The Social and Economic Impact of Ccr Project

Research Team: Peter Bruce

Dr Warren Hughes

Lou van Es

The Social and Economic Impact of the Proposed CCR Project page 1

The Social and Economic Impact of the Proposed Continuous Catalyst Regeneration Platformer (CCR) Project

Table of Contents

Executive Summary .................................................................................................. 2 Introduction and background ..................................................................................... 4 Economic impact ....................................................................................................... 6

Materials ................................................................................................................ 8

Equipment needs ................................................................................................... 9

Employment ............................................................................................................ 10 The impact of the CCR project on employment .................................................... 10

Apprentices.......................................................................................................... 12

Training needs ..................................................................................................... 12

The impact on contractors and the wider community ............................................... 13 Developing shared value ..................................................................................... 16

Social capital ....................................................................................................... 18

Appendix one: Refining NZContinuous Catalyst Regeneration Project: Economic Impacts For Northland & New Zealand .................................................................... 19 Appendix 1: Economic impact analysis.................................................................... 28

Corporations/facilities (e.g. Refining NZ Limited/Port of Tauranga Limited).......... 28

Festivals/events (e.g. Art Deco Weekend/V8 Supercars) ..................................... 28

APPENDIX 2: SECTORS IN THE 88-SECTOR ECONOMIC MODEL ..................... 30 Acknowledgements and research team ................................................................... 33

Research team .................................................................................................... 33


Executive Summary NorthTec has been commissioned by Refining NZ to assess the potential social and

economic impacts of their proposed CCR project. Our findings can be summarised

as follows:

The total estimated expenditure of the project is $365 million. Of this, $147 million

will be spent in Northland, $27 million in the rest of New Zealand and $191 million

overseas. Applying economic multipliers to determine the downstream benefits from

project activity, the benefits to Northland are $247.3 million and $67.5 million for the

rest of New Zealand, providing a total economic revenue benefit of $345.8 million.

Figure 1: Eco nomic benefit of the construction project

Once in production, the increased capacity for gasoline will generate an

additional $550 million in revenue for Refining NZ. After allowing for the additional

crude required the net benefit is estimated at $100 million. Applying multipliers, this

will generate $159 million impact gain for Northland annually and $223 million annual

impact for the New Zealand economy.

Figure 2: Economic benefit of the increased sales of gasoline

The CCR project will employ 40 people in 2012 peaking at 350 in 2015. Of these

approximately 67% will either be from Northland, or repatriated to Northland. When

additional employment generated by the project is included, the total employed starts

at 138 in 2012 peaking at 657 in 2015.


Figure 3: Employment impacts of the project

Local contractors and an overseas project management expert praised project management practices developed during Refining NZ’s previous Point Forward

project. The project manager of the time, who developed the improved processes

has since been refinery manager and now returns to the project manager role for the

CCR project. Our assessment is that a continued trajectory of proven project

management processes and the close working relationships developed between the

project team and local contractors provide strong prospects for delivering a

successful project.

Alongside world-class project management processes, the refinery is acknowledged

for other leadership roles such as exemplary health and safety practices. These

make a significant contribution to building capacity in the industries that Refining NZ

has become closely associated with, in Northland and the rest of New Zealand.

As New Zealand’s only oil refinery the Marsden Point Refinery remains a significant

strategic asset for nation. The CCR project will enhance its value, generate further

economic and employment benefits for the region and nation and further strengthen

local support industries.


Introduction and background

This report was commissioned by Refining NZ to investigate the social and economic

impact of the CCR project.

Situated on the southern shores of the Whangarei harbour in the Northland region,

Refining NZ’s Marsden Point refinery started production in 1964 as New Zealand’s

first and only oil refinery. The refinery processes crude oil for their customers, and

refines it into high quality fuels. Refining NZ is established as an important strategic

asset for the nation supplying:

• all of the country's jet fuel

• nearly 80% of diesel

• around half of all petrol

• between 75 and 85% of bitumen for roading

• all fuel oil for ships.

The Continuous Catalyst Regeneration Platformer replaces equipment installed in

the early sixties.

The CCR Platform is designed to achieve the following:

• increase processing capacity by 8%

• reduce fuel loss by 15% by improving product yields

• increase gasoline production capacity from 11 million barrels annually to 13

million barrels

• improve refinery reliability and reduce imports of refined products

• increase refinery processing capability with the ability to use different crudes

• lower emissions by 120,000 tonnes of carbon per year

• increase Refining NZ’s market share in New Zealand from 72% to 80%

(excluding fuel oils, bitumen)

• negate the need to spend $105 million and to shut down the refinery for 80

days to upgrade the original semi-regeneration unit

If approved, construction will commence in 2012 with the project ready for

commissioning in 2016.


The company has effectively paid off the $190m Point Forward project just two years

after commissioning the plant”.1 The CCR project emerges from Refining NZ’s

growth strategy as the next step towards enhanced competitiveness:

Continuously improve competitive position versus imports and target

production capacity at 50-80% of New Zealand demand by developing robust

options to close the gap.2

Report scope

The CCR project is a modification to the existing Marsden Point Refinery, therefore

the investigation of impacts is confined to the direct impacts of the project including

the economic impact on the region and nation, the employment impact and impacts

on local contractors and the wider community.

Methodology

Dr Warren Hughes, consultant economist conducted the economic analysis using an

88-sector (year ended) September 2011 economic model of the Northland3 economy

and the New Zealand economy. Information gleaned from interviews with 7 of the

largest contractors helped to refine the data used.

The contractor interviews also helped to determine the employment impacts and

provided insightful information about project processes.

Refining NZ documents, NorthTec’s earlier research work with Refining NZ,

Department of Labour employment data and media articles contributed to the

research team’s processes.

1 $365 Million Refinery Project Gets the Nod Stuff Business Day: http://www.stuff.co.nz/business/industries/6456765/365m-refinery-project-gets-nod 2 Fuelling New Zealand’s Future Strategic Plan 2012 – 2016 Refining NZpage 7 3 The Northland Region in this report refers to the area administered by the Northland Regional Council. Further references to the Northland economy, refer to this geographical area.

http://www.stuff.co.nz/business/industries/6456765/365m-refinery-project-gets-nod


Economic impact Economic impacts of the CCR project have been estimated using 88-sector (year

ended) September 2011 economic model of the Northland4 economy and the New

Zealand economy. While expenditures may be based at the Marsden Point refinery

they involve expenditure throughout New Zealand and overseas. Only direct

expenditures in Northland and other New Zealand regions will have economic

impacts for the respective domestic regions. Approximately 48% of total expenditure

on the project will occur somewhere in New Zealand with 40% realized within the

Northland region. All 88 sectors in the model are listed in Appendix 3.

