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Waikato Spatial Plan

Summary Report

February 2014

Table of Contents

1. Summary 1

2. Introduction 6

2.1 Background 6

2.2 Purpose 6

2.3 Context 6

2.3 Spatial Planning Approach 8

2.4 Risk and Resilience 10

3. The Waikato’s Changing Spatial Structure 11

3.1 Significant Drivers of Change 11

3.2 Population and Demographics 12

3.3 Land Use Trends 13

3.4 Urban Form 13

3.5 Our Cultural Heritage 14

4. Forecasted Regional Demographic Changes 16

5. Critical Infrastructure that Supports our Communities 19

6. Spatial Planning 24

7. Findings of Well-Being Evidence Base 27

7.1 Economic Well-Being 28

7.2 Social Well-Being 30

7.3 Cultural Well-Being 31

7.4 Environmental Well-Being 32

7.5 Infrastructure 35

7.6 High Level Linkages 36

8. Methodology to Categorise Regional Strengths, Challenges and Opportunities 38

8.1 Criteria 38

8.2 National, regional and sub-regional strengths, challenges and opportunities 39

9. Outcomes from Council Workshops 45

10. Key Regional Strengths, Challenges and Opportunities 46

10.1 Key Matters for the Waikato Region 46

10.2 The Headline Strengths, Challenges and Opportunities 47

11. Conclusions and Recommendations 49

11.1 Conclusions 49

11.2 Recommendations 51

Appendix 1: Business Case for Waikato Spatial Plan 52

Appendix 2: List of Technical Reports 58

Appendix 3: Assessment of Critical Infrastructure for the Waikato 59

Appendix 4: Assessment of Strengths, Challenges and Opportunities 65

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1. Summary

Purpose and Context

The purpose of this Report is to summarise the findings of the work undertaken to date and to

identify high priority issues which the Waikato Region can have a collective voice on. This report

is a summary of comprehensive technical reports which have been developed for the Waikato

Spatial Plan project on demographics, economic, social, cultural and environmental well-being,

and infrastructure.

This Summary Report will be an important communication for the Waikato Region. It will inform

discussions on strategic collaboration between local authorities, infrastructure providers,

communities and the Crown, and can be considered the Mayoral Forum’s communication to the

Waikato on the rationale for a Waikato Spatial Plan, including the core strengths, challenges and

opportunities that should be considered in the Spatial Plan project.

This Spatial Planning work is being developed in a context of central government objectives

around building a more productive, competitive economy and better public services. It is also

being developed at a time of Local Government legislation changes and reorganisation

proposals. The consistent themes that have emerged from these reforms are:

� Improving the efficiency and effectiveness of local government

� Enhancing economic development

� Providing value for money

Benefits of Spatial Planning

There is a need to provide a mechanism within which efficiency and effective collaboration on

priority issues and responses across the Waikato can be achieved – that mechanism is the

Waikato Spatial Plan.

There are significant gains to be made and potential benefits in undertaking spatial planning for

the region. This includes:

� Enhanced coordination of ‘Whole of Government’ investment – efficiency savings by

acting collectively with central Government on high priority issues

� Improving coordination of Government, Regional and Local policy

� Consistency with where the Local Government Commission is heading in terms of

speaking with one region-wide voice, strategic long-term planning, simplified and

streamlined processes and efficiency initiatives such as shared services

� Efficiency savings for NZ Inc and Waikato Ratepayers (cost savings could be anywhere

from 40 to 50 million over 10 years just for having fewer plans, policies, bylaws and

common planning procedures)1

� A framework for central government engagement (eg to increase awareness of the

implications of rural depopulation and the economic and social impacts of rural service

decline)

1 A Business Case for Completing the Waikato Plan, January 2013

2

When the Waikato Region has acted in a collective manner, this has proven to be effective when

seeking additional Government investment. Recent examples include:

� Collective action by the Waikato Regional Transport Committee secured $215M of

Crown Funding for land transport initiatives, which has been largely invested in the

Waikato Expressway and doubling the capacity of the East Coast Main Trunk Line.

� Consistent advocacy over 15 years or more that the $2 billion Waikato Expressway is the

region’s number one transport priority – the Expressway is a Road of National

Significance and is targeted for completion in 2019.

� Doubling the capacity of the East Coast Main Trunk Line as a result of the Crown Grant –

a $13 million project which has supported Fonterra expanding capacity at the Crawford

St inland port and provides important links to Ruakura supporting the business case for

an inland port.

� Lake Taupo Protection Trust secured a combined fund of $81M to reduce nitrogen

leaching into Lake Taupo over 15 years.

� Waikato-Tainui’s River Settlement with the Government – the Waikato River Authority

administers a combined fund of $220M to restore and protect the health and wellbeing

of the Waikato River – this is unique to the Waikato and is an example of collaborative

relationships to achieve better service delivery.

Headline Regional Strengths, Challenges and Opportunities

The Waikato region is diverse, with different issues, conditions and interests across the region.

Consequently, opportunities for strategic local government collaboration exist on three different

levels; the macro or national level, regional level, and sub-regional level.

The technical reports which underpin this Summary Report have identified key strengths,

challenges and opportunities for the Waikato region. A methodology has been developed which

identifies the matters which are nationally, regionally or sub-regionally significant. This will help

the Spatial Plan to identify priority areas for local government to collaborate on.

The assessment undertaken using the methodology has identified a number of strengths,

challenges and opportunities. While they are all important there are too many for the region to

focus on at once. The table below identifies some ‘headline’ strengths, challenges and

opportunities that the region can focus on now and that can be used as the basis for developing

a spatial plan.

Strengths

� Nationally significant transport juncture and connections to Auckland and

Tauranga

The region is a nationally significant juncture for freight and transport, and

has good connections to large and growing populations in Auckland and

Tauranga. The transport network in the Waikato region is vital to the

nation’s economic prosperity as it provides important access for freight and

people to key destinations including major urban centres, ports, industry,

sub-regional employment centres and tourism locations. The Waikato has a

good quality road transport network including two of the busiest rail lines in

New Zealand.

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� Contribution to national economy through important industry sectors

The Waikato region has a significant proportion of New Zealand’s export-

facing industries. Dairy, meat, forestry, aquaculture, agri-business, tourism,

education, energy and mining/quarrying are already the largest

contributors to economic growth. The Waikato region is responsible for

about a third of New Zealand’s dairy production.

� Hamilton as the Waikato centre for innovation, employment and services

Hamilton city makes the most significant contribution to the region’s gross

domestic product (GDP), at an estimated 45 per cent and its estimated GDP

per capita in 2012 was both the highest in the region and higher than the

national average. It is the region’s “central business district” with

concentrations of employment, research, tertiary education and

manufacturing. Hamilton’s industry strengths are inextricably linked to the

primary production of the surrounding region.

Challenges

� Declining rural populations and associated decline in services

Ongoing rural depopulation is leading to altered local demand and

consumption patterns affecting the provision, location and affordability of

services (eg schools, retail, health care, leisure and transport).

� An ageing population and shrinking skill base

Except for a handful of territorial areas, all foreseeable growth in New

Zealand will be at 65+ years, and most will see decline in other age groups.

Every year for the next 15 years a successively larger cohort will retire (or

reduce its participation) and will be 'replaced' by a successively smaller

cohort at labour market entry age, driving an increase in competition for

labour and presumably labour costs.

� Water quality and water allocation

The health of the region’s fresh water bodies is declining - particularly in

terms of nutrient concentrations and health for aquatic organisms.

Competition for water is also an issue. A significant proportion of the

region’s surface water resources are already fully allocated meaning that

there is little available for additional users.

� Economic inequalities across the region

Economic growth has been uneven across the territorial authorities in the

region. There has been variation in GDP growth, employee counts and

income levels. This poses a challenge if we want economic growth in the

region to raise the living standards and well-being of all residents and

economies, not just a select few.

Opportunities � Maximising opportunities, including investment, through aligned planning

The Region currently has over 640 non-RMA strategies, policies and plans,

and a wide range of policies and standards within existing District Plans.

There are opportunities, including through the development of a Spatial

Plan, to align the planning frameworks which will assist local authorities and

key stakeholders to identify strategic opportunities, recognise any trade-

offs and make strategic policy decisions on high priority issues. There are

potentially significant cost and service delivery efficiencies to be achieved

through an aligned planning approach.

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� Leveraging Maori development

Māori economic participation and investment offers significant potential for

the Waikato region. Waikato iwi are active investors in the region. There

are opportunities to partner with Māori/iwi for economic development due

to their unique advantages and long-term commitment to the future of the

region and its people.

� Connectivity to the Upper North Island

The Waikato region lies at the productive heart of New Zealand’s economic

engine room, the population and economic growth area of the Upper North

Island (Waikato, Bay of Plenty, Auckland and Northland). The Waikato’s

transport connections in particular can facilitate the growth of the Upper

North Island. The region has nationally significant road and rail

infrastructure and important connections to the Ports in Auckland and

Tauranga.

Before the future emphasis of the headline regional strengths, challenges and opportunities is

finally confirmed, there is a need to undertake as the first stage of the Phase 2 spatial plan

development, a three dimensional layering exercise to better understand how these outcomes

impact on each other from a four well-beings perspective.

Conclusions and Recommendations

The research work undertaken to date indicates if a spatial plan is commissioned for the

Waikato Region with a number of specific outcomes clearly defined, the document will provide a

useful tool for performance improvement, speaking with one voice and having a clearly agreed

regional direction.

While the detail of a spatial plan is yet to come it is a process which will provide a framework for

ongoing joined up thinking.

The next step is for the Waikato Mayoral Forum to determine the value of developing a full

Spatial Plan for the Region, using the data contained in the technical reports as a starting point

for a collaborative discussion.

A Spatial Plan represents a significant opportunity for the Waikato region and its communities,

and one which may not arise again given the current operating climate. Failure to collaborate

strategically may potentially expose the region to a number of risks and costs. The region needs

to use the spatial plan process to set some priorities and progress these through phase 2 of the

project.

The Mayoral Forum has received a significant amount of quality information and advice.

However, unless there is commitment to moving forward, particularly in terms of the headline

strengths, challenges and opportunities identified, the benefits of having completed all of the

technical work and the opportunity to align with the Government’s policy and operational

context, will be lost.

This report has made the following recommendations to the Mayoral Forum:

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1. Agree that the identified national, regional and sub-regional issues set out in Section 8.2

are the basis for moving to the next phase of this project

2. Agree that the headline strengths, challenges and opportunities outlined in section 10.2

should form the basis for scoping phase 2, noting that a spatial layering exercise will be

undertaken at the outset of this phase.

3. Agree that based on the analysis undertaken and conclusions reached in this report,

Phase 2 of this project to prepare a Waikato Spatial Plan proceed.

4. Agree to prepare a project plan containing scope, timeframes, resources, cost sharing

and possible governance arrangements.

5. Agree to adopt the project plan in conjunction with the partner Councils no later than

April 2014.

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2. Introduction 2.1 Background

The Waikato Mayoral Forum is currently overseeing four key work streams which cover roading;

water and wastewater services; planning; and economic development. These work streams are

an integrated package aimed at getting the best out of the regional economy and delivering

significant cost savings.

This summary report relates to the planning work stream which has a primary focus on

developing a Spatial Plan for the Waikato region. The key steps towards developing the Waikato

Spatial Plan are set out below.

This Summary Report forms part of Phase 1 – developing a common evidence base within the

region.

2.2 Purpose

The main purpose of this Report is to summarise the findings of the work undertaken to date

and to identify high priority issues which the Waikato Region can have a collective voice on. This

report is a summary of comprehensive technical reports which have been developed for the

Waikato Spatial Plan project on demographics, economic, social, cultural and environmental

well-being, and infrastructure. Reference should be had to these reports for detailed

information.

This Summary Report will be an important communication for the Waikato Region. It will inform

discussions on strategic collaboration between local authorities, infrastructure providers,

communities and the Crown, and can be considered the Mayoral Forum’s communication to the

Waikato on the rationale for a Waikato Spatial Plan, including the core strengths, challenges and

opportunities that should be considered in the Spatial Plan project.

2.3 Context

This Spatial Planning work is being developed in a context of central government objectives

around building a more productive, competitive economy and better public services. It is also

being developed at a time of Local Government legislation changes and reorganisation

proposals.

Government has set the following key priorities:

� to responsibly manage the Government’s finances;

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� to build a more competitive and productive economy;

� to deliver better public services to New Zealanders, within the tight budgets the

Government is operating under; and

� to support the rebuilding of Christchurch.

Within the ‘building a more competitive and productive economy’ priority the focus areas are:

� export markets

� innovation

� skilled and safe workplaces

� infrastructure

� natural resources; and

� capital markets.

The work of the Mayoral Forum and this spatial plan project picks up on a number of these

priority areas.

In November 2013 the Local Government Act 2002 Amendment Bill (No 3) was introduced. The

Bill proposes a range of changes to the Act to make better provision for effective processes and

governance arrangements, fair and efficient decision-making and charging practices, and sound

asset management planning.

The reforms include:

� Allowing the Auckland local boards governance model to be applied more widely, as an

option that can be considered by the Local Government Commission during any

reorganisation of local government

� Measures to encourage and facilitate shared services, joint delivery, and other

collaborative arrangements between councils

A new, focused consultation document for long-term and annual plans, and reduced

duplication between these plans

� Removing most of the Act's requirements to use the special consultative procedure and

modernising this procedure to accommodate new techniques for communicating and

consulting with the public

� Requiring a new infrastructure strategy to be incorporated into long-term plans

(identifying significant infrastructure issues for a council over a 30-year period)

� Significant changes to development contributions

Auckland is the only area in recent times to have undergone significant local government

reorganisation as a result of the findings of the Royal Commission on Auckland. The seven

existing city and district councils and the Regional Council were merged into a new unitary

authority. Under the Local Government (Auckland Council) Act 2009, Auckland was required to

produce a spatial plan which it has now adopted. Section 79 of that Act sets out important

requirements for spatial planning in Auckland which the Waikato will need to be cognisant of.

The Local Government Act was also amended in 2012 and the purpose of Local Government

changed from one focused on the four well-beings to one which has a narrower focus:

(a) to enable democratic local decision-making and action by, and on behalf of,

communities; and

(b) to meet the current and future needs of communities for good-quality local

infrastructure, local public services, and performance of regulatory functions in a way

that is most cost-effective for households and businesses.

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However the principles for local authorities still include a sustainable development approach

which takes account of social, economic, and cultural interests of people and communities, the

need to maintain and enhance the quality of the environment and the reasonably foreseeable

needs of future generations.

The 2012 Act also changed the process for reorganising local government. The changes meant

that anyone can now apply for a local government reorganisation. To date there have been four

applications and two proposals issued by the Local Government Commission. The two proposals

relate to Northland and the Hawkes Bay.

The three key planning statutes for local government (the Resource Management Act, the Local

Government Act and the Land Transport Management Act) are all progressing or have

progressed through a series of reforms. The consistent themes throughout these reforms are:

� Improving the efficiency and effectiveness of local government

� Enhancing economic development

� Providing value for money

2.3 Spatial Planning Approach

Spatial planning gives geographical expression to the economic, social, cultural and ecological

policies of society.2 It is an instrument used to manage ‘sustainable development’ of a town, city,

region or even a country. Spatial planning is about shaping economic, social, cultural and

environmental dimensions of society through ‘place making’.3

The primary objective for the Waikato Spatial Plan will be:

To contribute to the Waikato’s social, economic, environmental, and cultural well-being through

a comprehensive and effective long-term (30-year) strategy for Waikato’s growth and

development.

The Spatial Plan will also:

1. Develop a shared vision and collective voice on the high priority regional and sub-

regional issues that will improve the quality of living for people and communities in the

Waikato over the next 30-years.

2. Develop and implement the Waikato Plan will provide an important opportunity to

identify, negotiate and agree on priorities and actions across multiple parties including

local and central government, the private sector and non-government organisations.

3. Provide a shared evidence base from which to make investment and policy decisions

that are efficient and effective in a collective way;

4. Help define communities of interest that cross local authority boundaries such as labour

markets, catchment management, co-management and freight and logistics;

5. Enable a conversation on enduring governance frameworks required to support the

development and implementation of the Waikato Plan and its vision for the region;

6. Provide a framework for establishing strong partnerships with Tāngata Whenua and the

community;

2 European Regional / Spatial Planning Charter (Torremolinos Charter), 1983

3 A potential strategic spatial planning model for the Waikato Region – Research Report, Jan Huijbers, December 2011

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7. Improve the efficiency and effectiveness of local authorities, central government and

communities to address high priority issues;

8. Help to rationalise the existing planning and service delivery system for people and

communities; and

9. Provide opportunities for linkages with other regions and support the growth of the

Upper North Island economy.

There are significant gains to be made and potential benefits in undertaking spatial planning for

the region. This includes:

� Enhanced coordination of ‘Whole of Government’ investment – efficiency savings by

acting collectively with central Government on high priority issues

� Improving coordination of Government, Regional and Local policy

� Providing a clear public / private sector strategic policy direction for investment

certainty

� Consistency with where the Local Government Commission is heading in terms of

speaking with one region-wide voice, strategic long-term planning, simplified and

streamlined processes and efficiency initiatives such as shared services

� Efficiency savings for NZ Inc and Waikato Ratepayers (cost savings could be anywhere

from 40 to 50 million over 10 years just for having fewer plans, policies, bylaws and

common planning procedures)4

� A framework for central government engagement (eg to increase awareness of the

implications of rural depopulation and the economic and social impacts of rural service

decline)



� Collective action by the Waikato Regional Transport Committee secured $215M of



� Consistent advocacy over 15 years or more that the $2 billion Waikato Expressway is the

region’s number one transport priority – the Expressway is a Road of National

Significance and is targeted for completion in 2019.

