Six Monthly Report to SmartGrowth Implementation Committeeecontent.tauranga.govt.nz/data/documents/committee_meetings/2015/... · Six Monthly Report to SmartGrowth Implementation

APPENDIX D

V.

Six Monthly Report to SmartGrowth

Implementation Committee

to 31 December 2014

Economic Okowffi

A 2 vWIWi i ' i ' lMi i I.

.1 •

Priority

13

Contents PAGE

Introduction 1

What We Do 2

Executive Board as at 31 December 2014 3

Collaborating for Competitive Advantage 4

Priority One Members as at 31 December 2014 5

Long Term Strategic Areas of Commitment 2014-17 7

Strategic Priority Projects 9

Business Attraction & Marketing Campaign 9

Tertiary Education & Research 10

Tauranga City Centre Strategy 12

Progress Against Other Result Areas 15

Fostering Innovation & Entrepreneurship 15

A Compelling Destination 18

A Hub for Skills & Talent 19

Connect & Collaborate 22

Business & Investment Attraction 25

Communications 27

Smart Economy Implementation 28

Highlights from Smart Economy lead agencies 29

Dninng Economic Orowth 14 Priority 1

Introduction

Priority One's purpose is to build a vibrant economy that retains and attracts talented, skilled and creative people and the businesses that need them.

Priority One is the economic development organisation covering Tauranga and the Western Bay of Plenty. We are an autonomous organisation established by the business community and receiving support in the form of funding and expertise via business memberships, making us a unique structure for an economic development organisation in New Zealand. The backing of the business community lends us strength, insight and credibility that is crucial as we advocate for change. Priority One is also contracted to deliver economic outcomes by Tauranga City and Western Bay of Plenty District councils.

The underlying philosophy of Priority One is of "leadership by the business community in partnership with local government to deliver sound economic development strategies and actions". We are frequently contacted by other regions who find the business/local authority partnership and engagement an enviable model for the delivery of intervention-based initiatives that drive positive economic change.

The partnership between the business community and the sub-region's local authorities has been critical in obtaining the necessary infrastructure, such as an efficient roading network, business land and increasingly efficient broadband connectivity which will underpin our competitive and comparative advantages.

Priority One's aim is to create, enhance and widely communicate the sub-region's competitive advantages so that we retain highly productive businesses and talented people, and attract business and inward investment. In particular, our focus is on those businesses that have a disproportionate ability to grow, that demand highly talented and skilled people, and that export to international markets.

High value, innovative businesses will assist us to achieve a balanced, dynamic economy to ensure we are at the leading edge in the national and international competition for economic growth. This will see us shift from an historical low skill low wage economy to high skill, high wage economy.

A robust and prosperous economy benefits everyone in the community, not just business owners:

It creates and attracts higher-skilled and higher-paid jobs, thereby resulting in a better overall quality of life. It provides for increased employment opportunities through an increase in business numbers. It develops education, training, research, business and employment opportunities that enhance the desirability of the region as a place in which to live, invest, work and play. It provides better quality and more affordable infrastructure. It enables increased investment in health, social services, the environment, recreation, and arts and culture.

Priority One Six Monthly Report to 31 December 2014 Page | 1

45 Priority 1 Dnwig Economic Growth

What We Do

Priority One's key focus is on building the sub-region's competitive advantages in the attraction and retention of high value businesses and the talented workforce those businesses need.

We work with a range of public and private sector partners to deliver projects that focus on stimulating innovation and productivity; creating a business environment in which sustainable economic growth can occur; creating vibrant places; attracting a highly skilled workforce; and facilitating the provision of tertiary education, including research and development capability, to create new products and support economic growth.

Priority One has five key themes which are supported by a number of projects:

Fostering Innovation & Entrepreneurship

Key Themes

This theme is about supporting the development ofthe region's innovation eco-system to create an entrepreneurial culture. The application of innovation to add value to the primary product base of the economy will transfonn it into a high productivity economy that is globally competitive within its market niches.

This theme is about creating vibrant places, community facilities and a year round calendar of activities and events which will turn our lifestyle advantages into a source of competitive advantage. Overseas research has highlighted that competitive cities are those that can attract skilled human capital and investment by offering the lifestyle that talented people seek.

A Compelling Destination

This theme is about developing a highly skilled work force that meets the needs of a competitive, export-led economy. An important focus is keeping abreast of changing industry needs and putting in place initiatives that will ensure that the future labour force develops skills in line with the sub-region's competitive strengths. It encompasses school and tertiary education, as well as industry-based training and up-skilling.

A Hub for Skills & Talent

This theme is about developing the alliances, networks and infomiation flows that will produce results across the entire economy. The sub-region is renowned for the strong collaborative approach between business, local authorities, central government, education providers and organisations that support business and economic development.

Connect & Collaborate

This theme is about the attraction of investment to the Westem Bay sub-region in the form of businesses who gain a competitive advantage from being based here. This involves removing external barriers to business competitiveness by ensuring infrastmcture is capable of meeting business needs and sufficient serviced land is available at a competitive price. It also includes the development of inter-regional and international investment strategies to contribute to economic growth.

Business Investment & Attraction

Priority One Six Monthly Report to 31 December 2014 Page I 2

-A 6 ' DriwoQ

Economic Growth Priority 1

Executive Board as at 31 December 2014

Chair: Murray Denyer, Cooney Lees Morgan

Deputy Chair: Sara Lunam, Port ofTauranga Limited

Mary-Anne Macleod, Bay of Plenty Regional Council

Scott Adams, Carrus Corporation

Glenn Keaney, KPMG Chartered Accountants

Adam Hazlett, Modern Office

Steven Saunders, Plus Group Horticulture Limited

Garry Poole, Tauranga City Council

Simon Clarke, Trustpower Limited

Alister Jones, University of Waikato

Miriam Taris, Western Bay of Plenty District Council

Simon Limmer, ZESPRI International

Antoine Coffin, representing the three iwi of Tauranga Moana (Ngati Ranginui, Ngai Te Rangi and Ngati Pukenga)


Drtving Economic Growth 47 Priority 1

Collaborating for Competitive Advantage

Established in 2001 by the Tauranga and Western Bay of Plenty business community, Priority One would not be able to operate as effectively as we do without the support of our business members. In return, we provide the following services and opportunities to our members:

Connections We sit at the heart of business, local government and economic activity in the sub-region, with access to the information and contacts that businesses need to succeed. We are able to direct our business members to the most appropriate source of information dependent on the inquiry. Regular member functions are also held throughout the year.

Referrals We are as loyal to our members as they are to us. Regularly approached for advice on where to go for products, services or support, Priority One members are our first port of call. Our business attraction campaign has seen these referrals increase significantly in recent years.

Facilitation We regularly assist members make their dealings with local and central government processes quick and easy, from resource consents to government funding, to the immigration of skilled workers.

Advocacy We make sure the business community is represented and heard on issues being considered by local and central government.

Member Promotion The Priority One website is a central hub for people looking for information about Tauranga and the Western Bay of Plenty. Member businesses each have a profile page on the site to ensure you get the first shot at new customers and business opportunities. We also feature members in our newsletter, which is received by over 4000 subscribers each month.

Destination Promotion We have a strong focus on the attraction of business and skilled people to the sub-region through a targeted marketing campaign called The Tauranga Business Case. This means more potential customers for our members and a larger pool of people for them to recruit from. The campaign also promotes innovative member businesses through case studies in local, national and international media.

Make a Difference Our business members are able to play an active part in bringing positive change to the nature and shape of the local economy so that we attract skilled people and the businesses that need them, and have educational opportunities and jobs for our young people.

Big Picture In summary, our business members help us grow the 'economic pie'.


