CHRISTCHURCH

ECONOMIC
DEVELOPMENT
STRATEGY
2014
Prepared by Canterbury Development Corporation

Canterbury
Development
Corporation

02
Andrew Fitzpatrick, Manufacturing Engineer, Fabrum Solutions Ltd at the opening of their new factory in Sockburn

Christchurch Economic
Development Strategy 2014

Contents

04
06
13
21

Executive Summary

Introduction

Action Plan

Summary of Background
Information

05
11
20
23

Forecasting Growth
Futures for Christchurch

Vision, Goals & Priorities

Monitoring

03
Glossary of Terms

christchurch economic development strategy 2014

EXEC SUMMARY
What we know is that there are several
possible economic futures for Christchurch
City which will be determined by the decisions
and investment choices made today.
Executive Summary
The Christchurch Economic
Development Strategy (CEDS)
brings together the views of various
businesses and agencies in the
region to identify ways in which to
optimise our economy so that by
2031 Christchurch has a higher
quality of life, better income, greater
employment and is a vibrant and
growing city attracting people from
around the globe. The Canterbury
Development Corporation (CDC) is the
local Economic Development Agency
and is funded by the Christchurch
City Council (CCC) to facilitate this
consultation and review the strategy
following the Canterbury earthquakes
of 2010 and 2011.
Understanding and plotting an
economic trajectory in a postearthquake environment has been a
complex and challenging task, and we
expect to continue learning over the
coming years.
What we know is that there are
several possible economic futures
for Christchurch City which will be
determined by the decisions and
investment choices made today. This
Strategy is a guide to maximise those
opportunities.

The CEDS process has identified five

large-scale opportunities which have the
potential to step-change our economy
The Big 5. In addition, there is a longer
list of development initiatives which are
required to Keep the City Competitive
with other cities and regions. Successful
implementation of the Strategys Big
5 and Keeping the City Competitive
projects has the potential to place GDP
54% higher than it is today, by 2031.
Economic development strategies for a
city tend to describe which projects the
local Economic Development Agency
proposes to undertake.
In contrast, this Strategy attempts to
capture and represent all projects
in the region that return economic
development outcomes to the city
alongside projects which CDC
will implement. It recognises the
relationship between the regional
economy and the city, in particular
the agriculture sector. It lists the new
projects currently being scoped, the
projects under way, and identifies
existing and new lead agencies for
all of the projects that are key to the
development of the economy.

04
christchurch economic development strategy 2014

This approach makes it a broad plan,

but provides a clearer strategic picture
and better understanding of the
interdependencies between economic
development projects and the various
agencies and businesses that lead or
are involved in them.
A key component is the integration of
this Strategy with earthquake recovery
planning managed by the Canterbury
Earthquake Recovery Authority (CERA).
There has been a combined effort to
integrate CEDS with CERAs Economic
Recovery Plan (ERP) and ensure they
are consistent and complementary.
CDC has multiple roles to play in the
realisation of CEDS:

Ensuring that key opportunities are

realised

Leading projects in the areas where it

has recognised expertise

Participating in projects led by other

agencies, where CDC can add value

Ensuring the private sector is

encouraged to be involved in all
projects

Monitoring and reporting overall

economic progress and advocating
on behalf of the Christchurch City
economy

Forecasting Growth Futures

for Christchurch

GDP can be 69% higher in

2031 than 2012 if the city is
successful in delivery of `The
Big 5 and `Keeping the City
Competitive projects.

Christchurch GDP Projections

Source: CDC, Infometrics, Statistics New Zealand, Market Economics

25000

20000

The accumulated value

of the shaded area to
Christchurchs economy is
an additional $24 billion.

$m, 95/96

15000

10000

Actual (estimated)
Baseline
Upper Band

5000

2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031

Baseline (no rebuild)

Declining Economy

Note: Methodology for calculating GDP growth paths is outlined in Section 6 of the
Background Paper at www.cdc.org.nz. These projections have been updated using
data available in January 2014.

In doing projects that keep

the city competitive with
other cities, Christchurchs
baseline GDP is projected
to grow at 2.4%.

Christchurch Population Projections

In a declining economy a city

struggles to retain baseline
competitiveness, losing
working age population and
key industry1.

