consents.                       helping the team to effectively allocate
                                             resources in the face of huge volumes of
Christchurch City Council’s Building
                                             earthquake-related commercial building
Control Group has a strong focus on
                                             consents, he says.
the needs of commercial building
consent customers.                           “We are realistic about the challenges
                                             – we’re not chasing a quick fix but we
Director Building Control and City Rebuild
                                             take our responsibility to the commercial
Peter Sparrow says the new management
                                             sector extremely seriously.”
and team structure implemented in
January means the Council has the best       A proactive national and international
Building Control team possible for making    recruitment drive has brought the right
smarter decisions.                           people to the team. An increasing number
                                             of mostly residential consents are also
“All hands are on deck as we count down
                                             outsourced to external Building Consent        Director Building Control and City Rebuild
to the IANZ accreditation assessment
                                             Authorities across New Zealand. This           Peter Sparrow
starting in mid-July. Our journey to
                                             frees up our expert staff to liaise closely
accreditation by the end of this year
                                             with commercial customers, particularly on
won’t always be smooth but we have
                                             complex commercial projects.
everything in place to get the job done.”
                                             Watch a video of Peter Sparrow
A team dedicated to the needs of
                                             talking to potential investors at
commercial customers is focused on
                                             www.ccc.govt.nz/bcactionplan
facilitating the build of an economically

   TOP BUILDING CONSENT TIPS FOR COMMERCIAL REBUILD CUSTOMERS

   Rebuild Liaison Manager Sharon              Rebuild Liaison Manager Sharon Threadwell
   Threadwell (left) and Commercial
                                               Top Tip: “Make good decisions about choosing suitably experienced professional
   Consents Manager Leonie Rae will
                                               agents for your project. Complex decisions may be needed in areas such as
   become familiar faces in the commercial
                                               change of use, meeting new requirements for structural strengthening and
   and construction sectors in 2014.
                                               requirements for specialist systems. It’s important that your professional provides
                                               an application that has clear, complete and clean information that shows how
                                               requirements will be met.”

                                               Commercial Consents Manager Leonie Rae
                                               Top Tip: “Come and see us before you start your concept drawings and have
                                               an upfront discussion about how we can help you understand areas such as
                                               accessibility and fire, where you may require guidance before you and your
                                               professional provide an application. If you have a planned schedule of works
                                               for your project we’re really keen for you to share that with us at these early
                                               discussions so we can begin to plan how we will allocate our resources.”

                                               For general building consent information visit www.ccc.govt.nz/goahead

T HE CANTERBU RY R E PO R T
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TECHNOLOGY AND THE PRIMARY SECTOR

A 2014 Perspective.                          change and greater input management         precision technologies in the primary
                                             requirements are brought about to           sector. Membership to date includes
Those in New Zealand’s primary sector        comply with the CLWRP.                      farmers, researchers, rural service
have often been hailed as early adopters                                                 companies, CRIs (Crown Research
                                             Measuring more parameters and
of new management techniques and                                                         Institutes) and tertiary organisations.
                                             translating more data into useful
tools that improve productivity and
                                             information is improving productivity       As more of the available and emerging
efficiency in production systems,
                                             and efficiency for many producers. The      technologies become part of the New
together with creating opportunities for
                                             impact can have a significant effect        Zealand primary production system,
time and cost savings.
                                             on cost reduction, improved crop            a good-news story about how New
This trend continues as a range of           and animal management benefits, as          Zealand products are sustainably
precision agriculture technologies is        well as the adoption of sustainable         produced and the merits of our world-
now available to producers. These cover      management practices. For example:          class food safety system can be shared
a multitude of tasks to help farmers         the growing interest in robotic milking     with our customers and consumers.
improve yields, decrease inputs and          systems in the dairy industry; soil
                                                                                         To learn more about PAANZ, visit
reduce costs further. In addition, the       mapping to understand accurately
                                                                                         www.precisionagriculture.org.nz
capture of data from a range of sources      the different soil types and nutrient
on the farm – or ‘aginformatics’ as it is    requirements to achieve optimum
sometimes called – allows management         yields; and new pasture varieties and
decisions to be made with much greater       crops to provide for a wider range of
                                                                                           EMPLOYMENT TOOLBOX
accuracy than may have been the case         animal nutrition requirements, leading
in the past.                                 to increased farm productivity. More          Look out for a new online
                                             and more these days, consumers are            Employment Toolbox with
These data sources are enabling
                                             demanding traceability (being able            information to help employers recruit
producers to act on variances within
                                             to look back to the point of origin)          and retain staff. These resources will
their farm operations and this is leading
                                             in their food. This trend is driving          begin to be made available soon at
to much more accurate placement of
                                             technology implementation in food             www.cdc.org.nz.
inputs such as water, seed, fertiliser and
                                             processing systems as well. Improved
chemicals, leading to more sustainable
                                             food safety and food quality are positive
production management and a lower                                                          The toolbox will contain:
                                             benefits that are gained from further
overall environmental footprint.
                                             technologies becoming the norm                •    An online library where
‘Right place, right time, right amount’      throughout the entire food value chain.            employers can freely and easily
is becoming the new mantra for many                                                             access images, case studies
                                             An increased focus on technology
farmers as they manage their inputs in                                                          and video footage to use in
                                             means a need for additional education
their various production options on the                                                         their own recruitment activity
                                             and training to support the changing
farm, orchard or vineyard.                                                                 •    Manufacturing and Technology
                                             paradigm for the primary sector.
                                                                                                sector profiles that show
This means that primary production           Canterbury Development Corporation
                                                                                                the depth, breadth and
is becoming a much more technical            (CDC), through its Workforce Strategy
                                                                                                connectivity of these vital
business. There is a growing interest        initiatives, is highlighting this to the           Christchurch sectors
in gaining knowledge and the                 sector and implementing actions to help
                                                                                           •    A Christchurch City profile that
implementation of technologies that          ensure there is enough skilled people.
                                                                                                shows what a great place this is
support farmers in their day-to-day                                                             to live, work and play
                                             Another initiative is the establishment
operations. Coupled with increasing
                                             of the Precision Agriculture Association      •    Staff recruitment and retention
areas of irrigated land in Canterbury
                                             of New Zealand (PAANZ), which CDC                  tips for employers
and the requirements of the Canterbury
                                             has been instrumental in supporting.
Land and Water Regional Plan                                                               •    Access to resources that
                                             PAANZ is a member organisation and
(CLWRP), we see a drive towards more                                                            will help your new workers
                                             one of its objectives is to support the
technology being implemented in the                                                             get settled
                                             development and implementation of
sector as production specifications