The economic impacts are calculated at three levels:

1. for direct or first round expenditures associated with the project

2. for the revenue flow-ons through the region and nation

3. for forward impacts from increased revenue from refined gasoline.

Four economic impacts are estimated. The Revenue impact shows the dollar sales

value of activities while the Net Household Income impact after tax, saving and

superannuation shows consumer purchasing power in the region emanating from the

activity/event. The Employment impact is the full-year part-time and full-time head-

count impact due to business unit operations or the project. Finally, the Value Added (GDP) impact is also estimated. Value added comprises gross wages and salaries of

employees as well as gross operating surpluses of business units plus their

depreciation. This measure shows the gross (before tax) returns to both employees

and business units in the region subject to the impact.

The construction expenditure for the programme is phased across 5 years.

Region & activity 2012 2013 2014 2015 2016 TOTAL

Northland

Construction & Materials 1.0 15.5 9.5 4.6 30.6 Labour at Site 5.0 15.0 39.0 55.0 2.0 116.0 Other New Zealand Materials & Equipment

6.2 20.3 0.5 27.0 Overseas Materials & Equipment 71.0 93.4 21.0 6.0 191.4 TOTALS 83.2 144.2 70.0 65.6 2.0 365.0 Table 1: Timeline and region for construction expenditure on the CCR Platformer in $ millions

4 “Northland” or the “Northland Region” in this report refers to the area administered by the Northland Regional Council.


The economic impact is calculated for the Northland Region and for New Zealand

and presented in Table 2 as the impacts for the project covering the years 2012 to

2016, and then the ongoing economic impact of the additional refinery output.

Total economic impacts 2012 – 2016

Revenue $ millions

Net Income $ millions

Employment Jobs

Value Added $ m

Northland Region 247.33 101.48 1313 181.86 Total New Zealand 345.80 124.57 1874 237.41 Northland as percentage of NZ 71.5% 81.5% 70.1% 76.6% Table 2: Total economic impacts from the CCR project for Northland and New Zealand for the years 2012 – 2016

A simple average of the four percentages at the foot of Table 2 shows the Northland

economy capturing around 75% of the total New Zealand impacts from the CCR

project. Of the four measures, perhaps the most important is the Value Added impact

with a Northland percentage of 76.6%. Value Added, GDP or regional GDP as gross

regional product (GRP) shows the gross return to a region or country from the activity

under analysis comprising gross wages and salaries, gross operating surpluses of all

business units plus depreciation on plant and equipment. It is the best measure of

financial regional return for (in this case) the Northland economy from the CCR

project.

Taking the September 2011 year as a base, the project gains for the Northland

economy due to the CCR project can be expressed as a percentage of these 2011

base year aggregates for Northland. These are detailed for the four impacts in Table

3.

Year of Impact

Revenue $ millions

Net Household Income $ m

Employment Persons

Value Added or GDP $ m

Northland region year ended Sept 2011

11,185.2 2,138.3 53,018 5,934.5

Project gains Northland 2012-16

Percent Percent Percent Percent

2012 0.09% 0.20% 0.12% 0.12% 2013 0.50% 0.76% 0.56% 0.54% 2014 0.72% 1.57% 0.75% 1.02% 2015 0.87% 2.13% 1.02% 1.33% 2016 0.03% 0.08% 0.03% 0.05%

Table 3: Project gains for Northland as percentage of Northland economy year ended Sept 2011

The project’s starting and ending years 2012 and 2016 show very small percentage impacts

for Northland as might be expected. At the peak years of the project 2014 – 2015, percentage

gains for the Northland economy will be around 1% annually for the four impact measures

allowing for some growth in the Northland region in the interim period 2012 – 2014.


Gains from import replacement of $550 m annual gasoline production at Refining NZ Currently New Zealand imports approximately $550 m of gasoline products

(wholesale price before excise tax) that the CCR project will enable Refining NZ to

supply. While producing mogas will require increased crude imports there are at least

two ways the New Zealand economy will gain from the CCR project. First, the current imports

valued at $550 million annually will now be produced in New Zealand. After allowing for the

increased crude required for this increased motor gasoline production, the increase in annual

value added of GDP for New Zealand has been estimated at $100 million. This direct impact

from Refining NZ production will have flow-on effects to other sectors in a similar manner to

those estimated for the construction of the CCR project.

Using the sector 21 (the Refining NZ sector listed in Appendix 2) Value Added multipliers for

the Northland and New Zealand economies respectively at 1.59 and 2.23, Northland’s total

impact gain is $159 million annually or 2.7% of annual Northland current GRP as in Table 3.

This is a very significant annual gain for Northland’s workforce and business units. For the

New Zealand economy (including Northland), the gain is of course even larger at $223 million

annually (after all flow-ons) making for a 0.11% gain in current annual New Zealand GDP at

$204.5 b (December 2011 year figures).

Secondly, this increased self-sufficiency in mogas usage gives the New Zealand economy

greater security of supply for this strategic good. These self-sufficiency gains do not have a

ready market value that can be quoted here but these gains can be approximated using the

so-called forward linkages capability of the economic model. The model can identify those

sectors most dependent on using gasoline with a $550 m annual wholesale value. Again,

these linkages can be dichotomised between industrial users and households or

Consumption linkages. The direct and flow-on aggregates are further elaborated in the full

economic impact report in Appendix 1.

Materials The total materials spend in New Zealand is estimated at $170 million, of which $30

million minimum will be purchases locally on items such as cables, cable trays,

structural steel, insulation materials, paint and tools etc. Most of these items are

manufactured outside the region. Materials such as timber, sand, cement and

aggregates will be accessed locally.

Contractors anticipate that Refining NZ will purchase bulk materials. Most contractors

indicated that they would purchase consumables locally.


Equipment needs Contractors do not anticipate significant investments in capital equipment as most

have adequate equipment from current and completed projects. Approximately 10

vehicles will be purchased for transporting staff, some specialist equipment and

cranes.

Completion of the CCR Platform at the Marsden Point refinery will first initiate large

construction impacts throughout New Zealand but particularly in the Northland

economy as estimated in this report. Secondly, it will increase security in supply of

gasoline which is a vital intermediate input into much of New Zealand’s production

activity as well as for the outdoor and mobile lifestyle currently enjoyed by all New

Zealanders. In the current climate of environmental concern, the new plant will

effectively lower carbon emissions, significantly supporting New Zealand’s

commitment towards safeguarding the environment to the fullest extent possible.