Source: CDC, Statistics New Zealand, Market Economics

500000
450000
400000
350000
300000
250000
200000
150000

05

100000
50000

Actual (estimated)
Baseline

Decline
Attractive City

2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031

Modelled by CDC using 10 similar-sized declining US cities with an average growth rate of 0.1%
christchurch economic development strategy 2014

INTRODUCTION
By setting a common course, engaging with the
business community and investing in shared goals,
better economic outcomes will be achieved.

Introduction
The Canterbury Development
Corporation (CDC) prepares and reviews
the citys economic development
strategy on behalf of the Christchurch
City Council.

quality of life and a strong and prosperous

economy. By setting a common course,
engaging with the business community
and investing in shared goals, better
economic outcomes will be achieved.

Local governments role in economic

and business development
complements its role in providing a
better quality of life for residents. The
citys community outcomes2 are to
provide a liveable city, prosperous
economy, strong communities, good
governance and a healthy environment.

The initial version of CEDS was

completed in September 2010 just
before the first earthquake. It involved
a large-scale research and consultation
process (economic modelling; 120
businesses surveyed face to face; 600
businesses interviewed by telephone;
workshops). It was not fully released but
provided a pre-earthquake snapshot
of the economy, its drivers and the
opportunities for improvement.

The purpose of the Christchurch

Economic Development Strategy (CEDS)
is to identify long-term growth goals and
priorities to 2031 that will create a better

Christchurch and the wider region

has been significantly affected by the
earthquakes. The resulting temporary
and permanent resource and industry
relocation is a key context-changer of
the economy along with the continuing
effects of the global financial crisis.
The 2013 CEDS refresh adjusts for
these changes. It also recognises the
economic value of the rural sector to
the city economy and the amendments
made in 2012 to the Governments
Business Growth Agenda.

Since 2010, the economy of

CEDS should be read in conjunction

with the Background Paper3.

06

The Background Paper collates and synthesises macro-economic data, statistics,

trends, forecasts and research relevant to the city and regional economy.
The Background Paper includes sections on GDP, the labour market, sector
performance and earthquake effects. It establishes an Australasian benchmarking
framework and forecasts possible economic futures. It provides the background
detail to assumptions and decisions made in CEDS.

Christchurch City Council Long Term Plan, www.ccc.govt.nz

CDC economic research paper available online at www.cdc.org.nz

christchurch economic development strategy 2014

CEDS takes a regional view of economic

activity that benefits the city.
Christchurch City was first settled by M ori around 1250 and settled by Europeans around
1840. Christchurch evolved as a hub for regional primary production, processing and
export and it continues to support regional production through sectors such as business
services, logistics, research and development and manufacturing. The city economy can
not be considered without considering its relationship with the wider region, in particular
the agriculture sector. This view is intended to encourage agencies across boundaries to
collaborate on regional and national economic development projects.

A City within a Regional Economy

07
christchurch economic development strategy 2014

Growing GDP matters to the economy

and the community.
A city with GDP growth will generally mean that businesses are producing more goods and
services, there are greater employment opportunities, higher average wages and more career
prospects as businesses demand more labour.
GDP growth can also lead to improved community wellbeing. It leads to higher tax revenue
for government and revenue for councils, which can be invested in to improving city facilities
and services. More spending power makes public services such as healthcare and education
more affordable.
If GDP is not growing it is likely that work opportunities and spending power are not increasing.
A city that is not growing, risks losing skilled workers and businesses to more competitive cities
and a decline in spending power and quality of living.

08
Central city worker, Thomas McNaughton, clearing
emails on the banks of the Avon River.

HOW DO WE ALL STACK UP

SIMILAR-SIZED AUSTRALASIAN CITY COMPARISONS
A U C K L A N D C H R I S T C H U R C H H O B A R T W O L L O N G O N G GOLD COAST NEWCASTLE HAMILTON SUNSHINE COAST

POPULATION

GREATER

HAMILTON

188,280
GREATER

HOBART

205,557

STADIUM
CAPACITY

AUCKLAND

50,000

WOLLONGONG

283,243
SUNSHINE COAST

286,497

CHRISTCHURCH

35,000*

NEWCASTLE

33,000

NEWCASTLE

420,850
GREATER

HAMILTON

27,500

CHRISTCHURCH

436,056
GOLD COAST

592,389

GOLD COAST

27,400

WOLLONGONG

23,150

SUNSHINE COAST

HOBART

12,000

18,000

AUCKLAND (REGION)

1,415,550

UNEMPLOYMENT RATE
SUNSHINE COAST

6.2%

GOLD COAST

4.9%

NEWCASTLE

4.1%

AUCKLAND

6.3%

PERMANENT

INTERNATIONAL

AIRPORTS
AUCKLAND GOLD COAST

CHRISTCHURCH

CONVENTION CENTRE CAPACITY

WOLLONGONG

7.5%

6.7%
WAIKATO

9,000
8,000
NEWCASTLE
7,528
HOBART
5,400
AUCKLAND
4,500
CHRISTCHURCH 2,000*
SUNSHINE COAST
900
WOLLONGONG
800
GOLD COAST
HAMILTON

7.5%

3.4%

HOBART

CANTERBURY

Shh...