48 Priority 1 Drivtng Economic Growth

Priority One Members as at 31 December 2014

Joint Committee Partners Tauranga City Council Western Bay of Plenty District Council

Significant Funding Partners Bay of Plenty Polytechnic Bay of Plenty Regional Council Cooney Lees Morgan Craigs Investment Partners Port of Tauranga TrustPower Limited University of Waikato Zespri International Ltd

Trust Funders Bay of Plenty Education Trust BayTrust New Zealand Lottery Grants Board Tauranga Energy Consumer Trust The Lion Foundation

Financial Members 1st Call Recruitment absolutelT Academic Colleges of New Zealand Ltd Addiction Foods AIMS Games Trust AnthemNZ Limited ANZ Bank Aon New Zealand Ltd Aongatete Coolstores Ltd APR Consultants Aquinas College Archistudio Arrow International Ltd ASB Bank Aurecon Avonmore Tertiary Institute Bank of New Zealand Bay Developments Ltd Bay Venues Ltd Bay of Plenty District Health Board Bay of Plenty Times Bayfair Centre Management BayTrust BDO Tauranga Beaumont Investment Trust Beca Bennetts Proactive Accountants Ltd Bethlehem College Bidvest Bluehaven Holdings Bluelab Corporation Ltd Boffa Miskell Brother International (NZ) Ltd Bubble Interiors Bulk Storage Terminals Business Technology Group Canvas Investments Ltd Careers New Zealand Carrus Corporation Ltd

Channor NZ Ltd Chartered Institute of Logistics & Transport Colliers International Comvita Ltd Coulter Elite Resourcing Ltd Crombie Lockwood Crowe Horwarth (NZ) LimitedCrown Relocations Cucumber Software Ltd Dale Carnegie Bay of Plenty/Waikato Datacom Delta Technology Solutions Ltd Devcich & Low Ltd Dimension Data Ltd Discovery Marine Ltd DIstillerie Deinlein Downer NZ Drake New Zealand Eastpack Ltd Eco-Effectiveness NZ Ltd Education Tauranga Edvance Element IMF E-Mlgration Employers & Manufacturers Ass (Northern) Inc Employment & Environment Law Engine Room CA Ltd Enternet Online Ltd Enterprise Angels Fairclough & King Consultants Farmer Auto Village Federated Farmers Bay of Plenty FIfo Capital Focus on Property Fordland Projects Frasers Papamoa Ltd Fruition Horticulture (BOP) Ltd Fuji Xerox New Zealand Ltd Fulton Hogan Ltd FX Networks Gen-i Bay of Plenty Global Roofing Solutions Ltd GPS-it Ltd Grace Team Accounting Greenstone Group Guideline Enterprises Hair to Train Harris Tate Harrison Grierson Higgins Contracting Holland Beckett House of Travel Tauranga HR Connect Ltd Human Resource Group Ignite Architects Industrial Sheetmetals Ingham Mora Innovative Document Solutions Ltd t/a RICOH BOP Intrepid Minds (Pacifica) Limited James & Wells Jasmax Ltd Jeffco International Jenkins Freshpac Systems Ltd JWL Investment Trust Kale Print Katch Katikati Kate Barry-Piceno Barrister


49

Katikati College Key Research Ltd King Street Advertising Kiwibank Business Banking KPMG NZ Link Business Brokers Locus Research Mackenzie Elvin MarketlngFirst.co.nz Marra Construction Massey University McMillan & Lockwood BOP Ltd Metro Marketing Moana Radio MOCA Modern Office Ltd Momentive NZ Ltd Morgan Furniture Mount Maunganui College Mt Maunganui New World Multifid Technology International Ltd National Tertiary Education Consortium New Zealand Avocado New Zealand Carbon Farming Ltd North Island Mussels Ltd NZ Kiwifruit Growers Inc Oceanbeach Holdings Oceanbridge Shipping Ltd 0ne21 - HR and Recruitment Outsourcer Opus International Ltd Orbit Travel Hamilton otumoetai College Pachoud Marine Ltd Pacific Coast Technical Institute Pacific Medicare Ltd Page Macrae Engineering Papamoa College Paul Hickson Chartered Accountant Personnel Resources Plumbing World Ltd Plus Group Horticulture Ltd PowerCo PowerSmart Prendos New Zealand Property Managers Ltd Puma Dart Products Ltd Quayside Holdings Ltd Qube Global Software Ltd Right Aligned Ltd Radford Software Ltd RCP Realty Group Roan Clarke Consulting Ltd Robert Harris Coffee Roasters S.B.S. Bank Sanford Ltd Seatrade New Zealand ShareThePoint Ltd Sharp Tudhope Lawlink Skilled British Workers Ltd Stellar Consulting Group Ltd Stellar Library LP Stewart Browne Group Stratum Consultants Strongline Buildings Ltd Sun Media Tabak Business Sales Tainui Group Holdings Talent Recruitment Ltd Taura Natural Ingredients Ltd Tauranga Boys' College

Tauranga Chamber of Commerce Tauranga Girls' College Te Awanui Huka Pak Co-Op Ltd Te Puke Economic Development Group Te Puke High School TechnologyWise Ltd Te Tawharau o Ngati Pukenga Trust Te Wharekura o Mauao The Building Intelligence Group The Technology Centre Think Agency Ltd TiDA Tonkin & Taylor Tradestaff Traffic Design Group Ltd Transcriptionz Trevelyans Tuskany Agency Ultimate Motor Group Ultrafast Fibre Ltd Veros Property Partners Village Public Relations Vosper Realty Wasley Knell Consultants Westfalia Automotive Asia Pacific Ltd Westpac Wharf42 Wingate + Farquhar Woodland Management Ltd Woods the Creative Agency Young Read Woudberg Zariba Holdings

Life Members Paul Adams Warren Banks Murray Davies Peter Farmer Des Ferrow Murray Hill Bill Holland Bruce McCutcheon Jon Mayson Tom Roper Tony de Farias Andrew Te Whaiti Keith Tempest Stephen Town

In-Kind Members Classic Flyers Hotel Armitage Hotel on Devonport Living Decor Plant Hire Mills Reef Winery MediaWorks The Radio Network


50

Long Term Strategic Areas of Commitment 2014-17

Attracting and Retaining Business On-going implementation of 'The Tauranga Business Case' marketing campaign for Tauranga and the Western Bay of Plenty to promote the sub-region's competitive advantages as a desirable place from which to do business.

Attracting Investment Develop a strategy to attract targeted investment into the Western Bay of Plenty sub-region, including foreign direct investment and the progression of international partnerships.

Tertiary Education and Research Contribute to the growth of the Bay of Plenty Tertiary Partnership through the facilitation of industry sector linkages that will assist to identify and accelerate regionally-relevant research and tertiary education opportunities: - Creating a university city; - Supporting implementation of the Bay of Plenty Tertiary Intentions Strategy; - Supporting the growth of international education through Education Tauranga; - Supporting further development and alignment with regional needs of the Bay of

Plenty Tertiary Partnership; and

- Development of industry-aligned research capability.

Tauranga City Centre Strategy Implementation of actions in the City Centre Strategy to position Tauranga as a sustainable, vibrant, contemporary city - attracting business and talent, creating high value employment and stimulating economic growth.

Innovation & Entrepreneurship Catalyse business innovation and entrepreneurship and foster commercialisation capability by:

Managing Ignition, the city centre co-working space that was established during the reporting period to foster entrepreneurship, innovation and productivity growth for early stage businesses and business ideas; Facilitating the Western Bay of Plenty ICT Cluster, including the biennial Technology for Smarter Business Expo;

- Supporting the Plenty of Innovation market validation programme; - Supporting the WNT Ventures incubator (ICT, high value manufacturing and

automation in the primary sector); - Supporting the House of Science to inspire scientific innovation in children; and - Facilitating the annual Young Innovator Awards.

Priority One Six Monthly Report to 31 December 2014 Page j 7

Maori Economic Development Build relationships and effective communication networks with the Maori economic community to increase understanding and create a strong platform to enable Maori economic development and skill enhancement.