Economic Impact highlights

• $345 million economic revenue benefit for New Zealand from the

construction phase.

• A 1.33 % increase in Northland's GDP at the peak of construction in

2015.

• $159 million annual economic gain for Northland and $223 million

annual economic gain for New Zealand from additional fuel sales.

• An annual 0.11% gain in New Zealand GDP from additional fuel sales.


Employment Northland has for decades had among the highest unemployment rates in New

Zealand. From December 2009 to December 2011, unemployment rates have

ranged between 7.3 and 9.8%.5 While the national unemployment rate was 6.3% in

the December 2011 quarter, the Northland unemployment rate was 8.3%.

Figure 4: Unemployment rate by region6

At 29% (for the December 2011 quarter) the national youth (15 to 19 years)

unemployment rate is a mounting concern. In June 2011, 48% of Northland’s

working age Mäori were estimated to be on welfare payments.7

The impact of the CCR project on employment The CCR project will employ 40 people in 2012 peaking at 350 in 2015. When

additional employment generated by the project is included, the total employed starts

at 138 in 2012 peaking at 657 in 2015 (see table 4).

Refining NZ’s project management team will interact directly with a set of sub-

contractors who have a long association with Refining NZ. Seven of the contractors,

comprising the bulk of the labour force have provided estimates of the number of

employees required and, where possible, an indication of where these staff might be

sourced.

5 Data accessed from the Statistics New Zealand website: http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/HouseholdLabourForceSurvey_HOTPDec11qtr.aspx 6 Department of Labour (2012) Employment and unemployment – December 2011 quarter. Retrieved from: http://www.dol.govt.New Zealand/publications/lmr/lmr-hlfs-dec-11.pdf 7 Simon Collins (June 11, 2011). Where are the Jobs? Youth Unemployment in the North. New Zealand Herald. Retrieved from: http://www.nzherald.co.nz/maori/news/article.cfm?c_id=252&objectid=10731518

http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/HouseholdLabourForceSurvey_HOTPDec11qtr.aspx

http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/HouseholdLabourForceSurvey_HOTPDec11qtr.aspx

http://www.dol.govt.nz/publications/lmr/lmr-hlfs-dec-11.pdf

http://www.nzherald.co.nz/maori/news/article.cfm?c_id=252&objectid=10731518


Projected staff

Northland NZ Overseas Returning Apprentices

Supplier A 90 36 40 10 4 14 Supplier B 80 54 19 1 6 4 Supplier C 30 15 15 7 Supplier D 45 45 2 Supplier E 20 7 10 3 Supplier F 50 40 5 5 Refining NZ project staff

50 30 20

Total 365 227 109 11 18 27

62% 30% 3% 5% Table 4: Projections of the source of project staff for the main contractors (suppliers)

Table 4 presents estimates of six of the seven contractors interviewed. The seventh

contractor did not have sufficient information to make estimates.

Their estimates vary according to the nature of the trade involved. Civil construction

labour including carpenters work on both domestic and civil construction. There is

spare capacity in the construction sector as activity has been constrained by the slow

economy – all of the capacity required can be found in Northland. Other trades, more

likely to be associated with large projects have migratory populations that move from

project to project. Two contractors believe that some of the tradespeople who have

moved to Australia to find work would want to return to Northland. In some cases

they will still have family links and possibly property here. It is difficult to accurately

estimate the numbers returning from Australia. For the relevant trades, these are

estimated at between 5 and 15% of the Northland-based project workforce,

accounting for approximately 5% of the total project workforce.

2012 2013 2014 2015 2016 Directly employed on the project 40 150 250 350 10 Total employment impact for Northland

21 296 399 541 16

Total employment impact for rest of New Zealand

77 244 120 116 4

Total additional employment 138 540 519 657 20 Table 5: Total annual employment impact in New Zealand 2012 – 2016

Based on their current knowledge of the project six of the seven major contractors

estimated the number of staff to be employed. After including Refining NZ project

staff, an estimated 62.2% of staff will be sourced from Northland and a further 4.9%

repatriated to Northland from work outside the region.


Apprentices Contractors have indicated taking on 27 apprentices. Some of these will be

employed this year. This is a significant boost for skills increase for the region. While

the project will require mostly experienced tradespeople, even a modest increase in

apprenticeships will help address the disproportionate amount of young people

unemployed.

Training needs Some contractors, such as civil construction contractors envisage minimal training

needs as they have a stable and experienced workforce. Some will require specialist

trades training such as pipe welding. Apprentices will be trained following processes

established by the relevant Industry Training Organisation. Established members of

the core workforce may require supervisory or leadership training to enable them to

work with larger gangs.

Employment impact highlights

• At its peak in 2015, 350 people will be employed directly on the

construction project. A further 307 jobs will be created from

downstream impacts.

• Approximately 62% of the project workforce will be sourced from

Northland with a further 5% repatriated to Northland from other regions

or overseas.

• The major contractors plan to take on 27 new apprentices.


The impact on contractors and the wider community Construction started on the Marsden Point Refinery fifty years ago in 1962. Some of

the contracting companies that will work on the CCR project worked on the original

construction. Since the first construction project some of the contractors have staff

based permanently at the refinery and have participated in further projects.

Relationships between the Refining NZ and contractors in the past was more

adversarial and arm’s length. During large projects, the relationship was sometimes

through the intermediary of a managing contractor. Thus communication difficulties

were commonplace. Given the 50-year timeframe of the Refining NZ contractor

relationship, the communication processes need to be considered in the context of

the times.

Figure 5: Contractor vehicles in the refinery car park

Refining NZ business plans reveal a strategic intent that maintains a focus on robust

profitability and also emphasis values that support improved processes. The 2012 to

2016 Business Plan has five key strategies:

• leading in reliability, safety and environment – Asia Pacific’s best

• supporting New Zealand’s growth – New Zealand’s supplier of choice

• robust profitability – delivering in a volatile world

• people and performance – being an employer of choice

• delivering on our promises – developing mutual trust, understanding and

support.

The four key values that support Refining NZ’s strategic intent are honesty and

integrity, winning together, leadership and respect. The “winning together” or “one

team” value in the 2012-2016 business plan articulates values-based practices often

espoused in organisations but, as evidenced by contractors interviewed, these are

actualised at the Marsden Point refinery.


Figure 6: Refining NZ's strategies and values8

Changes to processes initiated during the Point Forward project (the most recent

major project) created a more collaborative working environment. The Project

Manager of Point Forward joined Refining NZ’s leadership team after the project as

Refinery Manager. He returns to the project management role for CCR providing

continuity and an important link to the leadership team.