WE ALL HAVE LIBRARIES

* Anchor Projects as proposed in the CCDU Blueprint Plan
Note: All figures are as at Q1, 2014
Sources include: Statistics New Zealand, Austalian Bureau
of Statistics

Additional Notes: An Australasian city hierarchy has been developed using population as a base. Cities of a similar size will
have similar characteristics and by developing a tier system we are able to undertake sensible comparisons for Christchurch,
a tier-three city. Wellington and Canberra have been excluded because as capital cities they have unique drivers. More
information on this hierarchy can be found on Pg 11 of the Background Paper at www.cdc.org.nz

christchurch economic development strategy 2014

09

CEDS has been developed alongside the Economic

Recovery Programme (ERP), which is a key pillar of the
overall CERA Recovery Strategy for greater Christchurch.
CEDS is a long-term economic development strategy and the ERP is a recovery-focused
work programme.
The integration process has been actively managed through staff secondments, project groups
and information sharing between CDC, CERA and other agencies. CDC has been involved
in the development of CERAs Recovery Strategy as a standing member of the Partnership
for Economic Prosperity and Recovery (PEPR) Group. CDC has also provided staff on a
secondment basis to the CERA Infrastructure Team, Economic Recovery Team and the planning
process for workforce recovery. In addition, CDC staff advised on the CCDU Blueprint Plan.

10
christchurch economic development strategy 2014

VISION
Our vision for the economy of Christchurch is
that in 2031 Christchurch is recognised as the
best place for business, work, study and living
in Australasia.

GOALS

To achieve the vision, by 2031 our goals are:

Christchurch has the best economic ranking against Tier Three cities in Australasia4.
Quality of living matches a Tier Two city in Australasia
Total GDP has grown by 69% to $21.7bil5 (GDP per capita by 38% (2012-2013))
Exports to China have increased by 140%, reaching $719mil5 by 2031
In 2031, 20% of the 1564 aged population in employment in current
high-growth enabling sectors: Agriculture; Manufacturing; Information Media
and Telecommunications; Finance and Insurance; and Professional, Scientific
and Technical Services.
The proportion of the working age population with a post-high school qualification
has increased from 40% to 45%. The proportion of the working age population with a
Bachelor qualification or higher has increased from 20% to 26%

11
4
5

Australasian city hierarchy model; refer to Section 1 of the Background Paper at www.cdc.org.nz
All figures in real terms (excluding inflation adjustments)

christchurch economic development strategy 2014

PRIORITIES
THE BIG 5 GDP GAME CHANGERS
If these opportunities are maximised it would move the economy off the projected baseline economic growth path
and improve the citys chances of success in the attraction and retention of residents, migrants and businesses,
further strengthening economic growth.

Maximising
earthquake
recovery
opportunities
Earthquake recovery
spending on new
infrastructure, facilities
and buildings is
efficient and effective
*(~$30bil between
2011-2018)

Effective
water resource
management

Improving
productivity through
innovation

Increasing irrigation
potential and
productivity in
the Canterbury
Plains but not at
the expense of the
environment
*(~$1-2bil paid

Businesses using
new ideas, the latest
technology, new buildings
and modern working
techniques to improve
productivity and develop
a competitive edge
*(~$135mil per annum

from 2018)

from 2015 and continuing to

improve)

Successful central
city design and build
Creating a culturally
attractive and vibrant
city centre that attracts
new businesses and
people, and improving
productivity in a more
condensed CBD
*(4% productivity

Increased
import & export
distribution
networks
Meeting the
Governments China
export growth
targets *(additional
~$40mil per annum
from 2015)

gain within the CBD

from 2018)

*Note: For further information and sources for values, refer to Appendix 6 of the Background Paper at www.cdc.org.nz

INITIATIVES THAT KEEP THE CITY

COMPETITIVE WITH OTHER CITIES
Cities, much like organisations, need to find ways to continuously improve their operating environment to remain competitive and create
periods of competitive advantage over other cities. Large step-changes in GDP are unlikely to result from these initiatives, but they are
important in terms of retaining a competitive proposition for businesses and the labour force.

