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Note: The reports contained within this agenda are for consideration and should not be construed as Council

cil policy
unless and until adopted. Should Members require further information relating to any reports, please contact
the relevant manager, Chairperson or Deputy Chairperson.


I hereby give notice that an ordinary meeting of the Economic Development Committee will be
held on:

Date:
Time:
Meeting Room:
Venue:

Wednesday, 20 August 2014
9.30am
Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

Economic Development Committee

OPEN AGENDA



MEMBERSHIP

Chairperson Cr Anae Arthur Anae
Deputy Chairperson Cr Ross Clow
Members Cr Cameron Brewer
Cr Bill Cashmore
Member Precious Clark
Cr Linda Cooper, JP
Cr Hon Christine Fletcher, QSO
Cr Denise Krum
Member Kris MacDonald
Cr Dick Quax
Cr Penny Webster
Ex-officio Mayor Len Brown, JP
Deputy Mayor Penny Hulse

(Quorum 6 members)

Elaine Stephenson
Democracy Advisor

14 August 2014

Contact Telephone: (09) 373 6328
Email: elaine.stephenson@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz






TERMS OF REFERENCE


Areas of Activity

Providing strategic oversight and direction to economic development in Auckland
Management, monitoring and reporting on of the performance of Aucklands economy
and the coordination of Aucklands Economic Development Strategy
Proposing, supporting and reviewing strategic projects and programmes which will
deliver on Aucklands Economic Development Strategy
Facilitating partnerships and collaborative funding models to support economic
development initiatives
Providing a point of engagement for the Council with the government, business and
business organisations and local economic development agencies in relation to all
economic policy and strategy matters
Evaluating the balance of economic development policies, programmes and initiative
across Auckland and ensuring an appropriate balance between rural and urban
opportunities

Responsibilities

Within the specified area of activity the Committee is responsible for:

In accordance with the work programme agreed with the parent committee, developing
strategy and policy, including any agreed community consultation, to recommend to the
Regional Strategy and Policy Committee
Acting as a community interface for consultation on policies and as a forum for raising
community concerns, while ensuring community engagement is complementary to that
undertaken by local boards
Making decisions within delegated powers

Powers

All powers necessary to perform the Committees responsibilities

Except:

(a) powers that the Governing Body cannot delegate or has retained to itself (see
Governing Body responsibilities)
(b) where the Committees responsibility is limited to making a recommendation only
(c) where a matter is the responsibility of another committee or a local board
(d) the approval of expenditure that is not contained within approved budgets
(e) the approval of expenditure of more than $2 million
(f) the approval of final policy
(g) deciding significant matters for which there is high public interest and which are
controversial
(h) the commissioning of reports on new policy where that policy programme of work has
not been approved by the Regional Strategy and Policy Committee
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ITEM TABLE OF CONTENTS PAGE
1 Apologies 5
2 Declaration of Interest 5
3 Confirmation of Minutes 5
4 Petitions 5
5 Public Input 5
6 Local Board Input 5
7 Extraordinary Business 5
8 Notices of Motion 6
9 Workforce Roadmap for Auckland Construction and Infrastructure Sector
7
10 Feedback for Proposed Long-term Plan 2015-2025 Performance Measures
11
11 Integrated business precinct plan: industrial south Auckland 19
12 Auckland Global Engagement Update 75
13 Maori Economic Development Programme 81
14 Quarterly Economic Update 93
15 The Auckland Regional Partnership Agreement between the Auckland
Council, ATEED and Immigration New Zealand 95
16 Consideration of Extraordinary Items


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1 Apologies

An apology from Cr LA Cooper has been received.

2 Declaration of Interest

Members are reminded of the need to be vigilant to stand aside from decision making
when a conflict arises between their role as a member and any private or other external
interest they might have.

3 Confirmation of Minutes

That the Economic Development Committee:
a) confirm the ordinary minutes of its meeting, held on Tuesday, 1 July 2014, as a true
and correct record.


4 Petitions

At the close of the agenda no requests to present petitions had been received.

5 Public Input

Standing Order 3.21 provides for Public Input. Applications to speak must be made to the
Committee Secretary, in writing, no later than two (2) working days prior to the meeting
and must include the subject matter. The meeting Chairperson has the discretion to
decline any application that does not meet the requirements of Standing Orders. A
maximum of thirty (30) minutes is allocated to the period for public input with five (5)
minutes speaking time for each speaker.

At the close of the agenda no requests for public input had been received.

6 Local Board Input

Standing Order 3.22 provides for Local Board Input. The Chairperson (or nominee of that
Chairperson) is entitled to speak for up to five (5) minutes during this time. The
Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical,
give two (2) days notice of their wish to speak. The meeting Chairperson has the
discretion to decline any application that does not meet the requirements of Standing
Orders.

This right is in addition to the right under Standing Order 3.9.14 to speak to matters on the
agenda.

At the close of the agenda no requests for local board input had been received.

7 Extraordinary Business

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as
amended) states:

An item that is not on the agenda for a meeting may be dealt with at that meeting if-

(a) The local authority by resolution so decides; and

(b) The presiding member explains at the meeting, at a time when it is open to the
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public,-

(i) The reason why the item is not on the agenda; and

(ii) The reason why the discussion of the item cannot be delayed until a
subsequent meeting.

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as
amended) states:

Where an item is not on the agenda for a meeting,-

(a) That item may be discussed at that meeting if-

(i) That item is a minor matter relating to the general business of the local
authority; and

(ii) the presiding member explains at the beginning of the meeting, at a time
when it is open to the public, that the item will be discussed at the meeting;
but

(b) no resolution, decision or recommendation may be made in respect of that item
except to refer that item to a subsequent meeting of the local authority for further
discussion.

8 Notices of Motion

At the close of the agenda no requests for notices of motion had been received.

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Economic Development Committee
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Workforce Roadmap for Auckland Construction and Infrastructure Sector Page 7

Workforce Roadmap for Auckland Construction and Infrastructure
Sector

File No.: CP2014/17506




Purpose
1. To update the Economic Development Committee on the Workforce Skills Roadmap for the
Auckland Construction and Infrastructure Sector, including a presentation by the Unitec
Institute of Technology on behalf of the Construction and Infrastructure Sponsor Group.
2. The Unitec Institute of Technology will present the summary findings from the preliminary
report: Workforce Skills Roadmap for Auckland Construction Sector (2013-2018).
Executive summary
3. The Workforce Skills Roadmap for the Auckland Construction and Infrastructure Industry
Sector is a high level roadmap of anticipated workforce growth in the Auckland
construction and infrastructure industry sector over the next ten years, focusing primarily on
industry sector skills growth in the next five years.
4. The Workforce Roadmap is a collaborative project integrating local and central government,
tertiary education and vocational training, and business and industry objectives. Council was
a primary contributor to the roadmaps development, providing information on its
infrastructure work programme, and access to the Auckland Economic Futures Model to
develop the Auckland Construction and Infrastructure Occupation Model (ACIOM).
5. The Workforce Roadmap will:
close the gap between current and future workforce skills required for key construction
and infrastructure projects and economic growth
build the capability to establish a skilled workforce - a competitive advantage that
supports ongoing investment and economic growth
assist the tertiary vocational education and training providers to better respond to
employment growth in the sector
6. The release of the preliminary report Workforce Skills Roadmap for Auckland Construction
Sector (2013-2018) is the first step in the process of working collaboratively to build a skilled
workforce for Aucklands construction and infrastructure sector. Further work is underway to
build the skills supply pipeline for the construction and infrastructure industry sector.
7. Key highlights from the preliminary report: Workforce Skills Roadmap for Auckland
Construction Sector (2013-2018), which is to be tabled at the meeting, include:
Wall of Work - unprecedented levels of growth in building and construction are
forecast in the immediate future in New Zealand, dominated by Auckland
Significant Growth this increase in construction activity drives total net growth of
32,000 in construction and infrastructure occupations across the Auckland economy
8. The Committee will be provided with a presentation of the Workforce Roadmap and
summary findings by the Unitec Institute of Technology, presenting on behalf of the
Construction and Infrastructure Sponsor Group.
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Workforce Roadmap for Auckland Construction and Infrastructure Sector Page 8


Recommendation/s
That the Economic Development Committee:
a) note that the development of the Workforce Roadmap is an example of industry,
tertiary vocational education providers, council and central government working
together to understand future skills needs, and that further work is being undertaken
to build the skills supply pipeline and deliver skills for industry and economic growth,
b) thank the Unitec Institute of Technology/Construction and Infrastructure Sponsor
Group representatives for their presentation.


Comments

Background
9. The Workforce Skills Roadmap for the Auckland Construction Sector (2013-2018) is
intended as a companion document to Aucklands Construction and Infrastructure Labour
Requirements: 2013-2023, which provides a more detailed breakdown for each occupation
in the construction sector and in related supporting occupations. It also provides a ten year
outlook and a more general indication of where the industry is heading.
10. Both reports were prepared for the Auckland Construction Sector on behalf of the
Construction and Infrastructure Sponsor Group and are publically available on the industry
sponsor group website: www.workforceroadmap.org.nz
11. Membership of the Construction and Infrastructure Sponsor Group:
Primary contributors: Fletcher Building, Hawkins Construction, Dominion Constructors
Ltd, Naylor Love Construction, New Zealand Transport Agency, Auckland Council.
Secondary contributors: Building and Construction Industry Training Organisation
(ITO), Competenz, Infrastructure ITO, Manukau Institute of Technology, Tertiary
Education Commission, Skills Organisation, Unitec Institute of Technology, Building
and Construction Productivity Partnership, Ministry of Business, Innovation and
Employment.
Strategic context
12. Well-functioning labour markets and availability of skilled employees are important factors of
economic performance as highlighted in the Auckland Plan and Auckland Economic
Development Strategy. Global and domestic competition for skills and talent can result in
skills shortages or a mismatch between skills supply and demand, impacting key
infrastructure projects and limiting productivity.
13. International best practice highlights the development of industry led workforce strategies,
including sector specific workforce roadmaps that use demand driven analysis based on
investment plans to forecast labour force and skills requirements, and help inform the
alignment of education and training funding to industry need.
14. The Workforce Skills Roadmap delivers on Tertiary Education Strategy 2014-2019, which
sets out the Governments long term strategic direction for tertiary education, by supporting
business and innovation through the development of relevant skills, and improving outcomes
for all. The roadmap is intended to assist the tertiary vocational education and training
providers to better respond to skilled employment growth in the sector.
15. The roadmap approach of bringing together industry representatives to give a clear and
informed statement of their skilled labour requirements, and forming an alliance of tertiary
vocational education and training providers to deliver these skills, can be used to forecast
labour and skills requirements in other key sectors.
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Workforce Roadmap for Auckland Construction and Infrastructure Sector Page 9

16. The Workforce Roadmap supports the investment of the council, and other regional partners
with construction and infrastructure work programmes, including the delivery of a residential
construction workforce.

Methodology

17. Council supported the development of the Workforce Roadmap and the Auckland
Construction and Infrastructure Occupation Model (ACIOM) which underpins the roadmap,
providing information on its infrastructure work programme, and access to the Auckland
Economic Futures Model (EFM) owned and used by council.
18. The ACIOM is an extension to the EFM. It translates estimates of total employment growth
generated by the EFM and the projections of industry activity into estimates of growth in
occupations in the construction and infrastructure industry sector, and in related supporting
occupations in the wider Auckland economy.
19. The roadmap modelling can be used to forecast labour and skills requirements in other key
sectors.

Key findings

20. Key highlights from the preliminary report: Workforce Skills Roadmap for Auckland
Construction Sector (2013-2018), include:
Wall of Work - unprecedented levels of growth in building and construction are
forecast in the immediate future in New Zealand, dominated by growth in Auckland
Significant Growth this increase in construction activity drives total net growth of
32,000 jobs in construction and infrastructure occupations across the Auckland
economy
New house building - more than doubles over the next decade, including an
increase in apartments
Infrastructure investment increases - led by roading, electricity and water
70% of all residential growth over then next decade occurs in the first five years
69% of total employment growth is driven by residential construction

Next steps

21. The Construction and Infrastructure Sponsor Group is seeking endorsement from the Hon
Steven Joyce, Minister for Economic Development, and Minister for Tertiary Education,
Skills and Employment, and a roundtable discussion on the Workforce Roadmaps key
messages, their impact on the construction and infrastructure industry sector and wider
economy and the alignment of vocational education provision in Auckland that will support
this employment growth.
22. The alliance of tertiary vocation education and training providers have established a joint
working group and are developing a Construction and Infrastructure Sector Skills Supply
Plan for Auckland. This will inform investment planning and alignment of existing funding for
the tertiary vocational education and training sector.
23. The Alliance is exploring opportunities to leverage construction and urban development
projects to boost required construction and infrastructure skills development and local
employment opportunities within the projects.
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Workforce Roadmap for Auckland Construction and Infrastructure Sector Page 10


24. This project approach will also link to the two Auckland based consortia for the Maori and
Pasifika Trades Training initiative, both working towards the end goal of sustainable
employment in the construction and infrastructure and related industries:
A consortium led by the Southern Initiative will provide infrastructure trades training for
around 200 Maori and Pasifika people aged 18-34 over three years.
A consortium involving the Manukau Institute of Technology, the Unitec Institute of
Technology, and Te Wananga o Aotearoa (with Skills, Competenz and BCITO as
industry-facing partners) will provide construction and construction services (eg
plumbing, electrical) trades training for around 650 students.
25. The Alliance has initiated early work at shaping a joined up approach to better meet
industry demand across Auckland for instance, a common curriculum for plumbing training
has begun between Skills, MIT and Unitec is being piloted and it is aniticipated this approach
will be extended to other trades shortly.
26. Additionally, the Mayors Youth Employment Traction Plan is focusing on construction and
infrastructure as one of four key sectors to boost youth employment and skills.
27. The Workforce Roadmap will be regularly updated to reflect changes in the construction and
infrastructure industry sector.
Consideration
Local board views and implications
28. Boosting youth skills and employment is a priority for many local boards, and further work is
underway to build the skills supply pipeline for the construction and infrastructure industry
sector. This will deliver skills for industry and economic growth, including in local board
areas. Young people and employers in the four local boards in the Southern Initiative area
will benefit from linkages to the Maori and Pasifika Trades Training initiative. Occupation
data is not available by local board area through the Auckland Construction and
Infrastructure Occupation Model (ACIOM).
Mori impact statement
29. There is an opportunity to leverage construction and urban development projects to boost
skills development and local employment opportunities, with links to the Auckland based
consortia for the Mori and Pasifika Trades Training initiative, and the Mayors Youth
Employment Traction Plan which focuses on construction and infrastructure as one of four
key sectors.
Implementation
30. Further work is underway to build the skills supply pipeline for the construction and
infrastructure industry sector, and deliver skills for industry and economic growth. This
includes linkages to the Auckland based consortia for the Maori and Pasifika Trades
Training initiative, and the Mayors Youth Employment Traction Plan which focuses on
construction and infrastructure as one of four key sectors.
Attachments
There are no attachments for this report.
Signatories
Author Lisa Endersby - Principal Advisor
Authorisers Claire Gomas - Manager Economic Development Strategy & Policy
Harvey Brookes - Manager Economic Development
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Feedback for Proposed Long-term Plan 2015-2025 Performance Measures Page 11

Feedback for Proposed Long-term Plan 2015-2025 Performance
Measures

File No.: CP2014/16434



Purpose
1. To receive an overview of the performance information review process and outline the
process to finalise the LTP 2015-25 performance information and targets.
2. To provide feedback on the performance measures proposed by the business in order to aid
the development of the measures in the draft LTP 2015-25.
Executive summary
3. Following the process agreed at the Finance and Performance Committee meeting on 19th
June 2014, the business have developed a draft set of proposed Levels of service
statements and performance measures for the groups of activities that are relevant for this
Committee (Resolution no. FIN/2014/37).
4. This performance information is currently being reviewed by officers and internal
stakeholders. Our intention is to collate all feedback from this committee and our internal
process and provide this to the business.

