Northland business heavyweights pushing for $60b-a-year economy

Many people think of Northland as a nice place to visit but don't realise its economic muscle, says Northland Corporate Group co-chairman Andrew McLeod. Photo / NZME

Northland’s business leaders want the region to grow into a powerhouse for New Zealand, reaching its full potential as a $60-billion-a-year economy by 2050.

That was the message presented in Wellington on Wednesday night by Northland Corporate Group, which commissioned economists NZIER to show how Te Tai Tokerau is already contributing and detail the opportunities ahead.

Its report, Ka Tutuki i a Te Tai Tokerau – Te Tai Tokerau Northland delivers, outlines how the north is already contributing after producing $11.2b in 2024.

It shows how, with the right focus and investment, Northland can grow six-fold to $60b through key areas: construction and manufacturing, farming, logistics, tourism and energy.

The 40-page report was formally launched at an event in Parliament’s Banquet Hall attended by a range of Northland leaders including mayors and representatives from Northland Inc, NorthChamber and Ngāpuhi investment fund Tupu Tonu.

The audience included Finance Minister Nicola Willis, Energy and Local Government Minister Simon Watts, Building and Construction Minister Chris Penk, NZ First leader Winston Peters, Labour’s finance spokeswoman Barbara Edmonds and local MPs.

Northland Corporate Group co-chairman and Northpower chief executive Andrew McLeod said the event was likely the first of its kind for any region and was a chance for Northlanders to stand in solidarity.

“It’s a very positive chance for Northland to remind people what we do and what we’re gunning for in the next 25 years,” he said.

“Everyone is standing up, to stand united in Parliament: that’s a really cool thing.”

The report was not about asking for a Government handout but to show what the north is capable of, encouraging confidence and private investment, McLeod said.

Finance Minister Nicola Willis and Northland MP Grant McCallum, right, were among the attendees on Wednesday night.

However, there is also a need for central Government to play its part in planning for infrastructure, including ensuring there is a reliable road link from Northland to Auckland, he said.

“A reasonable state of infrastructure between Whangārei and Auckland is all that we’re asking – it happens everywhere else in New Zealand.”

Last year, Northland Corporate Group commissioned NZIER to investigate the benefits of a four-lane expressway from Auckland to Northland and it found it would boost GDP by $1.2b a year.

A few months later, the coalition Government confirmed a four-lane highway to Whangārei, including over the Brynderwyn Hills. Companies have been asked to bid for a public-private partnership for the first stage.

McLeod said the expressway report showed the importance of having analysis done and encouraged Northland Corporate Group to commission the new report.

Northland Corporate Group co-chairs Andrew McLeod and Rosie Mercer led the presentation to show how Northland could become a $60b economy.

The report found Northland’s GDP per capita is currently 30% below the national average but the region holds natural resource and geographical advantages.

McLeod said all of the potential projects in the report have already been talked about, such as an energy precinct at Marsden Point, the Northport expansion and irrigation to encourage more horticulture.

Northland Corporate Group includes Channel Infrastructure NZ, Culham Engineering, Marsden Maritime Holdings, McKay, Northpower and Top Energy, who employ a combined total of more than 3500 people.

‘People don’t realise Northland’s economic muscle’

McLeod said the report outlines the true impact of Northland’s economy on Auckland and the rest of New Zealand, which may be a surprise to some.

“Typically, people think of us as a nice place to come on holiday but they don’t realise our economic muscle.”

Some facts about Northland highlighted in the report are:

• Channel Infrastructure supplies 40% of New Zealand’s land transport fuel and 80% of the country’s jet fuel, including the entire supply for Auckland International Airport.
• Culham Engineering is one of New Zealand’s largest integrated engineering firms, providing fabricated steel for many large-span bridges and high-rise buildings.
• Golden Bay Cement in Whangārei is New Zealand’s only domestic cement producer, manufacturing 60% of national demand for cement.
• Northland is a cornerstone of New Zealand’s food system, including producing more than 90% of the country’s kūmara and supporting high-value crops such as avocados.
• A large pipeline of renewable electricity generation projects in Northland scheduled for the next two years will be sufficient to make the region a net electricity exporter.

• This story has been updated with photos and information about attendees on Wednesday night.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.