Auckland Regional Economic Development Strategy

							AUCKLAND REGIONAL ECONOMIC DEVELOPMENT STRATEGY
                            FOUNDING DOCUMENT

Executive summary
Background

Disparate groups in the Auckland region have done a lot of work in the area of economic
development. These groups must now start working together to ensure the region’s
future prosperity.

Vision

The Auckland Regional Economic Development Strategy (AREDS) will create an
enduring partnership between central and local government, Maori, business and other
key groups who are committed to achieving beneficial outcomes. It will also provide a
sound vision for economic prosperity that is shared by, and will be beneficial for, a range
of groups. It will identify where we are at present, where we want to be in the future and
how we will get there.

Strategy

The strategy will set up a process for co-ordinating economic initiatives and for allocating
limited resources to those actions that are most likely to achieve the shared vision. It will
also set an agreed action plan for delivering long-term sustainable economic
development.

Until recently, the region had little experience of collaborating on developing strategy.
This, however, changed with the advent of the Regional Growth Strategy. This identifies
the areas and best ways to deal with a population that will grow by 1 million in 50 years.

In February 2001, Auckland’s local authorities joined together in a memorandum of co-
operation for regional economic development.

Competitive Auckland has developed a business-growth strategy for Auckland, involving
local authorities, educational institutes and other regional participants. Competitive
Auckland’s strategy work will form an important part of AREDS.

Collaboration

As well as drawing together work that has already been done, AREDS will also identify
any gaps. A group has already started a stocktake of existing visions, strategies and
technical understanding of the region’s economy.



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Through the partnership process, initially made possible by the local and regional
territorial authorities, AREDS will:

     endeavour to honour all Treaty of Waitangi obligations throughout the planning and
      implementation process.
     ensure a full breadth of perspectives and objectives for regional economic
      development
     optimise resources by unifying disparate groups
     ensure long-term ownership and buy-in of participants
     result in a wide range of benefits for many different groups.


Forums
AREDS will be developed over four forums which are not a decision-making group;
rather, designed to build consensus between the partners.

Participants at the forums will act as sounding boards, report back to interest groups and
get feedback, and guide the Strategic Leaders Group (SLG). This is a small
management group of up to 13 people who are selected from the partners.

The SLG will steer the process and show leadership by presenting to the forums and
communicating with the partner groups they represent.

The AREDS process will take place over a seven-month period, starting on December 5
and continuing until May, 2002.




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INTRODUCTION
The Auckland region is at a crossroads. We have the possibility of developing
opportunities to ensure the future prosperity or the region. However, we face some major
economic challenges if we are to fulfil the promise offered by its people, the natural
endowments and a history of entrepreneurship and energy.

Work undertaken for business group Competitive Auckland has highlighted Auckland’s
weak economic performance compared with competitor cities such as Sydney,
Melbourne and Brisbane. Recent Treasury reports show Auckland is home to nearly 40
per cent of all deprived neighbourhoods in New Zealand.

In the past, Auckland’s communities, cities and districts competed with each other for
new development and investment opportunities. Now we are coming together to develop
the region’s economy and provide a lasting solution with the Auckland Regional
Economic Development Strategy.


Why Do We Need A Regional Strategy?
The Auckland region generates around a third of the New Zealand’s income. However,
Auckland is falling behind many of the international cities and regions with which it
competes in terms of economic and social prosperity.

After a long period of taking a “hands off” approach, local, regional and national
government and key business leaders now accept that a more proactive and co-
operative approach is necessary in Auckland.

Each local authority within the Auckland region has been working on strategies related to
economic development for their local areas. Competitive Auckland has completed a
business growth strategy and launched several action areas. Maori have been
increasingly proactive in the area of economic development, and there are other
community plans and strategies as well.

There is now a need to build on and link these individual initiatives. We need to all pull
together on some priority actions that we can be sure will yield benefits for a wide range
of Aucklanders.




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What Will The Strategy Produce?
It is hoped that at the end of this strategy-development process the Auckland region will
have:

     An enduring new partnership between central and local government, Maori,
      business and other key groups in the community, who are committed to work
      together to improve economic outcomes.
     A coherent vision for economic prosperity that is shared by, and will deliver
      benefits for, a wide range of groups in the Auckland regional community. It is
      expected that this vision will incorporate economic, social, cultural and
      environmental values. It will identify where we are now, where we want to be in the
      future and how we are going to get there.
     A co-ordination and prioritisation process for allocating limited resources to those
      actions that are most likely to achieve the shared vision. This process will manage
      conflicts and trade-offs between communities of interest, and between the social,
      economic, cultural and environmental dimensions of life in the region.
     A set of agreed action plans for delivering long-term economic development as
      well as some shorter-term “runs on the board”.
     Agreement on roles and structures for future economic development action in the
      region.
     A process for improving our understanding of what drives our economy and
      applying that learning to future economic development actions.


Relationship With Other Regional Strategies And Activities
Until recently, the Auckland region had little experience of pursuing collaborative
approaches, either amongst central government, local government, the private sector, or
between sectors. However, steady population growth is putting significant pressure on
Auckland’s infrastructure, environment and society, compelling local authorities (at least)
to work together much more than in other parts of New Zealand. Examples of this
include the Regional Land Transport Strategy and efforts to upgrade Auckland’s
passenger transport system; a major review of water and wastewater services; and the
Regional Growth Strategy.

