November 2000

Regional Plan East Coast

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 and to celebrate the East Coast region ’s past year and to share our strategic direction and focus for the 2000/2001 year. In the East Coast region, the Department of Work and Income has focused on meeting the needs of our clients by ensuring they have got their income entitlement and job seekers are prepared and assisted into work.

We have had many successes over the past year. The following are some highlights.

• $625,740,994 paid out in income support, ensuring that the basic needs of our clients are met (this amount includes $798, 672 for Special Benefits and $2, 977, 515 for Special Needs Grants).
• We have assisted 4,661 individuals with a range of skills training, motivational training and on the job work experience. 62%(or 2, 906)of the clients attending these courses were Maori.
• The proactive work of our staff has resulted in over 5,000 of our clients finding work in the past few months and over 20. 5%(1, 016)have lasted more than three months.
• Work Brokers account manage individual businesses to ensure a sound understanding exists of each employer ’s needs.
• Between 1,600 and 2,000 clients placed into seasonal work in the 1999/2000 year.

Looking forward
I am excited about the coming year and am confident in our ability to achieve a flexible, regionally driven approach that will make a difference for the East Coast's clients and communities. Our consultation with communities and community groups has indicated that there are many aspects of the Department's work where improvement is possible. This regional plan sets out to tackle those areas as well as to build on the strengths demonstrated over the past 12 months.

We must maintain the focus on Maori, as they are over-represented in the benefit and unemployment statistics. It is important to work collaboratively with iwi and Maori organisations within the area. We must continue to source job opportunities so that we can place unemployed people into paid work. We will continue to purchase developmental opportunities that meet the needs of both our clients and employers. Meeting seasonal employers ’ needs will take hard work, good relationships, communication and planning. There are job growth opportunities we can exploit especially in forestry, seasonal horticulture, tourism and the service sector. Whilst such jobs are frequently short-term they will remain vital to the regional economy. We must ensure that clients are prepared for these opportunities by investing in upskilling, work experience and job readiness training activities.

This will be done in co-operation with Skill New Zealand and private training establishments throughout the region. As the year moves on we are preparing for the huge demands on labour over the summer season. We will be providing on-site training for orchard workers, producing a video aimed at clients visiting service centres who are available to take on seasonal work and launching a new seasonal work brochure. A specific focus in the region will be specialist case management whereby Case Managers identified with proven expertise in dealing with specific client groups such as youth, Maori, and the long-term unemployed will be given the opportunity to work exclusively with the client group. There will also be two key initiatives working with youth.

The first is the Ngati Porou Hauora programme aimed at youth clients and their family members working together to develop a pathway towards training or employment and overcoming the barriers associated with life on the rural East Coast. The second initiative is the Manukau Model which focuses on the identification and mentoring of secondary school students considered to be at-risk in employment terms once they leave school. This model has been enthusiastically endorsed by the Hawkes Bay Secondary Principals ’Association. Working together we will achieve our goals of community well-being and sustained prosperity for all.

OUR REGION

Introduction Introduction The East Coast region has a mainly urban population of 196, 000 people centred primarily in Gisborne, Napier and Hastings. The population overall is trending gently upwards. The region has a very significant Maori population, with approximately 45% of the Gisborne/East Coast and approximately 23% of the Hawkes Bay population being of Maori descent. Runanga are located in Ruatoria, Gisborne and Hastings. The East Coast region extends from Potaka in the north to Te Hauke in the south. The region encompasses territory administered by the Gisborne District Council, Wairoa District Council, Napier City Council and Hastings District Council.

Much of the region is sparsely populated hill country where beef cattle and sheep are farmed. These areas also support extensive tracts of production forest that feed into the export log trade operating out of the Port of Gisborne and Port of Napier. Value-added timber processing occurs at both Napier and Gisborne.

There is an extensive and very attractive coastline that offers excellent fishing opportunities and is a haven for sun-loving holidaymakers and residents. The scenery of the region, its climate, history, unique architecture and significant events draw both domestic and international visitors. Visitor numbers to the region are steadily increasing. Millennium celebrations throughout the East Coast have raised its national and international profile with ongoing benefits for the tourism and hospitality sectors. Restructuring of the meat and food processing industries during the 1990s has caused the regional labour market to contract. Full-time employment has declined but seasonal work has become much more significant. There is an ongoing trend for jobs to become casual or short-term and for employees to be multi-skilled and more flexible in their approach to work opportunities.

