Bay of Plenty eyes economic boost

Ministers Steven Joyce (pictured) and Te Ururoa Flavell visited Rotorua and Opotiki today. Photo / Paul Taylor

The Government is putting up to $3 million towards a major harbour development project in the Eastern Bay of Plenty, as it launches an economic action plan for the wider region.

Ministers Steven Joyce and Te Ururoa Flavell are visiting Rotorua and Opotiki today to launch what will be the second phase of the blueprint Toi Moana Bay of Plenty Regional Growth Programme.

The community-led initiative, which launched in May with the release of a 200-page roadmap study, pulls together local and central government, business, iwi and other groups to improve growth in a region that's been a mixed bag for economic performance.

The Bay of Plenty accounts for 5.7 per cent of the national GDP - or around $11.8 billion - and its 148,000 jobs makes up 6.6 per cent of employment, yet its economic growth over the five years to 2014 had been slightly behind the national average.

The region was also a combination of differently performing sub-economies - the Western Bay of Plenty, taking in Tauranga and Mt Maunganui, was growing fast compared to the declining Eastern sub-region (Whakatane, Kawerau and Opotiki) and its stable heart (Rotorua and Taupo).

Recent data showed that while the region had higher rate of unemployment than the rest of the country, this had been declining marginally each year.

The new action plan sets out nine priority sectors for development, harnessing the region's abundant natural competitive advantages, including agribusiness, aquaculture, forestry, water, tourism, geothermal, horticulture and Maori land utilisation.

"The Action Plan is the culmination of literally hundreds of hours' work and is specifically designed to bring the original study to life -- and turn its opportunities into tangible results," said Doug Leeder, chair of the joint Bay of Connections group.

An "unbelievable amount of work" had been done to put context and detail around the opportunities identified in the growth study and gather feedback from across the region, he said.

Five hui and a validation forum were held as part of this, attracting more than 350 people who provided their knowledge and insights.

"Success will require true regional ownership and leadership, including the need to be agile as things progress and change."

Mr Joyce said the Bay of Plenty region was growing well amid recovery from the kiwifruit PSA crisis and a rapidly growing tourism industry.

"This Bay of Plenty Action Plan will ensure growth is maintained and extended to all parts of the region, especially the eastern Bay."

A key project was the Opotiki Harbour Development Project, which aimed to boost local aquaculture and bring to the district more than 440 new jobs, higher average household incomes and an extra $34 million to the local economy.

The project aimed to create a year-round navigable harbour entrance, and construct a new commercial wharf, which would support a range of industries, including processing facilities for the 3,800ha offshore marine farm.

Mr Joyce announced while in Opotiki that the Government would be committing up to $3 million to test the viability of the project.

The study would include geotechnical investigation and design options for the harbour entrance, with an engineering assessment to be completed within the next two years alongside industry testing of the mussel farm's commercial viability.

Another big step in the action plan would be investigating how the kiwifruit industry could be expanded in the Eastern Bay of Plenty.