Bay of Connections - Regional Economic Development Strategy - Membership of the Bay of Connections governance and management groups to drive

strategy implementation; - Membership of the Bay of Connections Freight Logistics Action Group to deliver a

world-class freight logistics region with strong, collaborative and efficient supply chain networks;

- Membership of the Regional Aquaculture Organisation to ensure tertiary and research delivery is aligned to industry needs; and

- Partnering in the implementation of the Bay of Connections Maori economic development strategy.

Development Viability Encourage collaboration and joint planning between the development community and the sub-region's local authorities to ensure the cost of development does not constrain future growth.

Skills for Industry Attract and develop the required skill resource to meet current and future industry needs. This will include: - Delivery of the Instep programme, including Western Bay @ Work and the Careers

and Business Expo; - Attracting ex-pat Kiwis via the Wish You Were Working Here website; and - Gaining an understanding of the impact of an ageing demographic on the future

labour force (threats and opportunities).

Aquaculture & Bioactives Support the Chair in Coastal Science in developing commercial opportunities from marine science.


r>2

strategic Priority Projects

During the six months to 31 December 2014, Priority One continued its focus on building the sub-region's competitive advantages. The following details progress on projects identified as strategic priorities that Priority One is involved in.

BUSINESS ATTRACTION & MARKETING CAMPAIGN

The very essence of what Priority One does is to support the creation of an environment that attracts new business to the sub-region and retains those businesses that we already have. 'The Tauranga Business Case' showcases the diversity of successful, innovative, high-value, internationalised businesses located across Tauranga and the Western Bay of Plenty, with the aim of attracting new business in strategic industry sectors. The campaign highlights our competitive advantages such as the availability and cost of business land, easy access to transport infrastructure for domestic and international markets, quality labour resources, access to ultrafast broadband and an attractive quality of life proposition. Priority One also assists businesses considering moving to the sub-region to smooth the relocation process. This includes helping with local authority issues and processes, offering advice and making referrals to the services provided by Priority One's members.

Last year we interviewed 11 businesses, representing a mix of relocations and start-ups, to assess the value they created by establishing here. There were initially 227 new jobs, which grew to 492 at the time of the interviews and were predicted to grow to 525 by December 2014. On checking these growth projections as at 31 December 2014, they had grown to 536 new jobs. In addition, the companies had invested nearly $21 million in staff and had capital expenditure of over $40 million. Coupled with the downstream expenditure with local suppliers, the impact of businesses relocating and expanding to the sub-region is significant.

Some of the key companies we have worked with through their decision making and relocation process include the following: • SPI IND (South Pacific Industrial Limited) is opening a new branch in Mount Maunganui

in early February 2015 and expects to employ 40-50 staff within the next six months. The heavy engineering and instrumentation business also has operations in Tutukata and Auckland. Following the development of a new export manufacturing business, jobs are expected to grow to 150.

• Jenkins Freshpac Systems Ltd relocated their label printing and technology operations from Auckland to Tauranga, building an $8 million facility at the Tauriko Business Estate. The business has created 40 new jobs.

• FSP Australia has leased a Hewlett's Road site and relocated their former Brisbane-based plastics rotational moulding operations. This business has created 50 new jobs.

• The New Zealand Dessert Company, a subsidiary of a Holland-based dairy-desserts company, commenced production at their Papamoa site in July 2013. The company has brought an additional 30 jobs to the sub-region.

• Cadform, a CAD 3D marine design business, has taken space at Sulphur Point The employee count could climb to 30 depending on contracts with Australian boat manufacturing business Riviera.

• Brother International has constructed a purpose-designed warehousing and distribution facilities, including their New Zealand head office, at the Tauriko Business Estate costing $10 million. The Japanese-owned company is the leading provider of print and imaging equipment, sewing machines and labelling hardware in New Zealand and the Pacific.


3

• Frequency Projects, a construction project management business, and initially took space in Priority One's Ignition city centre co-working office. The company has since expanded to a stage where they have leased their own premises.

• Since the commencement of The Tauranga Business Case campaign, Priority One has engaged with 26 businesses through their decision processes and ultimate establishment in the sub-region. These have included five IT companies, four import/distribution companies, four manufacturing companies, and two in each of the food & beverage, professional services and marine/aquaculture sectors. As at 31 December 2014, Priority One Is working with a further 28 businesses, that are at various stages in their consideration of the Western Bay of Plenty as a base for their operations.

It is extremely heartening that all the businesses that have chosen to establish in the sub-region have demonstrated a commitment to using local suppliers and service providers. The down-stream economic return of these businesses is well beyond the initial capital spend and direct jobs growth. This is the payback to Priority One's members who have supported the organisation through its formative years to the point that a real economic dividend is now being generated.

TERTIARY EDUCATION & RESEARCH

The relationship between higher levels of education and increased indicators of social and economic well-being are clear, as is the relationship between investment in research and development and improvements in business productivity. Skills are now widely recognised as the global currency of the 21^' century. A focus on enhanced tertiary education and research provision is a priority for producing our future labour force and supporting business and industry growth and profitability. Importantly for Tauranga and the Western Bay of Plenty, a strong tertiary education sector will assist in the retention and attraction of young people in the sub-region, particularly growing numbers of young Maori entering tertiary education age. It will also position Tauranga as a tertiary destination of choice in niche fields, attracting skilled people and the innovative, knowledge-based businesses that need them.

During the reporting period the following projects relating to tertiary education and research were progressed:

• City Centre Tertiary Precinct Priority One has been working closely with the Bay of Plenty Tertiary Partnership (comprising Bay of Plenty Polytechnic, University of Waikato, Waiariki Institute of Technology and Te Whare Wananga o Awanuiarangi) and SmartGrowth to establish a unique Tauranga city centre tertiary precinct. Tauranga City Council has agreed to gift land in Durham Street for the development and delivery of tertiary education and the Bay of Plenty Regional Council and Tauranga Energy Consumer Trust have each confirmed up to $15 million will be made available, subject to conditions. As at 31 December 2014 a heads of agreement between the key partners is being finalised. Academic planning for the new campus is well underway with initial focus areas in marine science, computer technology, freight/logistics and supply chain management. The total cost of the development is estimated to be $88.8 million, with the balance provided by the University of Waikato.

• Bay of Plenty Tertiary Intentions Strategy Priority One played an integral part in the development of the Bay of Plenty Tertiary Intentions Strategy during the reporting period, to develop a collective vision, strategy and actions for tertiary education delivery that is closely aligned with local industry and community needs. Over 100 interviews took place with representatives of key industry sectors and other stakeholders across the wider Bay of Plenty and public feedback was


invited on the draft strategy. Five strategic themes form the basis of the actions: collaborative leadership; Maori engagement and participation; transformational support between secondary schools, tertiary education and employment; facilitating research and development innovation; and international education. Next steps include the establishment of a regional tertiary implementation group to work with stakeholders to develop an annual implementation plan and reporting framework.

Coastal Marine Field Station The Coastal Marine Field Station was established by the University of Waikato In Tauranga in 2011 with support from Priority One, Bay of Plenty Regional Council, Port of Tauranga, Bay of Plenty Polytechnic, Te Whare Wananga o Awanuiarangi and SmartGrowth. The facility positions the region as a major centre for marine-based research for pharmaceutical and agrlchemical innovation due to the high level of diversity found in local waters. New Zealand has been successfully involved in marine bio-discovery for years, including the development of cancer drugs. The research programmes also link in with leaders in the agrlchemical field to create economic opportunities. Since it was established, the field station has trebled the size of its operations as a result of an increased demand for its research. During the reporting period Professor Chris Battershill, the Bay of Plenty Chair in Coastal Science, visited the Yantai Coastal Science Research Institute in Tauranga's Chinese sister city to progress marine research and commercialisation opportunities in areas such as aquaculture, marine biotechnology and algae. There is an opportunity to collaborate in these areas and make use of the Chinese government's RMB$5 billion (approximately $1.5 billion NZD) investment into aquaculture and marine science.