� Doubling the capacity of the East Coast Main Trunk Line as a result of the Crown Grant –

a $13 million project which has supported Fonterra expanding capacity at the Crawford

St inland port and provides important links to Ruakura supporting the business case for

an inland port.

� Lake Taupo Protection Trust secured a combined fund of $81M to reduce nitrogen


� Waikato-Tainui’s River Settlement with the Government – the Waikato River Authority

administers a combined fund of $220M to restore and protect the health and wellbeing

of the Waikato River - this is unique to the Waikato and is an example of collaborative

relationships to achieve better service delivery.

4 A Business Case for Completing the Waikato Plan, January 2013

10

There are also future emerging opportunities which have been supported by the Mayoral

Forum. These include:

� The Waikato Sport and Recreation Facilities Plan – Opportunities for collaborative

investment and partnering with community funders and Sport NZ

� Creative Industries Plan – Opportunities for regional collaboration and investment

There are a number of future opportunities that are likely to emerge from these two processes.

A Business Case for completing a spatial plan for the Waikato has been completed. This is

attached as Appendix 1. The diagram below illustrates how the business case and an analysis of

the benefits of spatial planning has then led into the evidence-based research and the four well-

being reports that are summarised in this report. These elements will then underpin the

development of a full spatial plan for the Waikato.

2.4 Risk and Resilience

There can be a number of risks facing regions, including:

� Economic risks

� Environmental risks

� Natural hazards

� Climate

Spatial planning can help to manage risk and uncertainty through strategy and implementation

frameworks that that identify risk factors and map out how individuals, communities and

organisations can respond.

Like any strategy, spatial planning is susceptible to changing circumstances. It is important that

any spatial plan for the Waikato is adaptable when things change significantly. This includes

changing growth rates, cataclysmic world events and other global changes. The Strategy will

need to be kept current and relevant. This can be achieved through robust and ongoing

monitoring.

A well applied spatial plan provides a framework for having a joined-up conversation about what

needs to be done to address risk.

Business Case /

Benefits of Spatial

Planning

Research / Four Well-

beings Reports Spatial Plan

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3. The Waikato’s Changing Spatial Structure

The overview provided below of the Waikato region’s changing spatial structure paints a picture

of:

� Global and national trends that are having an impact on the region and are likely to

continue to do so

� Increasing urbanisation

� Changing patterns of land use over time (particularly to more intensified dairy)

� Significant pressures for development in some parts of the region

� The ongoing growth of Hamilton City

� Significant differences between the local authority areas of the region

� Ongoing population growth for the region generally but an ageing population structure

� Strong cultural heritage and recent important shifts in terms of Treaty of Waitangi

settlements and co-management

3.1 Significant Drivers of Change

While the Waikato faces its own regional challenges, there is also a need to be cognisant of

global trends and drivers of change and to ensure the region is planning for these changes. The

following are some significant external drivers of change or trends5 that may impact the

Waikato:

� Continuing globalisation

� Climate change

� Rapidly evolving technology

� Global insecurity

� Urbanisation

� Changing population structures, particularly ageing of the population

There are also national drivers of change which are having an increasing influence on local

government, such as:

� Maintaining essential services and resources within strict financial parameters

� Increasing pressure from communities for enhanced services and service levels

� Maintaining and developing the region’s competitive advantages

� Growth and strength of the Maori economy6

� Increasing pressure for natural resources

5 Adapted from a variety of sources, including: Mega Trends – Global and National Trends Affecting Regional Prospects,

Infometrics, 2011; Wellington Region Councils Governance Review, 2010, Price Waterhouse Coopers; Waikato Regional Land Transport Strategy 2011-2041

6 The Maori economy includes assets owned and income earned by Maori – including collectively-owned trusts and

incorporations, Maori-owned businesses, service providers and the housing owned by Maori (definition sourced from New Zealand Institute of Economic Research, Maori Economic Development, 2003 at page 7).

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There are a number of futures that the spatial plan may need to cater for. Often decisions are

made globally which affect New Zealand. These are large-scale international influences that in

the most part are beyond regional control. It is assumed that the trends identified in this

section will continue, and that the spatial plan will need to be flexible in order to be able to

respond and adapt to these changes.

3.2 Population and Demographics7

In a number of ways the demographic changes for the Waikato region are not that different

from New Zealand as a whole. However, there are some sharp differences between local

authorities.

The population of the Waikato Region has grown steadily over the past twenty-five years, from

325,220 in 1986 to approximately 416,200 in 2012, an increase of 28 per cent. Steady growth is

anticipated to continue with the population reaching approximately 469,910 by 2031 (13.8 per

cent above 2011). Eighty-three per cent of the growth is projected to be at 65+ years. Figure 1

below shows population growth of the region from 1986 to 2012.

Figure 1: Population of Waikato Region, 1986 – 2012

Hamilton City has consistently comprised the largest proportion of the region’s population,

increasing its share from 29.0 per cent in 1986 to 35.6 per cent in 2012. The city’s population

increased by 55.4 per cent over the period 1986-2012, thereby also contributing to the majority

of the region’s growth (58.0 per cent) and offsetting decline in South Waikato and Waitomo

(19.7 and 9.3 per cent respectively). The greatest overall growth was experienced by Waikato

District (77.4 per cent, contributing 31.0 per cent to the region’s growth—a small portion of

which reflects the 2010 boundary change), followed by Waipa which experienced a growth of

29.9 per cent (contributing 11.7 per cent). Noticeable growth was also seen in Thames-

Coromandel (24.3 per cent), Taupo (18.2 per cent), and Hauraki (17.9 per cent), which together

contributed 14.7 per cent of the region’s growth. Otorohanga experienced negligible growth

(0.7 per cent).

7 The material contained in this section is derived from Waikato Region – Demographic Profile 1986 – 2031, University of

Waikato, July 2013

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The main component of the Waikato Region’s growth has been natural increase, with net

migration losses in the early 1990s and across the 1997-2001 period partially offsetting that

growth.

3.3 Land Use Trends

The Waikato is a region of many small towns, pockets of lifestyle blocks, extensive coastlines,

rich agricultural landscapes, forest-clad mountain ranges, cold deserts and geothermal features.

The five most significant current and future land use changes in the region are:

� Forestry to dairy / pasture

� Current dairy to intensified dairy (ie larger farms and increased production per hectare)

� Land being used for renewable energy

� Pasture to forestry (this is likely to be cyclical)

� Any land to urban / rural residential / infrastructure

3.4 Urban Form

The Waikato region has low population density and often wide separation of uses.

Hamilton is the region’s only city and is the most significant centre of commercial, cultural and

social activity. The importance of the city to the Waikato region cannot be overstated. The

region is also dominated by a number of small towns and villages that play a significant role. It is

also important to acknowledge the role of the rural hinterland to the City – they are mutually

beneficial.

Several growth management strategies completed within the Waikato region provide a good

indication of future land use patterns for key growth areas. The main growth areas as identified

in these strategies are:

� Taupo: Most of the growth will be centred on Taupo Town and to the North, including

Kinloch.

� Thames-Coromandel: The three main urban hubs which development will be concentrated

in are Thames, Whitianga and Whangamata.

� Hamilton, Waikato and Waipa (Future Proof sub-region): Growth will be concentrated in

Hamilton City, Cambridge, Te Awamutu, Kihikihi, Huntly, Ngaruawahia, Raglan, Te

Kauwhata, Tuakau and Pokeno.8

There are also a number of other important towns that are recognised in local planning

documents.

The Waikato has experienced rapid development of urban, rural and coastal subdivisions in

some parts of the region.9 Development pressures in the Waikato region are generally highest

on the most productive land, and often in the most sensitive landscapes. Lifestyle subdivisions

8 In 2010 the Waikato District expanded to include the areas of Tuakau and Pokeno as a result of the Auckland boundary adjustments. The Future Proof Strategy was developed prior to this change of boundary and therefore did not include the expanded Waikato District area. However, it is accepted that Tuakau and Pokeno are potential growth areas for the Waikato District.

9 Development pressures and subdivision information sourced from Waikato Regional Council using NZ Census of Population and Dwellings, Statistics NZ

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are rapidly spreading along the banks of the Waikato River, around Lake Taupo and in many

other areas of high visual amenity. Many coastal areas, such as parts of the Coromandel

Peninsula and Raglan, are experiencing significant pressure for development. Figure 2 below

illustrates the rate of lifestyle and subdivision development in the Waikato region between 2009

and 2013. While at first glance the development activity appears quite scattered, it is also

evident that there are areas of intense pressure, such as in the Future Proof sub-region10,

Thames-Coromandel and on the Waikato’s boundary with Auckland.

The region also has a number of natural constraints to its urban form and to land use in general.

For example, flood hazards, peat soils and erosion.

3.5 Our Cultural Heritage

Cultural heritage includes historic sites, structures, places and areas, archaeological sites, and

sites of significance to Māori, including wāhi tapu, and associated surroundings. The Waikato

has a rich cultural heritage and has many historic places and sites. The Waikato is strong in

Maori history and is the home of the Maori King movement or Kingitanga based at

Turangawaewae Marae in Ngaruawahia.

Since the early 1990’s, the settlement of significant Treaty of Waitangi claims has changed both

the cultural and environmental landscape within the Waikato region. For example, the Waikato

Raupatu Claims Settlement Act 1995 saw Crown land returned to Waikato-Tainui, a formal

apology from the Crown and a financial compensation of $170m This settlement has enabled

Waikato-Tainui to grow a significant economic base for the tribe.11

Co-management has ushered in a new way of working with Māori in the realm of environmental

management. Within the Waikato region, there have been a number of co-management

arrangements between the Crown and Māori, which has seen iwi taking an active role in

environmental management and decision-making. This process has provided for a range of

opportunities, particularly for local government, to increase their understanding of Te Ao Māori

and incorporate Māori tikanga and knowledge into council plans and business practices.

10

The Future Proof sub-region refers to Hamilton City, Waikato District and Waipa District 11

Tainui Group Holdings Annual Reports - http://www.tgh.co.nz/default.asp?sid=11&cid=13&aid=. Accessed 24 September 2013.

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Figure 2: Lifestyle and Rural-Residential Subdivision Activity in the Waikato Region 2009-2013

16

4. Forecasted Regional Demographic Changes

The key highlights from forecasted regional demographic change are set out below.12

Ageing-driven growth: Except for a handful of TAs (only Hamilton City in the Waikato), all

foreseeable growth in New Zealand's TA's will be at 65+ years, and most will see decline at most

other ages. Ageing-driven growth will significantly alter local demand and consumption patterns,

affecting the provision and location of services (particularly schools, supermarkets, health,

leisure, and transport).

Transiting the cusp from growth to decline and rural-urban drift: The sub-national end of

growth/onset of absolute decline now affecting 36 per cent of NZ TA’s will become increasingly

intractable as structural ageing progresses and natural increase diminishes. By contrast,

international migration and urbanisation will slow ageing and continue to grow major urban

areas. The trends mean that Hamilton City will increase its share of the region’s population from

36 per cent in 2011 to around 40 per cent in 2031. Waikato District will also increase its share,

from 16 to 17 per cent, while all other Waikato TA’s are projected to experience relative decline,

and four, absolute decline. Housing prices in declining TA’s are likely to be negatively affected.

The population of Hamilton City will age—albeit more slowly than elsewhere, with the more

youthful Maori, Pacific Island and Asian populations becoming more visible. The European

population will remain the city’s single-largest ethnic group but will decrease its share from 65

per cent in 2011 to around 59 per cent in 2021. Maori will increase their share from 19 to 20 per

cent, and Pacific Island, from 5 to 6 per cent. The greatest growth will be for those of Asian

origin, increasing from 12 to 15 per cent. By 2021 the city’s Asian population will be almost

three-quarters the size of the Maori population, up from two-thirds in 2011, and almost three

times as large as the Pacific Island population, similar to today. Similar shifts will be notable for

all age groups, with Maori, Pacific Island and Asian children increasing their collective share from

45 to 52 per cent.

The low fertility/smaller family sizes, increasing longevity, and mobility driving these trends will

alter housing demand/type. Smaller family sizes will not necessarily correlate with smaller house

sizes, because fertility trends are strongly associated with increasing affluence. More people

living longer and more widowed elderly will be associated with diminishing average household

size and increasing demand for smaller units and/or retirement villages. Student migration (both

international and internal) is likely to sustain demand for student accommodation in Hamilton

City, but this demand may not grow appreciably because it will only offset diminishing domestic

student numbers (but see also points 5 & 6).

Population waves and troughs passing through the educational system will cause oscillating

demand and supply, not only for education but also related services. Over the next 5 years, the

number of Waikato school leavers (15-19 years) will decline by around 1,800, and between 2016

and 2021 by a further 1,600 (nationally by 28,000); between 2021 and 2026 numbers will

increase by approximately the same margin, as the recently born baby blip arrives at those ages.

Numbers are then again projected to decline. By then over half of the baby boomer

teacher/lecturer cohort will have either retired or reduced their participation levels, driving

oscillating demand for education staff. It will be necessary to keep a careful planning eye on this

moving horizon.

How ‘tight’ will the New Zealand (and Waikato) labour market get? Every year for the next 15

years a successively larger cohort will retire (or reduce its participation) and will be 'replaced' by

12

Extracted from ‘What is on a [local] demographer’s mind’, Natalie Jackson, NIDEA, University of Waikato, 2013

17

a successively smaller cohort at labour market entry age, driving an increase in competition for

labour and presumably labour costs. This shift is likely to be felt across most industries,

particularly those that already have relatively ‘old’ age structures (like teaching, nursing, health

care). Hamilton City’s relative youth may not resolve this problem, as a disproportion is engaged

in post-school education. There will be labour market advantages for the relatively youthful

Maori and Pacific Island populations as disproportions of the older European population retire.

Figure 3 below indicates the falling entry: exit ratio for the region and for New Zealand.

Will the region’s elderly ‘age in place’? Hamilton City is presently home to the region’s single-

largest share of 65+ year olds (28 per cent), Waipa second-largest (13.3 per cent), and Waikato

third (12.6 per cent). These shares are projected to increase to 29.1, 13.6 and 15.4 per cent

respectively by 2031, seeing Waikato District shift from third to second position. The shares held

by all other Waikato TA’s are projected to decline, suggesting age-related movement toward

services.

Figure 3: Labour Market Entry / Exit Ratio at 15-24 and 55-64 Years, Waikato Region and Total New

Zealand, 1996-2012

The potential policy implications of these forecasted demographic changes are:

� Altered local demand and consumption patterns affecting the provision and location of

services (eg schools, supermarkets, health care, leisure and transport). � Concentration of people and services in Hamilton City while a number of other Waikato

local authority areas experience a decline. � Effects on house prices and housing demand / type. � Increasing competion for labour because of larger cohort retiring and smaller cohort at

labour market entry age. � Age-related movement towards services – this effects where the 65+ age group are

likely to live and what services will be required. � Affordability of services and ability to pay.

Figure 4 below illustrates the projected population change for the urban areas of the Waikato

region from 2013 to 2031.

18

Figure 4: Projected Change in Urban Waikato Population 2013-2031

19

5. Critical Infrastructure that Supports our Communities

As part of the Waikato Spatial Plan project a Waikato Infrastructure Inventory has been

completed. The report provides an overview of infrastructure networks in the region and

examines the contribution that infrastructure makes to community well-being. The key findings

of the report are summarised below.

General

The large number of organisations that are involved within the Waikato region indicates the

need to enhance relationships within and across infrastructure sectors. This is already

happening through a number of channels; however there is often a lack of consideration of how

individual projects contribute to the wider infrastructure network.

There is a need to have one comprehensive regional ‘infrastructure picture’ that clearly

identifies critical infrastructure networks as well as planned and committed investment that can

be used to enable joined-up decision-making on the priorities for future investment.

Figure 5 indicates the locations of major infrastructure both in and around the Waikato region.

Inter-regional

As well as containing nationally and regionally critical infrastructure, the Waikato Region also

acts as an important infrastructure corridor for electricity and gas, water, waste and key

strategic transport corridors.

There are a number of collaborative processes already underway within the region to address

cross-boundary matters which can be utilised to address infrastructure issues moving forward.

Funding

Local Government expenditure represents approximately 4% of total GDP while central

government expenditure represents approximately 36%.

Local Government operates under approximately 640 planning documents making aligned

planning and decision making around investment difficult.

It is difficult to get comparable data on infrastructure expenditure at a local or regional level due

to different planning and reporting methods used by councils and other providers. There is

scope to align these processes to gain better information.

Regulatory Environment

The regulatory environment does not support long term infrastructure development and

contributes to unnecessary costs and uncertainty.

More consistent district plan provisions for infrastructure would help providers when they are

seeking consents for work across the Region.

Transport

20

The Waikato has a well-established and extensive transport network that supports the

movement of freight and people by a range of modes. The strengths of the three economies of

Auckland, Waikato and the Bay of Plenty make the Upper North Island a strategically important

place for investment in transport infrastructure.

Transport infrastructure in the Waikato region includes:

� A comprehensive road network (including state highways managed by the NZ Transport

Agency and local roads managed by city and district councils)

� Two main railway lines (including part of the North Island Main Trunk and the East Coast

Main Trunk) along with several shorter branch lines owned and operated by KiwiRail

Group

� A public transport network throughout the region and a transport hub managed by the

Waikato Regional Council

� A network of local pedestrian and cycleways developed and managed by local

authorities.

In addition, the region contains the Hamilton International Airport, a regional airport in Taupo,

and the Crawford Street inland port facility in Hamilton.

Currently between 17% and 23% of the national market share of freight is carried by rail in and

through the region.13 The key rail traffic between Auckland-Hamilton-Tauranga is containerised

export and bulk products.

