omaio governance and leadership development program
TRANSCRIPT
Omaio Development Strategy • Opotiki District Council 10-Year Planning
• Wakatu Incorporation 40-Year Development Story
1
Governance and Leadership Development Program
OPOTIKI DISTRICT COUNCIL STRATEGY WORKSHOP:
SUMMARY PACK
10 November 2017
ROLE OF THIS PACK
To assist ODC to draw insight from the discussions that will inform future prioritisation and action.
To provide a high level summary of outputs from a facilitator perspective.
To provide a framework within which input materials and meeting records can be located for ease of future reference.
2
OUTLINE
1. Introductory material – external stakeholders
2. Opportunity and challenge: Summary insights – Dr Rick Boven
3. Session summariesa) Economic Overview – John Galbraith – Page 17b) Aquaculture – Peter Vitasovich – Page 18c) Kiwifruit – Ian Coventry – Page 19d) Maori economy – Karamea Insley – Page 20e) Manuka – Karl Gradon – Page 21f) Social Development – Barbara MacLennan – Page 22g) Climate change – Mark Townsend – Page 23h) Water management – Ari Ericson – Page 24
3
Dr Rick Boven
OPPORTUNITY AND CHALLENGE
4
OPOTIKI HAS NUMEROUS VALUABLE OPPORTUNITIES FOR ECONOMIC GROWTH
Aquaculture and mussel processing expansion
Construction of harbour development, processing plant and housing
Expansion of gold kiwifruit production on Maori land
Manuka/honey development in the hinterland
Tourism growth, including adventure tourism and recreational fishing
Income increases for existing residents and the incomes from new residents.
Total GDP increase could be a very large increase on baseline GDP if fully realised
Scale and complexity of change relative to existing institutional capacity is extremely high
5
Opportunities
Impacts
OPOTIKI ENJOYS AN EMERGING COMMON VISION AND RANGE OF SUPPORTIVE STAKEHOLDERS
Opotiki’s leaders are close to having a shared understanding of the opportunities and developments, and
• The potential for a common vision for the district’s future
There is goodwill and common interests and the beginnings of a practical commitment to work together
Central government appears supportive and is working through options to provide sufficient funding for the harbour development
The BoP Regional Council is also supportive
6
BUT GROWTH POTENTIAL CREATES IMPORTANT AND UNUSUAL CHALLENGES
The amount of growth potential is large relative to the size of the existing town and the district population which creates important and relatively unusual challenges:
• Ensuring sufficient supply of skilled and work-ready people• Ensuring work-readiness of sufficient numbers of existing people• Ensuring the school and school-to-work transition is operating effectively• Attracting people to live in the district
Further improvements to local infrastructure and services, notably:• Housing expansion – likely new subdivision(s), town centre improvements
and expansion/infrastructure for Woodlands• Commercial land and supportive zoning• Connectivity infrastructure - bridge, road quality, electricity and
communications resilience• Services, including medical, freight, storage and courier
Expanding the capabilities and capacities of the District Council in advance of rates income growth
7
THE SCALE AND COMPLEXITY OF CHANGE IMPOSES A “BALANCED GROWTH’ DILEMMA
8
Business growth
Labour force
HousingConsenting/ planning
Council capacity
Multiple inter-related growth requirements
A constraint in one area could lead to impediment in another
Balanced growth causality (example)
OPOTIKI HAS SOME ADDITIONAL OBSTACLES TO OVERCOME TO ACHIEVE THE VISION
Workforce supply arrangements and accommodation which will meet the seasonality needs of local businesses
Nearby expansion of economic activity at Kawerau, creating competition for workforce
Striking the right balance between work-force development efforts that are shared among the district’s important and collaborating employers versus competing for workers
A town centre where expected sea level rises will create future costs for protection
Improving the liveability brand of the town and environs to attract and retain people
• Including by telling a compelling and authentic story about the status, the potential and the improvements planned
9
THIS ADDS UP TO AN UNUSUAL SET OF CIRCUMSTANCES
Growth potential with huge economic and social prizes, with material funding almost lined up
Supportive iwi (imminent settlement) and Council (rating base challenges)
Need for large and balanced growth across a wide variety of supporting dimensions
Common interests, shared aspirations and a strong desire to collaborate
Calls for a new thinking about the approach to development
10
SHS EXPERIENCE OF SIMILAR DEVELOPMENT CHALLENGES
These challenges arise when there is an economic development horizon, or strategy need, at a city-wide or national level.
