November 2000

Regional Plan Northland

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 and celebrate Northland region's past year and to share our strategic direction and focus for the 2000/2001 year. The Northland region is unique in its diversity and challenges. Wide variations in social and economic status characterise the region. Added to this is the cultural diversity of the region bringing about great challenges particularly in seeking to close the gaps for Maori, rural disadvantaged and youth. The first part of the year was particularly challenging as the region coped with a rolling series of civil defence emergencies and labour market shocks.

Despite the challenges, the past 12 months have been successful and rewarding. I have been impressed by the enthusiasm and commitment of staff and the community to work together to find ways to achieve mutual goals to enhance the quality of life for our clients, families and communities.

Our focus has been on developing our ability to better support and meet the needs of our clients, their families and communities. To this end, we have focused on delivering a relevant and supportive service delivery approach. We have had many successes over the past year. Highlights include the following.

• $425 million has been paid out in income suppor ensuring that the basic needs of our clients have been met.
• We assisted over 4, 118 individuals with a range of skills training, motivational training, community work opportunities and on the job work experience. 65%of the clients attending these courses were Maori or Pacific Peoples. This is a total investment of $1. 4 million in the people we serve.
• The proactive work of our staff has resulted in 3, 916 of our clients finding work in he year ended 30 June 2000.
• Work Brokers have worked with individual businesses to ensure a sound understanding exists of each employer ’s needs. We have demonstrated our responsiveness to companies in times of job creation and of new businesses moving into our region.
• With the support of Be Your Own Boss programme and the excellent support of the enterprise agencies we have been able to assist some of our clients into new business start-ups in the last 12 months.
• With the support of Community Employment, a wide range of community development projects has been supported and funded.
• We have worked closely with Te Puni Kokiri (Ministry of Maori Affairs)to support and promote development of local Maori raining providers.
• Our partnership with the Ministry of Commerce/Economic Development and the Kaipara District Council was successful in securing $250, 000 to assist Dargaville businesses affected by the flooding of the Northern Wairoa River.
• We worked closely with the Far North District Council and other Government agencies in providing prompt and accessible support to people affected by the extensive flooding in the Hokianga region.
• We worked closely with clients and provided on-site support services for people affected by closures of large businesses such as AFFCO Whangarei and the Dargaville Dairy Company.
• We have built many new partnerships which are well poised to promote and assist the economic development of our region over the next 12 months.

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 Northland clients and communities. Providing for a growing, socially and economically diverse region is not easy. In spite of the fact that we have placed 3, 916 people into work, Northland possesses one of the highest unemployment rates in the country. Further, 55%of he Far North, 26% of Whangarei and 18% of Kaipara residents live in a situation of poverty. With this in mind, we must continue to actively seek opportunities to provide significant improvement in the lives of large numbers of people within the Northland region.

To achieve this we must build on our successes and extend the way we relate to other key stakeholders in the region, through alliances and partnerships, agreements with key Government agencies, local authorities, iwi and community groups. Working collaboratively to develop integrated initiatives that deal with issues relating to health, housing, education and employment is vital as is the need to work alongside advocacy groups to identify solutions to close the gap. Equally important is our role in working with other key groups to promote and achieve improvement in our region ’s economic development. Furthermore, we must continue to provide quality case management and superannuation services to all clients, ensuring individuals ’needs are assessed accurately and correct benefit entitlements are received.

For some of our clients re-entry into the workforce will happen relatively quickly, but for others the pathway will take longer. Providing clients with the full range of information and additional assistance is also critical to ensuring clients are both encouraged and supported to take up training, and part-time, seasonal and full-time employment opportunities. Moving forward we will maximise the extensive seasonal work opportunities which exist in most of the region ’s key industries, including agriculture, horticulture, silviculture, aquaculture, farming, hospitality and tourism. Each centre will be extensively involved in working with local employers and job seekers to better meet he fluctuating seasonal needs of these industries. We will work closely with new Government community work programmes to ensure that

community initiatives are maintained for the benefit and development of both communities and individual job seekers. Once again, partnership projects with other Government agencies such as the Department of Conservation and regional/local bodies will ensure that the Northland region assists in meeting the Government ’s objective of ‘protecting and enhancing the environment ’. Northland possum initiatives are a key example of his type of work.