The road network (especially the state highways) is of national importance and provides

connections through (and to) the Waikato. It connects major urban centres, and carries freight

between Regions, and between key locations such as the Port of Auckland and the Port of

Tauranga.

The Waikato region, due to its central/upper North Island position contains many nationally and

inter-regionally strategic road and rail corridors. It also has an important inland port facility

(Crawford St) and has key linkages to the Port of Tauranga and the Ports of Auckland. This

presents the region with significant opportunities in transport and freight movement.

There are also opportunities to facilitate regional economic growth by utilising land around the

Hamilton Airport, progressing the development of the Ruakura Inland Port and increasing use of

rail in the Region.

There is currently limited integration between land use and transport infrastructure in the

region which results in a greater potential for land use change to reduce the efficiency of

transport investment.

Costs of maintenance and operations are significant and there is an affordability issue for some

local councils. Groups such as the Road Maintenance Task Force are identifying potential

collaborative action that can be taken to address this.

The Waikato Expressway is due to be completed in 2019 and will significantly shorten the

journey time between Auckland and Hamilton (and all locations to the south and west). This will

have an impact on travel time savings for freight operators and other road users.

13

Progress toward achievement of Environment Waikato’s RPS objectives: Energy and structures

(infrastructure) (2009, p. 35).

21

The introduction of ‘50Max’ or High Productivity Motor Vehicles across certain parts of the road

network will provide opportunities for freight operators to be more efficient; however it may

result in changes to maintenance costs for the NZTA and local councils.

Water

There is considerable potential in the region for cost savings and efficiencies through a

coordinated approach to water management.

Water infrastructure relating to water supply, wastewater and stormwater are owned and

operated by local government with limited cross-boundary management or consideration.

Water supply is likely to be one of the biggest issues facing the region with Watercare requiring

increased water take from the Waikato River to service population growth in Auckland. For this

reason it is imperative that current and future potable water needs are considered in a

collaborative manner.

The main driver of cost for expenditure by local government is to improve water treatment

infrastructure to meet higher drinking water standards under the Health (Drinking Water)

Amendment Act 2007.

There are potential issues related to aging water infrastructure and the need for better

maintenance and renewal programmes.

Energy

The Waikato region is a nationally significant region for energy generation and for the range of

energy-related resources within it. The region has almost 40% of installed generation capacity,

generating up to 50% of New Zealand’s electricity. In addition to generating a large amount of

New Zealand’s energy, the Waikato is also an important corridor for many transmission

lines/pipes, especially servicing the growing population of Auckland.

Telecommunications

There is a significant gap between broadband availability, service, speed and quality in urban

and rural areas within the Waikato. The government is currently implementing the Ultra-Fast

Broadband initiative and Rural Broadband Initiative (RBI) aimed at increasing broadband service

to parts of the population living in areas that currently have poor service. Unfortunately this will

not cover the entire region. There is limited regional data available for telecommunications

infrastructure and planning.

Social

Central government plays a large part in the provision of social infrastructure (especially in

education, health, courts and prisons) with varying levels of investment between local councils

in the region.

Waste is an important area of focus for the Waikato with large waste flow into, and out of the

region. Waikato landfills take 36% of the North Island’s waste (28% of the nation’s total waste).

Affordable and social housing are issues for the Waikato Region, predominantly addressed by

community agencies and central government.

22

The aging population and rural depopulation will have an impact on the types and locations of

social infrastructure that will be required into the future.

Cultural and Community

Cultural and community infrastructure is provided by numerous agencies, the private sector,

and both local and central government. The range of cultural and community infrastructure and

the amount spent by individual councils varies greatly across the region.

These types of infrastructure are critical when viewed from a network perspective, but may be

best managed at a local level due to the varying needs of individual communities. There may be

little benefit in collaborating regionally on things such as local swimming pools, community halls

and local parks. However, from a network perspective there are opportunities to provide for

community infrastructure on a wider basis through the forthcoming Waikato Sport and

Recreation Plan.

23

Figure 5: Major Transport Infrastructure and Power Stations in and around the Waikato Region

24

6. Spatial Planning

Section 2.3 of this report has outlined what spatial planning is, how it can be used in the

Waikato and what the potential benefits are.

We are operating in a context where there is a strong focus on efficiency and effectiveness;

enhancing economic development and providing value for money. There is a need to provide a

mechanism within which efficiency and effective collaboration on priority issues and responses

across the Waikato can be achieved – that mechanism is the Waikato Spatial Plan.

The primary national and regional drivers for engaging in spatial planning are:

� The Waikato is located in the Upper North Island Growth Triangle where over 50% of future

economic and population growth is forecasted to occur. This will have significant

implications for investment in critical infrastructure, and it is vital that we are united on

what that investment should achieve.

� The Government is the single largest investment partner involved in delivering our

community outcomes, where for every $1 local government invests in the Waikato Region,

central government invests $9. Our combined investment in 20011/12 was $8 billion. It is

vital that we collectively engage with central government on the high priority issues that

face our communities and ensure this investment addresses high priority national and

regional issues.

� The infrastructure efficiency task force report (March 2013) identified that:

…rationalisation and better alignment of legislative and regulatory frameworks would

substantially improve infrastructure delivery, especially if duplication of effort and

conflicting timeframes are addressed. A clear whole-of-government approach is required to

recognise and deal with the issues. Specific recommendations are made about ways to

improve individual aspects of the frameworks. The most significant is that spatial planning

(similar to the Auckland model) should be mandated for use elsewhere in New Zealand.

� The Government has signalled that it wishes to reduce regulatory clutter and reduce the

cost of doing business. The Improving our Resource Management System discussion

document notes the intention that all councils would have a single plan in place within five

years (per district or a broader area if agreed by the councils in that area) unless otherwise

agreed, given variation in current planning review cycles. The Waikato Region presently has

over 640 strategies, policies, plans and bylaws that influence land use or infrastructure

investment, and there is room for rationalisation and simplification of the planning and

regulatory framework.

� Coordinating the disparate planning instruments that are in use across the Region and

achieving better alignment between the documents. This will result in a more equitable

distribution of resources between all four well-beings and provide a mechanism through

which to focus the Crown’s investment in the Region.

� Auckland Council speaks with one voice to Central Government on matters of regional

significance. In July 2010, the Government announced a $10 billion transport package for

Auckland in response to the Auckland Plan. The Waikato is connected to Auckland in a

number of ways, but lacks a similar collective voice. Where the Waikato has previously

spoken with one voice we have achieved good results – e.g. the Government’s investment

in the Waikato Expressway as a Road of National Significance.

� Better engagement with Central Government on key issues, for example promoting

economic development and addressing the economic and social impacts of rural service

decline

� The Local Government Act 2002 Amendment Bill introduced into the House in November

2012 requires local authorities to actively seek to collaborate and cooperate with other

25

local authorities and bodies to improve effectiveness and efficiency, and prepare a 30-year

infrastructure plan.

� The Bay of Plenty Region has commenced a spatial plan. A coordinated spatial planning

framework in Auckland, Waikato and Bay of Plenty will unite the Upper North Island.

� Provides an opportunity to consider and build on the Waikato’s role within New Zealand.

� Providing a strong, collective voice in relation to the Upper North Island transport work

currently being developed and implemented by the NZTA (eg the Upper North Island

Freight Study) in terms of future transport priorities post the Waikato Expressway.

� The Waikato Regional Sport Facilities Plan being developed by Sport Waikato in

collaboration with local authorities is a national first with substantial funding being

committed by Sport New Zealand. Key regional sport funders and high priority sporting

codes are holding off future investment to ensure it aligns with the outcomes of any Spatial

Plan. There will be opportunities for shared funding and delivery of sport and recreation

through this plan, and all local authorities should be at the forefront of these conversations.

� Central Government has started to openly publicise the potential implications of ageing

populations, particularly in rural and coastal NZ, which is also highlighted as a common

issue amongst all local authorities for the Waikato in forecasted demographic data. A

Spatial Plan represents an opportunity to develop policy and service responses.

� The Minister of Local Government proactively released cabinet papers in July 2013 which

indicate a future Local Government Amendment Bill will seek to improve collaboration

between local authorities, acknowledging that it is desirable to have alternative ways for

local authorities to achieve the benefits of larger scale operations / jurisdictions without

reorganisation. The first stage of the Waikato Spatial Plan project will help the Waikato to

identify the specific community issues were greater collaboration may assist at a larger

scale.

A spatial plan will set the strategic direction for the Waikato and its communities which will

integrate economic, social, cultural and environmental well-beings.

Spatial planning will be an important part of the regional toolkit and will have an influence on a

number of key documents. It will also in turn be influenced by existing strategies which set

agreed strategic directions. Figure 6 below illustrates how the Waikato Spatial Plan will interact

with other key documents.

26

Figure 6: Waikato Spatial Plan – Relationship with other Documents

National Direction

(Government’s Priorities, NPS, GPS, NLTP)

RPS

District Plans

LTPs RTP

RMA

Waikato Spatial Plan

Regional

Plans

LTMA LGA

Local

Transport

Strategies

Sub-regional and Local Growth Management Strategies /

Spatial Plans

(Future Proof, TD2050, Coromandel Peninsula Blueprint)

27

7. Findings of Well-Being Evidence Base

This section provides the high level findings from the technical evidence base14, including:

� Economic wellbeing

� Social wellbeing

� Cultural wellbeing

� Environmental wellbeing

� Infrastructure inventory

A list of the technical reports summarised and

relied on in this document are set out in Appendix

2.

It is important to recognise there are significant

linkages between each of the well-beings, as

illustrated in Figure 7. The elements being

considered in each well-being are set out in the supporting table below.

14

The data sets available to the project team vary greatly, and many of the measures of wellbeing are qualitative

rather than quantitative (e.g. perceptions of safety, values, and identity). In these circumstances, the project team

have drawn from documentation that is available. Refer to the full technical reports for further information. This

report is a summary only.

Figure 7: Well-being Linkages

28

7.1 Economic Well-Being

Economic well-being can be broadly interpreted to mean “access to economic resources needed

for a decent standard of living”. It refers to the ability to consume goods and services, the

accumulation of assets and wealth, issues relating to the distribution of income (particularly the

incidence of poverty) and economic security (e.g., security from job loss, illness etc).

The Waikato region’s indicators of economic prosperity show mixed performance and the

region’s economic story has been described as one of unrealised potential. Māori economic

participation and investment in particular offers significant potential for the Waikato region. The

region makes a sizeable contribution to the national economy and in several ways its

performance has remained fairly consistent with the country as a whole. The region has

however been lower than national levels by some measures and there is variation in indicators

between territorial authorities in the Waikato region.

Hamilton city makes the most significant contribution to the region’s gross domestic product

(GDP), at an estimated 45 per cent and its estimated GDP per capita in 2012 was both the

highest in the region and higher than the national average. It is the region’s “central business

district” with concentrations of employment, research, tertiary education and manufacturing.

Hamilton’s industry strengths are inextricably linked to the primary production of the

surrounding region.

The Waikato region has a significant proportion of New Zealand’s export-facing industries but

further value could be extracted by adding value through manufacturing and provision of

services. It is also the second-most diverse economy in New Zealand in terms of having

economic activity spread across many industries. Although key sectors are concentrated in

certain areas, broader value chains operate across the region and there are strong linkages

between urban and rural parts of the region.

The region’s competitive advantage is not well known, agreed or consistently articulated. The

Waikato region is well known as a centre for dairy and beef, but is less well for other key sectors

such as advanced manufacturing and services. Similarly, while local businesses and residents on

the whole have a positive image of the region, it has not yet been able to project this nationally

and internationally.

There is a large number of planning and regulatory documents produced under legislation by

local authorities in the Waikato region currently. The proportion of Resource Management Act

1991 consents processed on time varies across the region and there is a spread of councils

performing better or worse than the national average in this regard. In common with the

country as a whole, regulation is perceived as a common issue or barrier for many businesses in

the Waikato region. Policy and regulatory coordination, as well as pooling of capability and

resources are seen by businesses as opportunities across all the Waikato councils. Progress on

this is being made by the Waikato local authorities.

The region’s range of natural assets makes it attractive for domestic visitors, businesses and

current and potential residents. On the other hand, the Waikato region’s economy is closely tied

to its environment. Key issues include water quantity and quality and soil resources, including

soil quality. Any industry growth must consider these environmental impacts and constraints

and growth in existing primary industries needs to come from increasing the value of processed

products (manufacturing) and services. Innovation in sustainability could be an opportunity.

29

The region is a nationally significant juncture for freight and transport, and has good

connections to large and growing populations in Auckland and Tauranga. Waikato has the

highest per capita central government capital investment in transport and communications, a

good quality road transport network, two of the busiest rail lines in New Zealand, Hamilton

airport and many smaller airports in the region and the fourth largest public transport service in

New Zealand. Most commuter journeys are local in scale and the number of labour market areas

in the Waikato region declined markedly from 1991 to 2006. While data about broadband

uptake by businesses is unavailable, household broadband uptake in the region is relatively low

compared to the national average, although the region outperforms many others and ultra-fast

broadband roll-out should help to improve uptake. Not all areas within the region are covered

by the Ultra-Fast Broadband initiative and Rural Broadband Initiative, which could limit the

potential benefits of better connectivity.

The key economic well-being strengths, challenges and opportunities that have emerged are as

follows:

Waikato Economic Wellbeing

Strengths Challenges

� Sizable contribution to national economy

� Important industry sectors (dairy, meat &

horticulture, forestry and wood products,

high value manufacturing and services)

� Relatively high industrial diversity

� Significant economic benefits from natural

resources

� Range of organisations and infrastructure

that support innovation

� Good quality road and rail transport

network

� Nationally significant transport juncture for

road and rail, and has good connections to

large and growing populations in Auckland

and Tauranga.


� Encouraging greater innovation and value-

added in key industries.

� Difficulty projecting positive image

nationally and internationally

� Managing water and soil demands and the

environmental impacts of natural resource

use

� Not a large base of science and technology

professionals or employment in knowledge

intensive industries

� Relatively weak performance on measures

of visitor attraction, which is also

important for attracting and retaining skills

and business

� A range of skills constraints

� Councils not perceived as business-friendly

and common concerns about the costs

associated with consents and complying

with regulations

Opportunities for the Waikato Spatial Plan

� Reduce inequalities and raise living standards for everyone in the region

� Encourage youth employment

� Potential to leverage Maori development

� Better linkages between and within research and industry

� Encouraging greater value added from our natural resource-based and related industries

� Coromandel aquaculture

� Telling the Waikato Story (articulating the Waikato region’s value proposition as a place to

live, work, study, invest and visit)

� Coordination of skills initiatives

� Improve linkages between research and education organisations and industry.

� Business-friendly councils.

� Inter-regional collaboration.

� The “greening” of growth, including innovation in sustainability.

30

7.2 Social Well-Being15

Social wellbeing refers to aspects of people’s lives that are important or necessary for a person’s

happiness, quality of life, and welfare. It is widely understood that the social wellbeing of people

and communities is vital for a sustainable and productive society and is necessary for building

social capital.

The Waikato is a diverse region with one of New Zealand’s fastest growing urban areas and a

blend of coastal and farming communities. This geographic diversity is a contributing factor for

the needs of people being varied. A key finding of the social well-being report is that the

Waikato Region shares some similar strengths and issues; however the causes of the issues

differ at the local council level, and often within the local council area. This finding will be of

particular significance as the Waikato Spatial Plan project progresses and when discussions start

occurring on what services might be shared across the Waikato Region.

The key social well-being strengths, challenges and opportunities that have emerged are as

follows:

Waikato Social Wellbeing


� Crime stats for 2012 are lower than 2011

� Waikato regional communities have an

increasing life expectancy

� Growing early childhood education rates

� The proportion of school leavers in the

Waikato region with no formal qualification

has fallen dramatically over the past few

years

� Issues affecting youth (eg employment,

education, health, housing, youth

offending and victimisation)

� Housing (quality, fit for need, availability,

costs)

� (Un)employment (including people without

employment and people unsatisfied by

their employment)

� Poverty (relative and absolute)16

� Disproportionate numbers of Maori and

Pasifika in statistics for low education

achievement, poor health, unemployment,

poverty and crime (as both victims and

offenders)


� Strengthening and increasing the collaboration on social wellbeing between central

government, NGO’s, and local government agencies in the Waikato

� More sharing of information and experience across TA’s to identify similar work-streams for

collaboration

PLEASE NOTE: These two opportunities are already happening and a Waikato Spatial Plan

could provide more opportunities for greater collaboration on shared priority issues, eg

Utilising a shared understanding of the issues for the region and applying a preventative

15

Key messages on Social Well-Being Data: Currently there are a number of limitations to reporting the available data,

including: 1. Census data is unavailable until December 2013 and then analysis could take some time. 2. A lot of the

Waikato’s social wellbeing information is often at the micro level and context specific. 3. In order to confidently

identify any strengths and challenges for the social wellbeing of the Waikato Region there had to be a frequent

reoccurrence of the strength or challenge in most or all TA specific documents 4. There are a number of documents

that assess the social wellbeing of the Region, these are mostly issue based documents, which are useful when

exploring the challenges of the Waikato. 16

Relative poverty is economic inequality in the society one lives in. Absolute poverty is deprivation of basic human

needs.

31

approach, possible reduction in duplicating efforts from councils working toward the same

goal

7.3 Cultural Well-Being17

Cultural wellbeing can be defined as: “… the vitality that

communities and individuals enjoy through participation in

recreation, creative and cultural activities and the freedom to

retain, interpret and express their arts, history, heritage and

traditions.”18

The key issue for the Waikato Spatial Plan is how to, to

continue, to build our ‘Waikato’ identity by:

� Defining a greater point of difference through:

- our place

- our people

- our land

- our towns

� Defining more succinctly, how we talk about the past

� Defining with more regional co-ordination, our creativity

� Defining more clearly, what we enjoy and why

� Defining how we like to celebrate, and then consider:

� How to accurately value and maximise those Waikato cultural strengths?