Intercoast Based at the Coastal Marine Field Station, Intercoast is a unique international collaborative PhD programme between the University of Waikato In Tauranga and the University of Bremen in Germany, with multi-disciplinary research projects undertaken that have direct benefits for industry, local authorities and the residents of the Bay of Plenty. Intercoast also provides a platform for the attraction and development of further high-end, international research capability in the region. The initiative is recognised by the New Zealand government as an outstanding example of research collaboration with commercial and environmental benefits. During the reporting period the first New Zealand-based Intercoast doctoral students graduated with their jointly conferred Bremen/Waikato degree. New international student exchange programmes are also being developed with James Cook University in Australia.

Education Tauranga Priority One has worked closely with Education New Zealand over previous reporting periods to develop a strategy to grow the value of international students to Tauranga and the Western Bay of Plenty. Priority One prepared the strategy and business plan, which was adopted by Education Tauranga in June 2013. As a result, Education New Zealand committed co-funding for three years to employ a regional resource to implement the strategy. International education highlights over the last year were as follows: - Education Tauranga's new International Manager commenced in February 2014,

based in Priority One's office and funded by Education New Zealand. Largely as a result of this dedicated resource, the value of international education per annum in the Western Bay sub-region has grown from $24.6 million to $28.8 million over the course of the year.

- Education Tauranga has subsequently set more ambitious growth targets after the current long term targets were met early. The original target was 15% growth in value by 2017, however this year has seen 17% growth already. The new target is 35% growth by 2017.


5

- For the first time Education Tauranga hosted agents from China to the sub-region so they could find out about primary, secondary and tertiary education opportunities for Chinese students. As a result, 10 Chinese families visited to look at opportunities to enrol their children in local schools. Planning is underway to bring two further groups of Chinese agents to Tauranga in February 2015.

- Education Tauranga partnered with the Bay of Plenty Polytechnic and the University of Waikato on a trip to Tauranga's Chinese sister city, Yantai, in October to further progress on the bachelor degree pathway programmes with Yantai University. The delegation also met with agents in Shanghai that had expressed interest in bringing students to the sub-region.

- Education Tauranga has been awarded over $10,000 by Education New Zealand to bring education agents in from Thailand and Vietnam in 2015 to showcase the educational opportunities available locally. These markets are currently underdeveloped for New Zealand's international education sector and have considerable potential for growth.

- Education Tauranga has commenced planning to lead a delegation of primary and secondary school representatives to China in March 2015.

• Bay of Plenty Clinical School The Bay of Plenty Clinical School was established in 2007 by the Bay of Plenty District Health Board to develop training and research initiatives to attract healthcare students to the region and encourage them to return as employees once qualified. Since then the school has supported the clinical training of some 480 undergraduate medical, nursing and allied health students per year at Tauranga Hospital, Whakatane Hospital and In general practices in the Bay. The Clinical School's unique relationship with Auckland University's School of Medicine sees fifth and sixth year medical students trained in Tauranga, increasing opportunities to successfully secure graduating health professionals in the local workforce.

• Coastal Marine Economic Symposium Priority One is a sponsor of the Waikato University Coastal Marine Economic Symposium, held in January each year. The symposium brings local and international expertise in coastal management and development together to discuss the latest knowledge in coastal and marine science. The focus of the 2015 symposium is on the digital world, biosecurity and coastal projects currently underway in the Bay.

• House of Science Priority One provided funding support for the establishment of Tauranga's House of Science, which was launched on 3 December 2013. The facility provides the sub-region with a unique community outreach facility connecting teachers with scientists in the wider community. For further information, see 'A Hub for Skills and Talent' on page 19.

TAURANGA CITY CENTRE STRATEGY

Tauranga City Council developed the Tauranga City Centre Strategy in 2007 to ensure Tauranga grows into a vibrant, sustainable, contemporary city - attracting business and talent, creating high value employment and stimulating economic growth. The cities that are thriving throughout the world are those that offer attractive environments and rich cultural life - this is the formula for a healthy local economy. In 2009 Priority One was contracted to manage and administer implementation of the Tauranga City Centre Strategy In partnership with the Tauranga Chamber of Commerce, Tourism Bay of Plenty, Creative Tauranga, Mainstreet Tauranga, the Bay of Plenty Property Council, Tauranga City Council and the Bay of Plenty Tertiary Partnership. Key activities undertaken during the reporting period were as follows:


City Centre Tertiary Precinct Tauranga Energy Consumer Trust (TECT) agreed to a proposal to contribute up to $15 million to the development of a tertiary predict in Tauranga's city centre, subject to conditions. Following the contribution of up to $15 million by the Bay of Plenty Regional Council and the provision of land for the project at no cost, this grant finalises the total regional contribution towards the new campus. The total cost of the development is estimated to be $88.8 million, with the balance provided by the University of Waikato. See page 10 for further details on this project.

Watertront Redevelopment The waterfront project is the key public amenity project in the city centre which will define the area and stimulate private sector investment and development. Investment in this area demonstrates a commitment to the city centre that can be leveraged to engage with businesses looking to locate to, expand or consolidate in the city centre. Expenditure to date has begun to change the way people perceive the waterfront. From casual use to structured use, the visitation of the area is increasing and bringing more people into the city centre. Unfortunately Tauranga City Council postponed the Wharewaka and 'Access to Water' projects, which were planned during the reporting period. Therefore no further progress on the waterfront has been made since Priority One's last progress report.

International Hotel & Conference Centre In previous years Priority One has worked closely with Tauranga City Council to facilitate the development of a four star hotel on Council-owned land in Durham Street. Priority One and Tourism Bay of Plenty commissioned an economic impact study that estimated the hotel would create 100 jobs (construction and operation) and provide an economic return of $1.26 for each $1 invested. This project is now being wholly facilitated by Tauranga City Council.

Property Owner Forum Tauranga City Council commissioned Property Economics to undertake a study on what is happening in Tauranga's city centre in relation to other cities around the world, and how other cities are responding to challenges currently being experienced in inner city areas. A workshop was planned with those developers and property owners that are active in the city centre and Tauranga City Council staff and elected members, for which the report findings were to form the basis of discussions. The purpose was to look at opportunities and barriers to development, and provide council with information on how it can help to support private development in the city centre. Due to unforeseen circumstances the planned workshop had to be cancelled, however feedback has indicated this would be a valuable initiative to re-convene in the future.

Larger Than Life - Owen Dippie The project is a partnership between city businesses, business and tourism support agencies, including Priority One, Tauranga Chamber of Commerce, Tourism Bay of Plenty and Tauranga City Council, and local urban artist Owen Dippie. It will see a number of masterpieces, some depicting the renaissance period, painted on walls about the central city, creating an art trail expected to attract international attention. Owen is well known for painting large scale city murals and has worked around New Zealand as well as internationally, including in New York. As at 31 December Owen had completed four works in the series, with the fifth about to commence.

Hairy Maclary Priority One has contributed funding towards the Hairy Maclary and Friends Tauranga Waterfront Sculpture Project. All nine sculptures have now been completed and will be installed on a site adjacent to the waterfront playground in early 2015 once the final tranche of funds for the project have been raised.


• Retail Study Priority One and Mainstreet Tauranga worked with a University of Waikato Management School graduate who undertook a study on how city centre retailers engage with their customers, particularly in terms of the use of technology. A recent national study estimated that if New Zealand businesses made full use of the internet, $34 billion would be added to the economy. The national study also showed that retailers had less of an online presence than other sectors, which had a significant impact on sales and productivity. The study of Tauranga retailers has identified a number of opportunities to upskill businesses in areas of technology use and social media, which Priority One will work with Mainstreet Tauranga to address.

• Cruise Ship Shuttles Mainstreet Tauranga, Tourism Bay of Plenty and Bethlehem Coachlines have partnered to develop an express bus service to bring cruise ship passengers into the city centre over the summer period at 20 minute intervals. A kiosk has been set up on the waterfront to greet passengers and provide information. Just prior to Christmas the number of cruise ship passengers that visited the city centre was around 30% up on last year.

