Thriving Economy

The GDP of Tairawhiti is small - 0.7% New Zealand’s GDP

This is partly geography (location, population and landscape) and partly a historical reliance on primary industries.

If we want to grow our share of the GDP, and have a stronger, more resilient economy, we may need to re-shape what we do, how we do it and where we do it.

“He tangata – it is people”

 

The evidence - what do we already know?

Population growth is significant

» In 30 years we expect to have another 4,000 people living in our region (nearly 9% increase) – mostly from inward migration. 

» Gisborne is facing the prospect of an aging population. Currently the 70+ years age group accounts for 10% of the population.  This is expected to increase to 16% of the population aged over 70 years by 2048.

» Housing affordability is becoming an issue within Gisborne city. Median house prices rose by $44,000 during 2018 to $390,000 in February 2019 - up more than 25% on the same time last year. 

 

Primary industry

  » Nearly a quarter (23.8%) of jobs are in the Agriculture, Forestry and Fishing sectors 

» Agriculture, Forestry and Fishing experienced a 18.7% overall drop in the number of workers  between 2000 and 2017.  

 2017 GDPpop growth

Labour market

» Employment growth in Gisborne has lagged behind the rest of the country. Between 2000 and 2017 Gisborne employment grew around 5.5%, while the rest of the country experienced growth of around 28%.

» In 2017 the largest sectors were:

      > Agriculture, Forestry and Fishing

      > Health care and social assistance, and

      > Manufacturing.

» The Agriculture, Forestry and Fishing sectors currently make up a large share (23.8%) of employment, relative to other sectors. Sheep, beef cattle and grain farming is the largest sector in terms of employment - 2,093 workers .

» Other large sectors include:

       > Health care and social assistance (2,653 workers)

       > Professional, scientific, technical, administrative and support services                   (2,123 workers)

       > Education and training (2,103 workers).

» By 2048, the largest sectors are expected to be:

       > Agriculture, forestry and fishing support services (3,080 jobs; +84% from             2018)

       > Sheep, beef cattle and grain farming (2,730 jobs; +10%)

       > Professional, scientific, technical, administrative and support services                   (2,710 workers; +15% from 2018)

» The working-age population is decreasing as our people get older.

» 400 jobs need filling immediately and yet…

 unemployment table2

Tourism

»In 2018, Gisborne was New Zealand’s fastest growing tourism region with the total spend increasing by 14.4% to $166m 

»52,700 international visitors visited the region in the year ending December 2018, up from 36,300 the year before (+40%).

»Longer term average increase of 5.5% per annum since 2007.

reasons for visiting table

 wood pile

Growth and development

The government announced $153 million of funding to develop Tairawhiti outlined below:

 PGF announcement2

» The Waiapu landfill is the only class 1 landfill in the region

» We truck most of our waste approximately 300km to a landfill in Paeroa

» We have too much organic waste currently going to landfill:

» Green waste currently 5.9% of total waste stream at TPI  (748Tpa)

» Food waste currently 22% of total waste (2795Tpa)

» Approx. 10,000Tpa of wood bark is transported to Hawke’s Bay for processing into compost

» 87% of Tairawhiti have access to refuse and recycling services

 pie graph

The challenges and opportunities

Challenges - if we do nothing

» Tairawhiti will continue to rely on primary industries that may not be sustainable for example, our economy is the most reliant on forestry in all of New Zealand.

» The continual shortage of labour will continue to negatively impact on economic growth in the region.

» An aging population will place constraints on rates affordability.

» A continuing shortage of housing supply will constrain economic growth and challenge affordability and home ownership rates.

» Our waste mountain will continue to grow – the economic cost of managing this waste will continue to grow as well.

 Opportunities

 » Continue to promote Tairawhiti as a lifestyle destination and the best place to live in New Zealand.

» Look at opportunities to invest in local townships to support regional economic development.

» Support the growth of tourism through an East Coast journey with development of key destinations, activities and infrastructure to support an increase in visitor traffic.

» Ensure availability of land for new housing to attract and support new businesses establishing in Gisborne.

» Consider alternative waste technologies to landfill disposal.

» Promote the reuse of treated wastewater .

» Development of circular economy for the region.

» Tech industry development and innovation.

surfing3

The questions

» How do we fill the labour market shortage?

      > How do we attract more people to the region? 

      > Where will they live?

      > What further infrastructure will we need to support this growth?

» What infrastructure do we need to support the sustainable development of our key regional industries? 

» What are the opportunities to reduce our waste stream? 

» How do we move towards a more circular economy?   

      > How do we eliminate waste?

      > How do we create a more liveable region?

      > How do we regenerate natural systems? 

» What are the opportunities for new industries and business sectors across Tairāwhiti?

      > Tech hub?

      > Manufacturing / value added to primary products?

 cruise ship2

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Latest Submission
> How do we attract more people to the region? more biodiversity. support eco friendly housing

> What further infrastructure will we need to support this growth?water tanks, septic tanks. less reliance on central systems

» What infrastructure do we need to support the sustainable development of our key regional industries?

» What are the opportunities to reduce our waste stream? Education, workshops. support for businesses reusing/upcycling.

» How do we move towards a more circular economy? education, workshops

> How do we eliminate waste? education. ban excess packaging coming in to the region

> How do we create a more liveable region? more biodiversity, better water quality, cycleways, more parks

> How do we regenerate natural systems? support native tree planting, regeneration. predator free.

» What are the opportunities for new industries and business sectors across Tairāwhiti? green eco friendly jobs, tourism, education

> Tech hub? yes

> Manufacturing / value added to primary products? yes
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