� How to support the growth of our Waikato cultural diversity?

� How to capture the ‘Waikato stories’ to extend our knowledge on our values, beliefs and

identities in action?

� How to make a greater investment in heritage, arts, sport and leisure in our region?

� How to engage youth to step up into community roles and participate?

� Is there a better way to co-ordinate local resources to benefit a wider community?

The value of having a strong regional identity and pride is a key component for the Waikato

Spatial Plan and adds considerable value to social, economic and environmental wellbeing.

The key cultural well-being strengths, challenges and opportunities that have emerged are as

follows:

Waikato Cultural Wellbeing


� Waikato’s central location and strong

natural amenities valued by its residents

� Diversity of cultures and age groupings

� A range of national, regional and local

opportunities for leisure, sport and art

facilities, including centres of excellence

� Capturing the ‘Waikato stories’ to extend

our knowledge on our values, beliefs and

identities

� Supporting the growth of Waikato cultural

diversity

� Increasing the national and international

17

Key messages on Cultural Well-being data: The data sets specifically measuring cultural wellbeing are not as well

developed as those for the other well-beings. Many of the features of cultural wellbeing such as celebration of

diversity and regional pride are more qualitative and often vary significantly across the region at a local town or

district level, and many local authorities promote local identity in the way they interact with their communities. The

quantitative data sources we have access to draw heavily from assessments available at a national, regional and

district level, however it is held across a number of central government and local government organisations with

often limited consistency and connection between the data sets. 18

Ministry of Culture & Heritage

32

with international recognition

� Unique Maori culture and heritage,

including the Kingitanga movement

� Cultural capital (an asset when measured

against economic, social and environmental

resources) which our region claims as its

‘own’ such as the Waikato only

events/festivals

� Significant natural features, which are

culturally linked to their landscape such as

the Waitomo Caves

leverage from the region’s major events

� Accurately valuing and maximising cultural

strengths

� Increasing Waikato residents’ engagement

with arts and culture equal to or above the

national average

� Making greater investment in heritage,

arts, sport and leisure in our region

� Engaging youth to step up into community

roles and participate


� More value could be generated from the Waikato base of destination assets

� Having a clear, articulated and agreed value proposition for the region

� Better coordination of the regional marketing promotion

� Enhancing access to, and participation, in cultural activities

� Increasing recognition of the benefits of cultural investments through expansion of our,

‘cultural capital’

� Increasing the protection of our historic heritage

� Identify the ‘Waikato-ness’ of our pride and identity – locally and regionally

� Raise the profile of that Waikato identity and pride

� Strengthening and fostering communities’ diversity- locally and regionally

� Greater coordination of our arts and creativity activities

� Greater coordination of our sport and leisure facilities and events

� Increased emphasis on the value, protection and education of our Maori heritage

� Maintaining our exiting cultural facilities to a high standard

7.4 Environmental Well-Being

Environmental wellbeing is the capacity and ability of the natural environment to support,

sustain and be resilient to the activities of people and communities. It includes the ability for the

environment to adapt and change to human activities where necessary.

Through the use of natural and physical resources we provide for the necessities of life as well as

the comforts and pleasures that come with prosperity. In order to remain prosperous and

healthy we need continued access to a healthy environment. We need to ensure that

ecosystems can continue to provide us with the services that we rely on, such as healthy soils to

grow food, clean water for drinking and to service our farms and industries, wetlands to provide

flood protection and water purification, clean air to breathe and so on.

Often referred to as natural capital, the environment functions and interacts with human

systems, social systems and the built environment. Environmental wellbeing is incorporated

with all aspects of our wellbeing because it responds to our continual interaction with our

physical surroundings.

The key environmental well-being strengths, challenges and opportunities that have emerged

are as follows:

Waikato Environmental Wellbeing


� Good quality soils including a high

percentage of the nation’s high class soils

� Degraded water quality due to land

activities, including effects of

33

� In national and global terms, a good and

steady supply of freshwater

� Significant renewable energy resources

� Mild year-round climate

� An extensive and varied coastal

environment

� A region where the economic benefits of

good environmental outcomes are

valued eg clean air

sedimentation and nutrients in estuaries

and harbours

� Decline in the health and extent of

biodiversity

� Increasing and competing demand for

fresh water – resource is nearing full

allocation (see Figure 8 below)

� Contamination and loss of soil through

intensive and inappropriate land use

� Effects of climate change impacting ability

to provide for our wellbeing

� Incomplete information on some resources

(eg coastal and marine environment and

natural hazards)


� Improving collaboration amongst agencies to improve our knowledge of resources

including the coastal and marine areas, natural hazards and biodiversity

� Ensuring that economic growth is joined up with the environmental limits of the regions

natural resources and considered in conjunction with our desired objectives for the regions

natural resources.

� Taking an ecosystem services approach19 to describing the impact that our activities are

having on our resources. This may aid in the making of decisions that affect both our

economy and our environment.

� Provide for consideration of the cumulative effects of land use decisions on natural

resources.

� Maintaining a healthy environment for natural resources as a key asset for future economic

growth.

19

Ecosystem services are the natural ‘goods and services’ that the natural economy provides, eg nutrient cycling, water regulation and supply, food production, raw materials and waste treatment

34

Figure 8: Water Allocation Across the Waikato Region

35

7.5 Infrastructure

As part of the evidence base for the Waikato Spatial Plan an Infrastructure Inventory report has

been prepared.

The National Infrastructure Plan prepared by Treasury defines infrastructure as the fixed, long-

lived structures that facilitate the production of goods and services and underpin many aspects

of quality of life.20 Generally, infrastructure refers to physical networks, including transport,

water, energy and telecommunications, however there has been much debate both nationally

and internationally around its definition and complex nature. For the purpose of the Waikato

Spatial Plan, the Treasury NIP definition has been expanded to include hard infrastructure

associated with ‘social, and community and cultural infrastructure’ as they also contribute to

community wellbeing and quality of life.

The Infrastructure Inventory divides infrastructure into six groups, Transport, Energy, Water,

Telecommunications, Social, and Community and Cultural Infrastructure. It is an inventory of

existing regionally critical infrastructure (at a network level), current regional context, and

identification of key opportunities and issues. The

inventory provides context for what is regionally

important for the Waikato. It is important to note that for

the purpose of the Inventory the main focus is on

infrastructure that lies within the regional administrative

boundary – however, infrastructure networks often do

not align with this, rather there are interregional

networks passing through, and infrastructure external to

the region that has significant impacts on the Waikato.

This is also complicated by the different administrative

boundaries that agencies and providers use.

From a regional perspective, infrastructure has different

levels of significance. Some is only important to local

communities, while some will be significant to the entire

region. Regionally critical infrastructure is likely to provide regional benefit, such as a major

road, grid connection or water supply point, as opposed to providing benefits only in the

immediate locality. Some regionally critical infrastructure is also going to be nationally critical.

For example, the regional portion of national networks such as the state highways has an

important national function in the movement of people and goods.

The criteria and methodology to assess critical infrastructure is important, as this will guide what

is considered critical for the Waikato Region. A combination of both quantitative and qualitative

measures have been used to determine “critical infrastructure” for the Waikato Spatial Plan. The

quantitative measures use scope and severity measures which look at the consequences to the

people of the Waikato should the infrastructure fail. The qualitative criteria look at the

contribution the infrastructure makes to the Waikato in terms of the four well-beings.

Attached as Appendix 3 is an assessment of critical infrastructure for each of the six

infrastructure groups. A summary of the critical infrastructure for the Waikato region is below.

Critical Infrastructure

20

National Infrastructure Plan, 2011 at page 1

36

Transport: The Waikato region, due to its central/upper North Island position contains many

nationally and inter-regionally strategic road and rail corridors. State Highway 1 and State

Highway 29 are classified as nationally strategic road corridors whiles the North Island Main

Trunk and East Coast Main Trunk are classified as nationally strategic rail corridors. Hamilton

Airport was identified as having regionally strategic importance, as was the inland port at

Crawford Street.

Energy: All energy infrastructure related to generation, transmission and distribution (including

gas pipelines) meets the criteria for being identified as ‘regionally critical’ when examined from

a network perspective.

Water: All water infrastructure related to water supply and wastewater meet the criteria for

being identified as ‘regionally critical’ when examined from a network perspective, while

stormwater and flood protection infrastructure meet the criteria for being sub-regionally critical.

Water irrigation is identified as locally critical.

Telecommunications: All telecommunications infrastructure meets the criteria for being

identified as ‘regionally critical’ when examined from a network perspective. Internet and

mobile communications facilitate not only economic wellbeing, but contribute highly to social

interactions and wellbeing across the Region. Additionally, all types of telecommunications

infrastructure are identified as nationally critical in national documents. Social Infrastructure: Hospitals, Educations Facilities, Courts and Prisons and Waste Facilities all

meet the threshold for being regionally critical. Emergency Facilities are sub-regionally critical

and social housing is locally critical. Although many social services are identified as critical in

national documents, the infrastructure associated with them is not.

Community and Cultural Infrastructure: Although a number of these networks of facilities meet

the criteria for regionally critical, there is a question as to whether there is benefit in

collaborating on their management and operation at a regional level. Local pools, libraries and

parks are dealt with effectively and efficiently locally, and there is no obvious driver for raising

conversations about these to a regional level.

7.6 High Level Linkages

It is important that linkages are recognised between the four well-beings, as a focus on a single

wellbeing can have flow on positive or negative impacts on other parts of society. The linkages

between the four well-beings can be expressed in a number of ways, including:

� A commonality between two well-beings (e.g. improved employment leads to improved

social wellbeing)

� A constraint / enabler of progress (e.g. sector skills constraining economic growth,

improving air quality enables improved public health)

� A direct trade-off between two outcomes (e.g. water quality decline resulting from

intensified land use)

� A geographic / spatial linkage (e.g. population and economic growth linked to

infrastructure service delivery)

The following are examples of key linkages between the well-beings which have emerged from

the work undertaken to date:

� Growth in economic activity is related to infrastructure and land use pressures. These

affect the Waikato at upper north island, regional and sub-regional scales.

� Reduction in economic activity (population decline, aging population, reduction in

workforce) is resulting in surplus infrastructure / affordability issues for those

communities experiencing decline.

37

� The Waikato economy is built on natural resources which include access to a certain

quality and quantity of water, which in turn is linked to a long term trend of declining

water quality (environmental) and a policy framework to protect and enhance the

Waikato River cultural).

� The Waikato economy is reliant upon a finite set of natural resources (e.g. high quality

soils and minerals), access to which has been compromised in some parts of the region.

� Skills shortages in some economic sectors are not being adequately matched through

education and employment support (social).

� Maori business and leadership is an emerging regional strength directly supporting

improved social and cultural wellbeing.

� Improving the profile and identity of the Waikato Region would assist both improved

economic and cultural wellbeing.

� Youth, unemployment and poverty are linked to economic, social and cultural wellbeing

� Community / social impact arising from rural depopulation and consequential decline in

services

38

8. Methodology to Categorise Regional Strengths, Challenges and

Opportunities

8.1 Criteria

The Waikato region is diverse, with different issues, conditions and interests across the region.

Consequently, opportunities for strategic local government collaboration exist on three different

levels; the macro or national level, regional level, and sub-regional level. Local issues can be

dealt with by individual Councils and aren’t considered as part of the regional spatial planning

framework.

The technical reports summarised in section 7 have identified key strengths, challenges and

opportunities for the Waikato region. A methodology has been developed in order to identify

what matters are nationally, regionally or sub-regionally significant. This will help the Spatial

Plan to identify priority areas for local government to collaborate on. The methodology used to

identify which strengths, challenges and opportunities are nationally, regionally and sub-

regionally important is outlined below:

Nationally Significant

Regionally Significant

Sub-Regionally

Significant

Economic, Social, Cultural and Environmental Well-Being

Strengths, Challenges, Opportunities

� Contributes to Government’s priorities

� Evidence that the issue is of a national scale

� Requires national-level decisions to resolve and / or

deliver

� Waikato-wide influence / strategic importance to the

Waikato

� Evidence that the issue is of a regional scale

� Requires regional-level decisions, actions or partnership to

resolve and / or deliver

� Influence beyond TLA boundary

� Evidence that the issue is of a sub-regional scale

� Requires sub-regional-level decisions, actions or

partnership to resolve and / or deliver

39

A detailed analysis along with supporting data of each of the identified strengths, challenges and

opportunities against the methodology outlined in section 8.1 is provided in Appendix 4.

8.2 National, regional and sub-regional strengths, challenges and opportunities

The table below categorises the identified strengths, challenges and opportunities at the macro

/ national; regional; and sub-regional level. This has been completed for economic, social,

cultural and environmental well-being as well as demographics and infrastructure. It is

important to note that this categorisation is not about whether or not one issue is more

important than another. It is about attempting to identify which matters the Waikato needs to

have a single, collective voice on at national level, which matters are more relevant at a regional

level and which are best addressed or have a greater impact at sub-regional level.

There are too many strengths, challenges and opportunities below to be addressed all at once.

Section 10 of this report highlights the key matters and attempts to identify several headline

issues that the Waikato region, through the Spatial Plan, could focus on.

National Regional Sub-Regional

Economic Well-Being

Economic Strengths Sizable contribution to

national economy

Important industry

sectors (dairy, meat &

horticulture, forestry and

wood products, high

value manufacturing and

services)

Good quality road and

rail transport network

Nationally significant

transport juncture for

road and rail, and has

good connections to

large and growing

populations in Auckland

and Tauranga.

Relatively high industrial

diversity

Significant economic

benefits from natural

resources

Range of organisations

and infrastructure that

support innovation

Economic Challenges Skills Constraints

Environmental Limits (eg

water)

Economic inequalities

across the region

Encouraging greater

innovation and value-

added in key industries.

Image and Branding

Perception of business

environment and

support for innovation

Not a large base of

science and technology

professionals or

employment in

knowledge intensive

industries

Relatively weak

performance on

measures of visitor

Councils not perceived

as business-friendly and

common concerns about

the costs associated with

consents and complying

with regulations

40

attraction, which is also

important for attracting

and retaining skills and

business

Economic

Opportunities

Large economy with

strengths in nationally

significant and exporting

industries

Connectivity to the

Upper North Island and

gateway to the south

Leveraging Maori

development

Reduce inequalities and

raise living standards for

everyone in the region

Encourage youth

employment

High quality amenities

and natural assets

Coromandel aquaculture

Encouraging greater

value added from our

natural resource-based

and related industries

Telling the Waikato Story

Coordination of skills

initiatives

The “greening” of

growth, including

innovation in

sustainability.

Inter-regional

collaboration.

Improve linkages

between research and

education organisations

and industry.

Business-friendly

councils.

Social Well-Being

Social Strengths Growing Early Childhood

Education Rates

Increase in School-

Leavers with formal

qualifications

Less Crime

Increased Life

Expectancy

Social Challenges Housing

Unemployment

Poverty

Disproportionate

numbers of Maori and

Pasifika in statistics for

low education

achievement, poor

health, unemployment,

poverty and crime (as

both victims and

offenders)

Issues for Youth (eg

employment, education,

health, housing, youth

offending and

victimisation)

Social Opportunities Strengthening

Collaboration with

Central Government

Reduction in Duplicating

efforts

Information Sharing

Cultural Well-Being

Cultural Strengths Unique Maori Culture Range of opportunities Significant natural

41

and Heritage, eg

Kingitanga movement

Cultural Capital, eg

uniquely Waikato

events/festivals

for Leisure, Sport and Art

facilities (eg centres of

excellence)

Waikato’s central

location and strong

natural amenities valued

by its residents

features that are

culturally linked to their

landscape

Cultural diversity

Cultural Challenges Engaging youth Accurately valuing and

maximising strengths

Capturing ‘Waikato

Stories’

Greater investment in

heritage, arts, sport and

leisure

Leveraging off the

region’s major events

Increasing residents’

engagement with arts

and culture equal to or

above the national

average

Supporting growth of

cultural diversity

Cultural

Opportunities

Increasing recognition of

the benefits of cultural

investments through

expansion of our

‘cultural capital’.

Increased emphasis on

the value, protection and

education of our Maori

heritage

Raising profile of

Waikato identify and

pride

Increasing protection of

historic heritage

Greater value could be

generated from the

Waikato base of

destination assets

Having a clear,

articulated and agreed

value proposition for the

region

Better coordination of

regional marketing

promotion

Enhancing access to and

participation in cultural

activities

Greater coordination of

arts, creativity, sport and

leisure facilities and

events

Maintaining existing

cultural facilities

Strengthening

community and

fostering diversity

Environmental Well-Being

Environmental

Strengths

High percentage of high

class soils

Mild year-round climate

An extensive and varied

coastal environment

42

Good source of

renewables

Steady supply of

freshwater

A region where the

economic benefits of

good environmental

outcomes are valued

Environmental

Challenges

Degraded water quality

Increasing and

competing demand for

fresh water

Contamination and loss

of soil through intensive

and inappropriate land

use

Decline in the health and

extent of biodiversity

Effects of climate –

increasing frequency of

extreme climate events

(droughts / floods)

Incomplete information

on some resources (eg

coastal and marine

environment and

natural hazards)

Environmental

Opportunities

Ensuring that economic

growth is joined up with

environmental limits

Taking an ecosystem

services approach to

describe impact that

activities are having on

our environment.

Provide for consideration

of cumulative effects of

land use decisions on

natural resources.

Maintaining a healthy

environment for natural

resources as a key asset

for future economic

growth.