" Other Activities - The inaugural Tauranga city Christmas Parade was held on Saturday 29 November

and was well supported by the public. Seventy floats and groups took part in the parade.

- Mainstreet Tauranga is developing two specific precincts in the city centre: a 'Fashion Street' down Devonport Road into Red Square; and an 'Arts Precinct' down Willow and Wharf Streets. Both areas will have their own distinctive flags and decals highlighting fashion and art hot spots.

- Hundreds of people come into the city for the Stranded Sundays activities, where the Strand is closed and children are encouraged to play, and their parents to relax. This initiative is being supported by surrounding cafes and restaurants.

- The Gym ran the inaugural 'Corporate Grit Games' once a week throughout November on the waterfront to encourage corporate teams to compete against each other in fitness activities.

- The Tauranga Boat Show was held on the waterfront over three days at the end of October.

- A brochure has been developed highlighting the art 'stops' around the city centre. - Masonic Park has been flattened to make it a more effective events space. During

the works, the historic remains of one of Tauranga's earliest buildings - a 1870s bakery - were discovered and have now become a feature of the park.

- Mainstreet Tauranga and Tauranga City Centre are working together to develop a package of parking incentives to encourage people to visit the city centre.

- Priority One sponsored corporate breakfasts at a Tauranga City Council event on the waterfront to support the ICC Cricket World Cup Trophy Tour.


s

Progress Against Other Key Result Areas

Fostering Innovation & Entrepreneurship The application of innovation to add value to the primary product base of the economy will transform it into a high productivity economy that is globally competitive within its market niches. A number of key and emerging sectors have been identified as having defensible competitive advantages in the sub-region.

GROWTH OF TERTIARY ALIGNED RESEARCH

Over the past four years Priority One has championed the development of a stronger tertiary and research presence in the wider Bay of Plenty region through its support of the Bay of Plenty Tertiary Partnership (Te Whare Wananga o Awanuiarangi, Bay of Plenty Polytechnic, University of Waikato and Waiariki Institute of Technology). Our focus has been on partnering to develop a comprehensive, regional tertiary education and research system (vocational through to PhD) aligned to specific industry needs.

This is a key strategic project for Priority One and full details can be found on pages 10-12. In summary, the main project streams are as follows:

The development of a tertiary and research campus in Tauranga's city centre; The development and implementation of the Bay of Plenty Tertiary Intentions Strategy; Support forthe growth ofthe Coastal Marine Field Station and the Intercoast partnership with Bremen University in Germany; Support for Education Tauranga in the implementation of its strategy and business plan; Support for the growth of the House of Science; and Support for the development of the marine film and aquarium project.

CENTRES OF INNOVATION

WNT Ventures Incubator

WNT Ventures is a consortium of Bay of Plenty high-tech businesses comprising Wharf42 (with partner Plug & Play Tech Center in Silicon Valley), Newnham Horticultural Innovation Park (Plus Group Horticulture and Locus Research) and the Titanium Industry Development Association (TiDA). The collaboration is a unique model for incubation in New Zealand that aims to create three important innovation verticals: ICT, high-value manufacturing and new technology to increase efficiencies in the primary sector. Each stream of technology has the potential to significantly transform the New Zealand economy in its own right, with substantial additional benefits possible from the synergies of the three programmes working in partnership. During the reporting period, the following initiatives were progressed: • WNT Ventures successfully tendered to become one of three new technology incubators

for high-growth, early-stage firms in New Zealand. The incubation programme is supported by Callaghan Innovation and is based on a very successful Israeli model. This initiative has the potential to attract more than $7 million in start-up funding into the sub-region over the next three years.

• TiDA has partnered with Waikato University to secure $12.6 million from the Ministry for Business, Innovation and Employment to develop a titanium research platform to create a multi-company, multi-sector manufacturing base for high value exports.

Priority One Six Monthly Report to 31 December 2014 Page j 15

r>9 • A partnership between Robotics Plus, based at Newnham Park, University of Auckland,

University of Waikato and Plant & Food Research has secured $7.6m from the Ministry for Business, Innovation and Employment for a robotics research project for the primary industries.

• In December Priority One's board put a proposal to WNT Ventures for Priority One to become a limited partnership shareholder in the venture. This proposal is currently being considered.

Marine Research / Science Learning Hub & Aquarium Priority One and Tourism Bay of Plenty are working with an Academy Award winning kiwi film director, Mike Firth, in support of a proposed high-technology 3D marine film project. The project will comprise a significant 3D cinema and aquarium, which will have synergies with the Coastal Marine Field Station at Sulphur Point. During the reporting period Priority One worked with stakeholders to identify potential locations and investors for the project.

CLUSTER FACILITATION

Western Bay of Plenty ICT Cluster

The information and communications technology sector offers a high-value opportunity to help grow the local economy. It is a key enabler and driver of productivity as well as providing links in global value chains. It has been identified by central government as a key sector in New Zealand's wellbeing because of its ability to lift productivity as well as its status as a powerhouse of economic growth in its own right, creating high value revenue opportunities.

Priority One established the Western Bay of Plenty ICT Cluster in 2003 to bring together businesses that are keen to create commercial opportunities and contribute their experience and expertise to the development of an IT rich region. The cluster now has over 600 members from around 280 ICT and related businesses. During the reporting period: • Through the ICT Cluster's database, Priority One enabled a number of successful

placements of IT professionals with local businesses by the promotion of vacancies and those seeking work.

• Priority One is represented on the Bay of Plenty branch committee of the Institute of IT Professionals and contributes to the implementation of its strategy in the region. This includes the promotion of the IT Connect programme, which encourages secondary students to consider careers in IT.

• Priority One is represented on the Bay of Plenty Polytechnic Computing School's Local Advisory Committee, which provides industry input to course development and delivery.

• Priority One is part of a Digital Working Party established by Tauranga City Council to investigate the development of a digital strategy for the city. We have worked with the local ICT industry sector to obtain their high level input to this process prior to strategy development commencing.

• Priority One partnered with the University of Waikato's Computing and Mathematical Sciences Department to host an expert in international Cloud security at an event in Tauranga. Over 30 people attended this seminar, including representatives from many of the large corporates in the sub-region.


GO

/A/STEP YOUNG INNOVATOR AWARDS

The Instep programme's annual Young Innovator Awards have been designed to recognise secondary school students and people under 40 years of age that show innovative problem solving skills by designing a new or improving an existing product or service, incorporating sustainability features into their design. The initiative is supported by high-profile entrepreneurial Priority One members Locus Research and Woods the Creative Agency and sponsors Page Macrae Engineering, Bayfair Management, Careers New Zealand, Enterprise Angels, The Edge radio station and Plus Group Horticulture. Entries to the Young Innovator Awards are judged by a team of experts against the criteria of innovation, research, creativity, sustainability and communication. Alongside the awards, an innovation forum is hosted in partnership with ExportNZ BOP where experts in their respective fields discuss how innovation changed their lives. This year there were 175 entrants that participated in the awards and over 100 people that attended the innovation forum.

IGNITION CO-WORKING SPACE

In 2012 Priority One established the Ignition co-working space in Rydal House in Tauranga's city centre to foster innovation and entrepreneurship. The initiative supports early stage entrepreneurs and promotes commercialisation by providing office infrastructure to those that are self-employed, freelance or from out of town. The atmosphere encourages networking, collaboration and innovation. Hot-desks, meeting rooms, access to ultra-fast broadband and break-out spaces/lounge areas have been provided.

The success of Ignition saw it relocate to larger premises on the ground floor of Rydal House in May 2014. The new space provides better facilities for an innovation hub, and is supported by sponsors University of Waikato, Tauranga City Council, Zariba Holdings, Carrus Corporation and Plus Group Horticulture. In addition to enabling further growth ofthe entrepreneurial ecosystem. Ignition provides a landing pad for new businesses to the city. Since the move, there has been a significant increase in membership and inquiry and there are currently nearly 40 tenants. When fully tenanted, the new space will accommodate around 70-100 people.