One contractor spoke of the benefits of co-locating supervisors with project

management staff. Any problems could be addressed directly based on often long-

standing working relationships, high trust and ease of communication. The

contractors were enthusiastic about positive interaction with the project team and the

absence of "hidden agendas".

One of the contractors contrasted the project team’s approach with the adversarial

approach that remains the norm for most projects in New Zealand. These sentiments

align with, those of Duke Johnas, Principal Project Manager of Worley Parsons

providing an international perspective:

The original Point Forward project FEED phase as well as a major part of the EP phase was executed following the standard parallel client / contractor project organizations. However, towards the end of Point Forward and throughout the construction phase an initiative by the Project Manager changed the way the project was being executed and we implemented the integrated project organization concept with great success. Members from client and contractor teams occupied positions to form the integrated project execution team depending on their qualifications and skill sets regardless of their company affiliation.

The program immediately had great impact on improving teamwork as well as having a clear positive change in the ranks, creating sense of collective ownership and responsibility and the finger pointing incidents dropped noticeably.

8 Fuelling New Zealand’s Future Strategic Plan 2012 – 2016 Refining NZpage 7.


The success of working with an integrated organization had convinced all of us that for the next phase of the project we would not hesitate to implement it right way from the start of the project.

The proposed Refining NZ Growth Project organization is in most part an integrated one with members from each company reporting to each other without any issues or problems what so ever. So much so that when an outside entity or peer team comes into the project to audit or review the project execution or assess progress, often times they could not tell the client from the contractor.

The success of the collaborative approach depends very much on the readiness and flexibility of the organizations involved for any given project. Of course, this “One Team” approach will not work when one is dealing with a client completely ingrained in client / contractor separation mentality and deeply convinced that the dissection must remain in order to enable their staff to indiscriminately scrutinize and maintain the master slave relationship.

I am convinced that the overwhelming majority of projects such as ours will qualify for the “One Team” strategy but there might be other project with clients not willing to embrace the concept and opt to execute their projects thru the standard method. The program will only succeed if the parties are aligned and willing to make it work. Fortunately for us the Refining NZleadership was adamant to make it work, their staff were willing to collaborate, and hence the success story.

From these comments from contractors and an offshore project management

specialist, there appear to be multiple benefits from the collaborative approach

developed by Refining NZ:

Benefits for Refining NZ

• Higher levels of trust and faster communication.

• Contractors highly familiar with the refinery, its protocols and systems.

• Contractors have a greater sense of ownership of the project.

• Reduced level of risk for the project through the development of this

community of practice.

Benefits for the contractors:

• Their needs are factored into the project, e.g. the phasing is favourable as the

peak requirement for resources is less severe.

• Without a managing contractor they will enjoy a more direct relationship with

Refining NZ.

• Their direct involvement in the project will help avoid "poaching" of staff from

out of the region contractors.

• The size of the project will provide stability and business continuity in tight

times.

• They will benefit from the learning consequent to involvement in a world-class


project.

These benefits translate to wider benefits for the region, and to a lesser extent the nation:

• The collaborative nature of the project generates valuable learning for

contractors and technology transfer that should inform other project

processes in the region (Refining NZ has generally lifted the bar regionally in

processes such as health and safety).

• Local contractors have indicated they will take on some apprentices thus

building the skills base for region.

• The use of local contractors will attract and potentially retain skilled trades

people back to the region.

Developing shared value Earlier relations between what was the New Zealand Refining Company and

contractors reflected “supply chain” practices consistent with the broader global

practice. The concept of the “value chain” articulated by Michael Porter in 19859

developed to an evolution of the concept he outlined as “shared value”.

The shared value approach considers all stakeholders and takes a longer view of the

sustainability of the business based on effective engagement with stakeholders.

According to Porter, from his more recent work:10

A big part of the problem lies with companies themselves, which remain

trapped in an outdated approach to value creation that has emerged over the

past few decades. They continue to view value creation narrowly, optimizing

short-term financial performance in a bubble while missing the most important

customer needs and ignoring the broader influences that determine their

longer-term success. How else could companies overlook the well being of

their customers, the depletion of natural resources vital to their businesses,

the viability of key suppliers, or the economic distress of the communities in

which they produce and sell?

It is evident that Refining NZ has recognised this dynamic. In 2008 they

commissioned a report to investigate their corporate citizenship11. Their recent

9 Competitive Advantage: Creating and Sustaining Superior Performance by Michael Porter (1985) New York: Free Press 10 Creating Shared Value by Michael Porter and Mark Kramer (January 2011) Harvard Business Review. http://hbr.org/2011/01/the-big-idea-creating-shared-value 11 The New Zealand Refining Company: Our Contribution, an unpublished Report by NorthTec


business plans include stakeholder-related KPIs. Their vision identifies aims for

customers, stakeholders and shareholders. Their aspiration for stakeholders is:

Attract, develop and retain talented individuals and business partners to

sustain and grow the business and be recognised as a valued corporate

citizen locally, regionally and nationally.12

Building contractor capability

The Point Forward project presented significant challenges, as the new plant was

constructed in a live refinery. Refinery project personnel attributed part of the

success of the project, to the capability of local contractors and the skill of their

people. This capability has developed as most of the present contractors have

worked with the refinery for decades. Project team members believe that

participation in these projects builds capability for the contractors and their

employees.

Figure 7: A large block of concrete being removed from amongst live refinery plant

Refining NZ’s ”winning together” strategy, the enthusiasm of contractors for

improvements in their working relationships and the success of the Point Forward

project evidence that Refining NZ is serious about generating shared value. A

continuation of this strong collaboration with contractors provides a solid foundation

for the delivery of a successful project.

12 Fuelling New Zealand’s Future Strategic Plan 2012 – 2016 Refining NZ page 7.


Social capital Refineries in different locations will be embedded in their communities to differing

degrees. Some will be fortress-like with armed guards. Others will be co-located with

a number of other refineries in industrial zones. Marsden Point Refinery has no

armed guards and many of the staff live close by in neighbouring communities, a

testament to safety and environmental standards. Their children attend local schools.

Refinery staff participate in local community projects, such as recent improvements

to the Takahiwai Marae (a meeting house and community complex for the local

indigenous Mäori) and conservation projects in the adjacent coastal environment. In

summer, refinery staff swim at lunchtime, or after work in the harbour or nearby

ocean beach. People catch fish from the Marsden Point wharf and gather shellfish on

Ruakaka beach.

