Regional plan essential, says union boss

The seeds are there for a growing divide in values between Auckland and the rest of the country. Photo / Getty Images

Workers’ advocate says strategy needed to take NZ beyond reliance on core industries with job initiatives to help lift remote areas.

Regions need a jobs plan and the support to achieve it, says Council of Trade Unions secretary Sam Huggard. And so does Auckland. "What is our plan for jobs in Auckland [and in the regions]?

"Are there particular industries we want to support better with investment, research and development, tax credits, etc. What is our plan beyond our reliance on a couple of industries that have been useful to the country for a number of years?"

A whole-of-country approach would be preferable but the growth of Auckland is propelling the country along a path that "risks the creation of two New Zealands - Auckland and the rest," says Mixed Fortunes, a report by the Salvation Army.

Over the next 25 to 30 years Auckland may account for more than 60 per cent of New Zealand's population growth and in time Aucklanders will make up about 40 per cent of the population.

"In general, Aucklanders will be younger, wealthier, better skilled, and more ethnically diverse than the rest of New Zealand," the report says. "Within such differences are the seeds for a growing divide in values and expectations."

Huggard says the report highlights parts of our country where a significant group of people are struggling to achieve social and economic wellbeing. Many regional areas in New Zealand are characterised by jobs with insecure working conditions and in some cases very low wages.

"The West Coast has been hard hit, with job losses in mining and cement.

"Dunedin missed out recently through a lack of support for local rail manufacturing.

"And in many parts of the North Island a Talleys-owned meatworks is the main employer where employment conditions are difficult." Huggard says Government has a big role to play in ensuring regional areas are not missing out.

"Active job creation initiatives both in government and not-for-profit sectors, development of local industry and services, such as through industry clusters, better use of government procurement to support local jobs and properly funding key local human infrastructure such as regional polytechnics are all areas where we can do better."

He thinks government needs to take a more assertive, pro-jobs approach. In the area of procurement, he recommends thinking through a whole-of-life purchase price rather than going for the lowest initial purchase price.

"In Dunedin [at the Hillside Railway Workshops], where there were over 100 highly skilled engineering workers and also a wider cluster of engineering industries, the return on having the trains made in Dunedin was significant."

Huggard says that in places such as Westport there is "labour market dislocation" where people need better support in transitioning from one job to the next.

Diversification is also important, and playing on our strengths in primary industries, "making sure we add value, for example in the wood-processing side of forestry, but also getting rid of as many barriers as we can to local manufacturing firms who are either exporting or importing, competing to make sure we have the best support for them."

While there is greater job diversity and numbers in Auckland compared with regional New Zealand, "the risk is we need to make sure for Auckland and all parts of New Zealand that they are good jobs."

That means realising the economy is "you and me" and not some third person, and that good jobs have good health and safety standards, good pay and conditions.

Adrian Dixon, manager of economic development agency Whanganui and Partners, says that with the Wanganui District Council they are helping businesses such as Open Country Dairy grow, as well as attracting new ones.

Resource consent processes for new business infrastructures are smoothed, and behind-the-scenes work with primary producers helps to improve productivity, branding and marketing.

Dixon says the Government has funded an economic regional growth study that has identified sectors and enablers in Wanganui for economic growth as well as pan-regional opportunities where councils will work together across regions.

"It will clearly show there are ongoing opportunities in the agriculture and horticulture sectors and in tourism, specifically in Whanganui.

"There is a lot of talk about the regions being ignored but these studies have been going on in the background."

Other initiatives include the Sweet project which helps college students identify career pathways and links them with industry. Whanganui and Partners is also working with polytechnic UCOL to identify training that could be expanded.

Dixon thinks central Government could look at locating more public services in the regions using the power of ultra-fast broadband - such as business processing, account processing, call centres and whole government departments.

"One I think would resonate well in Wanganui is DoC. We are right next to two national parks, we have a company here that produces 1080. It's a natural home for DoC. One of the things on my agenda is to engage with central Government around these opportunities."