• The challenge is usually material, the solution is not in the hands of businesses or governments alone and a collaborative planning effort is required
• Examples include national economic strategies for Ireland, Israel, Australia and Sweden, and city strategies for Toronto and Auckland
• What is unique here, in our experience, is the absolute small scale of the Opotiki District relative to size of the growth and infrastructure challenge.
The solution we suggest is a collaborative planning and development approach that reaches beyond the mandate and resources of ODC:
• A “guiding coalition” of senior stakeholders to support an integrated transformation programme
• Within that a partnership with central government for infrastructure and social development
• Closer cooperation with regional council, and ongoing cooperation with Toi EDA (reflecting “the opportunities are in the East; the resources are in the West”)
• Building substance on a strong and well governed relationship with iwi (principally but not exclusively Whakatohea) as implementing partners on key social programmes.
With further development of a promotion strategy for Opotiki to help attract and retain skilled people (noting housing and education needs)
11
Participant set-up material
EXTERNAL STAKEHOLDER DISCUSSIONS
12
AGENDA: THE RUN SHEET FOR THE AFTERNOON
Time Name Role Content
1.00 John Forbes Mayor, Opotiki District
Welcome, introduction and Harbour Update
1.20 Rick and David Stakeholder Strategies Overview of the process and outcomes
1.30 John Galbraith Economic Development
Aquaculture, kiwifruit, packing, manuka
2.00 Group discussion and feedback
You do the work Divide into four groups ( Aquaculture/ Peter Vitasovich; Manuka/ Karl Gradon; Hort/Maori land/Chris Insley; Kiwifruit packing/ Ian Coventry)
3.00 Barbara MacLennan(Abby Tozer to assist)
Social issues and opportunities
Mark TownsendAri Ericson
Infrastructure / Waters
3.30 Group discussion and feedback
More work for you Divide into two groups for each workstream (Barbara, TBC, Mark, Ari)
3.45 Refreshments Beer O’clock You know what to do…
4.30 Rick and David Stakeholder Strategies Summary and next steps
4.45 John Forbes Mayor Wrap and thanks
13
GOAL: IDENTIFYING WHAT IS BIG, UGLY AND NOT SORTED YET?
What does everything that is happening mean for us?
What are our opportunities? (hint: this is a once in a lifetime breakthrough)
What needs to be put in place locally to take advantage of these?• Of these things, what have we got, in train, and not got yet?• Of the gaps, what should be our top priorities
What does this mean for Council actions?
14
METHOD: PERSUING A LOGICAL CASCADE FROM OPPORTUNITIES TO CONSTRAINTS TO ACTION
Opport-unities
• Examples: Aquaculture, Kiwifruit, Omaio, Manuka
Obstacles overcome
• Harbour infrastructure design, potential Crown funding, labour supply, water planning
Remaining issues
• Skills and training, housing, helping families
Strategy to resolve?
• Training courses, , community housing?
Priorities and
capacity• Work on
in LTP
15
SESSION SUMMARIES
16
THERE IS EXTRAORDINARY BREADTH AND SCALE IN THE LOCAL ECONOMIC OPPORTUNITY
The harbour proposal could see 4 sea farms run over 12,500 ha and creating over 1000 jobs and generating $250m pa
Kiwifruit generates $322m EBIT from $600m revenue, and Zespri is planning to release up 3000 ha of gold kiwifruit licences, nearly doubling production
• 3500 ha arable area currently in Maori land
Dairy generates $37m revenue and $5m EBIT in the Opotiki region• A further 2500 ha of arable area is in Maori land
Kawerau is also implementing a rapid development plan that will increase labour demand in the Eastern Bay, including:
• Poutama Trust dairy factory opening late 2020• Penglin particle board plant• New container terminal
17Source: John Galbraith, workshop participants; more detail contained in presentation slides
AQUACULTURE INDUSTRY NEEDS SIX CONDITIONS TO BE MET TO MAKE OPOTIKI AQUACULTURE SUSTAINABLE
Aquaculture development should be seen as an end to end value chain• Involving farming, processing, transport and marketing
Six key conditions must be met to enable the aquaculture proposition:1. Finance and the support of shareholders2. Trained labour force: on water, processing, marketing, 1000+ FTEs3. Shared resources (both within and between industries) to lower costs:
• IT and communications• Skills and training, quality control• Transport and logistics
4. Land/industrial park as part of Harbour development5. Housing for expanding labour force6. Image/social amenity of Opotiki
Harbour project dealt with in detail separately but noting that user charges to be agreed
Potential tourism (e.g. recreational fishing) spinoffs
18Source: Peter Vitasovich, workshop participants
KIWIFRUIT IS SET FOR RAPID LOCAL EXPANSION WITH MAJOR CAPEX, LABOUR AND INFRASTRUCTURE NEEDS
Zespri is soon to release 3500 additional ha of growing area, which over time will almost double the current size of the gold kiwifruit harvest
