Regional deal revealed: Northland’s ambitious plan to lift incomes, reduce unemployment

Among the ideas to increase the region’s drawcards was the desire for Cape Brett to become a Great Walk.

A Great Walk and making the most of “world-class” Marsden Point are some of the many ambitions underpinning Northland’s regional deal application.

The finer details of the “ambitious” application submitted to the Government as part of its initiative to boost local economies were shared yesterday.

Northland’s proposal is expected to hike business and household income and reduce unemployment in the region.

The application explained how prioritising future energy, marine manufacturing, primary industries and tourism could boost Northland’s GDP by $977 million and exports by $877m, as well as create more than 6000 jobs.

Joint Regional Economic Development Committee chair and Far North councillor John Vujcich believed Northland’s plan was ambitious but achievable.

“Smarter investment is crucial for Northland’s growth, and collaboration with central government is essential to provide a healthy economic, social and physical environment we can pass on to future generations.”

Vujcich said the development opportunities identified within the proposal could double Northland’s economy, which was said to have weakened.

Inflation, high interest rates, lower commodity prices, fewer international visitors, additional Covid-19 lockdowns, storms and the closure of Marsden Point – New Zealand’s only oil refinery – were all said in the proposal to have hurt the economy.

To move forward, the region needed to prioritise the four sectors identified as they were important contributors to the economy.

The primary and associated manufacturing sector accounted for 13% of Northland’s GDP and 77% of exports.

But the sector needed to continue its effective production and exploration of new and different products, such as the successful peanut trial.

Northland’s aquaculture sector was entrepreneurial in the way it exploited the region’s natural advantages, according to the proposal.

Examples given were New Zealand’s mussel fisheries’ dependence on Northland spat and the global expansion of Niwa’s Ruakākā kingfish farm.

Tourism was labelled an important “export earner” that provided job opportunities within the region.

Visitor spending had shown signs of growth post-Covid but international expenditure in Northland was only 19% of total visitor spending, compared with 27% nationally.

The Waitangi Treaty Grounds are a major tourism drawcard for Northland. Photo / Dean Purcell

Among the ideas to increase the region’s drawcards was the desire for Russell, Cape Brett and Whangaumu to become a Great Walk, joining the existing 11 premiere walks nationwide.

The application addressed Northland needing to better leverage its proximity to Auckland so tourists acted on their interest in the area.

Ocean Flyer’s seagliders, which promise a 35-minute trip between Whangārei and Auckland, were identified as a way to close the travel gap.

Monte chief operating officer Timothy Eyre (inset left) and Ocean Flyer CEO Shah Aslam (right) with the Ocean Flyer seagliders. Photos / Ocean Flyer

Northland was touted as excelling in marine manufacturing, as it had above average growth rates.

The proposal highlighted the floating dry dock planned for Northport and an associated marine maintenance facility as ways to expand the sector.

Both developments were labelled by the proposal as a “significant opportunity” to accelerate private investment and enhance naval resilience.

Northport’s expansion was lauded as strengthening the gateway to export markets.

The application referenced the need for a facility in Whangārei dedicated to building vessels designed for reduced carbon emissions and fuel consumption, amid the renewal of the in-shore commercial fishing fleet.

Future energy was a chosen sector as the application said Northland was a testbed for renewable energy because of the abundance of sun and wind.

There had already been growth in wind and solar projects, such as the Kaiwaikawe Wind Farm in Kaipara and the 120MW solar farm in Ruakākā.

The Kaiwaikawe Wind Farm site works are under way. Photo / Higgins

“Adding further capability to the Grid line will enable transmission connectivity to bring more energy projects online to the Auckland market,” the application said, “as well as providing local energy sources to allow more businesses to establish in the region.”

Marsden Point was highlighted as a sitting opportunity. The application said the closed refinery was an underutilised site with “world-class infrastructure”, “attractive zoning” and existing resource consents.

The application says Marsden Point is underutilised. Photo / Tania Whyte

“Sites like this are rare globally and this puts the region in a unique position to move quickly forward with future fuels production and energy resilience.”

Many of the projects referenced in the application were forecast to create new employment opportunities – some high-paying.

But before any economic opportunities could be unlocked, the proposal stated infrastructure needed to be enabled – especially upgrades to roads, rail and ports.

The regional plan would still be met with hurdles to overcome – challenges linked to housing, climate, medical and educational, employment, particularly of Māori, Pasifika and disabled people – in a low-growth, high-cost regional economy.

The application stated the need for economic growth that creates opportunities through innovative ideas and elevates standards of living “couldn’t be more obvious in Northland”.

“Our focus is on economic growth as we have opportunities to enhance job creation, attract investment and provide resources for local businesses, ensuring all our communities benefit.”

The proposal now heads into a selection process before the Government decides by the end of the year whether it will progress and how.

Paul Linton, chief executive of Northland Inc, said that Northland has a proven, strong track record of collaboration with Government, Māori and industry.

“The region is ready to act, with governance, projects, and private sector support already in place – we just need central government to capitalise on the opportunity that the Northland region presents to them.”