Social capital … reflects the community skills that have co-evolved with

individual skills. People working together generate webs of social capital. 13

The embedded nature of the refinery in the community, the integration of project staff

from companies with a long association with the refinery and the integration and

further refinement of project management practices continues to accumulate social

capital that can only benefit the region.

13 from Virtual Teams: People Working Across Boundaries With Technology, Jessica Lipnack and Jeffrey Stamps, (2008) Chapter 4: http://www.netage.com/pub/books/VirtualTeams%202/V2-html/C4_Trust.html

Contractor and community impact highlights

• Proven world-class project management processes developing in the

previous project will be further developed during the CCR project.

• Local Northland contractors will be taking a leading role in the project.

• Capability for Refining NZ’s support industries will be further enhanced.


Appendix one: Refining NZContinuous Catalyst Regeneration Project: Economic Impacts For

Northland & New Zealand

By

Dr. Warren R Hughes

Consulting Economist

Auckland, New Zealand

March 2012


INTRODUCTION

This report analyses the economic impacts from a $365 m project commencing in 2012 by

Refining NZ to construct a Continuous Catalyst Regeneration Platform (CCR) taking four

years to complete with commissioning in 2016. All economic impacts have been estimated

using 88-sector (year ended) September 2011 economic model of the Northland Regional

Council (Northland R C) economy and the New Zealand economy. While expenditures may

be based at the Marsden Point refinery (Northland R C) they involve expenditure throughout

New Zealand and overseas. Only direct expenditures in Northland region and other New

Zealand regions will have economic impacts for the respective domestic regions.

Approximately 48% of total expenditure on the project will occur somewhere in New Zealand

with 40% realized within the Northland economy. All 88 sectors in the model are listed in

Appendix 2 and are italicised in the report for easy identification.

IMPACTS FROM THE CCR CONSTRUCTION AT THE REFINERY

The CCR Platform is designed to achieve the following:

• increase processing capacity by 8% • reduce fuel loss by 15% by improving product yields • increase gasoline production capacity from 11 m barrels annually to 13 m barrels • improve refinery reliability and reduce imports of refined products • increase refinery processing capability with the ability to use different crudes • lower emissions by 120,000 tonnes of carbon per year • increase Refining NZ’s market share in New Zealand from 72% to 80% (excluding

fuel oils, bitumen)

Construction will commence in 2012 with the project ready for production in 2016. Most of the

construction will take place over 2013 and 2014 with materials and expertise sourced from

the Northland region, other regions within New Zealand and overseas. The cost allocation

over contributing industries and regions, including countries overseas, is summarised in Table

1.

TABLE 1: COST ALLOCATION FOR THE CCR PROJECT – NEW ZEALAND REGIONS AND OVERSEAS COUNTRIES

Activity

Total Cost $ millions

Regional/Overseas Allocation $ millions

Northland Other NZ Overseas

Engineering 53.5 8.5 45.0 Main Equipment 96.4 96.4 Piping 7.0 1.0 6.0 Electrical Material & Equipment 13.0 10.0 3.0 Instruments 12.0 12.0 Building Materials 9.0 9.0


Structural Steel 3.5 3.5 Building & Construction Services 11.6 4.6 1.0 6.0 Cranes & Equipment 22.0 13.0 9.0 Freight & Logistics 14.0 4.0 10.0 Catalysts 4.0 4.0 Insurance 3.0 3.0 Project Management & Labour 116.0 116.0 TOTALS 365.0 146.6 27.0 191.4

As detailed in Table 1, 52% of the total cost will be sourced from overseas. The engineering

cluster in New Plymouth servicing New Zealand’s oil extraction and exploration activity gains

$8 million in engineering work for the project. The total direct impact on Northland’s economy

will be $146.6 million and is concentrated in the construction and construction supplying

sectors. As shown in Tables 3, 4 and 5 below, however, the economic impacts on the

Northland economy are much greater after account is taken of the flow-on activities created

by the CCR project.

The timeline for the construction project is summarised in Table 2.

TABLE 2: TIMELINE & REGION FOR CONSTRUCTION EXPENDITURE ON THE CCR PLATFORM IN $ MILLIONS

REGION &

2012 2013 2014 2015 2016 TOTALS NORTHLAND Materials &

1.0 15.5 9.5 4.6 30.6 Labour at Site 5.0 15.0 39.0 55.0 2.0 116.0 OTHER NEW

Materials &

6.2 20.3 0.5 27.0 OVERSEAS Materials &

71.0 93.4 21.0 6.0 191.4 TOTALS 83.2 144.2 70.0 65.6 2.0 365.0

From Table 2 it becomes clear that the main construction years are 2013 – 2015 with most

equipment etc. purchases from New Zealand business units in 2013. The 2015 year sees the

largest expenditure on construction labour and oversight at the Refinery.

For the 2013 year, the direct and flow-on impacts are shown in detail for the Northland and

New Zealand economies. The expenditures in Table 2 comprise the so-called direct or first

round expenditures associated with the CCR project. These expenditures engender flow-ons

in construction-related sectors as business units in Northland and the rest of New Zealand

supply the materials and equipment required for the project. These flow-ons can be

dichotomised into two segments. First, the Industrial flow-ons show the sales revenue,

employment etc generated by sectors supplying the CCR project for building materials,


equipment, construction services (e.g. plumbing, wiring, earthworks etc.) and other goods and

services. Secondly, as construction workers at the site and employees in the supplying

sectors just noted spend their wages and salaries in the Northland region and throughout

New Zealand, they create the so-called Consumption flow-ons indirectly attributable to the

CCR project. The total of all these indirect effects comprise total flow-ons attributable to the

project. The sum of the direct and indirect (flow-ons) comprise the total economic impacts of

the CCR project. Table 3 below shows these flow-ons in total for both the Northland and New

Zealand economies for the 2013 year.

TABLE 3: NORTHLAND & NEW ZEALAND-WIDE ECONOMIC IMPACTS FROM 2013 EXPENDITURES ON THE CCR PROJECT

Impact Round

Revenue $ millions


Employment Persons

Value Added

or GDP $ m NORTHLAND R C Direct or First Round Expenditure

26.00 12.66 201 21.32

Flow-ons to other sectors 29.97 3.68 95 10.97 TOTAL NORTHLAND IMPACTS

55.97 16.34 296 32.29

Northland Multiplier 2.15 1.29 1.47 1.51 OTHER NZ EXPENDITURES

Direct or First Round Expenditure

20.30 4.01 90 9.56

Flow-ons to Other Sectors 34.91 6.90 154 16.43 TOTAL NEW ZEALAND IMPACTS

111.18 27.25 540 58.28

New Zealand Multiplier 2.40 1.63 1.86 1.89

The direct or first round Revenue impact for Northland is the first figure in Table 3 or $26 m.

