Waikato Spatial Plan Summary Report

Transcription

1 Waikato Spatial Plan Summary Report February 2014

2 Table of Contents 1. Summary 1 2. Introduction Background Purpose Context Spatial Planning Approach Risk and Resilience The Waikato s Changing Spatial Structure Significant Drivers of Change Population and Demographics Land Use Trends Urban Form Our Cultural Heritage Forecasted Regional Demographic Changes Critical Infrastructure that Supports our Communities Spatial Planning Findings of Well-Being Evidence Base Economic Well-Being Social Well-Being Cultural Well-Being Environmental Well-Being Infrastructure High Level Linkages Methodology to Categorise Regional Strengths, Challenges and Opportunities Criteria National, regional and sub-regional strengths, challenges and opportunities Outcomes from Council Workshops Key Regional Strengths, Challenges and Opportunities Key Matters for the Waikato Region The Headline Strengths, Challenges and Opportunities Conclusions and Recommendations Conclusions 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

3 Appendix 4: Assessment of Strengths, Challenges and Opportunities 65

4 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

5 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 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. 2

6 Challenges Contribution to national economy through important industry sectors The Waikato region has a significant proportion of New Zealand s exportfacing 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. 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 tradeoffs 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. 3

7 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: 4

8 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

9 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; 6

10 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) (b) to enable democratic local decision-making and action by, and on behalf of, communities; and 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. 7

11 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 subregional 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), A potential strategic spatial planning model for the Waikato Region Research Report, Jan Huijbers, December

12 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) 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 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. 4 A Business Case for Completing the Waikato Plan, January

13 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 wellbeing reports that are summarised in this report. These elements will then underpin the development of a full spatial plan for the Waikato. Business Case / Benefits of Spatial Planning Research / Four Wellbeings Reports Spatial Plan 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. 10

14 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 trends 5 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 economy 6 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 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). 11

15 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 Demographics 7 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 Figure 1: Population of Waikato Region, 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 The city s population increased by 55.4 per cent over the period , 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 , University of Waikato, July

16 The main component of the Waikato Region s growth has been natural increase, with net migration losses in the early 1990s and across the 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 13

17 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 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-region 10, 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 - Accessed 24 September

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

19 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 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 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,

20 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 singlelargest 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 and Years, Waikato Region and Total New Zealand, 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

21 Figure 4: Projected Change in Urban Waikato Population

22 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 19

23 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). 20

24 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 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. 21

25 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. 22

26 Figure 5: Major Transport Infrastructure and Power Stations in and around the Waikato Region 23

27 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 24

28 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. 25

29 Figure 6: Waikato Spatial Plan Relationship with other Documents National Direction (Government s Priorities, NPS, GPS, NLTP) Waikato Spatial Plan RMA RPS Regional Plans District Plans LTMA RTP Local Transport Strategies LGA LTPs Sub-regional and Local Growth Management Strategies / Spatial Plans (Future Proof, TD2050, Coromandel Peninsula Blueprint) 26

30 7. Findings of Well-Being Evidence Base This section provides the high level findings from the technical evidence base 14, including: Figure 7: Well-being Linkages 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. 27

31 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. 28

32 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 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 Economic inequalities across the region Important industry sectors (dairy, meat & Encouraging greater innovation and valueadded in key industries. horticulture, forestry and wood products, high value manufacturing and services) Difficulty projecting positive image Relatively high industrial diversity nationally and internationally Significant economic benefits from natural Managing water and soil demands and the resources environmental impacts of natural resource Range of organisations and infrastructure use that support innovation Not a large base of science and technology Good quality road and rail transport professionals or employment in knowledge network intensive industries Nationally significant transport juncture for Relatively weak performance on measures road and rail, and has good connections to of visitor attraction, which is also large and growing populations in Auckland important for attracting and retaining skills and Tauranga. 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. 29

33 7.2 Social Well-Being 15 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: Strengths 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 Waikato Social Wellbeing Challenges 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) Opportunities for the Waikato Spatial Plan 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. 30

34 approach, possible reduction in duplicating efforts from councils working toward the same goal 7.3 Cultural Well-Being 17 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: Strengths 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 Waikato Cultural Wellbeing Challenges 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 31

35 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 Opportunities for the Waikato Spatial Plan 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: Strengths Good quality soils including a high percentage of the nation s high class soils Waikato Environmental Wellbeing Challenges Degraded water quality due to land activities, including effects of 32

36 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) Opportunities for the Waikato Spatial Plan 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 approach 19 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 33

37 Figure 8: Water Allocation Across the Waikato Region 34

38 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, longlived 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 35

39 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. 36

40 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 37

41 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 subregionally important is outlined below: Economic, Social, Cultural and Environmental Well-Being Strengths, Challenges, Opportunities Nationally Significant Contributes to Government s priorities Evidence that the issue is of a national scale Requires national-level decisions to resolve and / or deliver Regionally Significant 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 Sub-Regionally Significant 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 38

42 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 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. Economic Well-Being Economic Strengths National Regional Sub-Regional 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. Economic Challenges Skills Constraints Environmental Limits (eg water) Economic inequalities across the region Encouraging greater innovation and valueadded 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 39