Collaboration to fill

information gaps

Better integrating land

use and resource use

decisions to ensure the

most efficient and

effective use of our

resources in the long

term.

Demographics

Strengths Waikato region is

relatively youthful

compared to other

regions

Steady regional growth

overall

Net migration for some

areas

Hamilton City growth

Challenges Ageing driven growth

Low fertility / smaller

family sizes

Population waves and

troughs passing through

education and other

services

Tightening of the labour

market

Transiting from growth

to decline

Opportunities Ageing population -

changing the nature of

work and maximising the

potential of older

workers, growing

consumer market for

older people,

opportunities for

community participation

Changing demands for

goods and services

Age-related movement

towards services (ie the

elderly moving to

Hamilton, Waikato and

Waipa districts)

Investing in youth to

ensure they have the

right skills

Increasing cultural

diversity

43

Infrastructure

Strengths Road and rail network is

of national importance

providing connections

through and to the

Waikato

The Waikato Expressway

Energy generation

(Waikato generates 50%

of NZ’s electricity)

Significant corridors for

infrastructure (both

within the region and

into other regions)

Hamilton Airport and

Crawford St Inland Port

Existing collaborative

processes to address

cross-boundary issues

that can be utilised

Major Event facilities

Challenges Competing demands for

funding for

infrastructure projects

and national prioritising

of projects (particularly

transport) results in

some areas missing out

on investment

Restructuring of shipping

destinations

One day needing to find

a suitable replacement

for the power output

from Huntly thermal

Over allocation of water

Funding the ongoing

costs associated with

maintenance and

operation of

infrastructure

Land use changes can

significantly impact

infrastructure,

particularly transport

Reverse sensitivity issues

Large number of district

plans and rules across

the Region make

integrated planning for

infrastructure difficult

Historic underinvestment

Ageing population will

have a significant impact

on the infrastructure

needs of the region

Lack of collaborative and

forward planning for

infrastructure

Variable and sometimes

limited information on

infrastructure asset age

and performance

Significant differences

between Councils on

infrastructure (eg

different priorities,

ability and willingness to

pay)

Lower priority given to

social infrastructure

because of financial

constraints

Social infrastructure

withdrawing from small

or remote towns

Opportunities Alternative approaches

to funding, delivery and

management of assets

(including shared

funding)

Implementing the

KiwiRail Turnaround plan

will improve the

effectiveness of the rail

network.

More coordinated

management of

infrastructure assets

both within councils and

at a regional level

(including shared

services)

Further irrigation

development

New broadband and

Maximising returns on

Waikato Expressway

investment through local

planning for bypassed

communities.

44

Population growth and

changing demands for

energy

Waikato’s position as a

key renewable electricity

generator

mobile coverage in rural

areas expected to enable

a major boost to rural

productivity

Alignment of social

infrastructure planning

between local and

central government, the

private sector and other

agencies

45

9. Outcomes from Council Workshops

In July 2013 a series of workshops were held with the Waikato region’s local authorities. The

purpose of the workshops was to:

� Raise the profile and understanding of the Waikato Spatial Plan project � Explore each council’s adopted community outcomes to identify success, barriers and

challenges in meeting the outcome � To identify priorities that may be needed to better achieve the outcomes in an attempt

to identify priority areas that a Spatial Plan for the Waikato may assist in addressing.

The top three common successes across the region identified by the workshops were:

� The strength of their community partnerships.

� District level economic resilience despite the global financial crisis.

� Efficient and effective provision of critical infrastructure.

The top three common challenges across the region were:

� Affordability of infrastructure

� The effect of regulatory systems and environmental policy on economic growth

� The loss of human capital arising from depopulation and ageing populations

The key priority areas for regional collaboration as identified by the majority of the Councils

were:

� Collaboration to develop a strategic vision, with an agreed action plan to advocate the

vision from - this is particularly important to help the region speak with one voice and

advocate a strong position in reaction to the Waikato Region’s role in sustainably

supporting growth in the upper north island.

� National / regionally consistent approach to legislation and delivery of the four well-

beings.

� Demographic change – how do we plan / respond?

� Develop a regional development strategy to reduce the current level of competition

amongst the districts for economic development, infrastructure and facilities, and

manage growth around the region’s largest city in a collaborative manner.

These challenges and priority areas have also come through in the strengths, challenges and

opportunities identified by the technical reports. A number of these are also identified as key

matters in section 10 below, including ‘headline’ issues.

46

10. Key Regional Strengths, Challenges and Opportunities

10.1 Key Matters for the Waikato Region

The following are the key strengths, challenges and opportunities across the four well-beings as

well as infrastructure and demographics that the Waikato region should be speaking with one

voice on. A key message from Government is that the Waikato Region needs to speak as one

collective voice on matters of strategic importance.

Waikato Strengths

� Sizable contribution to national economy

� Important industry sectors (dairy, meat & horticulture, forestry and wood products, high

value manufacturing and services)

� Road and rail network is of national importance providing connections through and to

the Waikato

� Nationally significant transport juncture for road and rail, and has good connections to

large and growing populations in Auckland and Tauranga.

� Growing Early Childhood Education Rates

� Increase in School-Leavers with formal qualifications

� Unique Maori Culture and Heritage, eg Kingitanga movement

� Cultural Capital, eg uniquely Waikato events/festivals

� High percentage of high class soils

� Good source of renewables

� Steady supply of freshwater

� Waikato region is relatively youthful compared to other regions

� The Waikato Expressway

� Energy generation (Waikato generates 50% of NZ’s electricity)

� Significant corridors for infrastructure (both within the region and into other regions)

Waikato Challenges

� Skills Constraints

� Environmental Limits (eg water)


� Encouraging greater innovation and value-added in key industries.

� Housing

� Unemployment

� Poverty

� Engaging youth

� Disproportionate numbers of Maori and Pasifika in statistics for low education

achievement, poor health, unemployment, poverty and crime (as both victims and

offenders)

� Degraded water quality

� Increasing and competing demand for fresh water / over allocation of water

� Contamination and loss of soil through intensive and inappropriate land use

� Ageing driven growth

� Low fertility / smaller family sizes

� Population waves and troughs passing through education and other services

� Competing demands for funding for infrastructure projects and national prioritising of

projects (particularly transport) results in some areas missing out on investment

47

� Restructuring of shipping destinations

� One day needing to find a suitable replacement for the power output from Huntly

thermal

� Lacking a coordinated planning framework (between central and local government,

between legislation and between regions)

Waikato Opportunities

� Large economy with strengths in nationally significant and exporting industries

� Connectivity to the Upper North Island and gateway to the south


� Reduce inequalities and raise living standards for everyone in the region

� Encourage youth employment

� Reduction in duplication

� Strengthening collaboration with Central Government

� Increasing recognition of the benefits of cultural investments through expansion of our

‘cultural capital’

� Increased emphasis on the value, protection and education of our Maori heritage

� Contributing to achieving targets for renewable electricity generation

� Ageing population changing the nature of work

� Changing demands for goods and services

� Alternative approaches to funding, delivery and management of assets (including shared

funding)

� Implementing the KiwiRail Turnaround plan to improve the effectiveness of the rail

network.

� Population growth and changing demands for energy

� Waikato’s position as a key renewable electricity generator

� A connected planning framework through the use of a spatial plan (noting that this

opportunity would be even stronger if the spatial plan had legislative backing)

� Governance arrangements which support a competitive economy

10.2 The Headline Strengths, Challenges and Opportunities

There are a number of strengths, challenges and opportunities identified in section 10.1 above.

While they are all important there are too many for the region to focus on at once. The table

below identifies some ‘headline’ strengths, challenges and opportunities that the region can

focus on now and that can be used as the basis for developing a spatial plan.

The test used to determine what was a ‘headline’ strength, challenge or opportunity is as

follows:

� Significance both nationally and regionally

� Has an impact on other well-beings

� An issue of high importance to the community or of significant potential benefit to the

community

48

Strengths

� Nationally significant transport juncture and connections to

Auckland and Tauranga

� Contribution to national economy through important industry

sectors

� Hamilton as the Waikato centre for innovation, employment and

services

Challenges

� Declining rural populations and associated decline in services

� An ageing population and shrinking skill base

� Water quality and water allocation


Opportunities � Maximising opportunities, including investment, through aligned

planning


� Connectivity to the Upper North Island

Before the future emphasis of the headline regional strengths, challenges and opportunities is

finally confirmed, there is a need to undertake as the first stage of the Phase 2 spatial plan

development, a three dimensional layering exercise to better understand how these outcomes

impact on each other from a four well-beings perspective.

49

11. Conclusions and Recommendations

11.1 Conclusions

This report has analysed all of the research documents and their recommendations prepared by

the Technical Leadership Group. For completeness the authors have also drawn on all previous

advice provided to the Mayoral Forum during 2012 and 2013 as well as work on local

government collaboration undertaken by Emerson and Auton in September 2011.

In addition the report identifies the changing operating climate of the local government sector

as documented in the two late 2013 Local Government Commission reorganisation proposals for

Northland and the Hawkes Bay. These reports reference:

� the necessity of areas to be able to speak with one voice on agreed issues to improve

the effectiveness of interaction with Central Government as well as achieving better

public policy outcomes

� the challenges facing the sector especially the financial viability of some councils

� the need to have governance structures which assist effective strategic planning

� the improvements necessary to achieve more cost effective regulation and service

delivery

� the need to address rural decline

� the expectation that re-organised local government will assist the national objective

of improved economic performance.

Without doubt the extensive reforms recently undertaken in Auckland have influenced the

Commissions thinking. In addition studies such as those completed by PWC for the Wellington

Regional Council in 201021 which outlines a hierarchy of interventions for improving local

government performance (see Figure 9), have had an influence.

21

Wellington Region Councils – Governance Review, October 2010, Price Waterhouse Coopers, Diagram in Figure 5 from page 52

Figure 9: Opportunities for Regional Collaboration

50

The Commission’s findings in both Northland and the Hawkes Bay are supported by a significant

amount of high quality analysis and documentation. Clearly, where the Commission feels that

insufficient progress has been made in areas such as shared services, it has recommended

comprehensive reorganisation. This is the approach likely to be taken in other parts of New

Zealand when proposals are received with trigger the reform process.

Given the stage which the Local Government Commission is at with its work, it is important that

we do not try and second guess where things could end up for the Waikato region. The focus

should be on local government function, not on form. We need to work out what we can do and

how we can achieve this. Functions are known, whereas the future form of local government in

the Waikato is not. There is extensive technical data which provides a sound evidence base for

undertaking spatial planning. There now needs to be a debate and discussion on the priority

areas and working together for comment benefit.

The Spatial Plan Process

The research work undertaken to date indicates if a spatial plan is commissioned for the

Waikato Region with a number of specific outcomes clearly defined, the document will provide a

useful tool for performance improvement, speaking with one voice and having a clearly agreed

regional direction.

While the detail of a spatial plan is yet to come it is a process which will provide a framework for

ongoing joined up thinking.

The next step is for the Waikato Mayoral Forum to determine the value of developing a full

Spatial Plan for the Region, using the data contained in the technical reports as a starting point

for a collaborative discussion.

A future step in this process may also be to seek legislative backing for a spatial plan in the

Waikato region.

The Benefits

The potential benefits of progressing Phase 2 of the Spatial Plan are set out below:

� Provides a long-term strategic direction for the region along with certainty.

� Identifies priority issues for speaking with ‘one-voice’ on

� Strategic spatial planning is often considered to be the best way for optimising the use

of current resources, including infrastructure and services, and facilitating a framework

for effective long-term infrastructure planning.

� Spatial planning can help to integrate land use, infrastructure and funding.

� Planning alignment and a consistent approach.

� Encourages the sharing of information.

� Community involvement in setting a strategic direction.

� Addresses cross boundary issues.

� Spatial planning allows a regional discussion about matters that would benefit from a

regional response, such as the impact of the aging population and rural depopulation.

� Can ensure that planning under different Acts is coordinated and integrated.

� Spatial Planning can inform the development of subsequent regional and local

documents as they come up for review, by having one shared document outlining issues

and opportunities at a regional scale, individual agencies can have confidence that they

are basing their own local planning on a shared evidence base.

51

A Spatial Plan represents a significant opportunity for the Waikato region and one which may

not arise again given the current operating climate. Failure to collaborate strategically may

potentially expose the region to a number of risks and costs. The region needs to use the spatial

plan process to set some priorities and progress these through phase 2 of the project.

The Mayoral Forum has received a significant amount of quality information and advice.

However, unless there is commitment to moving forward, particularly in terms of the headline

strengths, challenges and opportunities identified in section 10.2, the benefits of having

completed all of the technical work and the opportunity to align with the Government’s policy

and operational context, will be lost.

11.2 Recommendations

That the Mayoral Forum:

1. Agree that the identified national, regional and sub-regional issues set out in Section 8.2

are the basis for moving to the next phase of this project

2. Agree that the headline strengths, challenges and opportunities outlined in section 10.2

should form the basis for scoping phase 2, noting that a spatial layering exercise will be

undertaken at the outset of this phase.

3. Agree that based on the analysis undertaken and conclusions reached in this report,

Phase 2 of this project to prepare a Waikato Spatial Plan proceed.

4. Agree to prepare a project plan containing scope, timeframes, resources, cost sharing

and possible governance arrangements.

5. Agree to adopt the project plan in conjunction with the partner Councils no later than

April 2014.

52

Appendix 1: Business Case for Waikato Spatial Plan

A Business Case for Completing the Waikato Plan

Background The thinking of the Governance Group has been informed by intra-regional discussions and

inter-regional discussions with Auckland Council and Government’s Auckland Policy Office. The

Governance Group has focused on:

1. Best practise governance frameworks;

2. Developing a collective voice for the Waikato; and

3. Strategic engagement with central government.

A key message from discussions with the Auckland Policy Office was that to secure and influence

future government investment in the Waikato, the Region needs to speak as one collective voice

on matters of strategic importance.

The concept of a Waikato Spatial Plan is woven through all three of these topic areas,

particularly in developing the collective voice for the Waikato on high priority regional and sub-

regional issues that affect the quality of life for people and communities.

The Waikato Mayoral Forum has confirmed that preparatory work commence on completing a

Waikato Spatial Plan (“The Waikato Plan”). The project will be completed in three broad stages:

1. Project establishment, including securing an independent Project Director, developing a

detailed terms of reference, project budget and programme. This stage is being

managed by the Mayoral Forum’s Governance and Planning group.

2. Collating a common evidence base across the 4-wellbeings.

3. Completing the Waikato Plan.

The outline programme for the project would see the Waikato Plan completed in time to inform

the 2015 Long Term Plans and the 2015-25 Waikato Regional Land Transport Plan.

Project Intent The Waikato Plan is intended to be a 30-year economic, environmental, social and cultural

strategy for the management and development of the Waikato region. The primary objective

for the Waikato Plan is:

1. To develop a shared vision and collective voice on the high priority regional and sub-

regional issues that will improve the quality of living for people and communities in the

Waikato over the next 30-years.

Developing and implementing the Waikato Plan will provide an important opportunity to

identify, negotiate and agree on priorities and actions across multiple parties including local and

central government, the private sector and non-government organisations. The process of

developing the Waikato Plan will also:

1. Provide a shared evidence base from which to make investment and policy decisions

that are efficient and effective in a collective way;

2. Help define communities of interest that cross local authority boundaries such as labour

markets, catchment management, co-management and freight and logistics;

53

3. Enable a conversation on enduring governance frameworks required to support the

development and implementation of the Waikato Plan and its vision for the region;

4. Improve the efficiency and effectiveness of local authorities, central government and

communities to address high priority issues; and

5. Help to rationalise the existing planning and service delivery system for people and

communities.

Project Rationale and Benefits A Collective Voice: The value of speaking as one voice on high priority regional and sub-regional

issues has been summarised into the following four themes. The potential benefits of the Plan

are discussed under each of these themes.

Enhanced Coordination of ‘Whole of Government’ Investment

The Auckland Council is now the largest local body in Australasia with total assets exceeding

$34B and an annual operating revenue of approximately $1.3B22. When developing the

Auckland Plan it was found that central Government invested roughly $9 for every $1 invested

by Auckland Council, providing a combined annual investment of approximately $13B. The

Auckland Plan provides the strategic vision around which discussions are had on the

optimisation of this investment into Auckland.

In the 2011/12 financial year, the 11 local authorities in the Waikato Region reported combined

assets of $11B and annual operating revenues of $800M. Assuming the same ratio with

Auckland ($9 : $1), this provides a ‘whole of government’ annual investment of approximately

$8B. Auckland Council found that central Government is the primary investor in local

community outcomes, and it therefore makes sense for local authorities in the Waikato to help

prioritise and guide this investment.

Efficiency savings brought about by acting collectively with central Government on high priority

issues could prove significant. A 0.25% efficiency gain would provide an annual saving of over

$20M for local and central Government.



1. Collective action by the Waikato Regional Transport Committee secured $215M of



2. Lake Taupo Protection Trust secured a combined fund of $81M to reduce nitrogen


3. The Waikato River Authority administers a combined fund of $220M to restore and

protect the health and wellbeing of the Waikato River.

Identification and advancement of further opportunities will be facilitated by the Waikato Plan.

Improving Coordination of Government, Regional and Local Policy

The Government has set a goal of increasing the ratio of exports to GDP to 40% by 2025. The

Better Natural Resources report (the Report) was launched on 11 Dec 2012 as part of the

Governments Business Growth Agenda and states that:

Meeting the target will require the value of our exports to double in real terms by 2025,

and our primary sector will need to continue to deliver robust export growth at, or near,

its recent rates if we are to achieve the 40% target.