Workforce

Supporting Innovation

Addressing the ageing

population, developing
solutions for local labour
and skills shortages and
increasing workforce
productivity

Supporting innovation
and commercialisation and
enhancing the linkages
between the research
community and business
community

Infrastructure

Connections and
Business Networks

Ensuring infrastructure
and land use decisions
support economic growth

12

Improving Christchurchs
connectedness at a local,
national and international
level, enhancing the ability to
do business and share ideas

christchurch economic development strategy 2014

Making it easier
to do business
Ensuring regular dialogue
between the private and
public sector to ensure the
regulatory environment and
process is as easy as possible
to engage with

Sector Development
Developing growth sectors within
the economy (Technology, Health,
High Value-Added Manufacturing,
International Education,
Professional Services and AgriTech)
and managing sector level market
failures in the economy

Investment Vehicles
Improving access to
capital for local businesses

Business
Development
Creation, growth,
capability, retention and
attraction of business to
the region

Action Plan

CDC has multiple roles in CEDS. It will lead

some projects in areas where it has recognised
expertise and participate, where appropriate,
in projects led by other organisations. It will
ensure that there is private sector involvement
in all projects and opportunities are realised.

PMO

Projects

The CEDS Action Plan, on pages 15 to 20,

outlines projects that contribute to economic
development and achieving the goals of
CEDS. It will evolve and change over time,
incorporating new project ideas and work
programmes that benefit the Christchurch
economy.

CDCs role

ACTION PLAN

There are a total of 70 projects listed, of which

14 have been completed.
Of the 70 projects, CDC has completed 7,
is leading 10 projects and will be developing
a further 8.

The CDC Project Management Office (PMO)

is responsible for implementation and
monitoring of the citys economic development
programme and periodically reviewing the
CEDS document. PMO progress reports will
give the business community a strategic view
of all economic development projects, their
status and interdependencies.

christchurch economic development strategy 2014

13

THE
BIG

Maximising Earthquake
Recovery Opportunities

Effective Water
Resource
Management

Improving Productivity
Through Innovation

Successful Central
City Design & Build

14

Increased Import & Export

Distribution Networks

christchurch economic development strategy 2014

Actions

Lead Agency

Status

Secure public sector funding for the rebuild of Christchurch (infrastructure, facilities, buildings)

CERA

Completed

Develop and promote an investment proposition and proposals to showcase opportunities in

greater Christchurch

CERA

In progress

Ensure issues over availability of insurance and resolution of claims do not hinder investment or
slow the rebuild, and ongoing insurance cover is provided under the new risk profile

CERA

In progress

Convene a City Image group to produce a cohesive city image for use in the attraction and
retention of people, visitors, businesses and investment

To be determined

New project

Provide an easier path through the building consent system (this will require the developer of
low-damage technologies to provide evidence that their system meets the Building Code)

MBIE

New project

Encourage the use of sustainable technologies during the rebuild

CCC

In progress

Redevelop suburban centres and towns in greater Christchurch

CCC

In progress

Rebuild the University of Canterbury; $1.1 billion, 10 year capital works programme

UC

New project

Rebuild the city's earthquake-damaged roads, freshwater, wastewater and stormwater networks
(horizontal infrastructure)

SCIRT, CERA, CCC

& NZTA

In progress

Take a strategic approach to rebuild procurement considering demands on the construction sector,
housing, workforce, and supply chains; and cost escalation

CERA lead / MBIE

/ Treasury

New project

Work to increase productivity in the construction sector to support the recovery

MBIE

In progress

Implement the Canterbury Water Management Strategy develop and deliver Regional
Implementation Plan (RIP), Zone Implementation Plans (ZIPs) and the Canterbury Land & Water
Regional Plan

ECan

In progress

Develop a knowledge base on the Canterbury rural economy and articulate the benefits possible
from improving management of existing irrigation infrastructure and developing new irrigation
infrastructure

CDC

In progress

Research into the potential economic gains from crop diversification, added value processing of rural
products and technology innovation to improve nutrient management

CDC

In progress

Develop and implement opportunities for digital content and capability improvements that
accelerate and leverage ultra-fast broadband uptake

