Super City won't address economic development gap

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As the clock ticks towards Auckland's transition into a Super City, a gap in the region's approach to economic development has been identified.

And it appears the gap will survive the transition to the new Auckland Council on November 1.

At present, economic development agencies (EDAs) operate separately from local councils on the North Shore, as well as in Manukau and Waitakere.

They offer various services, such as assistance and mentoring programmes, and also organise regional business award events.

Auckland City Council, however, does not have a separate EDA, but operates an economic development group within the council.

It does not organise annual business awards or offer direct, one-on-one assistance programmes like the EDAs in other regions.

Gareth Stiven, who manages Auckland City Council's economic development group, said businesses within that council's jurisdiction did not receive the same level of business assistance as firms in other areas with independent EDAs.

"We're not as directly involved with individual businesses," he said.

And the situation seems unlikely to change immediately after the new Auckland Council is formed. Following the Super City's formation the EDAs in Manukau, Waitakere and North Shore will continue to operate as southern, western and northern branches of the Tourism, Events and Economic Development (Teed) council controlled organisation (CCO).

The Business Herald understands there will not be a branch that focuses on the region that falls within the boundaries of Auckland City Council.

Stiven says the work carried out by the economic development branches of Teed under the new council will work in a more "centralised" manner than the way they operate now.

But their direct business assistance programmes, he says, will remain in their local areas.

"So it will be the same as it is now - the inner city will be relying on other providers like the [Auckland] Chamber of Commerce."

Michael Barnett, chief executive of the Auckland Chamber of Commerce, said he did not think Auckland City businesses had missed out on any opportunities through not having an independent EDA.

Auckland City Council had done well in providing services in conjunction with the Chamber of Commerce and Employers and Manufacturers Association, he said.

Barnett said AucklandPlus, the economic development arm of the ARC, had also provided great service across the region, including Auckland City.

"If you look at the Louis Vuitton [Cup] and those types of regattas that we've managed to build and attract here over the last couple of years - they've happened with co-operation of AucklandPlus in co-operation with Auckland City [Council]."

The functions of AucklandPlus will also be merged into Teed after the formation of the new council.

But Terry Hoskins, chief executive of Enterprise North Shore, the independent EDA of that region, said Auckland City businesses had missed out on opportunities through not having an agency of their own.

"Auckland City needs an economic development agency - there needs to be a central one," he said.

A spokesperson for the Auckland Transition Agency said the formation of a central Auckland-focused economic development branch of Teed was a possibility under the new council.

Overall award on cards

Regional business awards may continue after the Super City is formed, with the winners going forward into an Auckland-wide event, says Teed chairman David McConnell.

Regional awards ceremonies are currently held on the North Shore, as well as in Waitakere and Manukau.

The events are organised by the economic development agencies that operate in each region.

On November 1 those agencies will be integrated into Tourism, Events and Economic Development (Teed), the council controlled organisation that assumes control of economic development in the Super City.

McConnell said the "default setting" for the regional awards would be for them to continue as normal.

"Whether they continue in exactly the same format and same way is really something for the team that will come together to review and look at it."

Asked if regional competitions could feed into an Auckland-wide business awards event, McConnell said that was a possibility.