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December 2000
Regional Plan NelsonCONTENTS:
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 take this opportunity to reflect on the Nelson region's past year and look back at what was achieved and what we learned from those experiences, as well as sharing our strategic direction and focus for the coming year. The past 12 months have been both eventful and challenging and, on reflection, successful. The way our staff, community and business have worked together to find ways to achieve our mutual goals has impressed me. Throughout the Nelson region
This year we aim to further establish working relationships with iwi and Maori organisations so that together we can focus more closely on employment outcomes for Maori and consider, along with other organisations, responses to the wider social and health issues. While a significant number of clients were placed into employment, a tighter focus will be on increasing sustainable employment for clients and supporting them in the transition. Young people are also going to be an area where we will focus our energies. Working in partnership with the community, business and Government agencies will also contribute to assisting clients attain independence. A major challenge for the coming year is to build on the foundation and learning from the past year and I am confident we can achieve this with a range of flexible, locally-driven approaches that will enhance our communities. Making a difference in a region with very diverse communities is not easy. However, by working co-operatively with other key players to develop integrated services and initiatives we can help to reduce disparities. This will increase the chance of solutions being available to assist those in most need. To the people who have provided input –whether they are individual clients, local Government representatives, iwi representatives, raining providers, community organisations, advocates, local employment committees, business representatives, or staff –thank you. Working with you in the future we will all achieve our goals, resulting in stronger communities.
MIKE SMITH
Regional Commissioner Nelson
Introduction
The Nelson region is one of 13 Department of Work and Income regions. The region extends from Awarua Point in the south-west to Cape Farewell at the north-western tip of the South Island. There are eight local authorities in the region – Westland, Greymouth, Buller, Tasman, Marlborough and Kaikoura District Councils, Nelson City Council and the West Coast Regional Council. The iwi recognised as tangata whenua in the region are Ngati Apa, Ngati Koata, Ngati Kuia, Ngati Rarua, Ngati Tama, Ngati Toarangatira, Rangitane O Wairau, Te Ati Awa and Ngai Tahu. The region has three quite distinct sub-regions: Nelson/Tasman, Marlborough, and the West Coast.
Nelson/Tasman
Commercial fishing is well established in Nelson, and there are currently over 20 seafood operators based there. The fishing industry is pivotal to Nelson ’s development and has many spin-offs. Tourism is the fourth largest industry, with over 400 tourism businesses contributing an estimated $150 million to the region ’s economy each year. This industry employs an estimated 2,200 people (full-time equivalent jobs), hosts 161,000 international visitors and 230,000 New Zealand visitors each year. Of the employers surveyed, 43% anticipated growth in tourism and hospitality over the next 12 months. Arts were identified as a potential employment growth area by the BERL report1 .Nelson hosts the internationally important New Zealand Wearable Arts Awards and the area is home to over 300 artists working in various mediums, such as pottery, ceramics, glass-blowing, wood-turning, sculpture and painting. Prime Minister Helen Clark recently stated that, “cultural tourism has enormous benefit for the region,and this sector should be seen as one with big economic potential.” Maori art, craft, culture, and heritage are drawcards for tourism. The Local Employment Committee has developed a strategic plan with the vision to maximise employment opportunities. Working with the wider employment forum in the community, this group has developed strategies around access, education, communication, co-operation and collaboration, as well as small and medium business development. Nelson people are well provided for in the area of training and development, with 40 providers in Nelson. Specialist providers are also operating under smaller cluster industries such as Aromaflex with an emphasis on aromatherapy. Employment in Nelson/Tasman is especially seasonal and demand for labour peaks at various times due to apple harvesting, fish and shellfish processing,and hop and kiwifruit picking. The volume of pipfruit exports increased from last year. However, the outlook for world apple prices is not bright, which suggests a lower volume of exporting. Nelson hops are a successful export earner, known for their quality and for being pesticide-free. The Nelson and Tasman centres adopted a seasonal strategy for the recent apple-harvesting season that resulted in over 1,000 placements into orchards. This involved staff working closely with industry and clients. The average wage in the Nelson region is $17.07 per hour. Over 11% of part-time workers hold more than one job (over double the rest of New Zealand). A recent employer survey showed 57% of those surveyed anticipated fur her growth in primary industries.
Marlborough
Marlborough ’s wine industry was established in the 1970s and has international recognition. A survey by the Wine Institute of New Zealand suggests that New Zealand wine exports will more than double over the next four years. Grape growers expect to increase the number of hectares producing grapes from 3,477 in 1999 to 4,543 in 2002. This industry presents ongoing and growing employment opportunities in Marlborough. Kaikoura is the centre for whale,dolphin and seal watching as well as other tourist attractions. Both the annual Marlborough Food and Wine Festival and the Kaikoura Seafest attract large numbers of visitors to the area,with the Food and Wine Festival hoping to attract 10,000 overseas visitors. There were increased economic activity and employment opportunities during 1999 within Marlborough industry,particularly in avionics, transportation, viticulture, marine farming and services, tourism, aquaculture, and forestry. Recent National Bank and WestpacTrust reports show economic activity in Marlborough has increased by 2%. Retail trade was almost twice the national rate and building consents continued to rise. From April 1999 to January 2000 domestic visitor numbers increased by 12% and international visitor numbers by 20% compared to the same period during 1997/1998, showing the value that tourism has to this area. The median age of the population in Marlborough is 36.1 years. However, it has the highest proportion of the population in the older age groups (60 years 19%, 75+years 20%). Marlborough is clearly an area that is preferred for a retirement lifestyle. Small businesses (fewer than five employees) are increasingly the majority of businesses located in Marlborough. Similarly, self-employment numbers have also risen 2 . The largest industry by employment in the Marlborough District in 1999 was the manufacturing industry, which accounted for 23% of all full-time equivalent (FTE) jobs. The retail trade industry accounted for a further 13% percent of total FTE employment 3 . In pastoral farming two successive droughts had a significant impact on sheep stock numbers. As a result strong growth in income for sheep farmers is unlikely this financial year. However,prospects are good for an improvement in wool (particularly fine wool) and meat prices,as global demand increases over the next year. Marlborough people are well provided for with 10 training providers in the area.Department of Work and Income staff in he Nelson region have worked closely with many providers to develop programmes that are linked to local industry demands, labour market and client needs. Such innovative courses have been very successful,with many clients getting work. The Local Employment Committee has developed a strategic plan that covers education, positive economic development,access and positive regional community development. This committee has good links with groups and organisations such as Focus Marlborough. In December 1999 the average hourly wage in the Marlborough District was $15.45,which is 14% lower than the national average.