Recommendation/s
That the Economic Development Committee:
a) receive the draft level of service statements and performance measures for the
Regulation groups of activity.
b) provide feedback on the proposed statements and measures, either through this
committee meeting or subsequently by emailing
longtermplan@aucklandcouncil.govt.nz .


Comments
5. The Performance Measure work-stream is conducting a council and CCO wide review of
performance measures for the Long-term Plan 2015-2025. This process was outlined and
agreed at the Finance and Performance Committee on 19th June 2014 (Resolution no.
FIN/2014/37).
6. The intended outcome of this in-depth review is that there will be a succinct set of
community focused performance measures for each group of activities proposed for the draft
LTP, which is aligned to the Auckland Plan.
7. This work needs to be substantially completed (including political engagement) by the end of
October 2014 to support publication of the draft LTP for public consultation in early 2015.
8. The business has completed an in-depth review of their level of service statements and
measures and these have been provided in an attachment to this report. This performance
information is currently under review by key internal stakeholders and officers, including
IMSB.
9. Feedback provided through this committee, our internal processes and IMSB, will be
provided back to the business for them to finalise their proposed performance information.
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10. These performance measures will have targets that will reflect the intended levels of service
to be delivered by the council and CCOs and which will align with financial budgets. These
targets will be discussed at the budget committee workshops in September 2014.
11. The Budget Committee will review the entire suite of measures and targets proposed for
inclusion in the LTP 2015-25 between September and October 2014. The Budget
Committee will adopt the measures and targets on 5th November 2014.
Consideration
12. Performance Information proposed for the following groups of activities is included in
Attachment A;
a) Tourism, Major Events & Industry Development
b) Investment
c) Waterfront development and Property development
d) Regional planning and Local planning

13. The internal review is considering feedback to the business to ensure that the business:
a) reduce the number of measures that are reported at the LTP level where possible,
b) reduce an over-reliance of survey related measures, especially at a local level, where
sampling errors are significant, and
c) include only those measures that have a robust reporting methodology in place and are
important is describing the Councils performance.
Local board views and implications
14. Local boards are currently in the process of providing feedback on performance measures at
Local Boards Workshops and meetings through August. This feedback will be used in
finalising the performance information. Once the Budget Committee have endorsed the
performance measures, we will engage with Local Boards to determine their targets. This is
expected to take place in September 2014.
Auckland Plan Alignment
15. In developing performance measures, we are ensuring alignment of levels of services with
Auckland plan outcomes and targets which have been set.
16. The performance measures will be considered only for those levels of services that directly
contribute to or enable an Auckland plan target to be met.
Mori impact statement
17. The draft and existing Maori outcome related performance measures that are being
reviewed. Te Waka Angamua and IMSB are part of the key stakeholders group for this work-
stream and are providing feedback and support on that part of the review. The feedback
received will be used to further develop the current draft performance information.
Implementation
18. No significant implementation issues are applicable.
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Attachments
No. Title Page
A HPO & Planning LoS & LTP Measures 15

Signatories
Author Taryn Crewe, Financial Planning Manager Council Parent
Authorisers Matthew Walker - Manager Financial Plan Policy and Budgeting
Warren Maclennan - Manager North West Planning

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Integrated business precinct plan: industrial south Auckland Page 19

Integrated business precinct plan: industrial south Auckland

File No.: CP2014/15171



Purpose
1. To inform the Economic Development Committee of the draft integrated business precinct
plan and ask the committee to endorse the draft for public consultation.
Executive summary
2. The zoned industrial areas identified within the draft Integrated Business Precinct Plan
(IBPP) make a significant contribution to the Auckland economy. The Auckland plan
anticipates that a quarter of the additional jobs that will be needed in Auckland by 2041 will
be provided in south Auckland.
3. With increasing pressures for alternative land uses in and around the IBPP industrial areas
there is a need to support the industrial areas in a coordinated way so that they can continue
to contribute to the delivery of the economic priorities of the Auckland Plan, Aucklands
Economic Development Strategy and the Southern Initiative.
4. The draft IBPP has been developed to provide a framework to support business and
employment growth and inform the strategic approach to the future supply of industrial land
to meet anticipated need. The draft sets out a vision and high level actions that are required
in order to work towards achieving the IBPPs objectives.
5. Following the agreement of the Economic Development Committee the draft IBPP will be
subject to a period of consultation prior to being reported back to the committee and local
boards.

Recommendation/s
That the Economic Development Committee:
a) endorse the draft Integrated Business Precinct Plan: industrial south Auckland,
(Attachment A) for consultation.


Comments
Why have an integrated business precinct plan
6. In 2012, the industrial locations within the IBPP area contributed an estimated $18 billion
towards Aucklands GDP, employed 149,154 people (23% of Aucklands total employment),
and has seen employment grow by 27.5% since 2002.
7. The Auckland Plan anticipates that an additional 276,700 jobs will be needed in Auckland by
2041. A substantial share of these jobs (51%) will be located in central Auckland with a
further 25% in south Auckland.
8. With increasing pressure for alternative land uses in and around the IBPP industrial
locations, there is a need to support Aucklands industrial areas in a coordinated way so that
they can continue to contribute to the delivery of the economic priorities of the Auckland
Plan, Aucklands Economic Development Strategy and the Southern Initiative.
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9. In order for the southern industrial precincts to continue to make a significant contribution to
the regional economy and realise their future potential in the context of a growing residential
population we need to co-ordinate
the efficient use and supply of brownfield and greenfield industrial land
improve transport infrastructure
encourage high quality amenity in industrial areas
align growth with planned investment
develop partnerships with and between businesses and educators

10. The draft IBPP has been developed to provide a coordinated framework to support business
and employment growth within the Proposed Auckland Unitary Plan, including zoned light
and heavy industrial areas located south of central Auckland and to inform the future release
of industrial land to meet forecast demand.
Process to date
11. The following diagram outlines the process that has been followed for the preparation of the
draft IBPP.

12. A project team was established to inform and guide the development of the draft IBPP. The
project team was drawn from across council and included representatives from Auckland
Transport (AT) and Auckland, Tourism, Events and Economic Development (ATEED). The
project team prepared topic reports and topic based sessions were held to help identify
issues and opportunities for the IBPP area.
13. In addition to the project team a working group of local board members has been
established to ensure that the relevant local boards were able to input into the development
of the draft IBPP, and steer the strategic direction of the IBPP. This will ensure that the plan
responds to the priorities of the local boards as defined in the emerging and adopted Local
Board Plans.
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14. To further identify the key issues and opportunities facing the IBPP area, an informal
consultation process was undertaken to gain the views of businesses within the scope of
IBPP. This included a series of workshops held with business associations, and Auckland
International Airport as well as telephone interviews with businesses. A summary of the main
issues identified during this informal consultation process is included within the draft IBPP at
appendix 6.

Key components of the draft IBPP

15. The draft IBPP includes the following key sections:
Vision for the IBPP area
Issues and opportunities for the industrial south
The spatial strategy for the industrial south
High level actions for the industrial south
Appendices
o Strategic context
o Economic characteristics of the IBPP area
o Key sectors within the IBPP area
o Industrial change in the IBPP area 2002-2012
o Informal consultation findings
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Spatial strategy

16. The draft IBPP sets out a spatial strategy for the zoned industrial areas in south Auckland.
The key elements of the spatial strategy are identified in the diagram below.


Vision for the IBPP

17. The draft vision within the draft IBPP is as follows:
Aucklands southern industrial locations will continue to be diverse, innovative and
sustainable locations that provide opportunities to a local workforce, take advantage of
transport connections, maximise trade and export opportunities and act as a key driver for
the Southern Initiative and wider Auckland economy.
18. This vision is supported by the following high level actions that will help to form the
implementation plan for the IBPP once adopted.
o support continued growth of industrial activities in the Airport area, East Tamaki, Wiri
and the industrial areas at Takanini, Drury, Papakura, and Pukekohe
o retain industrial zoned land and promote the identification of further industrial land to
support the objectives of the Auckland Plan
o work with business to manage the reverse sensitivity issues associated with differing
adjacent land uses i.e. heavy industrial to light industrial to mixed use/residential areas
o support the retention of heavy and light industrial businesses in the IBPP area
o support the key sectors identified in the industrial zones
o promote the industrial south as a place to do business and invest
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o support local boards in developing and promoting the zoned industrial areas and the
opportunities within them
o develop a partnership between local employers and education providers to ensure that
skills and training needs for businesses are met now and in the future
o promote the efficient movement of people and goods through a range of transport
options
o align growth with infrastructure planning
Consultation
19. Consultation on the draft IBPP is proposed to occur during September and October 2014.
The focus of the consultation will be to connect with iwi, existing businesses in the zoned
industrial areas (by presenting to Business Associations and companies previously
consulted on during the informal consultation process), and key stakeholders including
Auckland International Airport, Auckland Chamber of Commerce, and the Employers and
Manufacturers Association (EMA).
20. This will occur through meetings and events as well as direct communication using an e-
flyer.
21. Once the engagement period is over, the feedback will be reviewed, grouped into themes
and amendments to the draft IBPP will be discussed with the local board working group and
project team, prior to presenting back to Local Boards and the Economic Development
Committee.
Consideration
Local board views and implications
A working group has been established with representatives from the following local boards,
Maungakiekie Tamaki, Howick, Otara Papatoetoe, Mangere Otahuhu, Manurewa, Papakura
and Franklin. The draft IBPP has been presented to the working group prior to reporting to the
Economic Development Committee.
Mori impact statement
The identified spatial strategy may impact on Mori as a result of the identification of areas that
could present opportunities for future industrial land supply. As a result iwi will be consulted during
the consultation period to ensure that any potential impacts are properly considered in the
development of the IBPP.
Implementation
The draft IBPP sets out a number of high level actions and more detailed actions that will help to
achieve the aspirations set out within the draft IBPP. These actions represent the implementation
plan for the IBPP.

Attachments
No. Title Page
A Auckland's industrial south: draft integrated business precinct plan 25

Signatories
Author John Norman - Strategic Planner Local Economic Development
Authorisers Janet Schofield - Business Area Planning Manager
Harvey Brookes - Manager Economic Development
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Auckland Council
Aucklands Industrial South
Draft Integrated Business Precinct Plan
August 2014
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1. Contents

Introduction ................................................................................................................. 3
The vision for the industrial south ............................................................................... 4
Issues and opportunities for the industrial south ......................................................... 5
1. Business growth and employment ................................................................. 5
2. Infrastructure (excluding transport) ................................................................ 5
3. Transport infrastructure ................................................................................. 6
4. Skills and Training ......................................................................................... 7
5. Availability of Land for heavy and light industry ............................................. 7
6. Quality of the business environment .............................................................. 8
The spatial strategy for the industrial south ................................................................ 9
Draft high level actions for the industrial south ......................................................... 11
Appendix 1 ................................................................................................................ 17
Strategic context ................................................................................................... 17
National and regional economic development agendas .................................... 17
Auckland Council plans and strategies .............................................................. 17
The Auckland Plan ............................................................................................ 17
Aucklands Economic Development Strategy .................................................... 18
The Proposed Auckland Unitary Plan ................................................................ 18
Local board plans .............................................................................................. 19
Transport ........................................................................................................... 19
The Southern Initiative ....................................................................................... 19
Other relevant strategies and plans ...................................................................... 20
Mngere-thuhu Area Plan ............................................................................. 20
Pukekohe Area Plan .......................................................................................... 20
Draft tara Papatoetoe Area Plan .................................................................. 21
East Tamaki Business Precinct Plan ................................................................. 21
Auckland International Airport Masterplan ......................................................... 22
Upper North Island Ports study .......................................................................... 22
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Appendix 2 ............................................................................................................... 24
Aucklands industrial south ................................................................................... 24
Economic characteristics of the integrated business precinct plan area ............... 31
Business Size in the IBPP area ........................................................................ 33
GDP output ....................................................................................................... 34
Appendix 4 ............................................................................................................... 35
The key sectors within the integrated business precinct plan area ....................... 35
Manufacturing in the IBPP area ........................................................................ 35
Wholesale trade sector in the IBPP area .......................................................... 35
Transport postal and warehousing sector in the integrated business precinct plan
Area .................................................................................................................. 36
Appendix 5 ............................................................................................................... 37
Industrial Change in the IBPP Area 2002 - 2012 .................................................. 37
Industrial change within the mature industrial zone .......................................... 37
Industrial change within the South central and industrial expansion zone ........ 39
Industrial change within the peripheral and future urban zone .......................... 40
Appendix 6 ............................................................................................................... 43
Informal engagement findings .............................................................................. 43
Accessibility ...................................................................................................... 43
Company internal infrastructure costs and investments .................................... 43
Clustering and collaboration.............................................................................. 44
Staff skills and employee availability ................................................................. 44
Infrastructure ..................................................................................................... 45
Business growth and support for growth ........................................................... 45

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Introduction

This Integrated Business Precinct Plan (IBPP) provides a framework to support business and
employment growth on zoned light and heavy industrial land
1
located south of the Auckland CBD
(appendix 2). It seeks to support the growth and development of the industrial locations in a co-
ordinated manner. Enabling these locations to continue to contribute to the delivery of the
economic priorities of the Auckland Plan, Aucklands Economic Development Strategy and the
Southern Initiative, so that they continue to play a strong role in the regions economy and the
economic growth of Auckland and New Zealand.

As outlined in appendix two the IBPP area comprises approximately 4044 hectares
2
or 50% of the
industrial land in the Auckland region. With nearly 150,000
3
employees in 2012 the IBPP area has
seen employment grow by 27.5% since 2002.