22

Auckland Council Annual Report, 2011

54

The Report states that NZ’s natural resource endowment is critical to our international

economic success and sets out 49 key initiatives including:

• Improving the governance and allocation of freshwater

• Ensuring the regulatory framework supports further investment in appropriate

renewable energy projects by removing unnecessary regulatory barriers

• Streamlining the regional planning process, with a focus on reducing the nation’s 170+

resource management plans, and promoting consistency between plans

• Improve the quality of analysis which Councils use to make decisions

• Growing business opportunities on conservation land

• Engage with local Councils to improve management of biodiversity and ecosystem

services at a catchment level.

• Realising greater value from our marine and aquaculture resources

• Harnessing the productive resources held by Maori

• Incentivise New Zealand business and households to transition to a low emissions

economy while improving productivity.

Many of these initiatives translate into the Waikato, and it is important that the Waikato

responds to these challenges. For example, the Governance and Planning workstreams found

over 640 non-RMA strategies, policies and plans in the Waikato region, and a wide range of

policies and standards within existing District Plans (e.g. over 50 different earthworks

standards).

To respond to the challenges laid out in the Government’s business growth agenda, local

government cannot afford to present an inefficient and fragmented approach to resource

allocation, infrastructure provision or service delivery. The Waikato Plan will assist local

authorities and key stakeholders to identify strategic opportunities, recognise any trade-offs and

make strategic policy decisions on high priority issues.

Enables a joined up debate on local government form

In the face of mounting community and sector group advocacy for changes to local government

structure, there is presently a vacuum of information to inform collective debate. Whilst some

councils are progressing with their own business cases, others have developed and adopted

policies for assessing submissions to the Local Government Commission.

The Waikato Plan can assist by establishing a common evidence base and a collective voice on

an appropriate form of local government for the Waikato Region.

Efficiency savings for NZ Inc. and Waikato Ratepayers

Section 10 of the Local Government Act has recently been amended to focus local authorities on

efficient and effective local infrastructure, local public services, and performance of regulatory

functions in a way that is most cost-effective for households and businesses. There are

potentially significant efficiencies to be achieved through greater collaboration at a regional or

sub-regional level which the Waikato Plan would scope, prioritise and guide.

Examples of potential efficiency gains for Waikato ratepayers are identified overleaf, including

streamlining the existing service delivery systems for RMA planning and infrastructure,

collaboration on service delivery and form of governance for the Waikato. These issues are

already being explored by Central Government (as outlined above), and the Waikato needs to

respond to these challenges in a coordinated way.

Stage two of the Waikato Plan will see the development of a shared evidence base from which

local authorities can draw information for policies, bylaws, and long term plans. There are likely

to be cost savings provided to local authorities, including:

55

a. Working off a common evidence base will limit the potential for debates on accepted

evidence.

b. Common evidence base and policy approach enables a shared approach to policy and

investment priorities (e.g. the current relationship between the RLTS (the policy

document) and the RLTP which prioritises investment).

c. A common data approach is a core outcome being sought in the Roading working

group. It is anticipated that common data will assist with benchmarking road asset

management across the Waikato road network, and optimise the $500M investment

that local authorities and the NZTA are making in road asset management over the

next 3 years.

Stage three will see engagement and prioritisation of high priority regional and sub-regional

issues as part of developing the Waikato Plan.

Conclusion There are a range of monetary and non-monetary benefits to the Waikato which will help

improve the wellbeing of our communities. The Government continues to engage on its

Business Growth Agenda, and is embarking on a wide variety of initiatives that will impact upon

the Waikato communities. Without a collective voice and a united position on these initiatives,

the Waikato is likely to miss many of the opportunities presented by present Government policy.

The Waikato Plan, and supporting strategic approaches such as the Economic Development

Strategy will assist local authorities to position themselves to best effect to engage with, support

and benefit from these initiatives.

56

EXAMINATION OF POTENTIAL COST SAVINGS FOR THE WAIKATO COUNCILS

Legislation Opportunity Evidence of Cost Savings Potential Waikato Outcome

Efficiencies in ‘Whole

of Government’

Investment

The Auckland Spatial Plan found a ratio of Government

to Local Government investment of 9:1. Central

Government is therefore the major player for

delivering local community outcomes, and it makes

sense to collaborate and engage proactively with

central Government partners.

• Waikato Councils hold combined assets of $11B and

annual revenues of $800M.

• Assuming a 9:1 annual investment ratio with Central

Government that amounts to approx. $8B into the

Waikato Region

• Identifying efficiencies of 0.25% of this annual

investment would save over $20M / year.

RMA

Combined RMA Plans

(District Plans) similar

to those achieved in

South Wairarapa

Wairarapa Councils combined district plans achieved:

• 40% cost savings for district plan development

• Supported by key stakeholders as cost savings for

them also across their district plan framework

• Plan development costs advised between $1.2 - $5M

with an average cost of $3.1M

• 40% average cost saving = $1.24M or $12M across the

region, or $63 / rateable property over the plan life.

• Cost savings for submitters likely to be similar across

the region

Combined district plan

administration

processes

Wairarapa Councils achieved:

• Efficiencies in plan administration, legal services and

notification processes equivalent to approximately

15 - 20% of current District plan administration

budgets.

In 2012 Waikato District Council’s resource consent

processing services cost $2.3M. A 15% saving through

efficiencies such as those achieved by Wairarapa would

save $345k per year.

Shared SOE Reporting

• Councils vary widely in what they report and how it

is reported

• Future Proof has taken over a year to agree how to

monitor the strategy and has grappled with data

issues

There is not a clear picture of how much budget is being

allocated by each council to SOE reporting. Savings are

potentially modest, as this type of reporting is not a high

priority.

LGA Shared policies and

approaches

• Auckland Council is aiming to reduce their total

policies from over 900 to approximately 20 with

anticipated savings.

• There are 640 policies, plans and strategies that

have been adopted throughout the Waikato Region,

Assuming policies cost an average $25k each to prepare,

consult and adopt through Council, and the Waikato can

reduce the total number of policies by 10%, would yield a

saving of $1.6M

57

EXAMINATION OF POTENTIAL COST SAVINGS FOR THE WAIKATO COUNCILS

Legislation Opportunity Evidence of Cost Savings Potential Waikato Outcome

the majority of which will be reviewed over the next

3-5 years.

Informing the form of

Local Government in

the Waikato

• Both major parties believe changes in structure are

required

• LG Amendment Act enables changes to be brought

forward to LG Commission

• LG Commission process relies upon evidence from

district / region concerned

• Several proposals across the Waikato for change

• Waikato Regional Council has adopted policies on

how to inform proposals – these are not shared by

all Councils.

There is significant potential for largely uninformed and

polarised views emerging on the form of local

government.

The Local Government Commission would not be well

informed by the Waikato Local Authorities at present.

Other

Functions

Provision of

infrastructure

• The Road Maintenance Task Force report forecasts

2-20% cost saving for road maintenance if road

asset management were altered from its present

form.

Using the RMTF figures this would amount to between $10

and $100M savings over the next 3 years.

58

Appendix 2: List of Technical Reports

Waikato Region - Demographic Profile 1986 – 2031, July 2013, National Institute of Demographic

and Economic Analysis, University of Waikato

Waikato Spatial Plan Project - Economic Wellbeing Report, December 2013, Tariq Ashraf, Waikato

Regional Council

Waikato Spatial Plan Project - Social Wellbeing Report, December 2013, Esmae McKenzie-Norton,

Hamilton City Council

Waikato Spatial Plan - Cultural Wellbeing, December 2013, Jenni Vernon (Waikato District Council),

Amanda Banks (Waikato Regional Council), Donna Tracey (Waikato District Council)

Waikato Spatial Plan - Environmental Wellbeing Working Paper, December 2013, Megan Kettle

(Waikato Regional Council)

Waikato Infrastructure Inventory, December 2013, Hannah Windle, NZTA

Waikato Spatial Plan Toolkit Discussion Document, October 2013

Waikato Regional Economic Profile, October 2012, Waikato Regional Council Technical Report

2012/37

59

Appendix 3: Assessment of Critical Infrastructure for the Waikato

Both quantitative and qualitative measures have been used in determining “Critical Infrastructure”

for the Waikato Spatial Plan.

Quantitative: Scope and severity measures – These criteria look at the consequences to the people

of the Waikato should the infrastructure fail, and can be determined by the extent of the geographic

area and number of people affected by its loss or availability (aligned with the lifelines project). The

thresholds for these measures are outlined below.

Qualitative: Contribution to community wellbeing – This measure looks at the contribution the

infrastructure makes to the Waikato in terms of:

� Economic Wellbeing (including contribution to economic prosperity, land based industries,

regional planning, research and innovation, sustainable development, tourism, transport,

infrastructure and services).

� Environmental Wellbeing (including contribution to, water quality, air quality, protection of

productive soils, energy efficiency or conservation, waste reduction, biodiversity, energy

resources, minerals, coastal and marine environments).

� Social Wellbeing (including contribution to enabling participation in community and public

affairs, community safety , public health, social housing, social support and cohesion,

education).

� Cultural Wellbeing (including contribution to the arts, leisure and recreation, cultural

participation and identity, Maori heritage, heritage values, regional identity and pride).

60

Threshold for ‘Regionally Critical Infrastructure’

After considering the above criteria, a threshold for ‘critical’ can be determined. At this stage, it is

proposed that the threshold sits where an infrastructure network has 2 or more red rankings.

Through the development of Phase 2 of the Waikato Spatial Plan there is scope to test this threshold

and re-evaluate if necessary. Additionally, if an infrastructure network has already been identified at

a national level as critical, then it has been automatically assumed to be regionally critical. An

example of this would be infrastructure associated with electricity transmission. The existence of a

National Policy Statement for Electricity Transmission recognises the national significance of New

Zealand’s national grid.

Nationally critical = Identified as critical in a National Document/Strategy

Regionally critical = 2+ red

Sub-regionally critical = 1 red

Locally critical = no red

Transport

The Waikato region’s strategic (critical) transport corridors and infrastructure, divided into national,

regional and sub-regional importance.

62

Energy

Water

63

Telecommunications

Social Infrastructure

64

Community and Cultural Infrastructure

65

Appendix 4: Assessment of Strengths, Challenges and Opportunities Methodology and Analysis for Categorising Regional Strengths, Challenges and Opportunities

The following table sets out the framework for categorising the strengths, challenges and opportunities identified in the technical reports. The following

methodology allows us to clearly identify:

� Macro/National issues - ‘One Voice’ of the Waikato

� Regional issues

� Sub-Regional issues

Each strength, challenge and opportunity under each of the four well-beings has been tested to see whether it fits at national, regional or sub-regional

level. All of the issues outlined are important. The purpose of the analysis is to gain a better understanding of the scale of the issue and what is best dealt

with at national, regional or sub-regional level.

Economic Well-Being

Criteria Economic Strengths Economic Challenges Economic Opportunities

Macro / National23

1. Contribution to

Government’s

Priorities24

2. Evidence that

issue is of a national

scale (eg included in

national documents)

3. Requires national-

level decisions or

action to resolve and

/ or deliver

Sizeable contribution to national economy

and Important industry sectors

1. Falls under the Government’s priority of

building a more competitive and productive

economy. This includes export markets and

innovation. The Waikato region has a

significant proportion of New Zealand’s export-

facing industries. Although key sectors are

concentrated in certain areas, it is also the

second-most diverse economy in New Zealand

in terms of having economic activity spread

Skills Constraints

1. Set in the National Government’s priorities

– “Skilled and Safe Workplaces – We're

helping more Kiwis get the skills they need to

build a successful career, find work in New

Zealand, and earn the higher incomes they

deserve”25

2. Unemployment and skills constraints are

identified as issues in national documents

such as priorities listed in all the Government

Parties, Ministry for Social Development, and

Large economy with strengths in nationally

significant and exporting industries

1. Falls under the Government’s priority of


economy. This includes export markets and

innovation. The Waikato region has a significant

proportion of New Zealand’s export-facing

industries. Although key sectors are

concentrated in certain areas, it is also the

second-most diverse economy in New Zealand in

terms of having economic activity spread across

23

Includes Upper North Island / Inter-regional 24

Government’s Priorities: 1. Stronger Economy (including the Business Growth Agenda – see Attachment 1 to this Appendix). 2. Better Public Services (reducing long-term welfare dependency, supporting vulnerable children, boosting skills and employment, reducing crime and improving dealing with Government)

25 http://www.national.org.nz/facebook_priorities/OurPriorities_Twopager_web.pdf

66

across many industries.

2. This is of a national scale given the

contribution to the national economy:

� In 2012 the Waikato region’s estimated

gross domestic product (GDP) was $18.3

billion or 8.9 per cent of New Zealand’s

estimated GDP.

� Employment growth in the Waikato region

over 2002-2012 was slightly higher than

New Zealand as a whole.

3. Requires national-level decisions and actions

to ensure that this continues and that

opportunities are taken full advantage of.

Good quality road and rail transport network

and Nationally significant juncture for road

and rail, and good connections to large and

growing populations in Auckland and

Tauranga

1. Contributes to the Government’s priority of


economy of which infrastructure is a key part.

2. Waikato has the highest per capita central

government capital investment in transport

and communications, a good quality road

transport network, two of the busiest rail lines

in New Zealand, Hamilton airport and many

smaller airports in the region and the fourth

largest public transport service in New Zealand.

Good quality road and rail as well as the

importance of Upper North Island connections

is included in a number of key national-level

documents including the Government Policy

Statement on Land Transport Funding and

Ministry for Business, Innovation and

Employment26

3. Requires national-level decisions and

actions, eg coordinating education providers,

work being undertaken by Department of

Labour, Ministry for Social Development and

MBIE

Environmental Limits (eg water)

1. Contributes to Government’s priorities -

one of which is freshwater reform and

natural resources including maintaining

environmental standards that preserve and

enhance the quality of the environment.

2. Issue is of a national scale (eg Freshwater

Reform documents and work of the Land and

Water Forum)


action, including collaborative planning,

regulation at the national level, law changes

and environmental reporting.

Economic inequalities across the region

1. Contributes to the Government’s priority

of building a more competitive and

productive economy and also its social

development goals.

2. There is significant variation in annual

incomes between different territorial

authorities in the Waikato region. The level of

inequality in the Waikato region was 35 per

cent in 2006, decreasing and increasing

slightly before settling at 35 per cent in 2010.

This is also a national level issue. The

many industries.

2. This is of a national scale given the

contribution to the national economy:

� In 2012 the Waikato region’s estimated gross

domestic product (GDP) was $18.3 billion or

8.9 per cent of New Zealand’s estimated

GDP.

� Employment growth in the Waikato region

over 2002-2012 was slightly higher than New

Zealand as a whole.

3. Requires national-level decisions and actions

to ensure that this continues and that

opportunities are taken full advantage of.

Connectivity to the Upper North Island and

gateway to the south



economy of which infrastructure is a key part.

2. The importance of Upper North Island

connections is included in a number of key

national-level documents including the

Government Policy Statement on Land Transport

Funding and UNISA documents.

3. Requires national-level decisions and action to

ensure that connections are maintained and

improved in order to build on Waikato’s position

in the Upper North Island and as a transport hub

and also as a gateway to the south.

Leveraging Maori development

1. Part of the Government’s building a more

competitive and productive economy priority.

2. Iwi are active investors in the Waikato region

26

http://www.mbie.govt.nz/news-and-media/news-from-around-mbie/medium-long-term-employment-outlook-released

67

UNISA documents.

3. Requires national-level decisions and action

to ensure that the road and rail network is

maintained and improved in order to build on

Waikato’s position in the Upper North Island

and as a transport hub.

percentage of people with more than

enough, or enough income, to meet every

day needs has decreased in the Waikato

region from 2008 to 2012, while it has

remained relatively static for New Zealand as

a whole. Issue is covered at national level in

various Ministry for Social Development and

Treasury documents.

3. Requires national-level initiatives to help

improve the situation, eg initiatives to

improve living standards, economic

development programmes etc

Encouraging greater innovation and value-

added in key industries

1. Contributes to Government’s priority of


economy – a key component of which is

innovation.

2. Innovation seen as a prerequisite for

economic growth nationally. See Business

Innovation Progress Report (August 2012).

3. Needs national-level decisions and action,

eg competition policy, public science,

research institutions, the innovation

workforce, innovation infrastructure,

intellectual property law, and international

linkages. This is outlined in the Business

Innovation Progress Report (August 2012).

and have a significant asset base. Maori

development is identified through the

Government’s ‘Business Growth Agenda

Progress Report’ (2013) including key actions

such as the Crown-Māori Economic Growth

Partnership.

3. Requires some national-level leadership, eg

increasing access to international markets,

Maori Tourism Action Plan, improving the

utilisation

and productivity of Māori assets.

Reduce inequalities and raise living standards

for everyone in the region



economy and also its social development goals.

2. There is significant variation in annual

incomes between different territorial authorities

in the Waikato region. The level of inequality in

the Waikato region was 35 per cent in 2006,

decreasing and increasing slightly before settling

at 35 per cent in 2010. This is also a national

level issue. The percentage of people with more

than enough, or enough income, to meet every

day needs has decreased in the Waikato region

from 2008 to 2012, while it has remained

relatively static for New Zealand as a whole.

Issue is covered at national level in various

Ministry for Social Development and Treasury

documents.

3. Requires national-level initiatives to help

improve the situation, eg initiatives to improve

living standards, economic development

programmes etc

68

Encourage youth employment

1. Contributes to Government priority of


economy, delivering better public service targets

(eg to have 85 per cent of 18-year-olds getting

NCEA level 2; to increase the proportion of 25-34

year olds with advanced trade qualifications,

diplomas and degrees) and various education

priorities.

2. The Waikato region has high populations of

young people. Addressing youth employment is

a national issue. Department of Labour material

indicates that youth labour force participation

rates are significantly lower than for the rest of

the population. Various initiatives included in the

‘Business Growth Agenda Progress Report’

(2013).