Ignition has also become a popular venue for activities that promote innovation and entrepreneurship. During the reporting period, the space was host to the following events: • Claudia Batten, the current World Class New Zealander of the Year, spoke about her

entrepreneurial journey developing and then selling off technology companies in the US. • lan Taylor of Dunedin based Animation Research spoke to a local audience of passionate

entrepreneurs and innovators about his experience in creating a world class business from regional New Zealand.

• Oren Gershtein, former CEO of Israel's leading technology incubator, spoke about how innovation and technology has changed the landscape in Israel. Three new incubators were established in New Zealand in July 2014, including one in the Bay of Plenty, based on the successful Israeli model. Israel has the third largest number of listings on the Nasdaq stock exchange after the US and China and is the base for the R&D operations of many of the world's technology titans, including Google, Apple, Hewlett-Packard and Intel.

• Callaghan Innovation and Priority One partnered to host the launch of 'No.8 Re-Wired' - a book which celebrates the Kiwi can-do attitude, but also asks whether this national myth is holding us back from achieving our real potential.

• Ignition's foyer was transformed to provide a space for first year students in the Bay of Plenty Polytechnic's Bachelor of Creative Industries course to display the work they have developed throughout the year in the 'Highlights' exhibition.


Gl

PLENTY OF INNOVATION MARKET VALIDATION PROGRAMME

Priority One provides funding support to Enterprise Angels Bay of Plenty for the development and implementation of a market validation programme which aims to help local businesses grow including, ultimately, access to capital. Called 'Plenty of Innovation', the programme consists of workshops to allow people to test their ideas, learn what is needed to turn them into a successful business, and prepare them to pitch for investment. This enables those with a business idea to get 'market validation' before investing time and money into a product or service that may not be market ready. It also allows existing businesses to test new business opportunities. The establishment of the 'Plenty of Innovation' programme adds substantial support to the local entrepreneur community and contributes to Priority One's wider goal to develop a strong innovation eco-system in the region that ultimately builds regional competitive advantage, so that highly productive export-focused businesses are developed, retained and attracted here.

A Compelling Destination Creating vibrant places, community facilities and a year round calendar of activities and events will turn our lifestyle advantages into a source of competitive advantage. There will also be economic spin-offs resulting from investment in lifestyle, including building facilities, hosting major events and manufacturing lifestyle products. Overseas research has highlighted that competitive cities are those that can attract skilled human capital and investment by offering the lifestyle that talented people seek.

TAURANGA CITY CENTRE STRATEGY

The most important project that Priority One is involved in that relates to lifestyle is implementation of Tauranga City Council's Tauranga City Centre Strategy [see Strategic Priority Projects on pages 12-14].

HOUSING AFFORDABILITY FORUM

The affordability of housing has a significant impact on the ability to attract businesses and skilled people to the sub-region. Priority One is a member of the Housing Affordability Forum, which was established in 2008 to develop a strategy to provide more affordable housing options. During the reporting period the Housing Affordability Forum continued working on the housing affordability pilot project, for which it is SmartGrowth's lead agency for implementation of this action. The group hopes to facilitate the delivery of a development project or projects that provide real best practice examples of sustainable, affordable, quality housing to raise awareness amongst the housing sector and the public that this is achievable. The scoping report has been completed and is being used to develop the work plan, including resources required. The project was temporarily put on hold as Tauranga City Council and Western Bay of Plenty District Council negotiated Housing Accord agreements with central government to ensure the implications were well understood.


G2

A Hub for Skills & Talent [Note: Also see 'Tertiary Education & Research under Strategic Projects on pages 10-12.]

Business growth is dependent on the development of a highly skilled work force that meets the needs of a competitive, export led economy. An important focus Is keeping abreast of changing industry needs and putting in place initiatives that will ensure that the future labour force develops skills in line with the sub-region's competitive strengths.

Economic development research highlights that businesses no longer work to attract skills to their operating sites, but instead will move their operations to where the skills reside. People are the backbone of business and developing a skilled and knowledge-focused workforce will contribute to increased productivity and business attraction in the sub-region.

Tertiary education, including research and development capability, is a critical component in catalysing regional innovation to drive economic growth. It not only provides direct training for those employed in key industries, but more importantly provides the intellectual input to drive innovation and entrepreneurship in our businesses. These are the cornerstones of new product development, efficiency and 'value-added' productivity.

HOUSE OF SCIENCE

The House of Science is a community outreach facility based at the Coastal Marine Field Station which provides a unique opportunity for students and teachers to access new science resources and gain linkages to scientists in the wider community. The idea for the House of Science was brought back to the Bay by Priority One after seeing a similar programme at Bremen University in Germany. It was established as a charitable trust by Chris Duggan, who was previously Head of Science at Tauranga Girls' College, with funding support from Priority One, University of Waikato and Tauranga Energy Consumer Trust, as well as industry sponsors that want to excite young people with science. It delivers after school and holiday programmes, hosts teacher professional development sessions, provides science resources and arranges field trips for students and teachers.

The focus of the House of Science is to provide a collaborative centre for science education. Catering for children aged 5-12 years, it has developed a unique library of resource kits which contain all the equipment to undertake practical experiments to demonstrate specific scientific theories. There are currently 21 themed kits which provide enough equipment for 10 children to undertake four experiments each. The boxes are extremely popular and are delivered and collected from participating schools each week. In its year of operation, 20,000 students have used the kits.

The House of Science has been so successful that other parts of the country are keen to roll out the model under licensing agreements. Whakatane, Hutt Valley and Palmerston North are making final preparations to launch similar centres in February next year, with each area having their own unique flavour reflecting the House of Science motto of 'resourcing and connecting the local science community'. One of the requirements of being part of the House of Science franchise will be for teachers to come to Tauranga once a year for a conference, positioning us well as a centre for science innovation.

WISH YOU WERE WORKING HERE

Priority One has identified an opportunity to tap into the talent pool that exists with the over 500,000 highly skilled New Zealanders currently living overseas. The 'Wish You Were Working Here' website has been developed to connect skilled and talented people into job opportunities in Tauranga and the Western Bay of Plenty. This includes at a national level, as well as attracting skilled migrants and Kiwi expats at an international level. The site has


G3

been designed to be a fun and informative way for people to keep up to date about what's happening locally. It also gives local employers and service providers a vehicle by which they can make contact and build relationships with people considering coming to the sub-region to work.

YOUNG PROFESSIONALS FORUM

The Priority One Young Professionals Forum was established to engage the sub-region's younger professionals in the importance of economic development and to ensure their voice is heard on issues affecting the sub-region's growth and development. Membership has grown rapidly to over 350 people. The forum has been actively involved in local politics, including meeting with elected members and staff to better understand the issues the sub-region is facing and making submissions to planning processes to provide their views on how they would like to see the city develop.

POPULATION AGEING DEMOGRAPHIC

In 2002, New Zealand Treasury issued the following statement: "Population ageing has the potential to become the single biggest economic and policy issue of the next 50 years." Priority One is a member of the Population Ageing Technical Advisory Group, established in 2008 as a collaboration between the Bay of Plenty District Health Board and SmartGrowth in recognition of the need to plan for the social, economic and health implications and opportunities of the ageing population. The form and function of this group is currently being reviewed to ensure it continues to add value to stakeholders. A briefing paper will be presented to the Bay of Plenty District Health Board and the SmartGrowth Implementation Committee in early 2015.

