17 July 2015
Our economic plight

Some Taranaki people have money but many struggle. We identify dairy and hydrocarbon prices, and the weather, as challenges – but poverty and education are more grinding on us. The Deprivation Index (a measure of poverty) shows that South Taranaki suffers. Our most deprived areas are among the worst in NZ: this includes Kaponga, Waitotara, Patea, Waverly, Opunake and Manaia. Thus, there is a need to focus on the education of children and to generate better incomes.


Taranaki does not perform well economically.  Our economic base is narrow. If you think tourism will save us you should travel more – it is not going to happen.
How might we become wealthy? We need to consider leadership (our mayors), services (eg broadband) and strategic development (sell into new markets).

Mayor’s love-in
The Opunake & Coastal News reports that we should be proud that our four councils work so well together.  We have “strong leadership”, all our councils are “efficient and effective”. Who praises them in this way? They do! They sing their own praises. They might learn from the Maori proverb: the kumera does not have to say it is sweet!

What occasions the mayor’s love-in? They have published a booklet – yes, you guessed it, it is about themselves. It is about how they are going to be friends. Why they suddenly need the booklet if (as they say) they have been great mates for “two decades” is beyond me. 

Actually, last year our regional council took our district council to Court and won a judgement for $115,000. The judge said the STDC showed “inadequate decision making”.  The regional council did well to prosecute: keep up the good work, do not let the “love-in” deflect you.
Perhaps the mayors should give marriage guidance. Kiss and make up, publish a booklet of good intentions. Judd, Dunlop, MacLeod and Volzke should not spend our money to promote their working methods, which are pretty ordinary. Tell us about your new ideas for economic development.

Ultra-fast broadband slow
South Taranaki is not doing very well in the broadband roll-out. Ultra-fast broadband has an important role in the welfare of rural New Zealand. With it we can generate income and fight poverty – broadband is liberating.  Many places in South Taranaki are denied access. The local MP issued a statement saying how great it was for Hawera and New Plymouth. Jonathan Young’s main role is to cheer and say “me to”.  He did not say he was going to fight for the small towns.
Opunake was not considered for broadband in the first stage of the broadband roll-out. This was done primarily on a population basis. Two short sections of cable through Opunake connect the schools. The Medical Centre can get a connection subsidised.
Government announced a further $360 million to extend the roll-out and the Ministry of Business, Innovation and Employment will decide who gets connected.  Right now the selection process is underway.

Communications Minister, Amy Adams, told me “The contributions of local authorities and communities will play an important part in deciding on the amount and type of infrastructure deployed in any given area. As Opunake is not scheduled for an upgrade though the Government’s current phase of the UFB programmes, I would recommend you contact your local authority and encourage it to make a submission.”
The South Taranaki District Council and Venture Taranaki must fight for us. Whilst battling floodwaters, STDC made a submission. Council told me:  “Our economic development manager, Claire Symes and information technology manager, Eddo van Loenen are working on this along with our Chief Executive, Craig Stevenson”. Good luck to them. Venture Taranaki did not reply to my request for information.

Horticulture can save us
Taranaki must diversify into new markets. The best chance we have is to develop horticulture on a vast scale in partnership with China. China’s demand for quality overseas food increases at about 9% a year and it will grow. China has money to invest and their strategy is to secure food sources overseas. You can see their strategy in any of a dozen countries, including NZ dairy purchases.

Venture Taranaki Trust
At the moment Taranaki does not have an exporting horticultural industry. Venture Taranaki identify the constraints on horticulture as the lack of infrastructure (particularly transport) and processing capacity. These are just money problems. VT back hemp and manuka honey, but not horticulture. VT is defeatist in their 2014 report on horticulture. They have insufficient appreciation of global opportunities and lack creativity. We need them to focus on the ways and means to meet new markets. At present they mainly service existing businesses.   STDC ratepayers give $207,000 to Venture Taranaki each year. Cut this from the budget. Ask VT, and others (particularly the universities and global partnerships), to propose new ventures and then STDC can fund innovation.

Central government help
Central government has subsidies for development and marketing.  Steven Joyce says NZ will work with Australia to “pipeline” foreign investment into New Zealand’s regions. He did not mention Taranaki (although New Plymouth is his home town), no marginal seats here. Apart from the Australian bit, this recycles Ruth Richardson’s 1990s project on direct foreign investment.  When China’s President came to NZ seven months ago, he talked with Andrew Little about investment in the productive areas of our economy. Now is the time to develop our proposal for horticulture.

Robert Shaw
robert@porirua.net