CDC & Enable

In progress

Establish CRIS as a Commercialisation Partner focused on improving and maximising successful

commercialisation of innovation in Canterbury as part of the Commercialisation Partner Network
(CPN) being established by MBIE

CDC

Completed

Establish a better understanding of the nature and quantum of incremental innovation happening
in the region within business and identify ways in which we can better support and develop this

CDC

New project

Support incremental innovation in business throughout the region by enhancing connectedness

within the innovation ecosystem, better linking research and business communities

CDC

New project

Investigate methods to improve workplace productivity and find ways to enable businesses to
implement them effectively

CDC

In progress

Implement the Central City Blueprint starting with land acquisitions for the Anchor Projects

CCDU

In progress

Deliver Anchor Projects as per the cost share agreement between the Crown and the CCC: The
Frame, Convention Centre Precinct, Stadium, Metro Sport Facility, Bus Exchange, Avon River
Precinct, Earthquake Memorial, Health Precinct, Retail Precinct, Justice and Emergency Service
Precinct, Innovation Precinct, Residential Demonstration, Te Puna Ahurea Cultural Centre, The
Square (joint with CCC)

CCDU

In progress

Deliver Anchor Projects as per the cost share agreement between the Crown and the CCC:
Performing Arts Precinct, Central Library, Cricket Oval, The Square (joint with CCDU)

CCC

In progress

Accelerate the recovery effort by enabling improved sharing and use of location-based information;
Canterbury Spatial Data Infrastructure programme

LINZ

In progress

Develop an integrated domestic and international terminal at Christchurch International Airport

CIAL

Completed

Reclaim 10ha of land utilising recycled hard fill from earthquake demolition activities for critical
port infrastructure at Lyttelton Port of Christchurch, supporting the ports rebuild programme and
future growth

LPC

In progress

Increase the exposure of New Zealand companies to appropriate markets in China by

establishing a network to improve the co-ordination of China delegations through shared ideas
and information

LGNZ

In progress

Undertake a gap analysis on export capability development services in Christchurch with a

view to enhancing products and services offered

CDC

New project

christchurch economic development strategy 2014

15

KEEPING
THE CITY
COMPETITIVE

WORKFORCE

Actions

Lead Agency

Status

Create sector workforce plans that articulate the immediate, short and long-term
workforce needs of the sector and identify what is required to accelerate recovery of
the sector and provide the foundation for long-term economic growth

CERA/CDC

In progress

Establish an integrated information system including a quarterly snapshot of the

labour market, an annual rolling labour report and quarterly sector workforce reports and
statements

CDC

In progress

Develop a sophisticated and targeted people and business attraction plan to attract highly
skilled and productive people and value-adding business

CDC

New project

Establish an Employment and Skills Hub, a help service for employers to fill job vacancies
that support the Canterbury rebuild

MBIE

Completed (now
an ongoing
service)

Establish the Canterbury Skill Shortage List, a list which highlights occupations in
shortage that are needed during the rebuild in Canterbury

MBIE

Completed (now
an ongoing
service)

Examine the economic opportunities and the risks associated with Canterburys ageing
population

CDC

New project

Provide additional places for construction-related trades training for the Canterbury
rebuild, and trial new flexible study and work options

TEC

In progress

Establish support schemes, local funding models and better connections between
education and workplaces that better link students with business and more effectively
encourage internships, apprenticeships, workplace training for youth or allow skill
upgrades while working

CDC

New project

Contribute to implementing Sector Workforce Plans produced under a previous

CEDS project by raising the profile of the Christchurch technology and manufacturing
sectors and the employment opportunities within these sectors amongst the education
community locally and the skilled worker community domestically and offshore.

CDC

In progress

16
christchurch economic development strategy 2014

INVESTMENT
VEHICLES

MAKING IT EASIER
TO DO BUSINESS

SUPPORTING INNOVATION

Actions

Lead Agency

Status

Establish a safe haven for 20 technology companies displaced by the Canterbury

earthquakes and in doing so prototype a new type of entrepreneur community
(EPIC Sanctuary)

EPIC innovation

Completed

Establish the southern delivery arm of the National Health Innovation Hub

CDHB

Completed

Establish a rural technology park in Templeton (close to key stakeholders, researchers,

customers, suppliers and facilities) to assist start-ups and SMEs overcome the premises
challenge often encountered by young and smaller companies