During the reporting period Priority One was a sponsor of a forum facilitated by the Tauranga Chamber of Commerce and Age Concern to help dispel some of the myths around older workers and encourage their engagement in the workforce beyond the traditional age of retirement. A second forum is being planned in mid-2015 which will investigate the following opportunities: • Establishing an online job board to match age friendly organisations with older workers. • Establishing a small cluster of SMEs to look at the impact of an ageing population on

each business and develop an action plan to manage change. • Establishing a programme for senior entrepreneurs, taking them through a discovery

workshop and potentially into intergenerational incubator to bring their ideas to fruition. • Hosting a workshop with HR managers to discuss the advantages of recruiting older

workers and the types of things this demographic are seeking in the work environment. • Promoting the opportunity for local employers to have a diversity audit undertaken of their

organisation to help them manage transitions into retirement.

WESTERN BAY@ WORK

A talented, highly skilled workforce is critical in underpinning our economy, by making the sub-region the destination of choice for businesses that produce high value products and services. Companies have always sought to attract the best talent - the difference today is that instead of bringing that talent to their existing locations, companies are setting up facilities where the talent already exists.

Priority One's Instep programme partnered with a number of organisations to deliver the seventh Western Bay @ Work series of events, which ran from 7-24 August 2014. The initiative comprises a programme of events that highlight the many exciting career


G4

opportunities available locally for people at all stages of their working life. The theme for this year's event was 'learning for life'. This year's programme comprised nearly 40 events and activities, the highlights of which were as follows: • Over 200 people attended the launch of Western Bay @ Work, with keynote speaker

John Gertsakis, the Chief Sustainability Officer for Infoactiv. John has been at the forefront of sustainable product innovation and product stewardship globally for over 20 years.

• Over 4,000 people attended the Careers and Business Expo, which was organised thorough a collaboration between the Rotary Club of Tauranga and Priority One. The two day event drew 1,850 students from 12 schools and 80 different exhibitors in key business sectors in the region, as well as a wide range of training providers.

• Sixty-four secondary students from 10 local schools attended the annual Beca Engineering Day, providing practical insights into the various career and training opportunities within engineering, planning and architecture.

• The House of Science, based at the Coastal Marine Field Station, organised science roadshows for Papamoa, Te Puke and Tauranga for primary and secondary school students.

• Twenty-three secondary students visited Holland Beckett law firm to hear, from a business perspective, about a career in law.

INSTEP PROGRAMME Priority One's Instep programme links secondary schools with the business community so that young people have the necessary skills to meet business needs. It also works with students to ensure they understand the innovative career opportunities available to them in local industry sectors. The success of Instep has been in harnessing the energy and expertise from local businesses to inspire secondary school students to make informed career choices. Highlights during the reporting period included the following.

Twenty-seven recipients of the Acorn Foundation scholarships graduated from the Dale Carnegie 'Skills for Success' programme. Year 13 business studies students visited Sanfords and Bluelab to provide real contest to an NCEA achievement standard that required them to apply business knowledge to solve a complex problem. Thirty Year 11 business studies students visited tent manufacturer Baytex and Farmer Auto Village so they could apply business processes to concepts taught throughout the year. Forty-eight Year 11 economics students visited Port of Tauranga to gain knowledge of the economic impact of the port on the wider community for an NCEA assessment. Twenty students studying education for sustainability visited three local businesses to assist with their 'zero waste' assessment. A representative from MSM Sales Specialists talked to 30 Year 9 business studies students about trading with Asian countries. Speakers from Mainfreight and Puma Darts presented to Year 12 business studies students on investigating exporting to new markets. A speaker from Trustpower presented to Year 11 science classes on the implications of electricity and magnetism in a 'real world' context for an NCEA assessment. Over 600 careers and transition teachers throughout New Zealand attended the national CATE conference, which was held in Tauranga for the first time.


G5

• Instep's annual Principals' Day Out saw principals or deputy principals from the sub-region's 11 secondary schools visit a number of businesses in the energy sector, with the day's theme 'energy as an enabler'.

YOUNG LEADERS FORUM

The purpose of the forum is to give young student leaders a voice in the future development of the sub-region, to build a relationship between youth and local government, to develop their leadership skills and to help them build community networks. During the reporting period 31 students from 10 local secondary schools attended the annual Instep Young Leaders' Forum handover breakfast in the Ignition co-working space to welcome the 2015 leaders and farewell those leaving school.

SECONDARY SCHOOLS MAORI PROJECT

This is a new project facilitated by the Instep programme which aims to better engage Maori secondary school students with tertiary education and employment in areas of significant importance to local Maori. A pilot programme 'Culture, Land, Water' is being run in partnership with Te Whare Kura o Mauao, the University of Waikato's Coastal Marine Field Station, the House of Science, the horticulture sector and local iwi. During the reporting period Instep facilitated an opportunity for the House of Science to work with Te Wharekura o Mauao to develop two bilingual land and water-based science resource kits which will be used by schools to encourage more Maori students to study science.

Connect & Collaborate A key strength of the Western Bay of Plenty sub-region is the strong collaborative approach of the business, civic and educational communities, providing the ability to link into these networks to leverage economic growth. Priority One facilitates economic outcomes by developing the partnerships, alliances, networks and information flows across Tauranga and the Western Bay of Plenty, the wider region. New Zealand and internationally that produce tangible results. In addition to sub-regional partnerships, Priority One is also involved in the following projects and strategies that aim to increase collaboration at a local, regional and national level.

SMART ECONOMY MONITORING & ADMINISTRATION

Priority One is contracted by Tauranga City Council and Western Bay of Plenty District Council to manage implementation of Smart Economy, the sub-region's economic development strategy. Priority One also manages the contracts between Tauranga City Council and Export NZ BOP (for delivery of economic outcomes from the city's sister city relationships) and the Tauranga Chamber of Commerce (for the engagement of the Smart Economy Consultant which supports and works with innovative and export-oriented enterprises).

During the reporting period Priority One purchased a new suite of comprehensive annual statistics from Infometrics to measure economic growth across a wide range of indicators. The package enables comparisons with other areas and in most cases the statistics are available from the year 2000. This information has been made available to Priority One's members and funding partners.

For information on progress implementing the Smart Economy economic development strategy, see pages 30-40.


GG

BAY OF CONNECTIONS

Bay of Connections is the economic development strategy covering the wider Bay of Plenty and is facilitated by the Bay of Plenty Regional Council. Priority One Is represented in both a governance and operational capacity. A number of sector specific strategies are or have been developed within this framework. Priority One participates in the industry-led Energy Action Group, Freight Logistics Action Group and Regional Aquaculture Organisation. It is also represented on the group leading implementation of the Maori Economic Development Strategy.

Maori Economic Development

A key focus for Priority One over the next few years is to build relationships and effective communication networks with the Maori economic community to increase understanding and create a strong platform to achieve Maori economic development and skill enhancement. This will Include supporting the development of structures to maximise economic growth and the utilisation of Maori land, including advocating for changes to legislation. During the reporting period Priority One hosted a workshop with Maori business leaders to discuss implementation of the Bay of Connections Maori Economic Development Strategy. The group has agreed to develop a project brief and job description so that a 'connector' role can be established which will investigate opportunities to link Maori with local business and investment opportunities.

Freight Logistics

The costs of getting goods to market are typically just under 10% of business turnover. If national and international freight costs can be reduced, trade will be enhanced and the economy will be more productive. Efficient logistics scheduling can reduce supply chain costs by around 20% while improving service quality and customer satisfaction. In addition, the wider community benefits from reduced congestion, noise and pollution, and fewer accidents. In 2010 the freight logistics sector contributed over $400 million to GDP in the Bay of Plenty and employed around 3,100 FTEs. The sector expects to undergo significant growth to around 4,400 FTEs by 2026.

World Class Aquaculture

Internationally, aquaculture is the fastest growing seafood sector, with global demand expected to continue to grow. Wild fisheries are at or beyond sustainable catch levels and land areas to grow food are under increasing pressure. New Zealand has a clear advantage In this sector, with the fourth largest coastal area in the world (4 million km^). At a regional level, 44% of the area covered by Bay of Connections is coastal, presenting a real opportunity for the local economy. In addition, research has found that the region's waters are among the most productive in New Zealand.