The Auckland Plan anticipates that an additional 276,700 jobs will be needed in Auckland by
2041. A substantial share of these jobs (51%) will be located in central Auckland with a further
25% in south Auckland
4
. A substantial share of these jobs will be located in the business areas
within the CBD, CBD fringe and the industrial areas located south of the CBD including East
Tamaki, Penrose, Mt Wellington, Auckland International Airport and environs, Wiri, Takanini, and
Hunua Road.
There is currently a scarcity of industrial land within the region to accommodate our future supply
needs. With increasing pressure for alternative land uses in and around some of the industrial
locations in south Auckland there is a need to develop an integrated plan to support the industrial
sector in south Auckland and ensure that the economy continues to provide a range of
employment choices for the regions residents.

In 2012, areas zoned light and heavy industrial accounted for 23% of the regions total
employment. In order for the southern industrial precincts to continue to make a significant
contribution to the regional economy and to realise their future potential we need to consider how
to support the precincts / areas in a co-ordinated way that will:

help to make efficient use of available greenfield and brownfield sites;
improve public transport services, vehicle access and connectivity to the industrial
precincts;
support the efficient movement of high value added goods and services for export;
improve access to ancillary services and facilities for the industrial areas;
encourage high quality amenity within the industrial areas;
align with Auckland Council and Council Controlled Organisation infrastructure investment;
improve planning and delivery of infrastructure and services to support future growth;
develop partnerships with the business community and education providers;


1
Proposed Auckland Unitary Plan (2013) light and heavy industrial zones
2
Balderston, K and Fredrickson, C (2014). Capacity for Growth Study 2013 (Proposed Auckland Unitary Plan): results, Auckland
Council technical report, TR2014/010
3
149,154 employees (NZ Stats Business Demographics for 2012)
4
Auckland Plan: Table 6.2 paragraph 386
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The aim of the IBPP is to ensure Aucklands southern industrial locations to continue to grow and
develop, and to enable the industrial locations to be internationally competitive, high performing
locations.
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The vision for the industrial south

Based on the comments received from the targeted engagement with businesses during the
drafting of the draft IBPP (outlined in appendix six) the vision for Aucklands industrial south is
that:

The key high level outcomes for the Integrated Business Precinct Plan are that:
development and employment growth is fostered through the retention, expansion and
attraction of businesses
a partnership exists between the local employers and education providers to ensure that
skills and training needs for businesses are met now and in the future
the efficient movement of people and goods is facilitated through a range of transport
options
development within the zoned industrial locations ensures the delivery of a strong, export
focused manufacturing base while allowing supportive services to co-locate
infrastructure needs cater for business growth and that reliable and continuous services
are delivered
industrial locations are protected allowing for renewal and improvement of existing
industrial activity
industrial land supply is maintained in order to meet the future requirements of businesses
in the area and enable the IBPP area to continue to drive industrial growth and productivity
within Auckland.
industrial buildings are fit for purpose maximising the use of land
Aucklands southern industrial locations will continue to be diverse,
innovative and sustainable locations that provide opportunities to a local
workforce, take advantage of transport connections to maximise trade and
export opportunities and act as a key driver for the Southern Initiative and
wider Auckland economy.
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Issues and opportunities for the industrial south

The industrial locations that make up the IBPP area are key contributors to the Auckland and New
Zealand economy. The concentration of industrial activities within the IBPP area enables
businesses to be close to customers and suppliers creating efficiencies in the supply and
manufacture of goods. The ability for businesses in the IBPP area to access export markets due to
their proximity to Auckland International Airport the two inland ports at Wiri (Wiri Inland Port) and
Church-Nielson Street (MetroPort) and the Ports of Auckland are key advantages that help to
sustain the attractiveness of the industrial locations to business.

The ability for the industrial locations to change and adapt, by responding to market needs, and
providing high quality buildings and suitably sized sites to enable new business to invest in the
area, will be key to sustaining the attractiveness and competitiveness of the industrial locations.
While there are locations that have little capacity for future growth in terms of land availability the
IBPP area does have locations that will deliver new industrial space. This will help Auckland to
meet the estimated need for industrial / business land up until 2040.

This section of the IBPP identifies some of the key opportunities and challenges that exist within
the area as a whole to help inform the actions and sustain south Auckland as a key industrial
location for Auckland and New Zealand.
1. Business growth and employment

The IBPP area is considered to include the prime industrial and manufacturing locations within the
Auckland region. The attractiveness of these locations is primarily due to the proximity of Auckland
International Airport, two inland ports and road and rail providing links to markets and suppliers to
the south and north of Auckland.

Within the IBPP area employment growth has continued to increase over the ten years between
2002 and 2012. This has been as a result of a change away from manufacturing to more service
sector jobs, as well as the provision of new industrial and business space in East Tamaki,
Auckland International Airport, Wiri and Takanini.

Due to the large concentration of manufacturing companies within these industrial locations, there
are a high number of export generating businesses in the area, as well as firms operating
business to business and accessing New Zealand domestic markets. As a result, there are
opportunities to support future business growth through improved export capability, innovation and
new product development.

While there is a degree of competition between the industrial areas within the IBPP area, the close
proximity to competitors and suppliers is a key benefit to companies within the IBPP area. As a
result there is an opportunity to create a strong brand for the IBPP area and in turn the individual
industrial locations. This will enable the promotion of the industrial locations as attractive places
for employees to work in, and signposting companies to where certain sectors are well
represented to support the benefits of agglomeration and clustering.
2. Infrastructure (excluding transport)

The reliability of the supporting infrastructure is an important issue for businesses within the IBPP
area. The Auckland Plan realises the opportunity to improve the sequencing of infrastructure with
land use to serve future projected growth.
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The Auckland Council 2013 Capacity for Growth report shows that the IBPP area has the potential
to accommodate growth of industrial activities, however the identification of further industrial land
will be required in order to meet long term industrial land needs as Auckland grows. It is therefore,
important to ensure that the planning and delivery of infrastructure does not restrict the potential
for economic growth. and that current needs are accommodated while also planning for the future.

As new sites become available for industrial use, the opportunity to future proof sites to allow for
future tenants / developers to install the required infrastructure will be essential. This will also help
reduce the costs to tenants of having to retrofit infrastructure such as ultra-fast broadband into
sites.

Future planning within the IBPP area will need to identify existing infrastructure assets and
corridors to determine if there are any possible conflicts between existing infrastructure and the
proposed land use. It will therefore be important to engage with infrastructure providers to co-
ordinate and phase investment in areas to ensure that the correct infrastructure is in place in the
right locations at the right time and that opportunities to resolve issues on existing industrial areas
are addressed.
3. Transport infrastructure

At present the movement of goods is reliant on the current rail network, state highways and the
following key arterial roads:

Church - Neilson Streets
South Eastern highway
Ti Rakau Drive
Te Irirangi Drive
Great South Road

A key issue for the IBPP area is the efficient movement of people and goods. As Auckland
develops the ability for the transport network to accommodate growth is a key issue for the region.
Therefore, it will be important for any future growth and demand to be planned and catered for.
Businesses operating in the IBPP area have a part to play in managing the demand on the
transport network to reduce the reliance on private vehicles, in order to reduce congestion, which
in turn will help to save business the costs associated with transporting goods. Tools such as
workplace travel plans should be encouraged and used to help make the network more efficient by
reducing the reliance on private vehicles.

Providing connections between business areas and to residential areas in the IBPP area is critical
for the continued viability of the IBPP area. The continued implementation of currently planned
projects such as AMETI, upgrading the Mill Road corridor, and the East West Connections will
help to deliver improved connectivity across the IBPP area.

Public transport must meet the needs of the workforce to make it a viable alternative to the private
car and free up space on the transport network. Opportunities to increase the frequency of bus
routes serving the business areas from the surrounding residential areas should be investigated
as surrounding areas develop and residential densities increase. In addition to this improving the
attraction of walking and cycling as a means to replace short trips by the private car in our
industrial areas should be investigated.
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4. Skills and Training

Access to a skilled workforce is important to potential investors as well as existing businesses.
The need to invest in people and grow skills within the workforce is identified as a priority within
Aucklands Economic Development Strategy (EDS). The EDS has identified the following key
initiatives to support skills development in the Auckland region:

facilitate better agency and service alignment to improve capacity building and service
delivery in the skills and education pipeline;
identify critical skill shortages and create a better match between skills supply and demand
facilitate the attraction and retention of skilled workers in key industries
facilitate tertiary education organisations to work collaboratively with industries to improve
the relevance and responsiveness of educational programmes.

To ensure that the work force is appropriately skilled to access jobs within the IBPP area,
opportunities to improve information flows between education and training providers (including
schools, universities, industry training organisations) and employers should be investigated. This
should complement other activities that the council and training organisations are taking to
address skills issues in the region and specifically in the southern area as part of the Southern
Initiative.
5. Availability of Land for heavy and light industry

The continued availability of industrial land will be vital to help sustain a strong regional economy,
and provide a range of job opportunities to the citys residents. In order to ensure that Auckland is
able to do this we need to:
protect existing land identified for heavy and light industrial uses within the Proposed
Auckland Unitary Plan (PAUP) from non-industrial uses such as non-ancillary office, retail
and residential
identify the opportunities for new light and heavy industrial land to ensure that the city has
a ready supply of available industrial land to meet our future needs.

The Auckland Council Capacity for Growth results report 2013, identifies that there is
approximately 741ha of vacant land
5
and a further 1038ha of vacant potential
6
land within the
zoned industrial areas that make up the IBPP area. Table 1 below shows how this capacity is split
between the three spatial areas identified in the IBPP.

5
Vacant (business): Defined as capacity (in hectares) of business zoned parcels that are currently wholly
vacant (no buildings/structures):within the Auckland Council Capacity for Growth results report 2013.
6
Vacant potential (business): Defined as vacant potential is the measure of the vacant portion of parcel that
is currently zoned for business use and is not already occupied in some way by a building. Generally this
portion of the site is unoccupied and could be used for further development. Auckland Council Capacity for
Growth results report 2013.
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Table 1: Capacity for growth within IBPP area
Vacant
capacity (Ha)
Vacant
potential
capacity (Ha)
IBPP Mature industrial zone (Penrose, Mt
Wellington, Glen Innes) 93.6 245.6
IBPP South central & industrial expansion zone
(Airport, Wiri east Tamaki) 201.5 560.3
IBPP Peripheral and future urban zones
(Takanini, Papakura, Pukekohe, Drury, Waiuku) 446.7 232.5

Source: Capacity for Growth Study 2013 (Proposed Auckland Unitary Plan)

The capacity for growth study highlights the lack of available land within the mature industrial
areas in the north of the IBPP and the availability of land within the central southern expansions
area and the peripheral areas of Takanini, Papakura, Pukekohe, Glenbrook and Waiuku within the
southern zone. Over 60% of vacant capacity is located in the southern area highlighting the
opportunity that this area has to bring new industrial land forward in the long term. However, the
ability for this capacity to accommodate some of Aucklands industrial land need and be
developed into letable space will be determined by the market and whether the land is available at
the right time and in the right place.

Auckland Council should therefore continue to investigate opportunities to provide more industrial
land within the future urban zone or enable more efficient use of existing industrial land should be
investigated as part of the area planning process to ensure that the IBPP area can continue to
contribute to meeting the demand for industrial land within the Auckland region.
6. Quality of the business environment

Visual amenity, physical amenities such as cafes and the natural environment all contribute to the
quality of the business environment. Some of the industrial land in the IBPP area is adjacent to
sensitive areas which, if protected, can add amenity value to the business environment. It is
therefore important to maintain visual amenity in the industrial areas to ensure that they are
attractive to customers, investors and the workforce. As sites are redeveloped / developed careful
consideration should be given to the treatment of entrance areas, roads and built form.
Landscaping should be used to soften the appearance of large buildings and storage yards to help
improve the streetscapes.

Some of the industrial areas are already improving the quality of the business environment current
projects include:

Greenmount Landfill future park (East Tamaki)
Highbrook parkland developments (East Tamaki)
Otara lake and Waterway (East Tamaki)
Manukau Harbour walkway (Mahunga Drive).

Physical amenities within the industrial areas will help to support their viability. As areas develop
and grow there will be increasing demands for day care centres, gyms and other facilities.
Facilitating the delivery of these in appropriate locations adjacent to the zoned industrial areas will
help to maintain the attractiveness of the industrial areas to businesses and their employees.
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The spatial strategy for the industrial south

The diagram below sets out a broad spatial strategy for the IBPP area.

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The key elements of the spatial strategy are:

Mature industrial zone
This area incorporates some of Aucklands oldest established industrial areas. Due to the limited
availability of greenfield land within this zone, the strategy here is recommended to be protection,
retention and intensification of industrial zoned land. This is important due to the high land values
and pressures for other non- industrial uses in these areas.

South central and industrial expansion zone
This area incorporates the key industrial areas of Auckland International Airport and the airport
corridor (ascot park), East Tamaki and Manukau/Wiri. The strategy here is to focus on the
retention and intensification of industrial zoned land and the facilitation of the development of new
greenfield industrial land adjoining these existing areas.

Peripheral and future urban zone
This area incorporates the well established and emerging industrial areas at, Takaninni, Papakura,
Drury, Pukekohe, Glenbrook and Waiuku. These locations provide opportunities for future
industrial land supply for Auckland.