This comprises the $15.5 m of materials and equipment expenditures in Table 2 plus 70% of

the gross salary impact of $15 m for a net income impact of $10.5 m. The other 30% of gross

income covers PAYE, ACC levies, superannuation deductions etc. which do not impact on

the Northland economy directly but only indirectly in the form of subsequent Government

expenditure on education, health, welfare etc. and pension payments to Northland residents

by superannuation funds etc. Accordingly the total direct impact for Northland becomes $15.5

m plus $10.5 m or $26 m. After accounting for Revenue flow-ons of $29.97 m, the total

Revenue impact for the Northland economy in 2013 is $55.97 m. The multiplier associated

with this Revenue impact at 2.15 indicates that every dollar spent on the CCR project in 2013


engenders another $1.15 of sales revenue for business units somewhere in the Northland

region. Multipliers for the other impacts applicable to the Northland economy shown in Table

3 can be interpreted similarly. After accounting for direct expenditures and flow-ons in other

New Zealand regions, the New Zealand-wide (including Northland) Revenue multiplier

increases to 2.40.

In deriving the impacts shown in Table 3, the direct expenditures as in materials and

equipment are allocated to the appropriate sectors in the 88-sector economic model as in

Non-Metallic Minerals (lime, cement etc.), Road Transport, Vehicle & Crane Hire, Non-

Building Construction etc. The operation of the model then generates the resulting flow-on

impacts in supporting sectors such as Electricity, Other Business Services, Fabricated Metal

Products etc. as listed in Table 4 below. This allows derivation of the multipliers shown in

Table 3 as total impacts divided by the direct expenditures. For example, the Northland

Revenue multiplier is derived as 55.97/26 or 2.15 and the New Zealand Revenue multiplier as

111.18/(26 + 20.3) or 2.40. The multipliers are a concise way of expressing the flow-on

impacts as in the conclusion that $1 of expenditure in the New Zealand economy on the CCR

project generates another $1.40 of sales revenue (2.40 less 1) somewhere in New Zealand.

The other multipliers can be similarly interpreted for Income, Employment and Value Added

or GDP.


As noted above, the flow-ons can be analysed in more detail to show which sectors in the

Northland economy benefit most from the CCR project. The top 10 sectors for the Revenue

and Employment impacts are shown below in Table 4.

TABLE 4: TOP 10 NORTHLAND INDUSTRIAL SECTORS SUPPLYING THE CCR PROJECT IN 2013

FOR REVENUE & EMPLOYMENT

REVENUE/OUTPUT EMPLOYMENT Flows in supplying sectors due to

CCR Project Flows in supplying sectors due to CCR

Project # Sector $ mill Perce

nt # Sector Person

s Percent

1 Petrol Chem W’saling

0.84 7.6 1 Vehicle Retail & Services

3.70 11.3

2 Electricity 0.57 5.2 2 Other Business Services

3.39 10.4

3 Mining & Quarrying 0.55 5.0 3 Legal & Accounting Serv

1.31 4.0

4 Other Bus Services 0.54 4.9 4 Personal H’hold Retail 1.05 3.2 5 Vehicle Retail & Serv 0.51 4.6 5 Fabricated Metal

Product 1.03 3.1

6 Financial Services 0.35 3.2 6 Mining & Quarrying 0.88 2.7 7 Air & Transport

Service 0.34 3.1 7 Timber & Wood

Products 0.76 2.3

8 Communications 0.31 2.8 8 Building Supply W’saling

0.69 2.1

9 Water & Rail Services

0.27 2.4 9 Petrol Chemical W’saling

0.61 1.9

10 Real Estate Services 0.22 2.0 10 Scientific & Technical Res

0.61 1.9

Top 10 supplying sectors 4.50 40.7 Top 10 supplying sectors 14.03 42.9 Remaining 78 sectors 6.56 Remaining 78 sectors 18.70 Total Industrial Flow-ons 11.06 36.9 Total Industrial Flow-ons 32.73 34.4 Total Consumption Flow-ons

18.91 63.1 Total Consumption Flow-ons

62.34 65.6

TOTAL REVENUE FLOW-ONS

29.97 100.0 TOTAL EMP COUNT FLOW-ONS

95.07 100.0

In reviewing the results presented in Table 4 we need to be aware that the CCR project is a

unique one for New Zealand. The economic model used to estimate the above impacts reflect

“average” activity in New Zealand for the September 2011 year. A typical construction project

with direct expenditure of around $46.3 m somewhere in New Zealand will almost certainly

involve Mining & Quarrying (as listed in Table 4 supplying for example construction

aggregates) whereas the CCR project almost certainly will not or at least not to the extent

shown in Table 4. The results in Table 4 therefore apply more to “typical” construction rather


than the specialised construction of the CCR project which a general economic model of the

type used here cannot accurately account for in terms of the most closely linked supplying

sectors. However, results in aggregate are still useful. For example, Table 4 shows that the

Consumption linkages at around 62% of the total significantly outweigh the Industrial

linkages. For the CCR project in 2013, the gross income component at $15 m is a significant

injection of spending power into the local Northland economy matching the materials and

equipment total of $15.5 m. As a result, the Consumption linked flow-ons outweigh the

Industrial linked flow-ons by almost a 2 to 1 margin. The listings in Table 4 do show the

extensive industrial infrastructure required in an economy to support a project of this size and

complexity. If a region cannot supply these inputs, they need to be imported from other New

Zealand regions or overseas, significantly reducing the impacts for local business units.

The Consumption flow-ons have not been analysed in detail since the sectors benefiting most

are those sectors servicing households in the normal course of living. These include the 8

wholesaling sectors such as Food Drink & Tobacco Wholesaling and the 4 retailing sectors

such as Department Stores as well as sectors such as Restaurants & Bars and similar

sectors. All sectors are listed in Appendix 2.

Tables 3 and 4 have analysed the 2013 year expenditures in some detail. Other years have

not been similarly analysed but would show similar results with similar multipliers as reported

above for the 2013 year.

Table 5 below summarises the total economic impacts for all measures for the Northland and

New Zealand economies over the 2012 – 2016 period.