Around $2 billion of capex will be required to fully develop the permitted area• It is unclear whether this capital requirement will compete with/crowd out other capital
demands in the Bay (hopefully unlikely)• Further intensification implies higher concentration of risk (PSA)
Massive seasonal labour force, including accommodation and pastoral requirements; and the Opotiki community has a brand and social facilities deficit to overcome
• Drug-free workforce• Housing, education
Scale of kiwifruit expansion will put additional pressure on Eastern Bay’s infrastructure• 1300 trucks, 5000 driver movements), one bridge out• Electricity, one line out• Broadband for real time data connectivity• Resilience is a concern
19Source; Ian Coventry, kiwifruit working group, workshop participants
THERE IS CONSIDERABLE OPPORTUNITY AND CHALLENGE IN MAORI LAND GOVERNANCE
The vast majority of developable land is Maori owned, requiring a different business model reflecting the need to identify and manage collective owners. The potential scale is very large
• “5000 ha, $400m EBIT pa, $2bn revenue, 10,000 jobs” (Insley)• Growth rate of Maori economy: CAGR = 15-20%
Access to Maori land and collective decision with dispersed, sometimes unknown rights holders. The legislative framework is under review
• Local landowners want to retain the Office of the Maori Trustee• Te Ture Whenua Act review - Minister Mahuta invited to visit Omaio
Social issues are multiple and complex: • Whanau support, training, scaling up, climate change response• Bottom up and top down solutions: iwi by iwi, hapu by hapu, whanau by whanau
There are multiple, well-enabled iwi involved (Whakatohea, Omaio)• Is there a commonly understood action plan to move these issues forward?
Shared management and services may assist development: OSH, training, data, governance
20Source: Karamea Insley, workshop participants, Maori Economy working group.
THE MANUKA INDUSTRY IS ALREADY A MAJOR EMPLOYER AND POISED FOR FURTHER GROWTH
Current scale is already substantial • Grown to 170 staff, $100m pa revenue in 3 years• Exporting to Asia, Middle East and US
Deep partnerships with iwi allow effective operation on Maori owned land
Further expansion facilitated by improved public infrastructure (roads, UFB)
Skills training (often from work-readiness level) is a fundamental requirement
More workforce planning across the various growth sectors is required• Social enablers like housing and quality education are increasingly seen as key
success factors for industry
21Source: Karl Gradon, manuka working group, workshop participants
WORKFORCE CHALLENGES AND ASPIRATIONS REFLECT A WIDE RANGE OF NEEDS
Workforce Challenges
� Local understanding of opportunity
� Aspiration/willingness
� Literacy/numeracy
� Housing
� Drugs and alcohol
� Driver licensing
� Disjointed policy and systems
� Confidence and freedom to learn by doing
Workforce Aspiration
� Work security
� A living wage (note rising minimum)
� Being valued – opportunity to learn and contribute
� Good workplace culture incl. OSH
� Families and whanau valued (incl. flexibility to meet whanau needs)
� Regular hours where possible
� A future in the Eastern Bay
22Source: B MacLennan, Toi EDA, workshop discussion; more detail contained in presentation slides
Multiple organisations, iwi groups and community groups seek to be part of the solution
INFRASTRUCTURE AND CLIMATE CHANGE REQUIRE LONG TERM PLANNING AND INVESTMENT
Climate change requires planning for a 1+m sea level rise, 2.5 degrees warmer and 10% + higher rain intensity within the next 100 years
This has significant impacts• Harbour project engineering and cost• Flood protection and river works• Storm-water management • Wastewater treatment• Resilience of roads, electricity, broadband links
Town planning – will some areas be unliveable?• A tipping point exists beyond which stop banks cannot be increased • “resilient development in problem areas, “vulnerable” development in
safe areas• Provision for ponding areas
23Sources: Mark Townsend, EBOP, Ari Ericson, ODC, more detail in presentation slides
SOCIAL AND INFRASTRUCTURE WORKSHOPS STRESSED COMMUNITY CO-DEVELOPMENT
Key issues raised by workshop participants• Whanau engagement• Local Mana Whenua• Need for an emotional value proposition to harness local commitment• Jobs need to be decent and fair• Tertiary providers need to step up and deliver in the E Bay• Pastoral care remains essential
Implications going forward• Opotiki cannot achieve economic potential without social development• It needs a unified vision • Shared social and economic service hubs would be helpful• Rangatahi need exposure and education about the opportunities
24Workshop participants: social development workshops
Governance and Leadership Development Program (Omaio) December 2017
PresentationpreparedforFederationofMaoriAuthoritiesInc.byPaulMorgan,ChairWakatuInc.
