Regional Plan for Bay of Plenty

CONTENTS:

• Message from the Chief Executive
• Regional Commissioner’s report
• Our region
• Our regional strategies
• Objectives and key tasks
• Achieving our key tasks
• Our community commitment
• Consultation

MESSAGE FROM THE CHIEF EXECUTIVE

I am very pleased to have the opportunity to introduce this Regional Plan to you. It is a summary of what we ’ve achieved for this region during the year, but it is also a strategy for how we will be doing even better in future.

I am always very proud to be able to tell people about the Department of Work and Income’s successes, and the hugely significant role our staff play in achieving that. I believe this Plan illustrates just how hard they have been working for the people of this region.

While highlighting the positive steps we’ve taken in the local labour market to really make a difference for those living and breathing the special nature of this region, this Plan also looks further ahead, to the goals we ’ve set our sights on for the coming months. We are taking every opportunity we have to meet our commitment to help all New Zealanders achieve independence.

We are engaging with communities more than ever before. A strong foundation for our ability to do this is our regional flexibility strategy –local solutions to local needs.

Already we ’ve seen good indicators that this focus will move us ahead very quickly in meeting the needs of the individuals who make this region the special place it is. As always, we will be closely focused on the local client base. We ’ll be organising our resources to target local needs in the most appropriate way for a particular area, or client group.

‘Closing the Gaps’ is also at the forefront in every case. The Department is in a special position to make a difference here, with our Maori and Pacific clients already a key target area for our specialised programmes to assist people in taking a full part in the economic, community and educational life of their locality.

I know this Plan sets the right challenges to meet the needs of this community, and I believe it demonstrates the special local understanding, knowledge and expertise our staff can offer. Working together, and in local partnership, we can only have success.

CHRISTINE RANKIN

REGIONAL COMMISSIONER’S REPORT

I welcome the opportunity to reflect on the Bay of Plenty region’s past year and to share our strategic direction and focus for the 2000/2001 year.

The Bay of Plenty region is one of the most diverse in New Zealand, covering a significant geographical area, with wide variances in social and economic status.

Over the past 12 months our focus has been on fully integrating all service delivery sites, developing credible job applicants for the local labour markets, further developing effective relationships with key community organisations and providing an effective and efficient income support service to our clients.

Although there has been significant challenges for a number of reasons,there has also been significant successes.

• By improving economic conditions and working closely with employers, we have been able to place more than 6,900 clients into paid employment – of this nearly 60% were full-time positions. This has been a significant improvement on past results.

• More than $2.2 million has been spent on training and development opportunities for our clients. This has meant that more than 7,100 clients have taken part in work confidence and skills training activities.

• Self-employment has become attainable for 70 clients.

• Maori make up a large portion of our population and it is pleasing to advise that over 3,400 Maori clients were placed into paid employment and over 4,500 Maori clients placed in development activities.We have also been working to develop relationships with local iwi on both local and regional levels.

• The Bay of Plenty has the highest number of unemployed clients registered for over four years in New Zealand.I am pleased to advise that not only have we been able to halt the flow of clients into this category,we have been able to reduce the number by nearly 100.

Highlights of our work over the next 12 months will be the introduction of specialist case management for youth,Maori and long-term unemployed,and enhanced liaison with iwi and community organisations.

The challenge for the coming year is to build on our past experiences and our newly laid foundations to provide higher levels of service to our communities, employers and clients.

I am confident that we will be able to do so with the ongoing support that we have already received from the community.

OUR REGION

Introduction

According to the 1996 census, the Bay of Plenty has a population of over 286,000 people, of which 28% identify as Maori. There are 16 representative iwi groups who affiliate to Te Arawa Federation, Ngai Te Rangi, Mataatua Confederated Tribes, Ngai Tuhoe, Whakatohea, Whanau a Apanui, Ngati Raukawa and Ngati Tuwharetoa.

Benefit demographics

As at 30 June 2000, the Bay of Plenty had 80,476 people receiving financial assistance from the Department of Work and Income. NZ Superannuitants continue to be the most significant group receiving assistance, 51% of this figure.

As at 30 June 2000 there were 21,686 registered unemployed in the Bay of Plenty – with 28% aged between 30 and 39,21% aged between 40 and 49, and 16% aged between 20 and 24. Maori make up a disproportionate number of those unemployed, at 54% of the register, compared with the national figure of 30%.

