Regional Economic Development Supporting regions to increase investment, jobs and household incomes 28 November 2017 Pip Jamieson Ministry of Business, Innovation and Employment

New Zealand’s economy Strong economy -> prosperity, higher wages, resilience, wellbeing Factors: Workers & businesses face transitions ALL regions need to reach their potential Ensure potential of ALL people Iwi, Maori Authorities, Land Incorporations significant asset bases Performance of local and central government Diversification of economic activity Shift to value add Digital technology Possible disruptors Rest of New Zealand: $120 billion Auckland $93 billion Wellington $34 billion Outside of Cities 1.975 million people Cities 2.717 million people

Why are New Zealand’s regions important? Figure 1: Breakdown of NZ Regional GDP, 2016 Nearly 2 million New Zealanders live outside of our major urban areas… …and they play a crucial role in our ability to lift national earnings through exports (e.g. over 50% of NZ exports are animal and vegetable products) Broader based growth helps build economic diversity which improves national resilience. Rest of New Zealand: $120 billion Auckland $93 billion Wellington $34 billion Outside of Cities 1.975 million people Cities 2.717 million people Figure 2: Value of NZ’s exports May 2016-17 The primary sector accounted for over half of New Zealand’s export activities in 2016. Source: Statistics New Zealand

Challenges faced by regions Globalisation pressure on regional economies Agglomeration forces can attract resources from some regions Ageing populations Small regions can face inconsistent growth Employment patterns shifting in favour of high- skilled occupations Unemployment rates varied across regions [people don’t shift based solely on employment options]

Government approach to regional economic development [in development and evolving] Focus on: Social inclusion Sustainability Well-being

What’s worked Focused & well connected governance structure has been valuable Strong leadership is critical, where it is lacking there tends to be a fragmented approach Cross-government coordination improved Improved inter-regional co-ordination and collaboration Capability and capacity in regions can hinder progress Opportunity to connect more effectively with iwi/Maori Need to focus on broader range of policy areas and levers

Regional Economic Development Minister Currently in development and evolving: $1 billion a year Provincial Growth Fund For critical infrastructure: provincial roading improvements Rail & maritime facilities Sector-led projects, eg. tourism, aquaculture, forestry Projects to meet eligibility criteria, eg. Creation of jobs, sustainable economic development, enhanced social inclusion. ·