Maugers
Construction Ltd

In progress

Develop a collaborative project between Lincoln University and the Lincoln-based

Crown Research Institutes to focus on Agritech innovation (Lincoln AgriScience Hub)

Lincoln University

In progress

Complete the business case and secure funding for the pilot plant for Food Innovation
South Island based in Christchurch

Callaghan
Innovation /
CDC

In progress

Explore ways to incorporate sensors in to the city during the rebuild, creating a more
intelligent and connected city

Sensing City

In progress

Increase visibility of current innovation activities (public and private) happening in the
region and of the support available for good ideas

CDC

New project

Temporarily activate vacant sites within Christchurch with creative projects, to make for
a more interesting, dynamic and vibrant city

Gap Filler

In progress

Embed voluntary contribution into the lives of all young-at-heart New Zealanders

VAF

In progress

Engage with stakeholders city-wide to recommend a framework that supports

economic growth through the integration of innovation, talent and intellectual
property resulting from the earthquake rebuild (IBM Smarter Cities Challenge)

CDC/CCC

Completed

Set up and run a business capability development programme for owner/managers of

start-ups with export potential

CDC

New project

Work with councils to develop planning and consenting processes that are easy to
follow and business-friendly

CERA

In progress

Implement an internal customer service project to improve consenting processes and

business engagement

CCC

In progress

Develop a set of guidelines for Business Friendly Cities, based on the Core Cities
research, to assist in benchmarking and information sharing between cities to improve
council services

LGNZ

Completed

CDC

Completed
(now an
ongoing
service)

Increase the level of investment available to targeted high growth-potential

businesses, assist these businesses in building robust investment cases and
connect them with appropriate expertise to prepare business cases

christchurch economic development strategy 2014

17

18

BUSINESS
DEVELOPMENT

SECTOR DEVELOPMENT

CONNECTIONS AND
BUSINESS NETWORKS

INFRASTRUCTURE

Actions

Lead Agency

Status

Rebuild the city's earthquake-damaged roads, freshwater, wastewater and stormwater

networks (horizontal infrastructure)

SCIRT, CERA,
CCC & NZTA

In progress

Construct the Christchurch Motorway Projects, State Highway improvements

providing critical routes to central Christchurch, Port of Lyttelton and Christchurch
International Airport

NZTA

In progress

Prepare a South Island Freight Plan to guide public and private sector planning and
investment decisions in relation to transport and logistics

NZTA

In progress

Connect schools, hospitals and 90% of businesses to ultra-fast broadband by 2015 and
the remaining 10% of businesses and all homes in urban Christchurch by 2019

Enable

In progress

Deliver broadband to rural homes and businesses in Canterbury at prices and levels of
service comparable with urban areas

Chorus &
Vodafone

In progress

Implement the Greater Christchurch Urban Development Strategy through statutory

land use and urban growth management including the completion of Chapter 12a of
the statutory Regional Policy Statement

ECan

In progress

Prepare a Land Use Recovery Plan to provide certainty about future land use patterns
in greater Christchurch

ECan

Completed

Reduce the barriers for local manufacturing and construction SMEs wanting to form
collaborative agreements to build scale and compete for large projects during the
rebuild, and develop best-practice guides for collaborative arrangements

CECC/CDC

Completed
(now an ongoing
service)

Facilitate the formation of a Digital Leaders Group

CDC

Completed

Investigate how the new Open Sky Policy for Christchurch International Airport can be
utilised by the region

CIAL

In progress

Implement the Greater Christchurch Visitor Sector Recovery Plan

CCT

In progress

Develop and implement an international education marketing strategy and support

marketing and regional brand development

Christchurch
Educated /
Education NZ

In progress

Establish the Precision Agriculture Association to identify the critical enabling

technologies that influence profitable land-based production outcomes and ensure
commercialisation of appropriate technologies

CDC

Completed

Identify opportunities to increase value from improved production in the rural sector to
lift greater Christchurch GDP and support recovery

MPI

In progress

Establish sector advisory groups as a platform for sector-led planning

CDC

Completed

Undertake research to understand sector constraints and enablers to improve

sector planning

CDC

In progress

Realign the tertiary education sector to support the wider economy by making smart
investments in the recovery of the sector

TEC

In progress

Establish The Canterbury Report as a regular stakeholder update on the state of the
regions economy

CDC

In progress

Review the district plan, incorporating the current Christchurch City Plan and the Banks
Peninsula District Plan within a relatively short timeframe to provide a solid foundation for
Christchurch during the rebuild and into the longer-term

CCC

In progress

christchurch economic development strategy 2014

Between 2011 and 2031 the

estimated population over the
age of 65 will increase from 14%
to 21%; in contrast the proportion
of working aged people will
decrease from 68% to 63%

Our Population
56970 58140

The Demographic Breakdown

47580 49597

51430 49813

51810 46763

42830 47663

53000 86376

Number of People

Total population
2011 368,000

As at 2011
Projected 2031

15-24Yrs.