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Draft high level actions for the industrial south
In order to support the delivery of the vision for the industrial locations within the IBPP area the following draft high level actions have been
developed. These draft actions indicate a range of activities that will support the desired outcomes and vision for the IBPP area:
1. support continued growth of industrial activities in the Airport area, East Tamaki, Wiri and the industrial areas at Takanini, Drury, Papakura,
Pukekohe
2. retain industrial zoned land and promote the identification of further industrial land to support the objectives of the Auckland Plan.
3. work with business to manage reverse sensitivity issues associated with differing adjacent land uses i.e. heavy industrial to light industrial to
mixed use/residential areas
4. support the retention of heavy and light industrial businesses in the IBPP area
5. support the key sectors identified in the industrial zones
6. promote the industrial south as a place to do business and invest in.
7. support local boards in developing and promoting the zoned industrial areas and the opportunities within them
8. develop a partnership between employers and education providers to ensure that skills and training needs for businesses are met now and in
the future
9. promote the efficient movement of people and goods through a range of transport options
10. align growth with infrastructure planning.
To assist in the delivery of the high level actions, the table below sets out detailed actions that will need to be taken to support and grow the IBPP
area.
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Draft high level action Draft detailed action (subject to consultation) Indicative Lead
(subject to
consultation)
Time frame
Support continued growth of
industrial activities in the
Airport area, East Tamaki,
Wiri and the industrial areas
at Takanini, Drury, Papakura,
Pukekohe
1) work with businesses to seek better public transport
connections between existing and planned residential areas and
places of work / study in the southern area
Auckland Transport,
Auckland Council,
Business Associations
1-3 years
2) investigate the opportunities for the future supply of industrial
land as part of a wider strategy for the business land supply in
Auckland.
Auckland Council 1 year
Continue to retain industrial
zoned land to ensure there is
sufficient supply of land
available with appropriate
access and infrastructure in
place
Advocate for land-use policies that safeguard the continuing use
and development of industrial activities on the industrial land and
specialised industrial precincts in the IBPP area
Business Associations,
Auckland Council
(including Local Boards)
ongoing
Monitor the uptake and supply of industrial zoned land. Auckland Council, Every two
years
Work with infrastructure providers (gas, electricity) to advocate for
reliable and adequate supply to industrial locations
Auckland Council ongoing
Work with business to
manage the reverse
sensitivity issues associated
with differing adjacent land
uses i.e. heavy industrial to
light industrial to mixed
use/residential areas
Prepare information and advice on managing impacts on
neighbours.
Business Associations 1 - 3 years
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Draft high level action Draft detailed action (subject to consultation) Indicative Lead
(subject to
consultation)
Time frame
Support the retention of
heavy and light industrial
businesses in the IBPP area.
Investigate the potential to develop business-friendly regulations
that optimise the conditions in which business growth can occur.
Auckland Council 1 3 years
Further development of the export base, particularly in construction
and engineering, food and beverage, health technologies and niche
manufacturing, which are the internationally competitive sectors
that are most strongly represented in the IBPP area
ATEED 1 5 years
Improve the promotion of business support and growth support
initiatives that are delivered by the public sector. Work with
providers and business associations to better signpost businesses
to these initiatives and other support programmes.
ATEED 1 5 years
Investigate feasibility for localised incentive schemes to help
support business growth activities in the industrial locations.
ATEED
Auckland Council
1 5 years
Support the key sectors
identified in the industrial
zones.
1) Define pathways for firms to the Auckland and national
innovation centres and support services that assist
commercialisation and business growth
ATEED,
Business Associations
1 5 years
2) Within the regional and national innovation framework, support
innovation that strengthens sectors in which firms in the IBPP
area have a competitive advantage such as construction and
engineering, food and beverage and niche manufacturing.
ATEED 1 5 years
3) Ensure that businesses are linked to innovation networks and
funding regionally and nationally.
ATEED,
Business Associations
1 5 years
4) Support BID expansion in the industrial areas (where proposed)
to facilitate networking and help facilitate collaboration.
Auckland Council 1 5 years
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Draft high level action Draft detailed action (subject to consultation) Indicative Lead
(subject to
consultation)
Time frame
5) Support planning strategies and rules that preserve industrial
land for industrial activities within the IBPP area.
Auckland Council,
ATEED,
Business Associations
1 5 years
Promote the identification of
further industrial land in order
to support the objectives of
the Auckland Plan
Ensure that area plans and strategic land use planning policies
protect existing industrial zoned land for industrial purposes and
plan for new areas of greenfield industrial land where appropriate.
Auckland Council 1 5 years
Work with landowners to ensure that a range of industrial site sizes
are available.
Auckland Council,
ATEED
1 5 years
Promote the industrial south
as a place to do business
and invest in.
Undertake a review every two years of the IBPP area to monitor
change and the market perception of the industrial locations
including their capacity for future development.
Auckland Council Every two
years
Provide new locations for industrial land in close proximity to good
transport networks and allow for the ability to expand existing
locations
Auckland Council 5 10 years
Develop a marketing proposition for the identity and branding of
precinct areas to attract new businesses to the IBPP area
ATEED,
Auckland Council (Local
Boards)
1 5 years
Support local boards in
developing and promoting
the zoned industrial areas
and the opportunities within
them
Local Boards to encourage investment in the IBPP areas to create
business growth opportunities by:

supporting the take up of ultra fast broadband
business place making through partnerships between Auckland
Council and private investors
infrastructure and facilities provision (e.g. for the visitor
ATEED,
Auckland Council (Local
Boards)
1 5 years
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Draft high level action Draft detailed action (subject to consultation) Indicative Lead
(subject to
consultation)
Time frame
economy)
supply chain linkages (e.g. to Auckland airport)
advocating for safe walking routes to increase accessibility to
open spaces, town centres and local cafs.

Seek to promote future industrial growth in the southern local board
areas to ensure that there is a continued supply of well connected
greenfield and brownfield land available to the Industrial sector.
Auckland Council (Local
Boards)
1 5 years
Investigate industrial locations that are in transition to identify areas
that may benefit from more detailed specific land use planning in
the future.
Auckland Council 1 5 years
Develop a partnership
between local employers and
education providers to
ensure that skills and training
needs for businesses are
met now and in the future
Improve information flows between education and training providers
(including schools, universities, industry training organisations) and
employers.
Auckland Council,
ATEED
1 5 years
Promote the efficient
movement of people and
goods through a range of
transport options
Work with businesses to seek to create more capacity on the rail
network for rail freight and commuters.
Auckland Transport,
Kiwi Rail
1 5 years
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Draft high level action Draft detailed action (subject to consultation) Indicative Lead
(subject to
consultation)
Time frame
Work with businesses to support the outcomes of the AMETI, East -
West Connections, Mill Road Corridor projects.
Auckland Transport,
Business Associations
1 5 years
Advocate and support the programming and delivery of key
arterials such as the Pukekohe Eastern Arterial
Franklin Local Board, 1 10 years
Advocate for workplace travel plans and assist business in
developing such plans.
Auckland Transport,
Business Associations
1 5 years
Businesses to support the business case for rail improvements
including City Rail Link, electrification to Pukekohe and a third main
rail line.


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Appendix 1

Strategic context
National and regional economic development agendas

The New Zealand Government has identified four key priorities with the aim of delivering a
stronger and more prosperous New Zealand these priorities are:

responsibly managing the Governments finances
building a more productive and competitive economy
delivering better public services within tight fiscal constraints
supporting the rebuilding of Christchurch

In order to work towards the delivery of the building a more productive and competitive economy
priority the Government has identified six key areas under a business growth agenda. These are:

1. building export markets
2. building capital markets
3. building innovation
4. building skilled and safe workplaces
5. building natural resources
6. building infrastructure
7


At both a regional and national level the industrial precincts identified within this IBPP will all have
a role to play in contributing to the outcomes of these six areas.

Auckland Council plans and strategies

At a regional level, the Auckland Plan, Economic Development Strategy and the Proposed
Auckland Unitary Plan (notified on 30 September 2013) are key documents that provide a
framework for Aucklands regional economic development. They seek to lift Aucklands
productivity through a series of objectives and accompanying actions.

The Auckland Plan

The Auckland Plan sets the strategic direction for Auckland to realise the citys ambition to
become the worlds most liveable city. It sets out a high-level development strategy, identifying the
existing and future location of residential, business, industrial activities and rural production, in
order to direct and co-ordinate decision making by Auckland Council and other parties through to
2041.

The relevant objectives within the Auckland Plan are to:
increase Aucklands business innovation and export strength,
develop world class infrastructure and world class urban centres; and
develop a skilled and responsive labour force
8


7
New Zealand Government: The Business Growth Agenda Progress report 2013
8
Auckland Council, Auckland Plan 2011
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The Auckland Plan seeks to develop the Auckland economy into one that delivers opportunity and
prosperity for all Aucklanders and New Zealand. In order to achieve this, the plan identifies the
following targets:

to improve Aucklands OECD ranking of cities (GDP per capita) of 69
th
place in 2011 by 20
places by 2031
increase annual average productivity growth from 1% p.a. in the last decade to 2% p.a. for
the next 30 years
increase annual average export growth from 3% p.a. in the last decade to 6% p.a. for the
next 30 years
increase annual average real GDP growth from 3%p.a. in the last decade to 5% p.a. for
the next 30 years
ongoing provision of planned and serviced capacity for group 1 business land, including
large lots, to meet 5 yearly demand as assessed by annual surveys.

In order to achieve these targets the Auckland Plan notes that there needs to be a fundamental
structural shift in the economy from an inwardly focused economy that is import led to one which is
export driven.

The Auckland Plan predicts that the number of people employed in the industrial sector will
increase by 40% between 2007 and 2041.

The development strategy outlined in the Auckland Plan identifies the city centre and the area
covered by the Southern Initiative as the two key areas that will make the greatest difference to
Auckland and New Zealands future well being.

Aucklands Economic Development Strategy

In order to achieve the economic goals set out in the Auckland Plan the Economic Development
Strategy identifies five economic priorities, these are to:

grow a business-friendly and well-functioning city
develop an innovation hub of the Asia Pacific rim
become internationally connected and export-driven
enhance investment in people to grow skills and a local workforce
develop a creative, vibrant international city.

The Proposed Auckland Unitary Plan

The Proposed Auckland Unitary Plan is a statutory document, which brings together the existing
district and regional plans and policies from the former legacy councils into one document. Once it
becomes operative, the Unitary Plan will become the land use planning rule book for Auckland,
setting out the policies, objectives, zones and rules that will guide and shape the future
development of the region.

The draft Auckland Unitary Plan was put out for public comment in March 2013 and over 20,000
people had their say. The notified version of the Unitary Plan was released in September 2013.
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Local board plans
Local board plans are a guiding document for each local board area. They set out a three year
plan for the local board areas and are developed by the local boards and reflect the priorities and
preferences of the community.
Transport
Aucklands Integrated Transport Programme (ITP) sets out the 30-year investment programme to
meet the transport priorities outlined in the Auckland Plan across modes covering the
responsibilities of all transport agencies. The ITP informs the Regional Land Transport
Programme (RLTP) which sets priorities for spending for the next three years.

While there are many components to the ITP there are a number of key transport projects that
impact on the southern industrial areas these are:

The East - West Connections
Auckland Manukau Eastern Transport Initiative (AMETI)
South Western Multi Modal Airport Rapid Transit (SMART)
City Rail Link
Mill Road Corridor

These projects seek to improve the connections between areas for both commuters and freight.
The Southern Initiative
The Southern Initiative is one of the two big place based initiatives identified within the Auckland
Plan. It covers the local board areas of:
Mngere-thuhu
tara Papatoetoe
Manurewa
Papakura.

The aim of the Southern Initiative is to deliver a long term programme of co-ordinated investment
and actions to bring about transformational social, economic, and physical change within the area.

The initiative is primarily focused on delivering social outcomes to improve the quality of life and
well-being within the area. While the initiative has a 30 year timeframe the following areas have
been identified as priorities:

ensuring strong family attachment and early intervention for children before school
providing clear pathways and support for young people to achieve education and
employment
creating an outstanding international gateway and destination area
promoting economic development and jobs for local people
increasing public transport services and encouraging increased use of public transport
housing development in Mngere and Manurewa.


Other relevant strategies and plans
Mngere-thuhu Area Plan

Area plans provide the next level of detail from the Auckland Plan. They identify land use planning
issues, challenges and opportunities at the local board level.
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The Mngere-thuhu Area Plan outlines how the Mngere-thuhu area is envisaged to change
over the next 30 years. It sets out the key moves, desired outcomes and supporting actions to
assist in achieving the vision for Auckland and Mngere-thuhu, as set out in the Auckland Plan
and by the Mngere-thuhu Local Board within their local board plan.

The area plan for Mngere-thuhu identifies the following six key moves that will help to
transform the area into one where people want to continue to live, work and play as well as attract
visitors to the area. The six key moves are:

1. revitalise and enhance Mngere-thuhus centres: Mngere Bridge, Favona, Mngere
East, Mngere and thuhu
2. provide for a multi modal rapid transport corridor and improved public transport network
to the airport, CBD and the local and wider region
3. improve the water quality of the Manukau Harbour and promote opportunities for
appropriate public access to the coast
4. promote Mngere-thuhus business and Auckland Airport as the local regional
employment, tourism and recreation destinations and gateway to Auckland
5. progressively enhance Mngere and thuhu residential areas through comprehensive
redevelopment, planning and partnerships with major landowners
6. recognise the Kaitiaki role of Mana Whenua, while conserving, supporting and celebrating
Mngere-thuhus rich heritage resources and its distinctive Pacifica, European, Asian
and multicultural identity.

In regard to economic outcomes the Area Plan states that Mngere-thuhu is a strategically
significant employment area that continues to grow and provide skilled job opportunities for local
people. A key action identified in the Area Plan is to grow a regional employment hub adjacent to
Auckland International Airport.

Pukekohe Area Plan

The Pukekohe Area Plan outlines how the Pukekohe area is envisaged to change over the next
30 years. It sets out the key moves, desired outcomes and supporting actions to assist in
achieving the vision for Auckland and Pukekohe, as set out in the Auckland Plan and by the
Franklin Local Board within their local board plan.

The area plan for Pukekohe identifies the following nine key moves that will help to transform the
area into a vibrant and dynamic satellite town offering a range of employment and residential
opportunities, excellent transport connections and infrastructure, open space and recreation
facilities and a thriving local economy. The nine key moves are:

1. provide for growth in the Future Urban Zone
2. enable at least 100ha of new business land
3. electrification of the rail line from Papakura to Pukekohe (with potential station at Paerata)
4. improve accessibility and connectivity throughout Pukekohe and Paerata
5. support land development around Pukekohe train station
6. investigate tertiary education opportunities
7. protect and enjoy Pukekohe Hill, Tuhimata Bluff and Pukekohe east crater
8. maintain and improve Pukekohes environmental quality and special ecological areas,
including the Tuatenui and Whangapouri streams
9. develop town centre character guidelines


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Draft tara Papatoetoe Area Plan

The draft tara Papatoetoe outlines how the Otara - Papatoetoe area is envisaged to change
over the next 30 years. It sets out the key moves, desired outcomes and supporting actions to
assist in achieving the vision for Auckland and Otara - Papatoetoe, as set out in the Auckland Plan
and by the Otara Papatoetoe Local Board within their local board plan.

The draft area plan for Otara - Papatoetoe identifies the following nine key moves:

1. Value and protect tara-Papatoetoes heritage, culture and identity in partnership with mana
whenua and the community.
2. The landscape, cultural, and ecological values of the tara-Papatoetoe area, particularly tara
Lake and waterways, and Puhinui are recognised, protected and enhanced.
3. Transition Manukau from a city centre to a vibrant metropolitan centre.
4. tara (tara town centre to tara Lake) transformation and business and community
partnerships.
5. Strengthen and enhance the vitality of Old Papatoetoe and Hunters Corner town centres.
6. Maintain and strengthen the economic role of the East Tmaki, Manukau Central, Bairds Road
and Lovegrove Crescent industrial areas as key employment areas for tara-Papatoetoes
residents.
7. tara-Papatoetoe has safe, accessible and high quality parks and community facilities.
8. Make transport more accessible and safer for tara-Papatoetoe residents, with particular
emphasis on walking, cycling and public transport.
9. Utilities and services that support tara-Papatoetoes growing population.

East Tamaki Business Precinct Plan

The East Tamaki Business Precinct Plan was developed in 2012, it provides the framework for the
renewal and on- going development of the East Tamaki business precinct.

The vision for the East Tamaki Business Precinct Plan is for the area to be a:

diverse, innovative and sustainable hub of high value manufacturing, with a productive industrial
workforce, and is the driver of growing export capability and markets.