Bay of Plenty Regional Growth Study

During July the Ministry of Business, Innovation & Employment and the Ministry for Primary Industries commissioned a study to evaluate opportunities for increasing investment, employment and incomes in the wider Bay of Plenty. The study will bring together knowledge held by local business people, iwi/Maori, stakeholders and economic development agencies, and combine that knowledge with official data and independent economic analysis. It is being supported by a technical advisory group which includes representatives from Priority One, the Bay of Connections Management Group and key industry sectors. The study is expected to be completed in March 2015.


SMARTGROWTH

Priority One is a partner in the implementation of SmartGrowth, the sub-region's 50 year growth management plan. It is represented on the SmartGrowth Strategic Partners Forum and the SmartGrowth Implementation Management Group. During the reporting period the key area of focus for SmartGrowth was planning for the review of the settlement pattern to identify future pockets of residential and commercial/industrial development. .

CORE C/r/£S

Local Government New Zealand and the Ministry of Business, Innovation and Employment are leading a project to develop a well-functioning network of core city-regions as a basis for developing collaborative relationships and an 'NZ Inc' approach to economic development. The objective is to enable more targeted investments by central government to increase agglomeration and lift labour productivity. Priority One is providing economic development input to this project on behalf of Tauranga City Council. The first two Core Cities projects are as follows: (1) The Business Friendly Councils project resulted in the development of a consistent set

of business friendly metrics across each of the core cities. Priority One facilitated a workshop on behalf of Tauranga City Council with the local business community to gain their feedback on the draft business friendly guidelines being developed.

(2) The China Engagement project involves the development of a strategy to leverage mayoral relationships in China for economic benefit. This work will determine how cities and regions can work together on a series of targeted delegations. During the reporting period Tauranga City Mayor Stuart Crosby and Priority One's Strategic Projects Manager, Greg Simmonds, were part of a delegation that met with China's President, Xi JInping in Auckland. A formal MOU was signed to establish a New Zealand China Mayoral Forum to encourage regular sub-regional collaboration between the mayors and governors of the two countries. A trip by some of the Core Cities mayors and those regions with a strong presence in China is being planned for September 2015, where the first collaborative mayoral forum between the two countries will be held.

KIWIFRUIT POST-HARVEST WORKING GROUP

The Kiwifruit Post Han/est Working Group (KPHWG) is a joint initiative between Priority One and Western Bay of Plenty District Council. Established in 2007, its objective is to facilitate joint planning and improved communications between key horticultural post-han/est companies and the sub-region's territorial local authorities. Membership of the KPHWG comprises New Zealand Kiwifruit Growers Incorporated (the major kiwifruit grower representative organisation), Te Puke Fast Forward and pack house and cool storage service providers operating in the Western Bay of Plenty. During the reporting period a workshop was held to identify issues and develop actions to manage the significant increase in fruit production that has been forecast from 2015.


G8

Business Investment & Attraction Priority One's key role is to support the creation of an environment that attracts and retains business and investment in the Western Bay of Plenty sub-region. This involves removing external barriers to business competitiveness by ensuring infrastructure is capable of meeting business needs and sufficient serviced land is available at a competitive price. It also includes the development of inter-regional and international investment strategies to contribute to economic growth.

It is important to create a business environment in which sustainable economic growth can occur. This involves removing external bamers to business competitiveness by ensuring that infrastructure Is capable of meeting business needs, that sufficient serviced land is available at a competitive price and that businesses operate in a sustainable manner in respect to their impact on the environment.

THE TAURANGA BUSINESS CASE

This is a key strategic project for Priority One and full details can be found on pages 9-10.

REGIONAL INVESTMENT INITIATIVE

Priority One is investigating the development of a strategy to attract targeted investment into the Western Bay of Plenty sub-region. Initial discussions have been undertaken with the Auckland Investment Office and New Zealand Trade & Enterprise's (NZTE) Capital team on the scope and potential priorities of a regional investment strategy. During the reporting period Priority One and Bay of Connections worked with NZTE to produce a regional investment profile for use by NZTE's offshore investment managers, The next step is to develop more detailed sub-regional investment plans.

INTERNATIONAL RELATIONS

Foreign Direct Investment Strategy

The Bay of Plenty region, including Western Bay of Plenty sub-region, has had a mediocre approach historically to the attraction and management of foreign direct investment (FDI). Priority One, in partnership with the sub-region's local authorities, is leading the development of an FDI strategy to achieve the following economic outcomes: • Develop deeper international connections. High levels of direct investment drive trade

and facilitate the flow of knowledge with offshore partners; • Access smarter capital. FDI can bring governance and management expertise, and

access to existing offshore business networks; and • Increase exports and other foreign income. FDI can increase the market development

capability of targeted firms through shared learning and facilitated access to international markets. Foreign firms in New Zealand export considerably more than domestic firms.

International Partnerships

In April 2014 Priority One participated in a Mayoral delegation to Tauranga's sister cities in China and Japan, along with a visit to Ansan city in South Korea. The trip resulted in a number of partnerships being developed in the areas of international education, research collaboration and trade development. During the reporting period the following initiatives were undertaken:


G9

An international relations advisory group comprising key stakeholders was established to progress economic development outcomes for the city through its international partnerships. Tauranga City Council and Priority One partnered to host a delegation from Tauranga's Chinese sister city, Yantai, in September. Priority One was a guest speaker at Asia New Zealand's 20'*" anniversary gala dinner in Auckland in October. Tauranga City Council and Priority One partnered to host a delegation from Ansan city in November so that the two cities could further explore opportunities for mutual cooperation and economic benefit. A framework has been agreed to work more closely together in the areas of International education, marine science and the preservation and management of cultural heritage.


70

Communications

A key aspect of Priority One's role is to effectively communicate the importance of economic development and highlight issues relating to economic growth to the wider community.

• Each month a comprehensive newsletter is distributed to over 4000 people, highlighting economic development matters and activities taking place locally, nationally and internationally.

• A monthly report showing the latest trends in economic indicators and business confidence in the sub-region is sent to Priority One members, as well as a report analysing the business consent activity for Tauranga City Council and Western Bay of Plenty District Council.

• Thirty-four presentations were given to organisations and businesses on the importance of economic development and Priority One initiatives during the reporting period.

• Priority One hosted or partnered to host two major events during the reporting period and attended over 20 events hosted by other organisations.

• Articles covering Priority One activities and outlining the organisation's view on issues relating to economic development regularly appear in the media.


71

Smart Economy Implementation

Introduction Smart Economy is the Western Bay of Plenty sub-region's economic development strategy. It aims to develop a thriving, growing, diverse and sustainable economy, recognising the Importance of work / life balance and respecting the natural values of its location.

Prior to the development of Smart Economy, economic activity primarily occurred in the areas of residential construction, retail, horticulture, agriculture, and activity at and relating to the Port of Tauranga. There was concern that existing and future business activity was mainly in low wage, low skill activities or sectors that merely supported population growth.

Smart Economy can attribute its success to a strong collaborative approach by more than 30 industry sector groups, business support organisations, education providers, and local and central government representatives. Strategy implementation is driven by the Smart Economy Action Group, which meets every two months to discuss progress, resolve any issues, and hear about specific projects and initiatives.

Highlights from agencies that are partners in the implementation of Smart Economy appear on pages 30-40 of this report. Priority One is both a lead agency for a number of projects, as well as the overall administrator of the implementation process.

Economic Development Priorities For the medium term, Smart Economy priority areas have been identified as follows: • Tertiary education and research to support key business sectors; • The establishment of innovation and business parks; • Growth of the export sector; • City centre development; • Broadband uptake; and • Maori economic development.


Documents

Six Monthly Report to SmartGrowth Implementation Committeeecontent.tauranga.govt.nz/data/documents/committee_meetings/2015/... · Six Monthly Report to SmartGrowth Implementation