3. Requires a national-level approach and action

to encourage youth employment, eg Youth

Guarantee initiative.

Regional

1. Waikato-wide

influence / strategic

importance to the

Waikato

2. Evidence that

issue is of a regional

scale (eg included in

regional documents)

3. Requires regional-

level decisions,

actions or

partnership to

resolve and / or

deliver

Relatively high industrial diversity

1. The Waikato region has the second-most

diverse economy in New Zealand in terms of

having economic activity spread across many

industries. This is of strategic importance to

the Waikato.

2. This is of a regional scale as evidenced in the

Waikato Regional Economic Development

Strategy Discussion Document and background

work (eg Economic Development Issues and

Opportunities, MartinJenkins & Beca, 2013).

3. Requires regional-level decisions, action and

partnership to take advantage of this.

Significant benefits from natural resources

Image and Branding

1. This is of significant strategic value to the

Waikato region as it involves capturing the

Waikato region’s competitive advantage and

projecting this nationally and internationally.

2. In a discussion paper released in October

2013, the Waikato Economic Strategy

Governance Group recognised that while

local businesses and residents on the whole

have a positive image of the region, it has not

yet been able to project this outside the

region (Waikato Economic Strategy

Governance Group 2013, 7). It therefore

identified “telling the Waikato story” and

image and branding as a potential strategic

High quality amenities and natural assets

1. Natural amenities are of strategic importance

to the Waikato. The region’s range of natural

assets and amenities make it attractive for

domestic visitors, businesses and current and

potential residents.

2. Identified in the Waikato Regional Economic

Development Strategy as a key opportunity.

3. Requires a regional approach to build on this

opportunity.

Coromandel aquaculture

1. Aquaculture is poised to be an important

export sector. It is specific to the Thames-

Coromandel district but it is of regional

69

1. This is of Waikato-wide influence and of

strategic importance to the Waikato, eg three

of the region’s major industries occupy 83% of

the region’s productive land, versatile soils,

energy resources.

2. The region’s range of natural assets make it

attractive for domestic visitors, businesses and

current and potential residents. The Waikato

region’s economy is closely tied to its

environment. This is outlined in a number of

regional documents eg Waikato Regional

Economic Development Strategy Discussion

Document and Waikato Regional Economic

Profile.

3. Requires regional level decisions, action and

partnership to help build on these while

ensuring that we protect the environment and

understand the limits.

priority. (Waikato Economic Strategy

Governance Group 2013, 8).

3. Requires regional level partnership to

achieve this. Needs a regional commitment to

developing the Waikato’s image and brand.

Perception of business environment and

support for innovation

1. This has Waikato-wide influence as it has

been identified as a perceived common issue

across the region.

2. The Waikato Economic Development

Issues and Options report found through

interviews across the region that businesses

perceive that councils could be more

business friendly and that the regulatory

environment could be improved. There is

also a perception that while there is a wide

range of organisations which aim to support

business development and innovation, in

some industry areas it is felt that research,

education and support could do more to

work with business to help solve their

technical and innovation problems.

3. The Waikato Regional Economic

Development Strategy Discussion Document

identifies the following as a key focus area:

regional coordination of business support

and key account management within each

council, consistency in planning and

regulatory processes across the region, and

better council and industry engagement.

This requires a regional approach.

Not a large base of science and technology

professionals or employment in knowledge

significance given its potential to contribute to

the wider economy. As an additional primary

industry, it offers an opportunity to broaden

value-added food manufacturing in the region.

2. Highlighted in the Waikato Regional Economic

Development Strategy Discussion Document and

background work.

3. Requires regional-level decisions and action,

eg transport / freight connections

Encouraging greater value added from our

natural resource-based and related industries

1. The Waikato region has a significant

proportion of New Zealand’s export-facing

industries but further value could be extracted

by adding value through manufacturing and

provision of services. Encouraging this is of

strategic importance to the region.

2. Highlighted in the Waikato Regional Economic

Development Strategy Discussion Document and

background work.

3. Requires regional level decisions and actions,

eg forestry/wood, food production. This requires

a regional approach.

Telling the Waikato Story

1. This is of significant strategic value to the

Waikato region as it involves articulating the

Waikato region’s value proposition as a place to

live, work, study, invest and visit, and promoting

the region’s natural assets, business successes,

strong events calendar and good infrastructure.

2. In a discussion paper released in October

2013, the Waikato Economic Strategy

Governance Group recognised that while local

businesses and residents on the whole have a

70

intensive industries

1. This is of strategic importance to the

Waikato as a key element of innovation is

having a pool of technical and knowledge-

based skills. The relatively limited pool of

technical skills in the region may be a

constraint on the level of innovation

possible. The limited base of skills in this

area is a region-wide issue.

2. Despite a strong science and technology

sector, particularly off the back of

dominance in agriculture and horticulture,

the Waikato region has a relatively small

base of individuals with science and

technology occupations and qualifications.

This is identified in the Waikato Economic

Development Strategy Background Report as

a regional challenge. Recent data also

suggests that the region’s employment

growth in knowledge intensive industries is

slowing. Between 2009 and 2010 there was

0.1 percent employment growth in

knowledge intensive industries, compared

with 0.9 percent nationally (Infometrics,

2012).

3. Requires a regional approach eg through a

regional labour market strategy and other

initiatives.

Relatively weak performance on measures

of visitor attraction, which is also important

for attracting and retaining skills and

business

1. This is strategic importance to the

Waikato region as a whole given that the

Waikato’s image and identity can play a key

positive image of the region, it has not yet been

able to project this nationally and internationally

(Waikato Economic Strategy Governance Group

2013, 7). It therefore identified “telling the

Waikato story” as a potential strategic priority.

(Waikato Economic Strategy Governance Group

2013, 8).

3. Requires regional level partnership to achieve

this. The Waikato Regional Economic


notes the following actions / focus areas under

this priority:

� Developing a credible visitor and investment

offer

� Regional tourism strategy

� A regional approach to business and

investment attraction and retention

All of these would require regional-level action,

decisions and partnership.

Coordination of skills initiatives

1. Skill constraints is identified as a regional issue

and better coordination of skills initiatives is a

key potential focus area identified at regional

level. This is of strategic importance to the

Waikato as it would help to address skills

constraints as well as helping to increase levels

of literacy and numeracy and educational

attainment in youth and the workforce and

ensure businesses can attract, develop and

retain the skills they need to grow.

2. Identified as a potential focus area in the


Strategy Discussion Document.

3. The Waikato Regional Economic Development

Strategy Discussion Document has identified

71

part in retaining and attracting skilled

employees, businesses, investment and

visitors.

2. The region has had relatively weak

performance on measures of visitor

attraction, with low average visitor nights

across all regional tourism organisation

(RTO) areas, and limited growth in visitor

nights in the Hamilton and Waikato RTO

area, although other regional RTOs have

achieved growth in visitor nights at levels at

or above the national average. This was

identified as a regional challenge in the


Strategy Background Report.

3. Requires regional decisions and

partnership. The Waikato Regional Economic


identifies developing a regional approach to

business and investment attraction and

retention as a potential key focus area. This

would require a regional partnership

approach.

better coordination of skills initiatives through a

regional labour market strategy as a potential

area of focus. This would require a regional

partnership approach.

The “greening” of growth, including innovation

in sustainability.

1. This is of strategic importance to the Waikato

given that the region’s economy is closely tied to

its environment and environmental limits are

one of four key challenges facing it (as identified

in the Waikato Regional Economic Development

Strategy Discussion Document).“Green growth”

is an approach that could be considered. It

involves economic development that has

positive environmental outcomes.

2. The Waikato’s natural assets was recognised

as one of one of four key opportunities for the

Waikato region in the Waikato Regional

Economic Development Strategy Discussion

Document. The Waikato Regional Council

recognises green growth as a key opportunity. It

also has traction at national level through the

Green Growth Advisory Group set up under

MBIE.

Inter-regional collaboration.

1. Inter-regional collaboration is of strategic

importance to the Waikato given the high

degree of inter-regional interdependence

(Waikato Regional Economic Profile) and the

importance of inter-regional connections to the

Waikato.


Strategy Discussion Document identified

“Maintaining and building our location

72

advantage” as a potential strategic priority,

which is about continuing to improve inter-

regional and intra-regional linkages. Also

recognised in UNISA documents.

3. Requires regional-level actions and decisions

and inter-regional partnerships, eg UNISA

Improve linkages between research and

education organisations and industry

1. The region needs to improve education

achievement and skills if it is to improve living

standards. (Lower regional educational

achievement noted by MBIE’s Regional

Economic Activity Report)

2. Skills constraints identified as a key challenge

in regional economic development strategy

discussion paper (see ED strategy discussion

paper).

3. A number of players and initiatives but weak

linkages between industry and secondary

education, lack of regionally consistent labour

and skills data and knowledge, monitoring and

evaluation of the success of initiatives and

coordination of current initiatives to ensure

limited resources are targeted at priority areas

(Wintec regional labour market event, economic

development issues and opportunities report)

Sub-Regional

1. Influence beyond

TLA boundary

2. Evidence that

issue is of a sub-

regional scale (eg

included in sub-

regional or regional

documents)

Range of organisations and infrastructure that

support innovation

1. This has an influence beyond TLA boundaries

as the Waikato region as a whole has a

significant range of innovation support

organisations.

2. The Waikato regional economic profile

catalogues the range of tertiary education

Councils not perceived as business-friendly

and common concerns about the costs


with regulations

1. This has an influence beyond individual

TLA boundaries as it has been identified as a

perceived common issue across the region.

2. The Waikato Economic Development

Business-friendly councils

1. This has an influence beyond individual TLA

boundaries as it has been identified as a

perceived common issue across the region.

Encouraging all Councils across the region to

adopt “business friendly” approaches is better

dealt with sub-regionally and regionally as there

could be learnings and gains through a common

73

3. Requires sub-

regional level

decisions, actions or

partnership to

resolve and / or

deliver

institutes in the region, industry training

organisations, Crown research institutes and

Waikato Innovation Park (Waikato Regional

Council 2012, 126). It also noted the presence

of government agencies, membership-based

businesses organisations as well as many

sector-based associations which provide

support to businesses. The majority of these

are located in Hamilton city but serve the

region as a whole.

3. Requires decisions, action and partnership

across the region to build on this strength.

Issues and Options report found through

interviews across the region that businesses

perceive that councils are not as business-

friendly as they would like and there are

common concerns about the costs


with regulations. This indicates that this is

not just an issue for one TLA.

3. The Waikato Regional Economic


identifies the following as a key focus area:

Key account management within each

council, consistency in planning and

regulatory processes across the region, and

better council and industry engagement.

This requires sub-regional and regional level

action and partnership rather than an

individual TLA approach.

approach.

2. The Waikato Economic Development Issues

and Options report found through interviews

across the region that businesses perceive that

councils are not as business-friendly as they

would like and there are common concerns

about the costs associated with consents and

complying with regulations. This indicates that

this is not just an issue for one TLA.


Strategy Discussion Document identifies the

following as a key focus area: Key account

management within each council, consistency in

planning and regulatory processes across the

region, and better council and industry

engagement. This requires sub-regional and

regional level action and partnership rather than

an individual TLA approach.

Social Well-Being

Criteria Social Strengths Social Challenges Social Opportunities

Macro / National

1. Contribution to Government’s

Priorities

2. Evidence that issue is of a

national scale (eg included in

national documents)

3. Requires national-level decisions

or action to resolve and / or deliver

Growing Early Childhood Education Rates

1. This is an important national level

strength of the region as it contributes to

the Government’s priorities of ‘Building a

more competitive and productive

economy’ and ‘Delivering Better Public

Services’. The Government has set a

specific target to increase participation in

early childhood education to 98 per cent.

2. Issue is of national scale as evidenced in

Ministry of Education documents (refer to

Social Well-being Report).

3. Requires ongoing national-level action

and partnerships to continue to grow the

Housing

1. Contributes to Government’s priorities

as housing falls under ‘Building

Infrastructure’ which is part of the

Business Growth Agenda

2. National scale issue – work of the

Productivity Commission, introduction of

Housing Accord and Special Housing Areas

Act, social housing reform, funding for

Maori housing.

3. Requires national-level decisions given

scale of the challenge (see social well-

being report):

Strengthening Collaboration with Central

Government

1. Contributes to Government priority of

Delivering Better Public Services as

collaborating with Central Government is

likely to result in more efficient and

effective approaches.

2. Referenced in Better Local Government

programme.

3. Requires national level decisions and

action if there is to be meaningful

collaboration between local government

and central government.

74

rates of early childhood education.

Increase in School-Leavers with formal

qualifications






Services’. The Government has set a

specific target to have 85 per cent of 18-

year-olds getting NCEA level 2.

2. Issue is of national scale as evidenced in

Ministry of Education documents (refer to

Social Well-being Report).

3. Requires ongoing national-level action

and partnerships to continue to increase

the number of school-leavers with formal

qualifications.

“In 2009, 27 percent of New Zealand

households spent more than 30 percent of

their disposable income on housing

costs”27

“In 2006, 389,600 people, or 10 percent of

the New Zealand resident population,

lived in households requiring one or more

additional bedrooms to adequately

accommodate household members, based

on the criteria in the Canadian Crowding

Index”28

Unemployment






Services’. For example there is a specific

Government target to reduce the number

of people who have been on the Job

Seeker Support benefit for more than 12

months.

2. There is evidence that this is a national

level issue – NZ’s unemployment rate is

currently sitting at around 6%29

.

3. Unemployment requires national led

initiatives and actions as well as regional

ones.

Poverty

1. Contributes to Government priorities of

27

Direct copy from Social Report: http://socialreport.msd.govt.nz/documents/economic-standard-of-living-social-report-2010.pdf 28

Direct copy from Social Report: http://socialreport.msd.govt.nz/documents/economic-standard-of-living-social-report-2010.pdf 29

Statistics NZ, fourth quarter of 2013

75

‘Building a more competitive and

productive economy’ and Social

Development.

2. Issue is of a national scale and identified

in a number of national level documents,

particularly child poverty.


actions, eg Ministerial Committee on

Poverty.

Disproportionate numbers of Maori and

Pasifika in statistics for low education

achievement, poor health,

unemployment, poverty and crime (as

both victims and offenders)

1. Contributes to Government priorities of

‘Building a more competitive and

productive economy’ and delivering

better public services (eg social

development, education, law and order,

health).

2. Identified in Ministry of Education,

Ministry of Health, Ministry of Justice, Te

Puni Kokiri documents. See Social Well-

being report for key areas, eg life

expectancy, educational qualifications,

crime statistics, income levels etc).


action to address as these are complicated

and overlapping challenges.

Regional

1. Waikato-wide influence /

strategic importance to the

Waikato


regional scale (eg included in

Less Crime


Delivering better public service, which has

a specific target to reduce the rate of

crime by 15 per cent, the rate of violent

Issues for Youth (eg employment,

education, health, housing, youth

offending and victimisation)

1. The Waikato region has high

populations of young people. Addressing

Reduction in Duplicating efforts


Waikato as it would help to improve

efficiency and effectiveness in dealing

with social issues across the region.

76

regional documents)

3. Requires regional-level

decisions, actions or partnership to


crime by 20 per cent and the rate of youth

crime by 25 per cent. Crime is of strategic

importance to the Waikato given its

implications.

2. Issue is of a regional scale. See Social

Well-being report for data.

3. Requires regional level decisions to

ensure that the lower crime rates

continue.

Increased Life Expectancy

1. This is a key indicator of health so is of

strategic importance to the Waikato

region.

2. This is a regional strength attributed

mainly to better standards of living and

improved health care. It should be noted

that there still remain marked differences

in life expectancy for different ethnic

groups.

3. Requires regional level actions to

ensure that this continues (eg region-wide

DHB and other health initiatives).

issues facing youth such as skills, training,

education, crime, health and social

development is of strategic importance to

the Waikato as this assists with social,

cultural and economic well-being.

2. There is evidence that issues for youth

are of at least a regional scale (see Social

Well-being report for data).

3. Requires a regional-level approach and

action to address the issues facing youth.

2. Social well-being report indicates this is

a potential issue for the Waikato DHB,

Councils etc and that there is an

opportunity to collaborate and reduce

duplication.

3. Requires a regional-level approach to

collaborate across all of the organisations.

Sub-Regional

1. Influence beyond TLA boundary

2. Evidence that issue is of a sub-

regional scale (eg included in sub-

regional or regional documents)

3. Requires sub-regional level



Information Sharing

1. This has an influence beyond TLA

boundaries as it involves the sharing of

information between areas to improve

social issues across the region.

2. Social well-being report indicates this is

a potential issue for the Waikato DHB,

Councils etc and that there is an

opportunity to collaborate and share

information to achieve better outcomes.

3. Requires sub-regional action to

promote information sharing between

77

different areas.

Cultural Well-Being

Criteria Cultural Strengths Cultural Challenges Cultural Opportunities

Macro / National


Priorities



national documents)



Unique Maori Culture and Heritage

1. Leveraging Maori cultural base for

growth identified as part of delivering on

the Government’s Business Growth

Agenda

2. Identified in national documents

(Historic Places Trust and in Te Puni Kokiri,

eg Statement of Intent)

3. Requires national-level decisions /

action to ensure that this is maintained

and enhanced.

Cultural Capital, eg uniquely Waikato

events/festivals


building a more competitive and

productive economy including through

export markets as tourism and promoting

regions is part of the business growth

agenda.

2. Importance of regional tourism and

culture identified in NZ Tourism Strategy

2015.


action to enhance and build on cultural

capital.