November2018OurFuture.
Kiamaukiamuri.
Governance and Leadership Development Program (Omaio) December 2017
Wakatū• AMāoriownedorganisation
basedontraditionalvaluesandproactiveleadership
• BasedinNelson,TopoftheSouthIslandofNZ
• Formedin1977fromtheremnantsoftheNelsontenths,MotuekaandMohuaReserves
• Ownersaredescendantsfromfouriwi(tribes)–NgātiRarua,NgātiKoata,NgātiTamaandTeAtiawa
Governance and Leadership Development Program (Omaio) December 2017
Wakatū• Ourfocusisintergenerational
• TePaeTāwhiti–planningforWakatū1000yearsintothefuture
• Assetbaseof$330m
• 70%ofassetsinproperty
• 30%ofassetsinFoodandBeverage
• Employ500FTE’s
• Revenue$100m+
Governance and Leadership Development Program (Omaio) December 2017
WakatūandKonoNZLP
Kono Foods
Governance and Leadership Development Program (Omaio) December 2017
Governance and Leadership Development Program (Omaio) December 2017
Māorivaluesdriven,integratedF&Borganisation
wellpositionedwithourlongtermcustomerstodevelopandsellarangeofvalueaddproductsutilising
ourresourcesoftheWHENUAandtheMOANA.
Governance and Leadership Development Program (Omaio) December 2017
Governance and Leadership Development Program (Omaio) December 2017
Governance and Leadership Development Program (Omaio) December 2017
• Establishedin1986• Apples,pears,kiwifruitandhops• Farmingover200ha(1200ha
available),$10m+revenue• Employinexcessof140peopleto
coverourorchard,packhouseandcoolstoreoperations
• InvestmentwithENZAinEnvyapples• Objectiveistodoublecurrent
productionandestablishsubstantialthirdpartysupply
• Involvedinberryresearchgroup• Co-opstateoftheartprocessing
KonoHorticultureGovernance and Leadership Development Program (Omaio) December 2017
• Beganinvestmentsin1998
• Employ230+people
• $45m+revenuewithatargetof$60mby2017
• Strategyistogrowanddiversify(waterspace,quotaownershipandprocessing)
• Valueandvolumestrategy(livelobsterandoysters–musselsandotherseafoods)
• StrongR&Dfocus(oystersaquaculture),undaria,seacucumbers,bioactives.
KonoSeafoodGovernance and Leadership Development Program (Omaio) December 2017
• Beganin1998withTohuWines• 3vineyardsandawinery• 3brands–Tohu,AronuiandKono• 25people,NZsalesteam• Growthobjectiveto240kcasesby
2017• Export20pluscountries,$25m+
revenue• Furtherexpansionintonew
productsplanned–craftbeer?• GoldMedals–Tohu2014–15best
year,launchedcider2015
KonoBeveragesGovernance and Leadership Development Program (Omaio) December 2017
Beverages fami ly
Tutū Cider is the newest addition to the beverage family, joining Tohu, Aronui & Kono wines. It’s the sprightlier younger sibling of the whānau. The name Tutū is a Māori colloquial term for being cheeky and mischievous, as often a younger sibling is.
Governance and Leadership Development Program (Omaio) December 2017
TASTE THE DIFFERENCE
NOSE Fresh ocean and seaweed aroma BODY Vibrant hints of brine, while creamy & sweet FINISH Long sweet cucumber finish with a mild metallic flavour on the lips TEXTURE Firm, but uniquely creamy and decadent, almost velvety
Governance and Leadership Development Program (Omaio) December 2017
Governance and Leadership Development Program (Omaio) December 2017
• Acquiredanaturalfruitleatherbusiness2014
• Fitswellintherangeoffoodandbeveragebrandsweownandexport
• Wastestreamutilisation
• Focusonnutrition,healthandwellness
• $10m+revenue
• 52employees
KonoFoodsGovernance and Leadership Development Program (Omaio) December 2017
OurFuture
• Investinginpeople,skills,creativity;• Focusofhighvalueadd,margins;• Accesstoanduseofdata• Co-operation,collaboration,scale-ability;• Investtogether.• Understandingasustainablefuture!Science,technology,businesstools,IP;
• OwningPVR’s,brands,connectedtoconsumers;
Governance and Leadership Development Program (Omaio) December 2017