The region is fortunate to be supported by a number of schools, tertiary institutions and private training establishments. This results in a residential population that is rapidly upskilling itself and is well positioned to capitalise on opportunities in the emerging local labour market as well as in the more knowledge-based job areas developing globally.

Investigating our region
Over the past six months the Department ’s East roast region management team has engaged in community consultation with a range of individuals, employers, training providers, community groups and Government agencies. The purpose of the consultation was to determine what labour market opportunities are foreseen for the next year and what skills, knowledge and attitudes are required for our clients so that they are positioned to take advantage of the opportunities. Considerable input was received from the community on ways in which the Department can better meet the service expectations of the community. The consultation process has been invaluable to the development of this business plan. Labour market analysis –growth and opportunities Consultation and research suggest that there will be a small and gradual improvement in the regional economy during 2000/2001. This will be built on the significant economic growth nationwide during late 1999 and early 2000.

Economic growth is more likely to be in Hawkes Bay than in Gisborne. This growth is due to the competitive exchange rate, low interest rates, the regeneration of activity in the Asian economies and a more favourable climate over the past year, particularly in terms of rainfall. The labour market is characterised by a workforce that is mainly in the primary sector, food processing and the service and hospitality industries. There are opportunities in these sectors, but increasingly jobs are part-time or the work is contracted so that payment is by the number of trees pruned or bins of apples picked, rather than on a salary or per hour basis. Nevertheless the expansion of forest harvesting, and the volume and range of crops/fruit produced, will increase the demand for skilled labour in these areas. Employment growth is also anticipated through the development of the tourist and elderly care areas, growth in fishing and aquaculture, and through the maturation of the vast exotic forests.

Long term, there are developing niches for organic produce (provided it is of high quality), and opportunities for aquaculture and fishing. Millennium events, particularly in Gisborne, have raised the region ’s tourism profile. This is expected to result in a boost for this industry with job opportunities in the service sector and scope for new tourism ventures, particularly those of an eco- cultural nature. These opportunities will be useful to position clients for ongoing work in this sector and will give impetus to emerging Maori tourism ventures designed to capitalise on the region ’s unique cultural, ecological and wilderness experiences. Primary production and food processing will continue as the backbone of the regional economy and provide ongoing work opportunities. However, the number of jobs in the traditional beef/wool pastoral sector is likely to decline over time. Jobs in value-added processing are on the rise. Growth in horticulture presents further seasonal work opportunities. The region is also likely to benefit from growth in Maori enterprise funded by the settlement of Treaty claims. This is expected to provide an opportunity for the development of partnerships with Maori organisations to benefit Maori.

Tourism throughout the region is increasing, with new jobs available albeit mainly of a part-time or casual nature. Last year the tourism business in Hawkes Bay grew by more than 3% . The growth in this sector will have spin-off opportunities for retailers, hospitality and service sectors. It also presents small but significant new opportunities for Maori and some remote communities. Among the smaller communities in the remote areas of the region job opportunities are limited. In this regard, the production of high quality organic produce, including medicinal herbs, is being developed and appears promising. This will assist in nurturing self-employment opportunities to enhance self sufficiency.

According to the 1996 census of business, the East Coast region has 23, 676 business units that employ on average 2. 2 people full-time. If agricultural units are excluded, the number of business units is 5, 353, with an average of 2. 8 full-time employees each. Thus small businesses are very important and we must be conversant with their diversity and needs if labour market opportunities in every sector are to be fulfilled.

Seasonal work in horticulture and viticulture is a reality. It enables thousands of people on benefits to earn money, which in turn is injected into the local economy through retail outlets of all kinds. With appropriate skills, a seasonal worker can now work for a number of months. In May 2000 the Minister of Economic Development established the Tairawhiti Development Taskforce.

The Taskforce is due to report to Government in October 2000 on the barriers impeding economic development in Tairawhiti. It will also report on the opportunities for growth in sustainable jobs. It is expected that the Department of Work and Income will be actively involved in supporting strategies identified by the Taskforce. Our clients
Maori are over-represented on the job seeker register. This over-representation is consistent across all categories of unemployed groups and points to a need for particular strategies for Maori which are aimed at prevention, early intervention and in-work support. Such strategies need to recognise the particular circumstances of Maori and adopt an approach to training and development that meets Maori needs. In the East Coast region, Maori is the predominant ethnic group, at 56% of registered job seekers (compared to a national average of 30% ). NZ Pakeha, Pacific Peoples and other ethnic groups are all well below their average national share of the register.