                                                                                                                   AU T U M N 2 0 1 4
18

FAST BROADBAND

Maximising the benefits                      is assisting with consultation and the      Between February and April this year
                                             development of a Digital Strategy.          the DLF met with representatives from
for Canterbury.                                                                          across the region in the education,
                                             Why? Businesses using fast broadband
                                                                                         health, business, rural, community
Do you wish you could work faster or         to improve productivity and reduce
                                                                                         and tourism sectors. The aim was to
more efficiently? Communicate with           costs drives an increase in GDP,
                                                                                         understand the opportunities and
customers globally without worrying if       bringing benefits for the whole
                                                                                         impediments for the uptake of fast
Skype will perform? Improve employee         community. The DLF is therefore
                                                                                         broadband. This includes how people
relations? Save money on travel?             seeking to accelerate the uptake of fast
                                                                                         access it; what they use it for; what
                                             broadband across the region, so we get
The Christchurch Economic                                                                skills and knowledge they have. This
                                             the benefits even sooner.
Development Strategy (CEDS) identified                                                   consultation was carried out several
fast broadband and the establishment         The Government is driving the roll-out      ways, including through workshops,
of a Digital Leaders Group as integral       of fast broadband infrastructure. It        meetings, surveys and social media.
initiatives to keep Christchurch             contracted companies nationwide to
                                                                                         The Digital Strategy and Action Plan
competitive globally. The Canterbury         lay cable and connections to schools,
                                                                                         is due to be launched in July. This
Digital Leaders Forum (DLF) is being         health premises, businesses and homes,
                                                                                         will provide a clear vision of what a
set up to ensure a stakeholder-led           so ultra-fast broadband will reach 75
                                                                                         ‘connected’ region could look like and
approach. The DLF represents the whole       percent of New Zealanders by 2019. The
                                                                                         how to get there.
Canterbury region, with board members        Rural Broadband Initiative (RBI) aims to
coming from economic development             bring fibre connections to all hospitals    To follow the Digital Strategy and
agencies (including Canterbury               and 93 percent of rural schools, as well    Action Plan, go to the Canterbury
Development Corporation, or CDC),            as high-speed broadband to other            Digital Strategy LinkedIn and
councils, infrastructure providers and       premises in harder-to-reach areas by        Canterbury Digital Leadership
the Canterbury Employers’ Chamber of         the end of 2015, at prices and levels of    Facebook groups
Commerce (CECC). The Digital Office          service comparable with urban areas.

                                 Come and celebrate our Heroes!
                                 NZ Hi-Tech Awards Gala Dinner.

                                     Friday 16th May Air Force Museum, Wigram, Christchurch.
                                         To order your tickets now go to www.hitech.org.nz

T HE CANTERBU RY R E PO R T
QUAKE CITY
                                     CDC - WE ARE HERE
            CONSTRUCTION SITE
                                          CARPARK
   CONSTRUCTION SITE
                                                 FOOD COURT
           IBIS HOTEL                                      RE:START MALL

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    JULY 2013 2014
    JANUARY
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Canterbury Development Corporation
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Level 1, 99 Cashel Street
Christchurch 8011, New Zealand
Phone: 03 379 5575
Email: cdc@cdc.org.nz
www.cdc.org.nz
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