The precinct plan identifies the following key outcomes for the precinct:

development and employment growth in the precinct is fostered through the retention,
attraction and expansion of businesses;
infrastructure needs are delivered for anticipated business growth and quality. reliable and
continuous services are delivered
international export markets are identified and accessed
business management capability is expanded through targeted business support
programmes;
existing international networks are identified and developed to facilitate growth in export
capacity
businesses have the capability to assess emerging technologies, innovate undertake
product development and commercialise to market
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a partnership exists between the local employers and education providers to ensure the
skills and training needs required by business within the precinct for their existing and
future employers is met
the majority of the workforce continue to live locally
sustainable business practices are adopted by all businesses in East Tamaki leading to
cost efficiencies in energy, transport and other uses. Resulting in reduced impacts on the
natural environment
land uses in East Tamaki underpin business to business activity growth
development in the precinct ensures the continuance of a strong, high value, export
focused manufacturing base while allowing supportive services to co-locate
connections are provided that promote business to business activities and land uses both
within the precinct and beyond
the efficient movement of both goods and people is facilitated
the East Tamaki area is an environment that is attractive for businesses to locate and
employees to work.

Auckland International Airport Masterplan

Auckland International Airport (AIA) has ambitious plans to grow and develop the airport into a key
business location for New Zealand and has developed a masterplan that sets out the airports
growth ambitions.
In 2010 employment in the airport corridor was 21,000 this is predicted to grow to between 26,500
and 29,500 by 2021 and between 29,000 and 36,700 by 2031
9
.
The AIA masterplan identifies a strategy to redevelop the Airport around 6 areas as follows:
The Quad an area of office accommodation with hotel accommodation and retail.
The Common 111ha of recreation and heritage attractions.
Altitude an area based around entertainment, retail and education focused on airport
users including tourists, airport workers and trade workers.
The Landing approximately 140ha of greenfield land for a warehouse and logistics
location
Cargo North - an area aimed at logistics and freight forwarders who require access to
ground handling and customs services.
Cargo South providing facilities for aviation support businesses such as flight catering
and aeronautical engineering.

Upper North Island Ports study
The final report of the independent ports technical study produced by Price Waterhouse Coopers,
and sponsored by the Upper North Island Strategic Alliance (UNISA) was completed in 2013.

The primary objective of the study was to develop a credible and consistent understanding of the
upper North Islands freight and port supply chain system. The study concluded that:

there is strong growth projected in the three Upper North Island (UNI) ports over the next
30 years. All three UNI ports (covering the Port of Auckland, Port of Tauranga and the
Whngrei Ports) will be required to meet the projected need over this period

9
Auckland Airport Future Economic Impact Assessment (Auckland Airport 2010)
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a rapid and ongoing increase in trans-shipping means that pressure is likely to be more on
port infrastructure than on distribution networks and land transport infrastructure to these
ports

pressure on land transport infrastructure is likely to be driven by non-port traffic, competing
land uses, and (potentially) reverse sensitivity. General congestion may be a factor in the
medium to longer term, which will impact ports as users of the transport network

the UNI port network has the capacity to meet the projected freight task, provided that
efficiency gains, incremental investments in infrastructure and the uptake of already
consented works are undertaken in a planned and timely manner

the development of inland ports can help drive efficiencies in the distribution network, and
aid competition and substitutability between ports

a third rail line between Southdown and Wiri (dedicated to freight) is at the strategic
planning stage and if it were to proceed, it could provide some additional capacity to
address emerging rail congestion issues. However, over the longer term, further works are
likely to be required. This portion of the network is currently under pressure as it must cope
with rail freight between the Port of Auckland and Wiri, Port of Tauranga and Metro port, as
well as commuter traffic on the southern and eastern lines Auckland Transport also plans
to increase the frequency of passenger services once electrification is complete. Further
increases in frequency are planned once the City Rail Link (CRL) is completed

over the next 30 years, the most efficient and cost effective options for meeting the
projected freight task are likely to be based around improved efficiency, incremental growth
at each port, planned improvements in the land transport system, complemented by
changes in relative prices that direct customers to where spare capacity exists in the UNI
port system.
10



10
http://www.nrc.govt.nz
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Appendix 2

Aucklands industrial south
For the purposes of the Integrated Business Precinct Plan (IBPP) the industrial south includes the
industrial precincts that are zoned for either light or heavy industrial uses within the Proposed
Auckland Unitary Plan (2013) as shown on Map 1 below.

The areas main transport connections are via State Highway 1, State Highway 20, Great South
Road and the North Island Main Trunk line to Pukekohe and beyond. These transport connections
provide access to the various industrial precincts in the area.

Aucklands southern zoned industrial precincts equate to approximately 4,171ha of business
zoned land representing 62% of the Auckland total
11
.

In developing the IBPP area the industrial zones that are the focus of the IBPP have been divided
into three areas of industrial activity as identified in map 2. The three areas have been determined
on the basis of their age and capacity for future growth rather than on industrial output or scale.
These sub-areas are:

Mature Industrial Zone incorporating Aucklands oldest established industrial areas of:

Glen Innes
Lunn Avenue (Mount Wellington)
Mount Wellington North
Ellerslie
James Fletcher Drive / Mahunga Drive
Vestey Drive
Onehunga / Penrose
Otahuhu
Carbine Road

South central and industrial expansion zone incorporating the areas of:

Auckland International Airport and Ascot Park
East Tamaki
Wiri

Peripheral and future urban zone incorporating:

Ardmore Airport
Belgium Street (Waiuku)
Cornwall Road (Waiuku)
Kitchener Road (Waiuku)
Glenbrook
Crown Road
Hingaia Road

11
Capacity for Growth Study Auckland Council 2012
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Manukau Road
Norie Road (Drury)
Paerata Road
Red Hill (Hunua Road)
Takanini
Takanini South

Split across the northern and central zones there is a core cluster of industrial zoned land
incorporating, Carbine Rd, Ellerslie, Onehunga-Penrose, Otahuhu, Portage Rd, Auckland
International Airport and Ascot Park, East Tamaki and Wiri. This industrial circle is a prime location
for industry as all these areas benefit from easy access on to the Southern Motorway (SH1), State
Highway 20, the rail network and the two inland ports at Metro port and Wiri and proximity to
Auckland International Airport. This core transport infrastructure provides links to the rest of New
Zealand and international markets. This, combined with a concentration of a skilled workforce in
the areas around the precincts, makes these industrial precincts attractive to businesses and
investors.

As a result these industrial precincts have some of the largest New Zealand businesses located
within them including, Pacific Steel, Fisher and Paykel Healthcare, Fisher and Paykel appliances,
Tip Top, Griffins, Fonterra, Mainfreight, and Auckland International Airport who contribute a
significant amount to the regional and national economic output.

While for the purposes of the IBPP they fall within two areas, the importance of these areas as a
group has been recognised in developing the actions within the IBPP.


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Map 1 Proposed Auckland Unitary Plan 2014 heavy and light industrial zones

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Map 2 Integrated business precinct plan sub areas


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Map 3: Mature Industrial Zone

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Map 4: South central and industrial expansion zone
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Map 5: Peripheral and future urban zone

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Economic characteristics of the integrated business precinct plan area

In 2012 the key zoned industrial locations in the IBPP area comprised 12,631 businesses
employing 154,459 people
12
. The IBPP industrial locations make up approximately:

24% of Aucklands total employment
54% of Aucklands total manufacturing employment
55% of Aucklands total transport, postal and warehousing employment
46% of Aucklands total wholesale trade employment
45% of Aucklands total electricity, gas, water and waste services employment.

Figures 1 and 2 illustrate the industrial structure of employment and businesses in the IBPP area.
Manufacturing is the largest employing sector, comprising approximately 25% of all employment.
This is followed by wholesale trade (16%), transport, postal and warehousing (11%), and
construction (8%).

Figure 1 Employment by industry sector in the IBPP area 2012

Source: Statistics New Zealand Business demographic dataset

22% of Aucklands manufacturing businesses, 23% of Aucklands wholesale trade businesses and
12% of transport, postal and warehousing businesses are located in the zoned light industrial and
heavy industrial areas in south Auckland
13
.

52% of employees within the IBPP area are employed in either the manufacturing, wholesale
trade or transport, postal and warehousing sectors,

As a whole, total employment in the IBPP area has continued to grow. The central area has grown
at a faster rate than the other two zones as a result of the investment being made at East Tamaki,

12
NZ Stats Business Demography dataset 2013
13
NZ Stats Business Demography dataset 2013
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Wiri and the Airport, with the provision of more industrial space in these greenfield locations,
whereas the northern and southern areas have experienced a slower growth rate in employment
numbers.

Figure 2 IBPP area 2012 employment count as a % of Auckland employment count

Source: Statistics NZ Business Demography dataset

Figure 3 Employment Growth in the IBPP area and sub-zones 2000 - 2012

Source: Statistics NZ Business Demography dataset
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Business Size in the IBPP area

The IBPP area reflects the regional economy in regard to the size of businesses with the area
being dominated by small and medium sized enterprises (SMEs) and owner operators with 46%
of businesses employing between 1 and 19 employees. However the IBPP has a larger proportion
of businesses employing between 20 and 99 people (11%) and large companies employing over
100 people (1%).

Figure 4: Size of businesses by employees in the IBPP area 2012


Figure 5: Size of businesses by employees in Auckland 2012


Source: Statistics NZ

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GDP output

The IBPP area is estimated to have contributed $18 billion to the regional GDP
14
in 2012, an
increase from an estimated $15.8 billion in 2002. This equates to an average annual increase of
4% which is above the average for Auckland as a whole.

Figure 5 below shows the estimated modified GDP for the three zones within the IBPP area. This
shows that the northern area has the largest estimated GDP of $8.4 billion, and the Central area
has an estimated GDP of $8.1 billion. The southern areas GDP is significantly less at $1.4 billion
in 2012.

This highlights the importance of the northern and central area industrial zones to the regional and
national economy.

Figure 5: IBPP Modified GDP

14
GDP calculated by aligning the Employment Count data for each area to the Infometrics employment dataset (which
combines LEED and Business Demographics)
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Appendix 4

The key sectors within the integrated business precinct plan area

The three largest sectors in the IBPP area as a whole are manufacturing, wholesale trade and
transport, postal and warehousing. This section of the IBPP looks at these key sectors and
identifies the key subsectors within them to be able to identify in what sub-sectors businesses and
employment is concentrated.

Manufacturing in the IBPP area

The manufacturing sector comprises approximately 25% of all employment within the zoned
industrial areas. Table 2 identifies the top ten manufacturing activities within the IBPP area which
themselves contribute 9% of the areas employment and 36% of the sectors employment in the
area.

Table 2: Ten Largest Manufacturing Activities by Employment in the IBPP Area 2012

5-digit ANZSIC activity type 2012 Employees2012 Businesses
Share of
Manufacturing
employment
Share of
Total IBPP
employment
Other Food Products Manufacturing n.e.c. 2753 57 7% 2%
Printing 1768 103 4% 1%
Medical and Surgical Equipment Manufacturing 1673 6 4% 1%
Aircraft Manufacturing and Repair Services 1561 26 4% 1%
Other Machinery and Equipment Manufacturing n.e.c. 1523 138 4% 1%
Iron Smelting and Steel Manufacturing 1361 11 3% 1%
Rigid and Semi Rigid Polymer Product Manufacturing 1170 53 3% 1%
Other Fabricated Metal Product Manufacturing n.e.c. 893 83 2% 1%
Soft Drink, Cordial and Syrup Manufacturing 861 12 2% 1%
Wooden Structural Fittings and Components Manufacturing 805 77 2% 1%
Top 10 total 14368 566 36% 9%
All other Manufacturing 25044 1273 64% 16%
Total 39412 1839 100% 26%

Source: Statistics NZ Business Demography dataset

There is a broad range of manufacturing within the IBPP area with the majority (64%) of
employment activity located outside the top 10 sectors.

Wholesale trade sector in the IBPP area

The wholesale trade sector contributes 16% of the IBPP total employment. Table 2 illustrates the
type of activity occurring within this sector in 2012 through identifying the 10 largest sub-sectors of
employment, which themselves contribute 10% of total employment in the IBPP area.





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Table 3 Ten largest wholesale trade activities by employment in the IBPP Area 2012
5-digit ANZSIC activity type 2012 Employees 2012 Businesses
Share of
Wholesale
Trade
employment
Share of Total
IBPP
employment
Other Specialised Industrial Machinery and Equipment Wholesaling 2576 223 10% 2%
Other Electrical and Electronic Goods Wholesaling 2220 194 9% 1%
Other Hardware Goods Wholesaling 1888 183 8% 1%
Other Goods Wholesaling n.e.c. 1629 314 7% 1%
Other Grocery Wholesaling 1468 106 6% 1%
Pharmaceutical and Toiletry Goods Wholesaling 1461 59 6% 1%
Paper Product Wholesaling 1326 64 5% 1%
Fruit and Vegetable Wholesaling 1129 29 5% 1%
Motor Vehicle New Part Wholesaling 1126 122 5% 1%
Metal and Mineral Wholesaling 1010 49 4% 1%
Top 10 Total 15833 1343 64% 10%
All other Wholesale Trade 9015 872 36% 6%
Total 24848 2215 100% 16%

Source: Statistics NZ Business Demography dataset

Some concentration exists within this sector as the top ten activities contribute 64% of wholesale
trade employment. Within this 40% is within the top five sub-sectors. These include other
specialised industrial machinery and equipment wholesaling, other electrical and electronic goods
wholesaling, other hardware good wholesaling, other wholesaling and other grocery wholesaling.

Transport postal and warehousing sector in the integrated business precinct plan
Area

The transport, postal and warehousing sector contributes 11% of the total employment in the IBPP
area. Table 4 illustrates the type of activity occurring within this sector in 2012. The sector is
strongly concentrated in a few key sectors, with 96% of employment contained within the top ten
activity types.

There is a high amount of employment concentration within the sector with 29% of employees
working in Airport related activities, highlighting the importance and dominance of Auckland
International Airport within this sector.

The freight sub sectors are also very dominant with a total of 38% of the sectors employees
employed in either road freight transport (21%) or freight forwarding services (17%).

Table 4 ten largest transport postal and warehousing activities by employment in the IBPP
Area 2012
5-digit ANZSIC activity type 2012 Employees 2012 Businesses
Share of
Transport
employment
Share of Total
IBPP
employment
Air and Space Transport 4313 40 25% 3%
Road Freight Transport 3668 195 21% 2%
Freight Forwarding Services 2884 139 17% 2%
Other Warehousing and Storage Services 2027 117 12% 1%
Courier Pick-up and Delivery Services 1475 51 8% 1%
Airport Operations and Other Air Transport Support Services 772 7 4% 1%
Postal Services 689 18 4% 0%
Urban Bus Transport (Including Tramway) 633 9 4% 0%
Interurban and Rural Bus Transport 300 4 2% 0%
Customs Agency Services 208 26 1% 0%
Top 10 Total 16969 606 97% 11%
All other transport postal & warehousing 501 100 3% 0%
Total 17470 706 100% 11%

Source: Statistics NZ Business Demography dataset
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Appendix 5

Industrial Change in the IBPP Area 2002 - 2012

The industrial structure of the zoned industrial areas that make up the IBPP area has changed
between 2002 and 2012. Total employment increased by 26,935 or 21% between 2002 and 2012,
with the construction (19%), professional, scientific and technical services (19%), administrative
and support services (14%), and wholesale trade (16%), sectors accounting for 60% of this
increase.