In addition, we will introduce specialised case management for youth, Maori and the long- term unemployed.

This regional plan sets the goals of the Northland region for the next 12 months. Clearly by working together, remaining flexible and developing and sustaining partnerships in the community, we will assist in achieving improved results in respect to the community well-being and sustained prosperity for all.

OUR REGION

Introduction
Northland is one of 13 regions within the Department. There are 10 service centres within Northland –in the far north is Kaitaia,and in the mid-north are Kaikohe,Kerikeri and Kawakawa. Whangarei includes Kamo,Whangarei Central, Whangarei South,Onerahi and Specialised Services.On the West Coast is one service centre – Dargaville.Within the region there are also three territorial authorities –the Far North,Whangarei and Kaipara Districts.

Far North
Positioned at the top of Northland, stretching from Cape Reinga to Towai with the northernmost town being Kaitaia, the Far North has a resident population of 53, 000, of which 54%are Maori and 55%are living in areas of poverty and social deprivation. For local authority purposes it also includes the Mid-North. The Mid-North boundary covers the Hokianga, Bay of Islands and ending at Towai.

Large areas of he central and west of the district have very depressed economies.

Whangarei
The residential population is 66, 753, of which 26% are living in a situation of poverty and social deprivation. Whangarei includes the provincial centre of Northland, Whangarei City, with its commercial and industrial base, as well as a prosperous farming hinterland. Whangarei is often the base from which other services are provided to Northland such as hospitals, Government departments, educational institutions, industrial centre and port access as well as a wide range of business services.

Kaipara
Kaipara is a small local authority with a population of approximately 17, 367, with 18 to 20%of people living in a situation of poverty and social deprivation. The district has some areas intensively farmed in horticulture, especially kumara –the area is well known as the ‘Kumara Capital ’of New Zealand. Pastoral farming, dairying and forestry are widespread. Dargaville, with a population of 4, 800, is the main service centre in the district providing basic services to he surrounding rural communities. Tourism is a recent growth industry for this area.

Overall
The total population of Northland is 137, 052 (1996 census). Additional figures from Statistics New Zealand show, with the trends in population growth, the population to be 144, 000 as at December 1999 – a 9. 5%increase. Maori make up 30. 3%of he total population, which gives the region the second highest Maori population in the country after Gisborne. The population is spread over a large geographical area.

Wide variations in social and economic status characterise the region. A high proportion of the Maori population resides in areas with low labour market activity. Maori also rate poorly in respect to measures such as income, health status and educational level when compared with both the populations overall and total Maori in New Zealand. Almost one in five workers in he Northland region are employed in the agriculture, forestry and fisheries industries. The retail and manufacturing sectors are the next two largest industries in Northland. Tourism and related fields are also key industries, which create opportunities in the service and retail sectors.

The strongest labour markets in he region are in towns and communities in the east of the region and the weakest labour markets are in the communities on the west of the region. Features such as rural isolation, lack of transport, housing, education and health status constitute barriers to the development of opportunities both in training and employment for people in receipt of benefits.

The job market in the next 12 months

Investigating our region
A range of research and consultation was undertaken to update labour market opportunities and client profiles. Information sources included the Labour Market Policy Group, Statistics New Zealand and several economic newsletters. Consultation occurred with employers, other Government agencies, social/health service providers, iwi representatives, community groups, Local Employment Co-ordination groups and the Department of Work and Income staff. The overall assessment for the next 12 months is optimistic based on wo major factors.

• Forecasts of continued economic growth at both a national and regional level.
• The commitment by the new Government to promote regional economic development as a key tool to closing the gap, particularly for Maori.