25-34Yrs.

35-44Yrs.

45-54Yrs.

55-64Yrs.

Over 65 Yrs.

2031 401,976*

(Source: CDC and Statistics New Zealand)

* Based on baseline population growth projections

19
christchurch economic development strategy 2014

MONITORING
Tony Alexander, BNZ Chief Economist, presenting at EPIC in Christchurch

Sectors

Quality of Living

Monitoring
A set of comparable quality
of living indicators for cities
such as environmental,
crime, facilities, services
and commuting times.

Indicators observing the

performance of key sectors
AgriTech, Technology, Value-Add
Manufacturing, International
Education, Professional Services
and other gauges such as retail
spending, building consents and
guest nights.

CDC will monitor the performance

of CEDS by regularly reviewing and
reporting on a core set of indicators.
CDC will also benchmark7
Christchurchs economic
performance against other Tier
Three Australasian cities8.
Economic progress and indicator
reports will enable agencies and
the business community to track
the performance of projects against
goals. This will provide the basis

on which to identify areas where

intervention and resources are
being effective; where projects
are off track and need support
or review; and where new
opportunities have surfaced.
The table to the left describes the
categories of indicators that CDC
will use when reporting.
Refer to the CDC website
(www.cdc.org.nz) for economic
development reports and data.

GDP Projection
(000)

$bil

500

$bil
25

20

20

Macro-economic
Environment

Advancement

25

This captures the advancement of

knowledge and technology through
the education and innovation
eco-systems. Indicators will
describe qualification attainment,
commitment to research and
tertiary enrolments, for example.

The macro indicators include

unemployment, average wage
rates, migration and other
high-level statistics.
2031

300
2012

2012

200

100

(000)

500

2012

200
100

7
0 Where city economic data is available and comparable

Refer to Pg 11 of the Background Paper at www.cdc.org.nz

christchurch economic development strategy 2014

2031

400
300

15
10

2031

400

2031

Population Projection

15
10

20

2012
Working age
population

Note: Projections are based on

successful Big 5 and Keeping the
City Competitive execution.
Working age population (15-64)
2031 hasnt been recalculated as
the changes were marginal. The
change is based on the percent
total change in 2031.

Additional Information
Strategy

Summary of Key Findings

from the Background Paper
and CEDS Workshops

The Big 5 The current five regional initiatives that can

step-change Christchurchs GDP.
Keeping the City Competitive The elements that keep a
city competitive and maintain GDP baseline growth.
Australasian Context CDCs Australasian City Model9
creates a city hierarchy based on population size. Within
this hierarchy Christchurch is a Tier Three city.

Labour

Business & Sectors

Natural population growth will be insufficient to increase the

number of working age people over the next 20 years.

Rural Productivity Growth of the rural economy will

provide economic benefits to the Christchurch economy.
There is also a need to balance quality of life with nitrate and
water management in this growth.

The working age population in 2031 is forecast to be similar

to what it is today.
There are a number of anticipated labour pressure points:
1. A result of immediate relocations prompted by the
earthquakes (2010~2011)
2. Between sectors during the construction boom (2012~2016)
3. Post-rebuild mini recession (2016~2018)
4. Global labour competitiveness (2018~)

Productivity Challenges Businesses will not be able to rely

on population growth alone to increase output and should not
be expecting to rely on hiring more staff to fill new orders. It is
likely that businesses will need to produce more with a similar
number of staff.

The increasing global demand for skills will make attracting

labour to Christchurch increasingly difficult.

There is a need to ensure that infrastructure investment,

changing land use patterns across greater Christchurch and
agricultural sector growth do not adversely affect long-term
economic outcomes.

Christchurch working age population can be boosted by

transferring temporary labour from the rebuild in to other
permanent forms of employment.

Long-term insurance uncertainty (availability and cost) for the

business sector and residents is restricting the ability to invest
and make decisions.

Over the next 20 years Christchurch can expect dynamic and

changing labour demand in the Construction, Agriculture,
Technology and Manufacturing sectors.