In terms of overall employment the manufacturing sectors share of employment has decreased
from 31% of total employment in the IBPP area in 2002 to 26% of total employment in 2012.
Wholesale trade, and transport, postal and warehousing have remained stable at 16% and 11%
respectively. Construction, professional, scientific and technical services and administrative and
support services have all increased their respective shares.

The steady decline in employment within the manufacturing sector reflects a more general trend
that is being experienced regionally as employment within the Auckland economy re-orientates
towards the service sector. In addition to this there is a trend towards more specialised, niche
manufacturing and knowledge based markets as acknowledged in the Auckland Economic
Development Strategy.

Industrial change within the mature industrial zone

Within the three IBPP industrial zones the northern area has experienced a strong decline in
manufacturing employment, and transport, postal and warehousing. There has been a shift in
employment away from manufacturing towards the construction and admin and support services
sectors. In addition to this the area has seen strong growth in employment within the retail sector.
Computer and computer peripherals retailing (Church Neilson St), furniture retailing (Mahunga
Drive / James Fletcher Drive), supermarket and grocery stores (Lunn Ave) and tyre retailing
(Ellerslie) all show a trend upwards between 2000 and 2012.

The growth in retail employment has predominantly been experienced within the Lunn Avenue and
Onehunga industrial areas. A growing retail sector within these areas presents a risk to these two
industrial locations as the increasing amount of retail within these areas could increase
commercial rents. In the long term this could force industrial activities to relocate to other areas in
Auckland or leave Auckland altogether. This will result in a loss of industrial land that can be used
for industrial purposes.

Within the mature industrial zone there is a noticeable trend away from manufacturing towards
other sectors due to the locations proximity to the CBD and potentially as a result of increasing
land values. This is despite being in close proximity to the Ports of Tauranga inland port at Church
Nielson Street.

The Ellerslie industrial area is one of the most diversified industrial areas within the IBPP area with
the majority of employment growth being seen in the accommodation and food services,
professional, scientific and technical services and administrative and support services. Figure 6
shows the trend away from the main sectors within the IBPP area.



Figure 6: Ellerslie employment growth trend
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Source: Statistics NZ Business Demography dataset


This trend towards other industrial sectors will need to be acknowledged in order to effectively
plan for the infrastructure needs of the growth sectors. This has been reflected in the notified draft
Unitary Plan which has zoned the Ellerslie area as light industrial.

The Onehunga area has seen manufacturing in steady decline and limited employment growth
within the wholesale trade sector. Despite the global financial crisis and the slowdown in
construction since 2008, employment within the construction sector has continued to grow and, as
the sector sees more activity, this is likely to continue into the future.

Figure 7: Onehunga employment growth trend

Source: Statistics NZ Business Demography dataset

The majority of growth within Onehunga has been within the construction sector but as with
Ellerslie, Onehunga has seen significant growth in sectors outside the main IBPP sectors notably
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within the professional, scientific and technical services sector. This highlights the changing nature
of the northern zone of the IBPP area.

The Otahuhu area is more reflective of the industrial make-up of the IBPP area as a whole. With
the largest employing sectors being manufacturing, wholesale trade and transport, postal and
warehousing. The area has however seen manufacturing employment slightly decline over the
period since 2000. The transport, postal and warehousing and wholesale trade sectors have seen
growth in employment numbers. Figure 8 below shows the employment growth trends for the
Otahuhu area.

Figure 8: Otahuhu employment growth trend


Industrial change within the South central and industrial expansion zone

The South central and industrial expansion zone has experienced a significant amount of growth
over the ten year period from 2002. This has been focused primarily within the East Tamaki area,
however as Auckland International Airport releases further land as part of the implementation of its
airport masterplan further employment growth will be experienced within the airport area where it
is envisioned 140ha of greenfield land will be redeveloped for warehouse and logistics operations.
It is estimated that the delivery of this masterplan will directly contribute a further 5,710 jobs
15
to
the regional economy.

Within the South central and industrial expansion zone the manufacturing sector has remained
relatively stable with limited growth. However as figure 9 shows the area has experienced
significant growth within the construction, wholesale trade, transport, postal and warehousing and
admin and support services sectors.

The majority of employment growth within the transport, postal and warehousing sector has been
experienced within the airport area with this area alone accounting for 56% of the sectors jobs
within the IBPP area in 2012.
East Tamaki has been the main driver of the growth in the admin and support services sector
accounting for 74% of the employment growth in this sector between 2000 and 2012. This growth
has been concentrated within the labour supply services sector.

15
Insight Economics: Estimating the Regional Economic Importance of Auckland Airport 2014.
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Integrated business precinct plan: industrial south Auckland Page 68


Figure 9: IBPP central area employment growth trends by sector

Source: Statistics NZ Business Demography dataset

Industrial change within the peripheral and future urban zone
The Peripheral and future urban zone has seen manufacturing employment decline slightly since
2000, however the majority of manufacturing employment is located at the Glenbrook steel mill
which has been relatively stable over the period. New Zealand Steels parent company potentially
will acquire part of the Pacific Steel mill operations employment may well increase slightly in the
future. The construction and wholesale trade sectors have seen consistent employment growth as
has the retail trade sector.

Figure 10 IBPP central area employment growth trends by sector

Source: Statistics NZ Business Demography dataset
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Integrated business precinct plan: industrial south Auckland Page 69

Figure 11 Industrial Sector Change within the IBPP area



Source: Statistics NZ Business Demography dataset
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Integrated business precinct plan: industrial south Auckland Page 70


Figure 11 Industrial Sector Change within the IBPP area



Source: Statistics NZ Business Demography dataset


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Integrated business precinct plan: industrial south Auckland Page 71

Appendix 6
Informal engagement findings

As part of the development of the draft IBPP an informal engagement exercise was carried out this
included:

targeted workshops with Business Associations and key stakeholders such as Auckland
International Airport
targeted telephone interviews carried out across a broad range of businesses within the
industrial precincts to identify key issues that were being faced by companies located
within the IBPP area
one on one meetings with other stakeholders.

In addition to the targeted engagement literature review was also undertaken to draw on other
consultation and research findings from previous studies on the industrial areas by national
government agencies, Auckland Council and Auckland Council Controlled Organisations such as
Auckland Transport and Auckland Tourism and Economic Development.

The key crosscutting issues raised by industrial business that have been identified through this
informal process are as follows:

Accessibility

An accessible location was considered to be vital for businesses that choose to locate within the
IBPP area. This is not just due to a need to be in close proximity to transport networks to transfer
goods and access clients and customers but is also important to ensure that staff and suppliers
have easy and efficient access to the business. This is especially important in light of the fact that
employees are coming from localised pools within the southern and eastern parts of Auckland.
Therefore the ability for employees to get to work easily is a significant reason for companies to
locate within the IBPP area.

Proximity to the airport is seen by many of the businesses contacted as a key reason to locate in
the IBPP area. It enables businesses to access overseas clients and partners while also moving
goods quickly to and from Auckland. This is particularly important for export businesses of all
sizes.

Company internal infrastructure costs and investments

The consultation found that many manufacturing companies (regardless of size) consider their
operations to be capital intensive with high cost equipment, large floorspace requirements, and a
need for bespoke plant. This therefore requires fit for purpose premises.

As a result of these specific requirements companies feel that when they are moving into locations
they experience a more complex permitting process than would otherwise be faced for general
commercial or office premises resulting in more financial costs to them as well as a longer lead in
time .The consultation highlighted the fact that consenting requirements were considered to
directly impact on how quickly companies are able to grow and the locations that they will consider
if they are required to move locations.

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Businesses commented that they felt there was little support for company growth in general. In
order to address this two suggestions were made to assist businesses.

i. there needs to be special provision for capital intensive businesses in the tax laws
to have speeded up depreciation. This would free up cash quicker and be able to
write off machinery faster as technology changes faster than the rate of
depreciation.
ii. there needs to be a specialist bank that understands sector issues as the banking
industry doesnt seem to be supportive to anything except lending against land.
Clustering and collaboration

Companies cited that being near to like-minded businesses allowed for collaboration on transport
issues, supply issues and specialised staff skill issues. Secondly the benefits of locating in close
proximity to suppliers and clients were seen as being important to businesses in terms of
development and growth.

However given the above there was a view from companies located outside areas covered by
business associations and business improvement districts that better collaboration could take
place if companies were aware of the companies and businesses that were around them.

Staff skills and employee availability

Two key issues were identified by companies in regard to skills and employee availability. Firstly
companies considered that there was insufficient availability of technical staff within the Auckland
region and New Zealand generally. Secondly companies felt that low level skilled staff are very
difficult to screen for reliability, which means that companies can waste money on training and
development of staff who are unreliable and are unable to be retained in the long term.

In order to address the lack of technically skilled staff, companies felt that International recruitment
processes for specialized personnel could be speeded up for businesses in order to tackle the
problem in the short term.

Staff turnover was on the whole stated to be low by companies. However, what turnover there
was related to:
i. active poaching of technical skilled staff welders, fitters and turners, toolmakers,
CNC operators through to design engineers etc. Both within New Zealand and
Australia where wages are more attractive
ii. an increase in senior management, professionals and specialized international
sales people moving employment, initiating a ripple effect of movement across this
type of employment. It was predicted we will see more of this as the economy
grows again.

Recruitment for some of the specialized professionals and technical skills is reported as being
more difficult. Finding the right skills and experience was stated to be an issue. This pertains to
engineers food technologists specialized welders etc. These comments often came from
companies that exported, or had a significant export component.
Overseas recruitment is considered to sometimes be the only option for technical specialties not
supported here in New Zealand or when there is a shortage of skills such as engineering.
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Infrastructure

Power and power supply was the most frequently noted infrastructure issue after access. Many
companies are high power users and stated it was a very important resource in their functioning.
None specifically mentioned volume, but there were comments on power outages and fluctuations
and having to install boosters and triple phase power into their sites.

Companies highlighted situations when they have had to put in place transformers and power
backup facilities to manage high power usages and continuous supply. Companies talked about
having to put in triple phase power to their premises when they moved in. It was suggested there
could be some onus on landlords and property investment companies to provide basic fit for
purpose buildings.

Lack of amenities and open spaces around the areas were mentioned and there was suggestions
relating to the availability of better quality cafs and parks within walking distance.

Continued gas supply issues was referred to as a concern in the future, but no specifics other than
aging pipes and the outage in 2012 were given.
Business growth and support for growth

Growth was generally spoken of as a positive and achievable issue. No company assumed growth
was going to be easy but all indicated it would happen. Many comments were made about both
the lack of and confusion about business development support.

The removal of the international marketing grant was considered to be a barrier as this has meant
smaller companies outside of the fast 500 list of clients no longer get support to access
international markets.

Companies feel that research and development support is difficult to obtain as there is a lot of
emphasis on the research element and not so much on the development side. In addition to this
companies felt that the process for applying for grants had become onerous and complex.
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Auckland Global Engagement Update Page 75

Auckland Global Engagement Update

File No.: CP2014/17396



Purpose
1. To inform the Economic Development Committee about the:
i) refreshed strategic direction for councils global engagement
ii) implementation of the refreshed global engagement programme for council including
the progression of a:
Council-wide Global Engagement Framework that ensures an umbrella view and
consistent approach to councils global engagement;
Tripartite Economic Alliance between (sister cities) Auckland, Guangzhou and Los
Angeles;
Global Visibility Strategy/Framework;
China Strategy; and
Review of the management of Auckland Councils 19 formal international
partnerships to ensure activity aligns with our strategic direction.
iii) proposed Mayoral outbound programme developed to support councils global
engagement in FY2014-15.
Executive summary
2. A key priority of both the Auckland Plan and the Auckland Council Economic Development
Strategy (EDS) is to enhance Aucklands international connectivity and improve Aucklands
export performance. Achievement of both goals will require significant and sustained
international engagement in order to make Auckland a connected, competitive, and
internationally-visible city.
3. A wide range of activities has been undertaken to internationalise Auckland since the
formation of the new Auckland Council in 2010 (including large-scale trade missions). This
activity has been useful in highlighting areas of further potential and opportunity. In order to
recognise these opportunities and compete with other successful middle-weight cities, it was
timely for Auckland to review its global activity. In response to this, the International
Relations unit, in consultation with key stakeholders, developed a refreshed strategic
direction for councils global engagement.
4. The refreshed direction seeks to refine and articulate councils international engagement
objectives across the whole organization towards raising the profile of Auckland in the global
economy. We seek to achieve this through a global partnership and global visibility
approach, for example, through strategic participation in key global forums and city
networks.
5. This paper provides an overview for the Economic Development Committee of the refreshed
strategic direction and outlines a change in focus for achieving this. A further paper seeking
approval for the new strategic direction, as well as the Mayors outbound programme for
FY2014-15, will be prepared for this Committee in October 2014. Approval will then be
sought from the Auckland Development Committee.
6. The refreshed strategic direction for councils global engagement is aligned with Aucklands
shared economic agenda (January 2014), specifically priority seven: Increase Aucklands
visibility, but more broadly to a number of the agenda priorities including brand, skills,
investment and business, and supporting the Mori economy.
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Auckland Global Engagement Update Page 76

7. Implementation of the global engagement programme will be led by councils International
Relations unit. Key outputs for the next financial year will include development of a council-
wide Global Engagement Framework, a tripartite economic alliance between the sister-cities
of Auckland, Guangzhou and Los Angeles, and a Global Visibility Strategy/Framework for
Auckland Council.
8. The new strategic direction also proposes a mayoral outbound programme in FY2014-15
developed to support the global engagement programme for council.
9. The refreshed strategic direction for councils global engagement has been developed for
the whole council family in collaboration with a range of stakeholders including CCOs.
Oversight of the strategic direction and work programme will be led and implemented by the
International Relations unit in collaboration with CCOs, in particular ATEED to ensure work
programme alignment.
10. The councils global engagement programme will be implemented within existing budgets. It
is anticipated that Auckland will accrue significant value and benefits from a concerted focus
on developing strategic global partnerships and increasing Aucklands global visibility and
profile.
11. A key outcome from the councils return on investment in the global engagement programme
will be an increase in Aucklands international connectivity and global visibility (Auckland
Plan and Auckland Economic Development Strategy goals).

Recommendation/s
That the Economic Development Committee:
a) support the refreshed strategic direction for councils global engagement
b) support implementation of the refreshed strategic direction for councils global
engagement including the progression of a:
Council- wide Global Engagement Framework that ensures an umbrella
view and consistent approach to councils global engagement;
Tripartite Economic Alliance between (sister cities) Auckland, Guangzhou
and Los Angeles;
Global Visibility Strategy/Framework;
China Strategy; and
Review of the management of Auckland Councils 19 formal international
partnerships to ensure activity aligns with our strategic direction.
c) support the proposed mayoral outbound programme in FY2014-15.