TABLE 5: TOTAL ECONOMIC IMPACTS FROM THE CCR PROJECT FOR NORTHLAND & NEW ZEALAND

FOR THE YEARS 2012 - 2016

CONSTRUCTION YEAR & IMPACT REGION

Revenue $ millions

Net income $ millions

Employment Jobs

Value Added $ m

2012 Northland Regional Council 10.14 4.32 61 7.37 Other NZ Regions 15.99 3.39 77 7.42 TOTAL NZ IMPACTS 2012 26.13 7.71 138 14.79 2013 Northland Regional Council 55.97 16.34 296 32.29 Other NZ Regions 55.21 10.91 244 25.99 TOTAL NZ IMPACTS 2013 111.18 27.25 540 58.28 2014

Northland Regional Council 80.07 33.58 399 60.46 Other NZ Regions 12.67 4.00 120 10.20


TOTAL NZ IMPACTS 2014 92.74 37.58 519 70.66 2015

Northland Regional Council 97.86 45.61 541 78.69 Other NZ Regions 14.12 4.63 116 11.86 TOTAL NZ IMPACTS 2015 111.98 50.24 657 90.55 2016 Northland Regional Council 3.29 1.63 16 3.05 Other NZ Regions 0.48 0.16 4 0.08 TOTAL NZ IMPACTS 2016 3.77 1.79 20 3.13 TOTAL ECONOMIC IMPACTS 2012 – 2016

Northland Regional Council 247.33 101.48 1313 181.86 TOTAL NZ 345.80 124.57 1874 237.41 Northland as a Percent of New Zealand

71.5% 81.5% 70.1% 76.6%

A simple average of the four percentages at the foot of Table 5 shows the Northland R C

economy capturing around 75% of the total New Zealand impacts from the CCR project. Of

the four measures, perhaps the most important is the Value Added impact with a Northland

percentage of 76.6%. Value Added, GDP or regional GDP as gross regional product (GRP)

shows the gross return to a region or country from the activity under analysis comprising

gross wages and salaries, gross operating surpluses of all business units plus depreciation

on plant and equipment. It is the best measure of financial regional return for (in this case) the

Northland regional economy from the CCR project.

Taking the September 2011 year as a base, the project gains for the Northland economy due

to the CCR project can be expressed as a percentage of these 2011 base year aggregates

for Northland. These are detailed for the four impacts in Table 6.

TABLE 6: PROJECT GAINS FOR NORTHLAND AS PERCENT OF NORTHLAND ECONOMY YEAR ENDED SEPT 2011

YEAR OF IMPACT

Revenue $ millions


Employment Persons

Value Added or GDP $ m

Northland R C year ended Sept 2011

11,185.2 2,138.3 53,018 5,934.5

PROJECT GAINS NORTHLAND 2012-16

Percent Percent Percent Percent

2012 0.09% 0.20% 0.12% 0.12% 2013 0.50% 0.76% 0.56% 0.54% 2014 0.72% 1.57% 0.75% 1.02%


2015 0.87% 2.13% 1.02% 1.33% 2016 0.03% 0.08% 0.03% 0.05%

The project’s starting and ending years 2012 and 2016 show very small percentage impacts

for Northland as might be expected. At the peak years of the project 2014 – 2015, percentage

gains for the Northland economy will be around 1% annually for the four impact measures

allowing for some growth in the Northland region in the interim period 2012 – 2014.

GAINS FROM IMPORT REPLACEMENT OF $550 m ANNUAL GASOLINE PRODUCTION AT REFFINING NZ

Currently New Zealand imports approximately $550 m of gasoline products (wholesale price

before excise tax) that the CCR project will enable Refining NZ to supply. While producing

mogas will require increased crude imports there are at least two ways the New Zealand

economy will gain from the CCR project. First, the current imports valued at $550 m annually

will now be produced in New Zealand. After allowing for the increased crude required for this

increased motor gasoline production, the increase in annual value added of GDP for New

Zealand has been estimated at $100 m. This direct impact from Refining NZ production will

have flow-on effects to other sectors in a similar manner to those estimated for the

construction of the CCR project.

Using the sector 21 (the Refining NZ sector listed in Appendix 3) Value Added multipliers for

the Northland and New Zealand economies respectively at 1.59 and 2.23, Northland’s total

impact gain is $159 m annually or 2.7% of annual Northland current GDP as in Table 6. This

is a very significant annual gain for Northland’s workforce and business units. For the New

Zealand economy (including Northland), the gain is of course even larger at $223 m annually

(after all flow-ons) making for a 1.1% gain in current annual New Zealand GDP at $204.5 b

for the December 2011 year.

Secondly, this increased self-sufficiency in mogas usage gives the New Zealand economy

greater security of supply for this strategic good.

CONCLUSIONS

Completion of the CCR Platform at the Marsden Point refinery will first initiate large

construction impacts throughout New Zealand but particularly in the Northland economy as

estimated in this report. Secondly, it will increase security in supply of gasoline which is a vital

intermediate input into much of New Zealand’s production activity as well as for the outdoor

and mobile lifestyle currently enjoyed by all New Zealanders. In the current climate of

environmental concern, the new plant will effectively lower carbon emissions significantly

supporting New Zealand’s commitment towards safeguarding the environment to the fullest

extent possible.


Appendix 1: Economic impact analysis Corporations/facilities (e.g. Refining NZ Limited/Port of Tauranga Limited)

Festivals/events (e.g. Art Deco Weekend/V8 Supercars)

The region for which the economic impact of a business unit or event is required can be a

Territorial Authority as in Western BOP District Council, a combination of TAs as in the

Waikato Regional Council (WRC) or the country in total as in New Zealand. Frequently, two

models are utilised in an impact study so that impacts can be estimated for say the WRC and

the rest of New Zealand. For an event such as the Port of Tauranga Triathlon, we can

estimate the impacts for Tauranga City and the rest of the BOP.

All regions are modelled an with 88-sector economic model utilising the latest employment

data from Statistics New Zealand as at February of the latest year. Currently we need to use

February 2011 employment data since the 2012 data become available later in the year in

October/November. The 88 sectors (example sectors are italicised) cover basic agricultural

production (4 such sectors) as in Dairy Sheep & Beef Farming, follow-on processing as in

Dairy Processing through other manufacturing sectors (Pulp & Paper Manufacturing), utilities

(Water Supply), transport services (Water & Rail), business services (Legal & Accounting

Services), government services (Higher Education) and community services (Sewerage &

Waste Disposal).

Four economic impacts are estimated for all analyses. The Revenue impact shows the dollar

sales value of activities while the Net Household Income impact after tax, saving and

superannuation shows consumer purchasing power in the region emanating from the

activity/event. The Employment impact is the full-year part-time and full-time head-count

impact due to business unit operations or the event in question. Finally, the Value Added

(regional GDP) impact is also estimated. Value added comprises gross wages and salaries of

employees as well as gross operating surpluses of business units plus their depreciation. This

measure shows the gross (before tax) returns to both employees and business units in the

region subject to the impact.