Continue to identify and support business sectors such as

Food and Beverage Processing, ICT and AgriTech to grow.

Innovation

Leadership & Co-ordination

For Christchurch to establish a reputation for its innovation

system there is a need to improve commercialisation of
research and development (R&D) and visibility of the regions
innovation system.

Prioritisation CDC does not have the resources to do

everything related to economic development.

Historically, focus in the innovation sector has been on new

start-ups and entrepreneurs; however we know little about the
incremental innovation and product improvement process that
most businesses engage in without recognising it as R&D.
Christchurch needs suitable leadership vehicles and systems
in place that will capture and drive the next wave of ideas and
innovative initiatives that become economic game-changers.
To build a stronger, innovative culture we need to ensure the
quality of living in Christchurch matches the requirements
of the changing population dynamic. For example, a city
that people who are innovative, risk-takers, creative and
adventurous enjoy.

Christchurch needs to display an increased appetite

for risk, both in systems and processes and in attitude,
so we can act with the speed required to maximise the
opportunities we have in front of us.
There is a continuing need to align education and skills
with business needs so that we are working today to create
the workforce we need for now and in the future.
Enhancing city image perceptions within the region and
outside the region is important, and it needs to happen
in a co-ordinated way. The four audiences each requiring
subtly different approaches are visitors (CCT); people
(CCC); investment (CCDU); and business (CDC).

21
9

Refer to Pg 11 of the Background Paper at www.cdc.org.nz

christchurch economic development strategy 2014

Destination Christchurch:
Migration to Christchurch in 2031
is projected to look like this

China

United
Kingdom

Philippines

(Source: CDC)

22
christchurch economic development strategy 2014

India

Australia

U.S.A

Fiji

Ireland

Germany

GLOSSARY
AERU

Agribusiness and Economics Research Unit

CBD

Central Business District

CCC

Christchurch City Council

CCDU

Christchurch Central Development Unit

CCT

Christchurch & Canterbury Tourism

CDC

Canterbury Development Corporation

CDHB

Canterbury District Health Board

CECC

Canterbury Employers Chamber of Commerce

CEDS

Christchurch Economic Development Strategy

CERA

Canterbury Earthquake Recovery Authority

CIAL

Christchurch International Airport Limited

CPIT

Christchurch Polytechnic Institute of Technology

DoL

Department of Labour

ECan

Environment Canterbury

ERP

Economic Recovery Programme

FTE

Full Time Equivalent staff

GDP

Gross Domestic Product

ICT

Information and Communications Technology

LGNZ

Local Government New Zealand

LINZ

Land Information New Zealand

LPC

Lyttelton Port of Christchurch

LURP

Land Use Recovery Plan

MBIE

Ministry of Business, Innovation and Employment

MPI

Ministry for Primary Industries

NZTA

New Zealand Transport Agency

NZTE

New Zealand Trade & Enterprise

PEPR

Partnership for Economic Prosperity and Recovery

PMO

Project Management Office

PTE

Private Training Establishment

R&D

Research and Development

RONS

Roads of National Significance (NZTA key roading projects)

SCIRT

Stronger Christchurch Infrastructure Rebuild Team

SMEs

Small and Medium-Sized Enterprises

SOE

State-Owned Enterprise

TEC

Tertiary Education Commission

VAF

Volunteer Army Foundation

23
christchurch economic development strategy 2014

Notes
If you have any ideas or additional information please send them to ideas@cdc.org.nz
If you are interested in economic statistics please visit the Economic Data page on the CDC website
If you are interested in subscribing to other CDC publications please visit the Publications page on the CDC website
www.cdc.org.nz

24
christchurch economic development strategy 2014

25
christchurch economic development strategy 2014

26
christchurch economic development strategy 2014

QUAKE CITY

CDC - WE ARE HERE

CONSTRUCTION SITE
CONSTRUCTION SITE

CARPARK
FOOD COURT

IBIS HOTEL

RE:START MALL

O
B
M
LO
O
C

BALLANTYNES

H
ER
EF
O
R
D

ST
R
EE
T

T
EE
R
ST
LI
C
H
FI
EL
D

ST
R
EE
T

JULY
2013 2014
JANUARY

Canterbury Development Corporation

Level 1, 99 Cashel Street
Christchurch 8011, New Zealand
Phone: 03 379 5575
Email: cdc@cdc.org.nz

www.cdc.org.nz