Opportunities
The major areas of growth and opportunity have been identified as follows. Traditional Maori production activities There is an opportunity to develop sustainable business opportunities serving markets outside the region. An example is Te Papa looking to find a production source for flax woven products, bone ornaments and traditional wooden carvings. Growth in the number of cruise ship visits in the Northland area creates further opportunity.

Northland is rich in history and Maori culture, and attracts a substantial number of tourists who also have a large interest in traditional Maori products and services. In addition, Northland has an amazing natural resource, both in land and coastal access and this provides huge opportunities for Maori to capitalise on and/or develop these opportunities for the benefit of heir people. Oyster farming and the settlement of Treaty claims are two examples.

Tourism, accommodation and hospitality
A host of factors such as favourable exchange rates, international exposure from the America ’s Cup, a rebound from the Asian crisis, consistent marketing of Northland as a tourist destination and the start of improved road access from Auckland have combined to provide strong growth in this sector, especially north of Whangarei. For example, a major tour operator in the Bay of Islands has reported its best February in years and expected March to be equally good.

The outlook remains positive, based on considerations such as Destination Northland pursuing its strategy of extending the visitor season or length of stay and an expected annual increase in visitor numbers to this country of around 6%, despite the short-term impact of the Sydney Olympics.

To take advantage, there is general agreement that Northland needs to focus on enhancing levels of customer service to create better visitor experiences.

Construction
There are two major components to he growth in construction. Firstly, there continues to be significant investment in a number of large projects throughout the region, examples of which are the JNL mill expansion in Kaitaia, the new CHH plant in Whangarei and the proposed expansion to the Whangarei Por at Marsden Point.

Secondly, there has been a sustained increase in residential construction, particularly along the east coast and in rural areas, to accommodate retirees and lifestylers coming in from outside the region. While increasing interest rates are likely to dampen activity, the continued influx of people into the area is expected to fuel further residential construction activity. Builders and other radespeople are consistent in lamenting the lack of semi-skilled and skilled labour.

Forestry
Not only is Northland the second largest forestry region but harvest rates are also set to treble over the next few years and increase again in the medium term if planting rates continue. Although companies like JNL and CHH are creating a significant number of jobs by processing timber, the majority of the harvest will continue to be exported as logs, among other reasons being the high level of tariffs around the world on processed timber products.

As evidenced by the Asian financial crisis, the overseas market is one of peaks and troughs but the short-term future is bright, especially since the forest industry here has worked hard to be internationally competitive. There will be a significant increase in job opportunities as the industry rebuilds after the recent overseas slump, but the requirement is for trained workers not unskilled labour.

Telecommunications
Advances in information technology and telecommunications are assisting to nullify the region ’s geographical disadvantage. For example, one outcome of the Far North Economic Development Trust ’s activities was the announcement that Datacom intended to partner the Far North District Council in exploring the establishment of a call centre operation in the Mid-North. Another example is Top Energy who is looking at different ways to use and expand its existing call centre now that the company no longer sells electricity. This increased activity has led to the relevant training being made available, with the newly created National Certificate in Call Centre Operation course beginning in July. This is clearly an industry that requires computer literacy and customer service skills and one that is suited to a regional location because of a more stable workforce and cheaper labour costs than metropolitan areas.

New industries
The triumph of New Zealand in winning the America ’s Cup has opened new industry opportunities for New Zealand. Opportunities currently include the exploration by a major overseas investor into the establishment of a super-yacht industry in the Whangarei region. If this proposal goes ahead the Whangarei district will benefit immensely, including the direct benefit of 1, 000 additional jobs within two years.

Our clients The Northland region had a registered unemployment rate of over 8%since December 1996.However,the unemployment rate has fallen significantly since September 1999 and is at its lowest level since March 1997.This is consistent with the rise in employment in the region and reflects the increase in workforce participation in the region.The labour force participation rate is 61.5%, which is below the national average participation rate of 64.8%.

People in receipt of a benefit in Northland totals 41,378 as at June 2000.Breakdowns of the types of benefits are as follows.

National data for June 2000 are as follows.