The region has a significant number of 15 to 17 year old job seekers. This group will be targeted to avoid a culture of long-term benefit dependency developing. Addressing particular skill and educational needs on an individual basis will assist these groups to access employment. Once in work they will be assisted with a mentor for support to maximise achievement of sustainable employment.

A large number of clients have been registered for 104 weeks or more. This group will require careful and intensive specialist case management to move them into work. The rising trend in the number of Domestic Purposes Benefit clients is a concern, with Maori disproportionately represented. The proportion of clients in the East Coast on the Domestic Purposes Benefit is considerably higher than the national average (16% versus 12. 7% nationally). 47% of the total income support recipients in the East Coast region are receiving NZ Superannuation, the Veterans Pension or Transitional Retirement benefit (which is less than the national proportion of 54% ). People receiving the Community Wage are next with 22% of the total, slightly more than the national percentage of 17.14% .

Where to from here?
We have the opportunity and ability to have a significant impact on the development and growth of the regional economy through our direct support of the forestry, seasonal horticultural and service sectors. Consequently, priority will be given to developing effective relationships within the labour market and community, and upskilling job seekers to increase access to opportunities, in particular for Maori.

Maori
Significant numbers of East Coast clients are Maori and many of them are rurally isolated. Working with iwi, Maori organisations and other Government departments to find solutions will be a key focus this year. Due to the disproportionate representation of Maori amongst the unemployed, they are a priority for upskilling and referral to job opportunities. Partnerships with Maori groups will be established to assist in identifying opportunities they wish to pursue and then supporting those groups to achieve their objectives. A relationship with Community Employment will be required in the capacity-building of Maori organisations. Maori skill levels and educational qualifications are critical factors to employment and addressing these disparities will be a priority.

Job seeker development
To position clients to access potential stable employment opportunities, it is essential that they have a sensible mix of skills, relevant educational qualifications and attitudes. Resources to meet these needs will be provided through contracted services and the Skill New Zealand TOPS programme. It will also be necessary to set aside resources to address short-term opportunities presented by seasonal horticultural work.

A key to addressing those requiring considerable assistance to compete in the job market is effective case management on an individual basis by skilled staff. Resources will be targeted at short, sharp work-readiness/motivational training packages, and provision will be made to address minor barriers to employment such as the lack of drivers licences of various types, food handling certification, curriculum vitae and interview skills. In addition to the Limited Service Volunteer scheme, the region will trial a number of initiatives designed to move youth into training or work and to support them once placed.

While a positive attitude is considered by employers to be the main attribute they look for in employees, the Department must balance upskilling programmes with those designed to build confidence, self-esteem and life skills. This balance is to be achieved through the TOPS programme and those services contracted and provided directly within the region, to motivate and equip clients with relevant skills for employment.

Labour market
The East Coast region is generally presented with a good range of new job opportunities in both the short and long term. These opportunities are primarily in forestry, service and hospitality, elderly care, horticulture and viticulture. In localities where work opportunities are limited, particularly in remote areas, joint programmes aimed to enhance self-sufficiency and the establishment of small enterprises will be developed in close consultation with Community Employment field advisors.

Seasonal work in both Gisborne and Hawkes Bay is to be managed on a project basis to ensure that the best possible outcomes are achieved for the unemployed and for growers. Growth in horticulture presents further seasonal work opportunities and points to a need for our clients to be multi-skilled so that their involvement in seasonal work can be extended. The region ’s labour market is volatile and the Department needs to be positioned to respond to both positive and negative factors that can come into effect with little or no notice.

To take advantage of tourism opportunities, we will need to ensure that job seekers are trained so they have the requisite skills, qualifications and attitude to enter the workforce. We will achieve success through staff at all levels building effective partnerships with employers, Government agencies, training providers, voluntary organisations active in social work and the communities we serve.

There are many active social and client advocacy agencies in the East Coast region and it will be imperative that we maintain close links with these groups so that there is effective communication with these groups. We are also mindful of the difficulties we have in keeping those living in remote rural areas fully informed of the Department ’s services.