Hon Steve Maharey - Regional Plan Southern

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.

Over the last 12 months the Southern region has made a significant contribution to the betterment of its clients. The region has undergone a major change in performance which is indicative of a commitment to a new direction.

Though not exhaustive, these achievements have established a platform from which the Southern region will bring innovation to its role in job creation and move its clients towards independence and self-fulfilment in the coming financial year.

The region ’s highest priority lies in its commitment to contributing to closing the gaps for Maori in our region. The region will appoint a Maori Strategy Manager, who will liaise with Maori, establish forums, and work with Maori to understand their needs for self-determination. The region will work to strengthen local Maori and build capacity. The region is going to ensure that its service delivery is excellent, that its clients receive their entitlement, and that it works closely with advocacy groups.

The work component of the Department’s activity offers opportunities for imagination and creativity in generating economic growth and jobs such that its clients achieve independence.

We will establish strategic alliances with the local authorities within each of our seven labour markets.Partnership is all about sharing goals and sharing risk. We will share our knowledge of the labour market and our data that support our strategic direction with a view to achieving a shared vision. The Southern region is committed to making a difference.

In so doing,we will build inclusive communities. We will improve the employability of our clients. We will achieve this vision by providing training to our staff, building strong teams, empowering our staff, providing strong leadership, and by ensuring our culture is one of excellence in all aspects of client service. We will listen to the community and take on board their concerns. We will collaborate with other departments to bring holistic solutions to community issues.

The Southern region covers the lower half of the South Island,stretching from the Rangitata River, 50 kilometres north of Timaru, to Stewart Island.

The region ’s total population exceeds 338,000. The majority of the region’s cities and towns are located along the east coast and they service the rural hinterland. The Department operates 13 service centres in Timaru, Oamaru, Dunedin, Balclutha, Gore, Alexandra, Queenstown and Invercargill.

These offices service more than 87,000 clients. The Southern region is host to seven distinct labour markets identified with these cities and towns.

Timaru services the southern end of the Canterbury Plains and the high country of the McKenzie Basin. While the economy of the area is largely reliant on primary production, Timaru boasts the second largest fishing port in New Zealand. The population of the area is approximately 45,000,of whom 20% are retired.

An hour to the south, North Otago is predominately a farming and pastoral district. Its main distribution centre is Oamaru. This area too has an aging population. Opportunities for economic growth lie in the eco-tourism industry and in natural history, such as with Blue Penguins. The largest city in the region, and the main centre of the Otago province, is Dunedin. The University of Otago, located in Dunedin, attracts a large number of students from both within New Zealand and internationally. The education sector offers the largest employment opportunities. The area also has predominantly retail and manufacturing industries.

Dunedin is the gateway to Central Otago and the Lakes District and, as a consequence, its tourism industry is growing. New Zealand's second-ranked tourist destination is Central Otago and the Lakes District. Alexandra, Wanaka and Queenstown constitute the main centres. They offer holidaymakers both summer and winter activities.

Seasonal and niche market opportunities are continually being developed. The rapidly growing wine industry is an example of the increasing economic opportunity.

The South Otago area is serviced from Balclutha. Employment in this region is focused on sheep and dairy farming, agriculture and forestry.

Gore services the rural area of northern and eastern Southland. Southland's city of Invercargill services the lower reaches of rural Southland and Stewart Island. The general population decline in the area has prompted a rebuilding of the region's economic base. This has included land utilisation, tourism and education. In the last year, the Department has assisted with the funding of the Topoclimate/Crops for Southland project.

The Region's economy
The Southern region's economy is dependent on agriculture, primary processing and tourism. This industry base has not seen large movement during the past five to 10 years. In Southland the agriculture, forestry and fishing industries employ 21%of the workforce. In Otago the main industries of retailing and manufacturing each employs 13%of the workforce, while the agriculture, forestry and fishing industries each employs 12%.