Comments
Refreshed strategic direction and global engagement programme
12. The Mayors vision for Auckland is to be the worlds most liveable city (Auckland Plan 2012).
The Auckland Plan and the Auckland Council Economic Development Strategy seek to
create an Auckland that is internationally connected and export driven, as well as a vibrant,
creative international city. Achievement of these goals will require significant and sustained
international engagement in order to make Auckland a connected, competitive, and
internationally-visible city.
13. Maintaining relationships in international markets is essential to doing business. This has
been, and remains, a core part of Auckland Councils global activity. To date, councils
global engagement has been necessarily reactive and focused on managing civic / business
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Auckland Global Engagement Update Page 77

delegations and activity in relation to Auckland Councils 19 formal international partnerships
(sister cities), combined with several international trade missions.
14. Continuing to maintain a civic role in managing Aucklands 19 formal international
partnerships remains important. However we are also operating in a global economy where
international connections are possible to attain anywhere, at any time. To make the most of
opportunities that exist in the current global environment, council will benefit from engaging
beyond the traditional sister-city work programme. Such a shift will enable the organization
to sharpen the scope of its work towards enhancing the profile and visibility of Auckland on
the international stage by participating in a wider range of global partnerships. In particular,
through the building of strategically-relevant global partnerships (for example in the growth
markets of ASEAN) and engaging with existing global city networks (for example, the World
Cities Network and the C40 Climate Leaders Group). These opportunities are currently
being investigated to assess the value and alignment with Aucklands refreshed strategic
direction.
15. Guided by the refreshed strategic direction, Auckland Council led by the International
Relations unit - will seek to build the citys position in the global economy by pursuing,
creating and managing strategically-relevant global partnerships, and by disseminating
Aucklands story (including our unique Mori identity) through these global networks and
partnerships. Through a collaborative council-wide approach we will help sell and promote
Auckland to the world. We will do this by connecting with cities and regions to help build
trade, and by complementing and supporting the work of the Auckland Investment Office
and ATEED to attract foreign direct investment into Auckland.
16. Work will be undertaken to identify strategic global forums and initiatives that help enhance
Aucklands opportunities. This will include a programme of best practice and city building
exchanges with other cities in areas of commonality, especially innovation, trade, urban
design and the environment. Further, work will be undertaken to raise Aucklands position in
international rankings by supporting individual council campaigns, supporting councils
participation in global awards (for example the Lee Kuan Yew World Cities Prize 2016), and
by raising positive perceptions of Auckland in international networks.
17. The councils civic responsibilities to its 19 formal international partnerships will continue to
be appropriately managed and in many instances the nature of engagement with existing
sister cities will be aligned with the new strategic direction.
18. Advancement of the councils global engagement programme will provide an opportunity to
highlight and promote our Mori identity and culture, and create opportunities for Mori and
Mori business through councils global engagement activities. By ensuring Mori
businesses and Mori stakeholders are fully engaged and participating in councils global
engagement activities we can ensure positive outcomes for Mori and for Auckland.
19. Implementation of the global engagement programme will be led by the International
Relations unit, and will include the progression of, for example, a council-wide Global
Engagement Framework; a tripartite economic alliance between Auckland, Guangzhou and
Los Angeles; a Global Visibility Strategy/Framework; a China Strategy; and a review of the
management of Auckland Councils 19 formal international partnerships to ensure activity
aligns with councils strategic direction.
20. Work aligning to the new direction has already begun, and includes.
Tripartite Economic Alliance with Los Angeles and Guangzhou: A tripartite
economic alliance with Aucklands sister-cities of Guangzhou and Los Angeles
(who are also mutual sister-cities) is in development. This is a targeted and
significant opportunity that will help to open doors for Auckland to economic, trade,
and investment opportunities with two key strategic trading partners. The objective
of the alliance is to expand potential economic activity and job growth through joint
initiatives and cooperation in the trade, investment, and innovation space -
identified in collaboration with Aucklands stakeholders and implemented in
partnership with the Guangzhou and Los Angeles.
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This will be the first time all three cities have been involved in a tripartite
agreement and it is seen as setting a new benchmark for how cities can leverage
specific targeted economic outcomes for mutual benefit, as well as, engage and
collaborate in the 21
st
century. Support has been received from the business
community and central government for developing this initiative.
Global Visibility: Mayoral and senior official attendance at the World Cities
Summit in Singapore in June 2014 commenced the strategic programme to raise
Aucklands global visibility. The World Cities Summit is a global platform where
government leaders and industry experts address liveable and sustainable city
challenges, share urban innovation projects and forge new partnerships. The
World Cities Summit provided an opportunity to promote the Auckland story, create
connections and discuss best practice with over 120 Mayors and city leaders from
250 cities and engage with Singapore-based investors to encourage further
investment in Auckland. In addition, the Summit also provided the opportunity to
position Auckland for entry into the Lee Kuan Yew World City Prize in 2016 - the
pre-eminent world cities prize.
Mayoral outbound programme for FY2014-15
21. The Mayors 2013 economic policy includes a commitment to refocus and resource
Aucklands international relations efforts on economic and investment driven approaches,
targeting increased links and promotional activity with major trading and investment
partners.
22. As part of the refreshed strategic direction, a proposed mayoral outbound programme for
FY2014-15 has been developed to support councils global engagement programme.
23. The outbound programme is currently under consideration but is likely to include:
a short visit (approximately one week) to Taiwan, Japan and China (four cities in
total) accompanied by a targeted delegation (2014) to leverage specific
opportunities including to support ATEEDs tourism promotion in Taichung around
the Baseball World Cup, ICT opportunities in Fukuoka, and to sign the tripartite
agreement with both the Guangzhou and Los Angeles Mayors while in Guangzhou
attendance at the World Cities Summit Mayors Forum in New York (2015), in
conjunction with the first Tripartite Summit (in Los Angeles), and a potential trade
mission to Los Angeles and San Francisco as part of the agreed activity under the
tripartite agreement
attendance at the Asia Pacific Cities Summit (APCS) and Mayors Forum in
Brisbane, Australia (2015) to investigate an Auckland bid to host the APCS.
24. The mayoral outbound programme for FY2014-15 is still to be finalised and will include
opportunities for Councillor and senior official participation. The programme of activities will
be reported to the Committee for approval in October 2014.
25. Additional global engagement opportunities may arise for the Mayor over the financial year;
however the recommendations for global engagement would represent a programme of
activity that aligns with our refreshed strategic direction.
Outcomes
26. Outcomes sought from the refreshed strategic direction for councils global engagement
include:
Enhance Aucklands global profile and reputation as a globally competitive and
innovative city
Establish and deepen civic, business and people-to-people opportunities through
councils strategic global partnerships and global city networks
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Effective participation in strategic global networks and awards (and/or global
awards won) of value to Auckland
Improved global rankings support and enhance Aucklands visibility and reputation
Connected and growing Auckland-based businesses, entrepreneurs and investors
to global trade and investment opportunities .
Improved access and application of knowledge, best practice and expertise to
support the goal of making Auckland the worlds most liveable city.
Consideration
Local board views and implications
27. The refreshed strategic direction for councils global engagement will take into account
participation of, and outcomes for, local boards as appropriate.
Mori impact statement
28. The refreshed strategic direction for councils global engagement is aligned with the shared
economic agenda for Auckland. Mori participation and outcomes are integral to a number
of the nine priorities of the shared agenda, in particular relating to brand, visibility, skills,
investment and business. Work will be undertaken with Mori business, cultural and iwi
representatives on various aspects of councils global engagement programme, including
outbound trade missions, potential membership of city networks (for example C40 Cities
Climate Leadership Group) and on Aucklands application for the Lee Kuan Yew Prize 2016.
Stakeholder consultation
29. The refreshed strategic direction for councils global engagement has been developed by the
International Relations unit in consultation with council stakeholders, Auckland Tourism
Events and Economic Development (ATEED), Waterfront Auckland (WA) and Auckland
Transport (AT). Key stakeholders, including the Ministry of Foreign Affairs and Trade
(MFAT), New Zealand Trade and Enterprise (NZTE), the Independent Mori Statutory Board
(IMSB), Greg Clark (Global Cities Expert), The Ice House, the Auckland Chamber of
Commerce, and the Employers and Manufacturers Association (EMA), have been consulted
in the development of this strategy.
30. Further stakeholder consultation will be undertaken as appropriate in relation to specific
initiatives in councils global engagement programme.

Attachments
There are no attachments for this report.
Signatories
Author Sanchia Jacobs - International Relations Specialist
Authorisers Harvey Brookes - Manager Economic Development

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Maori Economic Development Programme Page 81

Mori Economic Development Programme

File No.: CP2014/17869





Purpose
1. The purpose of this report and presentation is to update the Economic Development
Committee on the progress of developing a Mori Economic Development Programme for
the Auckland Council family.
2. An initial draft of the programme will be presented in order to seek feedback and
endorsement from the committee regarding the proposed approach.
Executive summary
3. The Auckland Economic Development Strategy (EDS) includes a cross cutting theme of
facilitating an Iwi/Mori economic powerhouse, which draws together the strategic
approach to Mori economic development in Auckland. In addition to the EDS, the need to
facilitate Mori economic prosperity and form relationships with Mori as part of Tmaki
Makauraus economic development are key aspects of the Auckland Plan, the Mori Plan for
Tmaki Makaurau, and the Councils Long-term Plan. These documents also highlight the
untapped economic potential of the unique identity and values of Mori.
4. To guide and advance Auckland Councils efforts in this area, Te Waka Angamua, in
collaboration with the Councils Economic Development Department, has engaged the Tuia
Group to scope out and design a Mori Economic Development Programme for the
Auckland Council family.
5. In December 2013 the Committee received a presentation on Stage One of this project from
the Tuia Group. This included details around scoping, current state analysis, the
establishment of project governance and outcomes from stakeholder workshops. Since this
time, development work has progressed and extensive interaction with staff from relevant
Council departments and the Council Controlled Organisations has been undertaken.
6. This report now updates the committee on progress since January 2014 and the approach
that will be finalised as Stage Two. The outcomes of Stage Two to date include the
proposed programme of action and identification of the key priority areas that will form the
work streams within this. A presentation from Te waka Angamua will describe theses
aspects to the Committee.

Recommendation/s
That the Economic Development Committee:

a) endorse the proposed approach to developing a Mori Economic Development
Programme for the Auckland Council family.

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Comments
Discussion

Background
7. The Auckland Council is committed to meeting its responsibilities under the Treaty of
Waitangi (Te Triti o Waitangi) and its broader legal obligations to Mori. It recognises these
responsibilities are distinct from the Crowns Treaty obligations and fall within a local
government / Tmaki Makaurau context. The Council works to ensure its policies and
actions consider the protection and recognition of Mori rights and interests within Tmaki
Makaurau, and how to address and contribute to the needs and aspirations of Mori.
8. These commitments are articulated in the councils key strategic planning documents - the
Auckland Plan and the Long-term Plan 2012-2022. Te Hau o Te Whenua, Te Hau o Te
Tangata - A Mori identity that is Aucklands point of difference in the world is an
overarching outcome of the Auckland Plan. The Auckland Economic Development Strategy
(EDS) supports the Auckland Plan and includes a cross cutting theme of facilitating an
Iwi/Mori economic powerhouse, which draws together the strategic approach to Mori
economic development in Tmaki Makaurau.
9. Other key documents supporting this vision, and that include recognition of Auckland
Councils legal responsibilities and obligations to Mori, include the Mori Plan for Tmaki
Makaurau and Auckland Councils mana whenua agreements.
10. The council is subject to a wide range of legal obligations in relation to the Treaty of
Waitangi and to Mori as a people. There is no one source of the councils legal obligations
and these arise in different ways under a wide range of legislation. In responding to the
councils commitment and legal obligations, Auckland Council has developed a Mori
Responsiveness Framework focused on enhancing and guiding the Auckland Council
familys commitment to Mori.
11. The council also recognises the important role the Independent Mori Statutory Board
(IMSB) plays in advocating for issues of significance for Mori and ensuring Council fulfils
its statutory obligations to Mori, including statutory provisions related to the Treaty of
Waitangi. Auckland Council is committed to working with the IMSB to achieve its purpose,
particularly in the area of Mori economic development.
Mori Economic Development
12. In late 2012, Auckland Council and the IMSB commissioned a report to review existing plans
and strategies relevant to Mori economic development in Tmaki Makaurau, and to identify
areas of strategic alignment
16
. This work helped to highlight the variety of activity (either
underway or proposed) and provided a strategic framework aligned to the EDS to focus the
efforts of the Auckland Council family. While some progress had been made it was clear
that there was still a need to consolidate efforts and to prioritise actions to help facilitate
improved implementation.
13. Te Waka Angamua and the Councils Economic Development Department have now taken
forward the initiative to develop a consistent programme that will help guide and advance all
of the efforts of the Council family. In October 2013 Tuia Group were commissioned to
design and develop a comprehensive Mori Economic Development Programme and to help
build the capacity of the Council family to deliver on Mori economic development outcomes.
14. In December 2013 the Committee received a presentation from the Tuia Group on Stage
One of this project, which included information on scoping, current state analysis, the
establishment of project governance and outcomes from stakeholder workshops. This work

16
Alignment of Mori Economic Development Activity. WHK for Auckland Council (December 2012)
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has included extensive interaction with staff from relevant Council departments and Council
Controlled Organisations (CCOs).
15. Maori Economic Development excludes projects related to Marae Development or
Papakainga Development. This has been a conscious decision based on the premise that
both areas are of such significance for Auckland Council, that they have their own
programmes. It is recognised that there are benefits attributable to both these programmes
that will be of an economic development nature, and an overview of some of that work is
identified below.
Progress Update Stage Two (design)
16. Stage Two of this project has focused on the detailed design of a Mori Economic
Development Programme for the Auckland Council family. This work has progressed with
extensive stakeholder engagement with the intention of aligning and prioritising current
areas of work, and in particular, identifying key areas of new effort and the resource
requirements of these. Tuia Services have played an important role in facilitating this work
on Councils behalf. While this work is still being refined as a final document, the detail for
this activity has been identified for wider discussion and confirmation
17. To date the immediate priority areas to advance, which have been identified as foundation
work streams for the Mori Economic Development Programme, include:
1. Enabling Whnau to set the foundations for their own economic engagement and
reach te puawaitanga o te tangata
- Invest and support in educational outcomes as foundations for sustainable
economic development
- Establish post education employment opportunities across Council and its
contracted service providers
- Providing support for discussion, research and promotion of successful Mori
education models and approaches