43 Economic Opportunities Large economy with strengths in nationally significant and exporting industries attraction, which is also important for attracting and retaining skills and business High quality amenities and natural assets Coromandel aquaculture Business-friendly councils. Connectivity to the Upper North Island and gateway to the south Encouraging greater value added from our natural resource-based and related industries Leveraging Maori development Reduce inequalities and raise living standards for everyone in the region Encourage youth employment Telling the Waikato Story Coordination of skills initiatives The greening of growth, including innovation in sustainability. Inter-regional collaboration. Social Well-Being Social Strengths Social Challenges Growing Early Childhood Education Rates Increase in School- Leavers with formal qualifications Housing Unemployment Poverty Improve linkages between research and education organisations and industry. Less Crime Increased Life Expectancy Issues for Youth (eg employment, education, health, housing, youth offending and victimisation) Disproportionate numbers of Maori and Pasifika in statistics for low education achievement, poor health, unemployment, poverty and crime (as both victims and offenders) 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 40

44 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 Cultural Challenges Engaging youth Accurately valuing and maximising strengths features that are culturally linked to their landscape Cultural diversity Supporting growth of cultural diversity Capturing Waikato Stories Greater investment in heritage, arts, sport and leisure Leveraging off the region s major events 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 Increasing residents engagement with arts and culture equal to or above the national average Raising profile of Waikato identify and pride Increasing protection of historic heritage Greater value could be generated from the Waikato base of destination assets Maintaining existing cultural facilities Strengthening community and fostering diversity 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 Environmental Well-Being Environmental High percentage of high Strengths class soils Greater coordination of arts, creativity, sport and leisure facilities and events Mild year-round climate An extensive and varied coastal environment 41

45 Environmental Challenges Environmental Opportunities Good source of renewables Steady supply of freshwater Degraded water quality Increasing and competing demand for fresh water Contamination and loss of soil through intensive and inappropriate land use Ensuring that economic growth is joined up with environmental limits A region where the economic benefits of good environmental outcomes are valued Decline in the health and extent of biodiversity Effects of climate increasing frequency of extreme climate events (droughts / floods) 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. Incomplete information on some resources (eg coastal and marine environment and natural hazards) 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 Challenges Waikato region is relatively youthful compared to other regions Ageing driven growth Low fertility / smaller family sizes Maintaining a healthy environment for natural resources as a key asset for future economic growth. Steady regional growth overall Tightening of the labour market Net migration for some areas Hamilton City growth Transiting from growth to decline Population waves and troughs passing through education and other services 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 42

46 Infrastructure Strengths Road and rail network is of national importance providing connections through and to the Waikato The Waikato Expressway Hamilton Airport and Crawford St Inland Port Existing collaborative processes to address cross-boundary issues that can be utilised Major Event facilities Energy generation (Waikato generates 50% of NZ s electricity) Challenges Significant corridors for infrastructure (both within the region and into other regions) 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 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 Ageing population will have a significant impact on the infrastructure needs of the region 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. Lack of collaborative and forward planning for infrastructure 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. 43

47 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 44

48 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 wellbeings. 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. 45

49 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) Economic inequalities across the region 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 46

50 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 Leveraging Maori development 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 47

51 Strengths Challenges Opportunities 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 Declining rural populations and associated decline in services An ageing population and shrinking skill base Water quality and water allocation Economic inequalities across the region Maximising opportunities, including investment, through aligned planning Leveraging Maori development 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. 48

52 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 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 which outlines a hierarchy of interventions for improving local government performance (see Figure 9), have had an influence. Figure 9: Opportunities for Regional Collaboration 21 Wellington Region Councils Governance Review, October 2010, Price Waterhouse Coopers, Diagram in Figure 5 from page 52 49

53 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. 50

54 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 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

55 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 subregional 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 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 subregional 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; 52

56 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 $1.3B 22. 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. When the Waikato Region has acted in a collective manner, this has proven to be effective when seeking additional Government investment. Recent examples include: 1. 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. 2. Lake Taupo Protection Trust secured a combined fund of $81M to reduce nitrogen leaching into Lake Taupo over 15 years. 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 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,

57 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: 54

58 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. 55

59 EXAMINATION OF POTENTIAL COST SAVINGS FOR THE WAIKATO COUNCILS Legislation Opportunity Evidence of Cost Savings Potential Waikato Outcome RMA LGA Efficiencies in Whole of Government Investment Combined RMA Plans (District Plans) similar to those achieved in South Wairarapa Combined district plan administration processes Shared SOE Reporting Shared policies and approaches 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. 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 Wairarapa Councils achieved: Efficiencies in plan administration, legal services and notification processes equivalent to approximately 15-20% of current District plan administration budgets. 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 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, 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. 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 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. 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. 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 56

60 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. Other Functions Informing the form of Local Government in the Waikato Provision of infrastructure 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. The Road Maintenance Task Force report forecasts 2-20% cost saving for road maintenance if road asset management were altered from its present form. 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. Using the RMTF figures this would amount to between $10 and $100M savings over the next 3 years. 57

61 Appendix 2: List of Technical Reports Waikato Region - Demographic Profile , 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 58

62 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). 59