The agriculture, primary processing and tourism sectors have been badly affected by low commodity prices, the 1998 drought, and the Asian crisis. Agriculture, primary processing and tourism are expected to be boosted by the falling exchange rate and improving world market growth. It is expected that the southern economy will further recover during 2000.

Underpinning the recovery in the agriculture and primary processing industries has been the increase in sheep and beef prices during the 1999/2000 season. Tourism attracted 4.1%more Asian visitors for the year ended September 1999 than the previous year, and visitor arrivals from all countries rose 9%for the year to October 1999 compared with the previous 12 months. This has resulted in an increase in he number of job vacancies in the tourism and hospitality industry in the region.

Growth
The results of the Department's consultation process indicated that over the next 12 months the tourism and hospitality industry in the region will experience major growth, particularly in Queenstown and Dunedin, with spin-offs expected in the surrounding areas. These will include eco and adventure tourism.

The agriculture, forestry and fishing industries are also expected to show strong growth over the next 12 months. The conversion of land from sheep farming to dairying will continue with new irrigation schemes in place or planned, over the next three years.

South Canterbury and North Otago are expected to show growth in vegetable production and processing. Organic farming, while small at present, is growing strongly. The Otago province is set to see substantial growth in the forestry industry with several forests maturing and coming on-stream for production in the short to medium term. Similarly, South Otago is expected to see growth in forestry and dairy farming. Central Otago will have further growth in viticulture with large vineyard developments. Horticulture, with stone and pip fruit exports, in particular cherries, is expected to increase.

Southland's growth is anticipated mainly in dairy production. Growth is also expected to come from aquaculture and crop development. As a result of the growth in tourism and hospitality, growth is expected to continue in the restaurant and café industry. This trend will include cyber (Internet) cafés and food courts.

Growth is also expected to continue in the transport and storage industry across the region over the next five years. Invercargill and Dunedin should also realise growth in the education sector.

Population
The Southern region has a population of 338,931, with 86%of the total population being NZ Pakeha, 7.3%Maori,1.2%Pacific Peoples,2%Asian and 3.5%from other ethnic backgrounds.

The working age population (15-64 years)is projected to increase nationally from 2.44 million in 1996 to peak at 2.84 million in 2019,a growth of 400,000 or 16%over the 23-year period. In 1996 this group (15-64 years)comprised 66%of the Southern region's workforce. This was also the national average. It is predicted that by the year 2021, the total population of the Southern region will have decreased by 25,000 (or 7.5%).

Age	Number	Percentage
Under 15	71,964	21%
15-30 years	76,101	23%
30-50 years	98,877	29%
50-65 years	47,010	14%
Over 65 years	44,979	13%
Total	338,931	100%

Benefit details
The total number of active clients in the region as at 30 June 2000 was 83,504.Active clients are those who receive a benefit or who are registered job seekers but not in receipt of a benefit. Of he total number of active clients,60%were in receipt of NZ Superannuation,Veterans Pension or the Transitional Retirement Benefit. The next largest client group is receiving the Community Wage (Job Seeker) totalling 19%.Domestic Purposes Benefit clients total 9% and those on the Invalids Benefit total 7%.

The Department paid over $700 million to clients in the Southern region in the financial year to June 1999.This equates to about $2 million per day, every day. The Department also paid $24 million in the Accommodation Supplement across a range of benefit groups and $2 million in he Special Needs Grant.

Cluster	Under 6 mths	6 mths - 1 yr	1-2 yrs	2-4 yrs	> 4 yrs	Total	% of Total
South Canterbury	971	580	675	563	160	2,949	15.5%
North Otago	611	216	226	173	30	1,256	6.6%
Central Otago	658	228	169	92	3	1,150	6.1%
Dunedin	2,438	1,601	1,492	1,142	350	7,023	37.0%
South Otago	260	103	88	66	27	544	2.9%
Rural Southland	342	101	109	54	6	612	3.2%
Invercargill	2,285	1,021	989	834	324	5,453	28.7%
Regional total	7,565	3,850	3,748	2,924	900	18,987	100.0%