Analysis using the economic model allows us to identify those sectors most affected by the

impact generating facility or event. For example, the dollar amounts flowing to sectors such

as Supermarkets & Groceries Retailing, Restaurants & Bars etc. from an event such as the

V8 Supercars can be calculated for the host city and/or region. Alternatively, losses to a

region from a plant or facility closure can also be quantified. Losses in such cases can be

realized by supplying sectors to a plant or facility such as Electricity, Road Transport etc. as

well as using sectors. For example, if a Meat Processing plant closed in the WRC region,

using sectors such as Supermarkets & Groceries Retailing, Restaurants & Bars, Hospitals &


Nursing Homes would need to import goods and services from other regions or lose revenue.

These losses can be estimated via the so-called supply-side regional model. Of course, in

some cases, the capacity of competing plants in the Waikato may be expanded with minimal

(if any) resulting losses to the regional economy from a plant/facility closure.

The results are restricted to economic impacts as described above. For example, the analysis

does not show impacts for Employment across different age or ethnic categories. Other

researchers at additional cost can be employed by Dr Hughes if such analysis is required.


APPENDIX 2: SECTORS IN THE 88-SECTOR ECONOMIC MODEL

# SECTORS 1 Horticulture and fruit growing

2 Livestock and cropping farming

3 Dairy and cattle farming

4 Other farming

5 Services to agriculture and hunting and trapping

6 Forestry & forestry services

7 Logging

8 Fishing

9 Mining and quarrying

10 Oil and gas exploration and extraction

11 Meat and meat product manufacturing

12 Dairy product manufacturing

13 Other food manufacturing

14 Beverage, malt and tobacco manufacturing

15 Textiles product manufacturing

16 Clothing and footwear manufacturing

17 Wood product manufacturing

18 Pulp paper and paper board manufacturing

19 Paper and paper board containers manufacturing

20 Printing, publishing and recorded media

21 Fertilizer, petroleum and other industrial chemical manuf’ing

Refining NZ Limited

22 Other chemical product manufacturing

23 Rubber product manufacturing

24 Plastic product manufacturing

25 Non-metallic mineral product manufacturing

26 Basic metal manufacturing

27 Structural sheet and fabricated metal product manufacturing

28 Motor vehicle and part manufacturing

29 Ship, boat and other transport equipment manufacturing

30 Photographic and scientific equipment manufacturing

31 Electronic equipment and appliances manufacturing

32 Industrial machinery manufacturing

33 Prefabricated building manufacturing

34 Furniture manufacturing

35 Other manufacturing nec

36 Electricity generation and supply

37 Gas supply

38 Water supply


39 Sewerage, drainage and waste disposal services

40 Residential construction

41 Non-residential building construction

42 Non-building construction

43 Construction trade services

44 Unprocessed primary product wholesaling

45 Petroleum, metal and chemical wholesaling Major oil companies as for BP, Mobil, Caltex etc.

46 Builders supplies wholesaling

47 Machinery and equipment wholesaling

48 Motor vehicle wholesaling

49 Food, drink and tobacco wholesaling

50 Personal and household goods wholesaling

51 Supermkts, grocery, furniture, appliances, recreation w'saling

52 Specialized food and liquor retailing

53 Department stores

54 Other personal and household goods retailing

55 Motor vehicle retailing and services

56 Accommodation

57 Restaurant and bars

58 Road transport

59 Water and rail transport

60 Air transport, services to transport and storage

61 Communication services

62 Finance

63 Life and health Insurance

64 Superannuation fund operation

65 General Insurance

66 Services to finance and insurance

67 Real estate

68 Investor in other property

69 Vehicle and equipment hire

70 Ownership of owner-occupied dwellings

71 Scientific research and technical services

72 Computer services

73 Legal and accounting services

74 Other business services

75 Central government administration and defence

76 Local government administration

77 Pre-school, primary and secondary education

78 Post school education

79 Other education

80 Hospitals and nursing homes

81 Health and Dental Services

82 Veterinary services


83 Community care services

84 Motion picture, radio and TV services

85 Libraries, museum and the arts

86 Sport and recreation

87 Personal & house services & household employed staff

88 Religious organisations and interest groups


Acknowledgements and research team

This study was commissioned by Refining NZ. Thanks to Jack Ariel for his

assistance.

The following senior staff from key contractors provided invaluable assistance with

information about the workforce for the project and the nature of the working

relationship with Refining NZ.

• John Cooper, Whangarei Branch Supervisor, Industrial Site Services Ltd

(ISS)

• John Steenson, General Manager, SPI

• Lindsay Faithfull, CEO, McKay

• Neville Sander, Managing Director, Kerr Construction Whangarei Ltd

• Paul Mandeno, Operations Manager, United Civil Construction Ltd

• Raymond Pascoe, Contracts Manager, Ross Insulation

• Shane Culham, Managing Director, Culham Engineering

Thank you to Duke Johnas, Principal Project Manager of Worley Parsons for his

insights into the project management processes of Refining NZ.

Research team Peter Bruce is a researcher and lecturer for the Business Management degree and

diploma programme at NorthTec. He led the research team that produced Our

Contribution for Refining NZ in 2008. Peter is the author of Better Business for a

Better World, published in 2000 and has more books in the pipeline. He was born in

Northland and lived in the region most of his life. Peter’s Stakeholder Engagement

blog is www.engagementedge.com.

Dr Warren Hughes is a nationally renowned economics researcher and academic

with extensive experience in econometric analysis. He engages in all types of

economic analyses for businesses, cities and regions with clients including a wide

range of local authorities, government agencies and businesses. His website is

www.hugheseconomics.co.New Zealand

Lou van Es is a researcher and lectures on the Business Management degree and

diploma programme at NorthTec. In 2005 has published, with Professor Dr Paul

Spoonley, a report entitled The economic impact of a zero-fees policy at Northland

Polytechnic and he was a senior researcher on the research team that produced Our

http://www.engagementedge.com/

http://www.hugheseconomics.co.nz/


Contribution for Refining NZ in 2008. In that same year, he published Does business-

related training increase business continuation rates?

He is currently in the process of finishing a project entitled The financial impacts of

the Emissions Trading Scheme on Northland businesses. Lou can be contacted by

email at [email protected]

mailto:[email protected]

Documents

The Social and Economic Impact of Ccr Project