2. Engaging with Tribal entities to leverage economic opportunities which exemplar
Aucklands unique Mori identity
- Develop a tourism approach that incorporates the natural water features of both
Harbours creating a unique to Tmaki Makaurau.
- Establish a Cultural centre as part of the development of the Waterfront area
- Providing for a Mori Signature event to be held on a two yearly basis
To partner with Mori in land a property
Establish a process to engage Mori in land disposal and acquisition. This
will include, but not be limited to inclusion of Treaty settlement requirements
Provision of governance and management training which supports
capability development for Mori across business sectors, including
property management

3. To strengthen Mori Business
Work with central government agencies to develop and maintain Mori business
intelligence systems for Tmaki Makaurau (including companies, land trusts and
incorporations, PSGEs, MIOs etc)
Provide a forum for Mori businesses to support and engage with each other
across sectors
Develop a Mori business database and analysis for Tmaki Makaurau
Facilitate Mori business development programmes to be offered to new/ existing
Mori businesses
To use the Haere Whakamua social enterprise model to establish and support new
Mori business opportunities
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18. In terms of a Programme of Activities, the following table summarises current activities
occurring across the Council family:

Action area Timeframe Council/ CCO
responsibility
Whnau economic engagement
Support establishment of
Tmaki Education forum
Graduate employment
programme
Cadetship programme
Identify and support
successful Maori education
models
Youth connection scheme


July 2014 on-going

March 2014 July 2015

June 2014 on-going

June 2014 on-going

June 2013 - current

COMET, TWA

Council Family

Council Family

Comet, TWA

CDAC
Tribal economic opportunities
4. Establishing an entity to
support Waka tourism on the
waterfront
5. Supporting the development
of Iwi coastal management
plans
6. Development of land
acquisition and disposals
processes
7. Engagement in Papakainga &
Marae development
8. Community arts development


February 2014
December 2014

January 2014 June
2015

March 2014 on-going


July 2013 on-going

March 2014 on-going

TWA


TWA/ Enviro. Strat. & Policy


TWA/ ACPL


Council Family

CDAC
Strengthen Mori business
Iwi historic education
contracting
Central govt. engagement
Haere Whakamua social
enterprise programme
Mori Economic Development
forum
Establish Mori business
development approach

June 2014

February 2014
July 2013

June 2014

March 2014



TWA, CDAC

TWA/ ED/ ATEED
CDAC/ TWA

ATEED/ ED

TWA/ ED

19. As part of the Long Term Plan (LTP) development, Te Waka Angamua and Economic
Development have worked across the Council family to propose a series of activities to
continue to increase the Mori Economic Development suite of activities. While the LTP has
yet to be finalised it is important to indicate that the activities have been classified on the
basis of the three workstreams above.
20. Associated with these priority areas is the need to develop guidelines and tools to assist
Council departments and CCOs and strengthen the Council familys Mori economic
development capability. Other aspects of the programme that will include the alignment of
programme, responsibilities, and deliverables and timeframes which will be managed across
the Council family.
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21. Stage Three commenced in June and involved the detailed implementation of specific parts
of the programme. This has initially required communication and awareness of specific
parts of the programme, and discussion with the Council family to align their Mori economic
development priorities. In some areas (e.g. tourism) working groups have been convened to
engage in implementation. This will be enhanced once the Long Term Plan programme has
been confirmed. There is also a clear need to establish an evaluation methodology to
assess the progress and the value-add of the different work streams outlined in the
programme.
22. This work is also intended to support the Crown-Mori Economic Growth Partnership He Kai
Kei Aku Ringa. To achieve this, an agreement has been made between Auckland Council
and MBIEs Mori Unit to build working relationships and to share information. To date there
have been two engagement meetings where the efforts of both parties have been discussed
in order to seek alignment and collaboration.
23. In July, Council hosted the Ministry of Business Innovation and Employments (MBIE) He Kai
Kei Aku Ringa (Mori Economic Development Strategy) Mori Board. Executive
representation from Council and its CCOs included Economic Development, ATEED,
COMET, Auckland Investment Limited, CDAC, and the Chief Economist. The IMSB Chair,
Board Member and Chief Executive provided a non-Council perspective on economic
development activities carried out by Council and its CCOs. Key discussion points with
MBIE included, but were not limited to the following:
The Auckland Council approach to supporting Mori Economic Development
including the work carried out to date to identify the priority areas for Mori
Economic Development.
IMSB perspectives on the key areas of focus for Auckland Council in the Mori
Economic Development area, and how it will support and monitor those key focus
areas.
The role of the He Kai Kei Aku Ringa Mori Board in supporting Mori Economic
Development nationally, and ways to potentially engage with the activities here in
Auckland.
The Boards recognition of Aucklands unique urban and rural make up requiring a
comprehensive approach to enabling Mori Economic Development.
24. It is proposed that another Hui between Council and the He Kai Kei Aku Ringa Board at a
time where Council can report on progress since this first Hui.
Consideration
Local board views and implications
25. The proposed programme will help support Mori economic development within Local
Boards through an outline of existing activity and proposed activity that will help inform future
local economic development initiatives. For example, Papakura Local Board has recently
designed a Mori Economic Development programme that could be replicated across other
local board areas. The programme aims to support Mori businesses in the Papakura Local
Board area to enhance their competitiveness and economic performance. The programme
has been initially funded by the Local Board in order to enable the programme to begin to
deliver outcomes in the short term. Already the programme has seen the establishment of
the Papakura Mori Enterprise Association in order to implement the programme and carry it
forward in the long term.
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Mori impact statement
26. This work is in direct response to Auckland Councils responsibilities under the Treaty of
Waitangi (Te Tiriti o Waitangi) and its broader legal obligations to Mori. The proposed
Mori Economic Development Programme will seek to ensure the economic policies and
actions of Auckland Council will consider the protection and recognition of Mori rights and
interests within Tmaki Makaurau. It will also seek to address and contribute to the
economic needs and aspirations of Mori within the context of the Auckland Council familys
mandate and responsibilities.
General
27. The development of the Mori Economic Development Programme will identify resource and
budget implications in order to inform departmental budget allocations and potential
implications for next Auckland Council Long Term Plan (2015/25).

28. There are no direct financing and resourcing implications associated with this report,
however the final programme will outline specific resource and budget details.
Implementation
29. Officers, lead agencies and partners will continue to implement policies and projects to
progress Mori economic development in Tmaki Makaurau, and will report updates as
required.


Attachments
No. Title Page
A Te Whai Rawa Programme of Action Stage Two Scoping 87

Signatories
Authors Bernard Te Paa Pae Urungi Tuhono, Mori Outcomes Manager Te Waka
Angamua
Taala Shane Taala - Kaihautu, Senior Advisor Mori Outcomes - Te Waka
Angamua
Authorisers Johnnie Freeland - Pae Arahi Matua Manager - Te Waka Angamua
Harvey Brookes - Manager Economic Development

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Quarterly Economic Update Page 93

Auckland Quarterly Economic Update

File No.: CP2014/17880




Purpose
1. The report introduces a presentation on the Auckland Quarterly Economic Update (July
2014) to the Committee.
Executive summary
2. Rachael Logie, Senior Economist with the Chief economist will provide a presentation to the
Committee.

Recommendation/s
That the Economic Development Committee:
a) thank Rachael Logie and Geoff Cooper for their presentation Auckland Quarterly
Economic Update.


Attachments
There are no attachments for this report.
Signatories
Authors Rachael Logie Senior Economist
Authorisers Geoff Cooper Chief Economist
Harvey Brookes - Manager Economic Development

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Page 95

The Auckland Regional Partnership Agreement between the Auckland
Council, ATEED and Immigration New Zealand

File No.: CP2014/17691




Purpose
1. To inform the Economic Development Committee of the Auckland Regional Partnership
Agreement for the attraction and retention of migrants between the Auckland Council,
Auckland Tourism, Events and Economic Development (ATEED) and Immigration New
Zealand, Ministry of Business, Innovation and Employment.
2. This report mirrors the parallel report received by the Community Development and Safety
Committee on 13 August 2014.
Executive summary
3. Auckland Council, ATEED and Immigration New Zealand are jointly developing the Auckland
Regional Partnership Agreement for the attraction and retention of migrants. The Agreement
is an operational arrangement intended to increase collaborative working across the staff of
member organisations.
4. The purpose of the Auckland Regional Partnership Agreement is to establish a new way of
working collaboratively to improve and lift the contribution of migrant attraction, retention and
settlement within Auckland.
5. The Auckland Regional Partnership Agreement is a three year relationship agreement at the
operational level commencing from 2014, reflecting the shared priorities of Auckland
Council, ATEED and Immigration New Zealand. It will identify how to leverage tools and
resources that Immigration New Zealand can provide to support the Auckland Council and
ATEEDs key sectors of priority for migrant attraction, settlement and retention. Research
intelligence and best attraction and retention practices across regional, domestic and
international settings will be shared under the Agreement.
6. Recommendations from the final Auckland Regional Settlement Strategy action plan reports
as well as the MartinJenkins report on the review of the Auckland and Wellington Regional
Settlement Strategies were considered in the development of the Auckland Regional
Partnership Agreement for the attraction and retention of migrants.

Recommendation/s
That the Economic Development Committee:
a) note that Auckland Council group officers are working with Immigration New Zealand
to finalise the Auckland Regional Partnership Agreement.
b) note the Auckland Regional Settlement Strategy community and economic action plan
reports and their recommendations.

Discussion

7. Auckland Council, Auckland Tourism, Events and Economic Development (ATEED), and
Immigration New Zealand are jointly finalising the Auckland Regional Partnership Agreement
for the attraction and retention of migrants. The Agreement is an operational arrangement
intended to increase collaborative working across the staff of member organisations.
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8. Progress on the Regional Partnership Agreement and Settlement Action Plans was reported
to the February 2014 meetings of the Community Development and Safety Committee and
the Economic Development Committee.
9. This report mirrors the parallel report received by the Community Development and Safety
Committee on 13 August 2014. Together these reports replace the previously proposed
report to the Regional Strategy Committee.
Background
The purpose and priorities of the Auckland Regional Partnership Agreement
10. The purpose of the Auckland Regional Partnership Agreement is to establish a new way of
working collaboratively to improve and lift the contribution of migrant attraction, retention and
settlement within Auckland. It will identify how to leverage tools and resources that
Immigration New Zealand can provide to support the Auckland Council groups key sectors
of priority for migrant attraction, settlement and retention.
11. The priorities of the Auckland Council group are based on Auckland-specific plans and
strategies, which include the Auckland Plan, the Auckland Economic Development Strategy,
the Shared Economic Agenda, the Thriving Communities Strategic Action Plan, and
ATEEDs Business and Competitiveness Framework. The Skilled and Safe Workplaces work
stream in the governments Business Growth Agenda is an overarching strategy for
Immigration New Zealand to secure the skills and investment New Zealand needs.
12. The Auckland Regional Partnership Agreement is a three year relationship agreement at the
operational level commencing from 2014. The agreement reflects shared priority areas for
collaboration in the 2014/2015 financial year
13. In this Agreement, Immigration New Zealand and the Auckland Council group will share
research intelligence and best attraction and retention practices across regional, domestic
and international settings.
Auckland Regional Settlement Strategy final reports and recommendations
14. Central and local government and business agencies have collaborated since 2007 to
implement the Auckland Regional Settlement Strategy, to support better settlement and
economic outcomes for new migrants in Auckland. The strategy and its associated action
plans were completed in June 2014.
15. The action plan final reports highlighted recommendations for central and local government
to:
consider further strengthening collaboration with a clear purpose to support migrant
settlement and retention
consider the development of a language approach so that information and resources can
be provided in a more consistent way
consider economic attraction, settlement and retention actions and models that would
showcase best practice, and address the information and knowledge barriers for both
employers and migrants, with the goal of helping to improve labour productivity
investigate potential gaps and opportunities available to Auckland businesses and skilled
migrants. Should, for example, an OMEGA-type mentoring/internship organisation be
considered as a possible solution for maximising migrants skills use in Auckland, then
an appropriate business model would need to be developed first, with input from former
OMEGA board members
organise more civic engagement events for international students and migrants
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consider developing a 2015 Westpac Business Award to showcase best practice for
hiring and retaining skilled migrants, and frame this around innovation to address areas
of skills shortage and increase business growth.
16. The recommendations of the Auckland Regional Settlement Strategy action plan reports
have been considered during the shaping of Regional Partnership Agreement priorities.
Summaries of the action plan reports are attached to this report for information.
The MartinJenkins Review report and recommendations
17. In 2013, Auckland Council, Hutt City Council and Immigration New Zealand commissioned
MartinJenkins to complete an independent review of the both Auckland and Wellington
Regional Settlement Strategies. The review made recommendations for future arrangements
that could follow the completion of the Auckland and Wellington Regional Settlement
Strategies. These include that:
the national settlement strategy be refreshed with the addition of a stronger economic
lens, and a broader focus, covering attraction, settlement and retention, as well as
enhanced monitoring and evaluation
separate strategies and approaches for regions, reflecting distinctive regional contexts
be considered. These could be supported by streamlined and future-proofed governance
arrangements that respond to variations in both national and regional priorities and
resources
18. Immigration New Zealand enters into Regional Partnership Agreements for Settlement
with regions. The content of the Agreements should be bespoke for each region,
influenced and determined by unique regional contexts, and priorities
19. As part of the proposed Regional Partnership Agreement approach, Immigration New
Zealand would coordinate central government relationships and actions nationally, and the
regional partner would coordinate regional relationships and actions (including regional
offices of central government, NGOs and private sector representatives) The development of
the Auckland Regional Partnership Agreement has been informed by the recommendations
outlined in the MartinJenkins review report.
Consideration
Local board views and implications
20. The Auckland Regional Partnership Agreement expects to have a particular focus on the
City Centre Masterplan and the Southern Initiative. This is to support international students
and young migrants residing in, mainly but not limited to, the Waitemata Local Board, and
the local boards in the Southern Initiative area including Mangere-Otahuhu, Otara-
Papatoetoe, Manurewa and Papakura Local Boards.
Mori impact statement
21. The Auckland Regional Partnership Agreement expects to collaborate on Aucklands plan to
build a culture of respect and learning between Tngata Whenua and Tngata Hou in the
workplace and in community settings in Auckland. It will also continue to broker opportunities
for migrants to enhance their understanding of Te Ao Mori, and gain an appreciation of
kaitiakitanga.
Implementation
22. There are no implementation issues to address
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Attachments
No. Title Page
A Community Settlement Action Leadership Team summary report 99
B Economic Settlement Action Leadership Team summary report 111

Signatories
Author Wayne Brown - Principal Advisor - Regional Economic Policy
Authorisers Claire Gomas - Manager Economic Development Strategy & Policy
Harvey Brookes - Manager Economic Development

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The Auckland Regional Partnership Agreement between the Auckland Council, ATEED and
Immigration New Zealand
Page 118


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B

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1
5

Economic Development Committee
20 August 2014



The Auckland Regional Partnership Agreement between the Auckland Council, ATEED and
Immigration New Zealand
Page 119

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