Engaging Youth

1. Youth feature quite strongly in the

Government’s Building a more

competitive and productive economy

priority area, this includes in the areas of

skills, training, education, crime and social

development. Engaging with youth would

contribute to achieving good outcomes in

a number of these areas.

2. There is evidence that issues for youth

are of a national scale (see also Social

Well-being report).

3. Requires a national-level approach and

action to promote youth engagement.

Increasing recognition of the benefits of

cultural investments through expansion

of our ‘cultural capital’.

(see Cultural Capital under national-level

Strengths)

Increased emphasis on the value,

protection and education of our Maori

heritage

(see unique Maori Cultural and Heritage

under national-level Strengths)

Regional



Waikato


Range of opportunities for Leisure, Sport

and Art facilities (eg centres of

excellence)

1. Leisure, sport and art facilities are of

Accurately valuing and maximising

strengths

1. Has a Waikato-wide influence and is of

strategic importance as this needs to be

Raising profile of Waikato identify and

pride

1. This is a Waikato-wide opportunity and

of strategic importance given the need to

78


regional documents)




strategic importance to the Waikato.

Potential for a coordinated approach to

regional facility planning and co-operative

investment to support regional facilities.

2. Issue is of a regional scale as evidenced

by work being undertaken by Creative

Waikato and Sport Waikato.

3. Requires regional-level decision and

partnerships in order to take advantage of

opportunities (see Waikato Creative

Facilities Plan and Waikato Regional

Facility Sport Plan currently under

development).

Waikato’s central location and strong

natural amenities valued by its residents

1. Location and natural amenities are of

strategic importance to the Waikato.

2. Identified in the Waikato Regional

Economic Development Strategy as a key

opportunity.

3. Requires a regional approach to build

on this opportunity.

achieved across the region not just in one

local area.

2. Issue is of regional scale and is referred

to in the Waikato Regional Economic

Development Strategy discussion

document.

3. Requires a regional approach.

Capturing ‘Waikato Stories’

1. This challenge is region-wide and it is a

matter that is of strategic importance to

the Waikato in order to extend our

knowledge on our values, beliefs and

identities.

2. Challenge is of regional scale – referred

to in the Waikato Regional Economic


document.

3. Requires a regional approach, action

and partnership to capture Waikato

stories.

Greater investment in heritage, arts,

sport and leisure

(see opportunities for Leisure, Sport and

Art facilities under national-level

Strengths)

Leveraging off the region’s major events

(see cultural capital under national-level

strengths)

Increasing residents’ engagement with

arts and culture equal to or above the

national average

1. Arts and culture are of strategic

‘Tell the Waikato Story’ and raise the

region’s profile – this is important for

existing residents as well as for attracting

people and businesses to the Waikato.

2. Opportunity is of regional scale as it

requires a region-wide approach not just a

sub-regional one.

3. Requires regional-level decisions,

actions and partnership to raise the

region’s profile.

Increasing protection of historic heritage

1. Has influence beyond individual TLA

boundaries (eg significant historic sites)

2. Identified in regional documents as well

as sub-regional (eg RPS, Tāngata Whenua

Management Plans, Future Proof etc).

3. Requires sub-regional decisions and

action given that heritage needs to be

promoted, improved and protected in

joint arrangements that go beyond

individual districts.

Greater value could be generated from

the Waikato base of destination assets

1. Waikato-wide influence and of strategic

importance in order to promote all of the

destination assets in a cohesive way.

2. Importance of regional tourism

identified in Waikato Regional Economic


document.

3. Requires regional level decisions and

action to build on this.

Having a clear, articulated and agreed

79

importance to the Waikato. Potential for

greater engagement through a regional

approach.



Waikato.


partnerships in order to lift engagement

levels.

value proposition for the region


of strategic importance given the need for

a clear value proposition in order to ‘Tell

the Waikato Story’



sub-regional one.


actions and partnership to have a clear,

articulated and agreed value proposition.

Better coordination of regional marketing

promotion


of strategic importance given the need to

‘Tell the Waikato Story’ in a coordinated

manner in order to promote the Waikato

as a place to live, work, study in, visit and

invest in.



sub-regional one.


actions and partnership to have a

coordinated position.

Enhancing access to and participation in

cultural activities

1. Cultural activities are of strategic

importance to the Waikato. Potential for

greater levels of access and participation

through a regional approach.



Waikato.

80


partnerships in order to improve access

and participation levels.

Sub-Regional








Significant natural features that are

culturally linked to their landscape

1. Significant natural features with cultural

linkages often have an influence beyond

TLA boundary, eg geothermal area in and

around Taupo, our coastlines, the DOC

estate and our fresh waterways.

2. Identified in documents such as the RPS

as well as sub-regional and local

strategies.

3. Requires sub-regional level partnerships

to ensure that these significant areas are

better understood and protected as well

as promoted.

Cultural diversity

1. Has an influence beyond individual TLA

boundaries. However trends towards

greater cultural diversity are not evenly

distributed across the region’s territorial

authorities – certain TLAs or sub-regions

have greater cultural diversity than others.

2. Most TLAs recognise the importance of

thriving communities where diversity and

activities/events are encouraged in the

Long-Term Plans and other documents.

Referenced at sub-regional level in

strategies such Future Proof.

3. Supporting the growth of cultural

diversity requires sub-regional level

actions and partnerships.

Supporting growth of cultural diversity

1. Has an influence beyond individual TLA

boundaries. However trends towards

greater cultural diversity are not evenly

distributed across the region’s territorial

authorities – certain TLAs or sub-regions

have greater cultural diversity than others.

2. Most TLAs recognise the importance of

thriving communities where diversity and

activities/events are encouraged in the

Long-Term Plans and other documents.

Referenced at sub-regional level in

strategies such Future Proof.

3. Supporting the growth of cultural

diversity requires sub-regional level

actions and partnerships.

Strengthening community and fostering

diversity

(see ‘supporting growth of cultural

diversity’ under sub-regional cultural

challenges).

81

Environmental Well-Being

Criteria Environmental Strengths Environmental Challenges Environmental Opportunities

Macro / National


Priorities30



national documents)



High percentage of high class soils

1. This contributes to the Government’s

priorities around building a more build a


economy. The Waikato has some of the

most productive soils in New Zealand and

therefore contributes significantly in the

areas of primary production.

2. This is a matter of national importance

– significance of primary industries to

national economy, particularly exports

highlighted in Government’s Business

Growth Agenda.


action to ensure that the Region continues

to have high class soils and to use these in

a sustainable way.

Good source of renewables

1. Building Infrastructure is part of the

Government’s Business Growth Agenda

(under the building a more competitive

and productive economy priority).

Building Infrastructure has a focus on

securing energy as a key initiative – this

includes supporting renewable energy.

2. National-scale issue given that it is

recognised in the National Energy Strategy

2011-2021. This Strategy targets achieving

90% of the country’s electricity generation

from renewable sources by 2025.



one of which is freshwater reform

2. Issue is of a national scale (Freshwater

Reform documents and work of the Land

and Water Forum)



regulation at the national level, law

changes and environmental reporting

Increasing and competing demand for

fresh water


one of which is freshwater reform



and Water Forum)




changes and environmental reporting

Contamination and loss of soil through

intensive and inappropriate land use

1. A central priority for the Government is

to build a more competitive and

productive economy. A New Zealand’s

productive sector is reliant on good

quality soils. Government has also

signalled environmental protection as an

Ensuring that economic growth is joined

up with environmental limits

1. The economic growth of the Waikato

region has a strong correlation with its

natural resources. Several key industries

identified are reliant on natural resources,

some of which are reaching their limit in

terms of degradation and over-use.

Natural resources are a priority area for

the Government – this includes

environmental protection.

2. Various aspects of this recognised at

national level, eg work of the Land and

Water Forum, national environmental

standards and national policy statements.

3. The scale and significance of this matter

requires national-level decisions and

actions in order to have the debate and

then come up with solutions.

30

Note that Government’s environmental priorities are around freshwater and climate change

82

3. Requires national-level initiatives and

collaboration to build on the Waikato’s

significant renewable electricity resources.

Steady supply of freshwater


one of which is the importance of

freshwater



and Water Forum)




changes and environmental reporting in

order to ensure that this remains a

regional strength

area to be addressed under natural

resources.

2. There is a national environmental

standard on contaminants in soil.

Recognised as an issue at a national level.

See environmental well-being report for

documented regional information on soil

quality and soil loss.


action to resolve given the tensions

between our productive sectors and the

impact on the environment.

Regional



Waikato



regional documents)




Mild year-round climate

1. Climate of the Waikato is a region-wide

strength. It is strategic as it supports the

high levels of primary production within

the region.

2. A mild climate is a regional scale matter

– the Region tends to have warm, humid

summers and mild winters. No location is

more than 80 km from the sea which

means temperatures are quite regulated.

3. This strength doesn’t require any

decisions or actions, however it is a

regional strength that can be promoted.

A region where the economic benefits of

good environmental outcomes are

valued



1. Waikato-wide influence (see water

quality map and findings of environmental

well-being report

”Overall there has been a net

deterioration in river water quality across

the region”). Strategically significant given

the importance of water to the region.

2. Issue is of a regional scale (See Regional

Policy Statement, Regional Plan and

community outcomes at regional level)

3. Requires regional-level decisions and


working together through the RPS and

Regional Plan mechanisms)

Decline in the health and extent of

biodiversity

Taking an ecosystem services approach

to describe impact that activities are

having on our environment.

1. Has Waikato-wide influence and is of

strategic importance to the region. See

Environmental Well-being report at page

88: The total value of ecosystem services

in the region was calculated at $9.4 billion

in 1997, which is 12.4 billion in 2009

dollars.

2. Issue is of regional scale. Environmental

Well-being report has shown that many of

the region’s natural resources are

declining in quality and quantity due to

the way in which they are being used.

Recognised in the Proposed RPS.

3. Requires a regional-level approach,

decisions and partnership to implement.

83

Waikato given that much of the region’s

economic development is dependent

upon natural resources.

Surveys carried out indicate that a

significant proportion of the community

are of the view that a healthy

environment is necessary for a healthy

economy.

2. Recognised in the Proposed RPS and in

the Waikato Economic Development


3.Good environmental outcomes require

regional-level decisions, actions and

partnerships given the cross-boundary

and inter-related nature of a number of

environmental impacts.

1. Waikato-wide influence (see section 5.2

of environmental well-being report)

2. Evidence in well-being report that issue

is of regional scale. Also addressed in

Proposed RPS.

3. Requires regional-level action. Well-

being report notes that there should be

regional collaboration to improve

biodiversity information.

Effects of climate – increasing frequency

of extreme climate events (droughts /

floods)

1. Projected to alter the climate

conditions of the whole region.

2. Issue is of regional scale – eg potential

increased flood events, drought, sea level

rise etc

3. Requires regional action and

partnership to prepare for, plan and

manage effects

Provide for consideration of cumulative

effects of land use decisions on natural

resources.

1. This is a Waikato-wide opportunity.

2. Importance of considering cumulative

effects recognised in the Proposed RPS.

3. Requires regional-level decisions and

partnership as this would allow

consideration of management decisions

across jurisdictions and across

environments (land / water and water /

coast etc) across environments.

Maintaining a healthy environment for

natural resources as a key asset for

future economic growth.


Waikato given that much of the region’s

economic development is dependent

upon natural resources.

2. Recognised in the Proposed RPS and in

the Waikato Economic Development


3. Good environmental outcomes require

regional-level decisions, actions and

partnerships given the cross-boundary

and inter-related nature of a number of

environmental impacts.

Sub-Regional







An extensive and varied coastal

environment

1. Coastal environment in the Waikato

does have influence beyond individual TLA

boundaries.

2. Matter is of sub-regional scale as it is a


1. Influence beyond TLA boundary (see

water quality map and findings of

environmental well-being report).

2. Issue is of a sub-regional scale

(identified as a key issue by TLAs)

Collaboration to fill information gaps

1. The collaboration required in order to

fill the information gaps is sub-regional

and regional and requires more than an

individual TLA response.

2. Data gaps are well documented on

84

resolve and / or deliver strength for Waikato, Otorohanga,

Waitomo, Thames-Coromandel and

Hauraki Districts

3. At times requires sub-regional level

decisions because of cross-boundary

impacts and interplay between the land

and the coastal environment, for instance

land use in coastal areas and coastal

marine area activities through the

Regional Council.

3. Requires at least sub-regional level

decisions and action, including

collaborative planning and environmental

reporting.

Incomplete information on some

resources (eg coastal and marine

environment and

natural hazards)

1. Information on coastal marine

environment and natural hazards would

be useful to all TLAs and the Regional

Council as these often have an influence

beyond TLA boundaries.

2. Data gaps are well documented on page

86 of the environmental well-being

report. This illustrates that the issue is at

least a sub-regional one.

3. Filling these data gaps requires at least

a sub-regional approach and probably a

regional one in order to integrate

information.

pages 86 and 89 of the environmental

well-being report. This illustrates that the

issue is at least a sub-regional one and the

importance of regional collaboration.

3. This level of collaboration requires at

least sub-regional level decisions, actions

and partnerships in order to acquire

consistent information.

85

Methodology and Analysis for Determining Headline Strengths, Challenges and Opportunities

Significance nationally and

regionally

Has an impact on other well-

beings

Issue of high importance to the

community or significant

benefit

Strengths

Nationally significant transport juncture

and connections to Auckland and Tauranga

Contributes to Government

priorities of building a more

competitive and productive

economy of which infrastructure

is a key part. Waikato has the

highest per capita central

government capital investment

in transport and

communications, a good quality

road transport network, two of

the busiest rail lines in New

Zealand.

Impacts on economic and social

well-being

The Waikato region’s transport

connections are a key influence

on economic performance. These

transport connections can

influence business investment

and location decisions; and can

reduce costs for firms, workers

and the public.

Contribution to national economy through

important industry sectors




economy. Industry sectors are

both nationally and regionally

significant, eg agriculture and

energy.

Impacts on economic and social

well-being

Employment opportunities or

attracting business to the district

identified as a key issue for the

community (41% identified this

as a main issue in the Waikato

Regional Perception Survey,

2013).

Hamilton as the Waikato centre for

innovation, employment and services




economy. Hamilton has strong

economic and population

growth. Identified in a number of

regional documents as being the

primary centre for the Waikato.

Impacts on economic, social and

cultural well-being







2013).

86

Innovation is a key driver of

regional competitiveness and

economic growth. Productivity

performance is linked to

concentrations of investment

and labour.

Challenges

Economic inequalities across the region Contributes to the Government’s

priority of building a more


economy and also its social

development goals. Issue is of

significance regionally but it is

also a national challenge.


cultural well-being







2013). The second main issue for

the community related to

financial or economic issues

(21%).

An ageing population and shrinking skill

base

All foreseeable growth in New

Zealand's TA's will be at 65+

years, and most will see decline

in other age groups. Every year

for the next 15 years a

successively larger cohort will

retire (or reduce its participation)

and will be 'replaced' by a

successively smaller cohort at

labour market entry age. This is a

regional and a national

challenge.


cultural well-being

The loss of human capital arising

from depopulation and ageing

populations identified in the top

three common challenges across

the region.

Declining rural populations and associated

decline in services

The sub-national end of

growth/onset of absolute decline

now affects 36 per cent of NZ


cultural well-being

The loss of human capital arising

from depopulation and ageing

populations, and the affordability

87

TLA’s. Will become increasingly

intractable as structural ageing

progresses and natural increase

diminishes. This decline in rural

populations in particular is

leading to altered local demand

and consumption patterns

affecting the provision and

location of services (eg schools,

supermarkets, health care,

leisure and transport). This is

both a significant regional and

national issue.

of infrastructure identified in the

top three common challenges

across the region.

Water quality and water allocation Contributes to Government’s

priorities - one of which is

freshwater reform. Issue is of a

national scale but is also a

particular issue in the Waikato

given that for a significant part of

the region water is over-

allocated and water quality in

some urban and rural areas is

degraded.

Impacts on economic, social,

cultural and environmental well-

being

5% increase in mention of water

related issues in the Waikato

Regional Perception Survey, 2013

compared to 2010

Opportunities Maximising opportunities, including

investment, through aligned planning

Of significance nationally and

regionally given the efficiency

savings by acting collectively with

central Government on high

priority issues, consistency with

where the Local Government

Commission is heading in terms

of speaking with one region-wide

voice, strategic long-term

planning, simplified and



being

Efficiency savings for NZ Inc and

Waikato Ratepayers (cost savings

could be anywhere from 40 to 50

million over 10 years just for

having fewer plans, policies,

bylaws and common planning

procedures)

88

streamlined processes and

efficiency initiatives such as

shared services.

Leveraging Maori development Part of the Government’s

building a more competitive and

productive economy priority. Iwi

are active investors in the

Waikato region and have a

significant asset base. Maori

development is identified

through the Government’s

‘Business Growth Agenda

Progress Report’ (2013).



being

Significant potential benefit to

the regional community given

the economic outcomes (iwi

investments, landholdings etc) as

well as the social, cultural and

environmental programmes (eg

Waikato-Tainui employment and

training initiatives, Waikato

Raupatu River Trust etc).

Connectivity to the Upper North Island Contributes to the Government’s

priority of building a more


economy of which infrastructure

is a key part. The importance of

Upper North Island connections

is included in a number of key

national-level documents

including the Government Policy

Statement on Land Transport

Funding and UNISA documents.



being

Upper North Island of New

Zealand is critical to New

Zealand’s economic success and

in turn the success of the

Waikato. Significant benefits for

the Waikato community from a

collective partner approach and

enhancing these connections.

89

Attachment 1 to Appendix 1: Regional Economic Activity Report – Examples of Business Growth Agenda Actions Relevant to the Waikato

Waikato Spatial Plan - Summary Report FINAL€¦ · 10. Key Regional Strengths, Challenges and...

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