West Coast
The West Coast contains the largest area of protected land of any region in New Zealand and this is where five of the country’s 13 national parks are wholly or partly located. It stretches along 550 kilometres and its economy is based on natural resources,with key industries based on tourism, mining, fishing and agriculture. Many people live in isolated communities and are known for their strong identity as ‘West Coasters ’. The issue of native forest logging has caused a great deal of contention on the West Coast. This, combined with a poor economy and migration from the area, especially in the youth age group, has increased unemployment. But there is potential for employment creation. One potential growth area is a new mine in Greymouth, which is predicted to create jobs. Dairy farming and fishing are the key seasonal industries and with a regular shipping service now in place this reduces the barrier of transportation of raw or processed materials from the area. There has been an increase in small to medium-sized businesses and self-employment.West Coast businesses focus on the local market rather than export, but a decline in population and other economic activity has had a large impact. A survey of local businesses in Buller showed 41% anticipated an increase in business activity and 40% no change 4 .It also focused on the need for regional development activities. EMPLOYMENT BY OCCUPATION – NELSON VS NATIONAL
The largest sector by output is tourism, bringing an estimated value of $130 million in 1996. Coal mining is marginally the second largest with an estimated $122 million and pastoral farming generates $90 million 5 .Tourism improvement is also forecasted on the West Coast, with more international visitors and people staying longer. An employer survey supported this forecast. One third of the employers surveyed anticipated growth in tourism and hospitality. There are high percentages of people employed in the wholesale/retail trade (22%) and community and social services (24%). One of the major training providers is the Westport Deep Sea Fishing School, which works alongside the fishing industry throughout the region.Industry-specific contracted services, such as training in meat processing at the Phoenix Meat Company Ltd, have provided some job seekers with long-term and seasonal work. On the West Coast there is a community approach to regional and economic development, with GROW in Greymouth, Vision 2010 in Westland and BIG in Westport. The Local Employment Co-ordinator is in regular contact with these groups. Labour market and the Department’s clients. The Nelson region is more dependent on agriculture, forestry,fishing and horticulture than many other regions. All of these sectors recorded slow growth in 1998 and economic recovery looks to be occurring.The outlook for the primary sector is still constrained but improving,the real exchange rate is low, and some world commodity prices are starting to improve. The outlook for fishing is positive because of increased demand from overseas markets, particularly North Asia. Tourism has also helped to stimulate the economy as visitor numbers have increased in all sub-regions. Over the next year it is likely that forestry output will increase significantly,driven by a steep increase in harvestable volumes. More logs will be sold on the domestic market and international prices are expected to gradually increase. Business confidence has grown and more firms are expecting to increase employment. The National Bank regional economics report showed that Nelson/Marlborough topped the country in economic activity in the final quarter of last year, with a 2% rise. The Nelson region has rapidly changing labour markets, with an increase in small businesses and self-employment. Industrial capital is being shifted to knowledge-based services. There are also positive indications within infrastructure. Over 43% of employers surveyed believed here would be growth in tourism and hospitality and 21% believed there would be growth in arts and crafts. According to the Household Labour Force Survey, labour force participation averaged 66% over the past year with the March quarter being 67%. This is slightly higher than the national average of 65%. From the same survey the unemployment rate as at June 1999 is 6%, September 1999 7%, December 1999 6% and March 2000 5%. The latest figure shows a reduction but should be treated cautiously due to the seasonal influence in that quarter. Statistics New Zealand figures for the October 1999 quarter break down the region’s unemployment rate as Marlborough 5%, West Coast 9%, Nelson 9%, and Tasman 8%. As at June 2000, 41,626 people were receiving income support and superannuation services. These numbers are similar to the previous year with slight increases in Community Wage (Sickness) and Invalids Benefit but reductions in Domestic Purposes Benefit, Veterans Pension and other benefits.
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The eastern boundary follows a line north along the Southern Alps to Maruia where it turns further eastwards following the Waiau River to the East Coast of the South Island. An understanding of the local labour markets, population and demographics and a profile of job seekers and clients are therefore crucial to providing the best possible service. The service centres, providing income support, work search and access to training and subsidies,are located in Nelson,Stoke, Richmond, Takaka, Reefton, Westport, Greymouth, Hokitika, Kaikoura, Blenheim and Picton.