7% of those unemployed have been so for over four years. This is one of the highest in New Zealand, with Maori making up 73% of that percentage. Youth continue to make up a disproportionate number of those registered as being unemployed with over 2,125 aged between 15 and 19 years. Of his, 58% identify as Maori.

There are over 12,000 sole parents receiving assistance in the Bay of Plenty. This equates to 15% of those receiving benefits and compares to a national average of 12.5%, with the highest proportion of these recipients aged between 30 and 39 years.

The national average for those receiving the Community Wage (Sickness) is 11% of the benefit population. However, the Bay of Plenty is lower with 9% of our benefit population receiving Community Wage (Sickness). As at 30 June 2000, 3,998 clients were receiving the Invalids Benefit, which is an increase of just over 400 on the number receiving it for the same time last year.

Economy

The main industries by employee numbers in the Bay of Plenty are the primary, wholesale, retail trade and manufacturing sectors. Together, these industries account for 40% of total employment 1 .

The Bay of Plenty regional economy is more dependent on agriculture and primary processing than many other regions in New Zealand. Both of these sectors floundered in 1998, but recovery looks to have begun in 1999. Overall, the Bay of Plenty economy is performing close to he New Zealand average.

The region’s reasonably strong economic growth throughout 1999 is based on improvements in a number of sectors, including tourism and forestry. It is expected this growth will continue due to increased demand from Asia.

The improving labour market conditions have therefore meant an increase in job opportunities and have led to an increase in the region’s labour market participation rate. According to the quarterly Household Labour Force Survey (HLFS) for March 2000, this rate was 63.1%.

Coinciding with this has been a drop in the unemployment rate. As at 30 June 2000,his was 7.2%, compared with a New Zealand rate of 6.4%. Although this is the fourth highest unemployment rate in New Zealand, it is the lowest quarterly rate since pre March 1991. Between the March 1999 and March 2000 quarters, the number of people employed in the Bay of Plenty region had increased by 11,600 while he number of unemployed had fallen by 3,500. This pushed the unemployment rate down by 4.1% in his period.

Consultation

In addition to drawing information from the Department’s data and staff, we undertook discussions with a wide range of organisations and people to assist with the development of this business plan.

Input from 353 employers, community groups, training providers, iwi organisations, Maori authorities and councils was gained, seeking information on labour market rends and development needs of those seeking work.

In addition to the above, over 602 of those receiving financial assistance were interviewed to scale development needs and identify the barriers they see to gaining employment.

The results regarding labour market growth in the next 12 months were reasonably consistent across the whole Bay of Plenty region and confirmed last year’s trends.

It is expected that there will be growth in the tourism and hospitality industry (56% of respondents) with jobs being available in cafes and restaurants as well as a need for hotel and motel staff. The agriculture, forestry and fishing sector (52% of respondents) is also expecting growth. Forestry in particular is highlighting a need for both timber machinists and graders as well as a large number of forestry management workers. This is estimated to be in the vicinity of more than 200 extra workers a year. The final major area of growth is in the construction sector (33% of respondents) with most trades within this sector requiring staff.

The tourism and hospitality, agriculture, forestry and construction industries were seen as the top growth areas for the next five years.

The outlook for Government administration and defence has not been forecast positively by employers over the next five years. 24% believe there will be a decline in these industries. Manufacturing with 21%and retail trade with 20% followed this.

Feedback from those consulted provided varying ideas and perspectives on the areas that people need to develop in order to compete successfully in the labour market.

Even though employers were asked to comment on skill requirements needed over and above motivation, confidence and presentation, 43% still mentioned these qualities, once again highlighting the importance of having a positive attitude towards employment. Communication and interpersonal skills were a priority for 26%, while office and computer skills, work ethics and client service were each seen as high priorities for 12% of those consulted.

Interestingly enough, 21% of clients agreed they needed motivational training. However, 37% believed hey needed more on-the-job training and 36% believed computer skills were a high priority.

Clients were also asked to identify their biggest barriers to gaining employment. A massive 45% believed their biggest barrier was a lack of ranspor. Another 32% cited a lack of skills, while 31% believed lack of work experience was their biggest barrier.