The Regional Growth Strategy delineates the areas and preferred ways in which to
deal with population growth of 1 million people over the next 50 years.

In February 2001, Auckland’s local authorities joined together in a memorandum of co-
operation for regional economic development. The purpose of this memorandum is to
“encourage the local authorities to work co-operatively together and to co-ordinate their
endeavours whenever appropriate to achieve beneficial economic development
outcomes for the region and for the local authorities in the Auckland region.”


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Around the same time, key Auckland business people formed a charitable trust called
Competitive Auckland and developed a business growth strategy for Auckland with the
involvement of local authorities, educational institutes, and other regional participants.
This strategy has now been completed and Competitive Auckland has moved on to
capability-building initiatives.

The Auckland Regional Economic Development Strategy will not “reinvent the wheel”. It
will begin with a stock take of existing visions, strategies and technical understanding of
the region’s economy apparent in the work of Competitive Auckland, territorial authorities
and Maori groups. Then it will add value to these by developing a regional partnership
that can meld the separate initiatives into something really great.

The strategy development process will generate an agreed decision-making process
with criteria and measures to evaluate options for economic development action. When
this framework is in place, other funding requirements, including those of Competitive
Auckland, Maori economic development and sub regional needs, will be considered.


Strategy Partnership Process
The Auckland Regional Economic Development Strategy will be produced via a
partnership process involving a wide range of groups, initially facilitated by the local and
regional territorial authorities of the Auckland region. This approach is considered
essential to the quality and sustainability of the strategy. This is because it will:

     Endeavour to honour Treaty of Waitangi obligations throughout the planning and
      implementation processes;
     Ensure that the strategy reflects a full breadth of perspectives and objectives for
      economic development in the region;
     Optimise resources by unifying groups that until now have been pulling in different
      directions;
     Ensure long-term ownership and buy-in amongst those who will implement the
      strategy;
     Result in the distribution of a wide range of benefits across different groups of
      people in the region.


Who will be involved?
     Local Government
     Maori
     Business and Competitive Auckland
     Central Government
     Education providers


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     Infrastructure providers
     Economic development agencies
     Migrant communities
     Non Governmental Organisations, youth and union representatives


Economic Development Forums
Four economic development forums are planned at each milestone of the strategy
process. These are designed to build consensus between the partners. They are not a
decision-making group. Participants in the forums will be asked to:
     act as a sounding board
     report back to interest groups and obtain feedback
     provide guidance to the Strategic Leadership Group (SLG), a small management
      group of up to 13 people selected from the partners.
Agendas, background information and briefing papers will be provided to all forum
participants. Summary documents will be provided within 10 days of each forum. There
will also be a post forum report after each forum.


Strategy Leaders Group
The Strategy Leaders Group will steer the strategy process much like a board or council.
The members of the SLG will also show leadership by presenting to the forums and
communicating with the partner groups that they represent or participate in.

Each partner group will have separate and appropriate processes for making key
decisions for the strategy. It is envisaged that leaders from amongst the partners will
champion the strategy.


Timeline And Milestones
The strategy process will take place over a seven-month period until the end of May
2002. Forums are planned at each milestone of the strategy process. The following
table shows the dates and the relationship between each stage of the process, its key
milestones, and the forums.




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    Stage                      Output/Milestone                              Economic
                                                                         Development Forum
                       Partners confirm participation and processes,
                       e.g. buy in for:
STAGE 1:
                          participating in AREDS
PARTNERSHIP
                          roles and membership of SLG and forums,
DEVELOPMENT
                          processes for decision making, scope and
                                                                              ENGAGEMENT AND VISION
                           timeline for the strategy development
                                                                              FORUM
                       Partners understand each         other’s    visions,
                       commonalties and gaps
                                                                              5 DECEMBER
STAGE 2:               Partners agree a common vision and objectives
                       for regional economic development
STOCK-TAKE & VISION
                       Partners abreast with current understanding of
DEVELOPMENT
                       region’s economy and gaps in this
                       Partners agree on a dynamic decision making
                       model to be used for setting priorities, allocating
                       roles, monitoring effectiveness and adjusting          PRIORITIES FORUM
                       strategy.
                       Partners agree to criteria and measures to             13 FEBRUARY
                       evaluate options for economic development
STAGE 3:               action    and  prioritise  between funding
                       applications
OPTIONS & PRIORITIES
FOR ECONOMIC           Partners understand each other’s strategies,
DEVELOPMENT ACTION     commonalties and gaps
                       Partners confirm priority strategies (or “options      OPTIONS FOR ACTION
                       for action”) as determined by the economic             FORUM
                       decision-making model
                       Partners flesh out economic development action         27 MARCH
                       areas

                       Partners agree on an AREDS implementation
                       plan including:
STAGE 4:                  resource requirements and timelines for            ROLES AND
AREDS                      economic development action areas                  IMPLEMENTATION FORUM
IMPLEMENTATION PLAN       interim roles to implement             economic
                           development action areas                           1 MAY
(ROLES AND
GOVERNANCE)               options for long-term Governance of
                           economic development in Auckland region

                               AREDS IS LAUNCHED



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How Is The Strategy Development Process Being Funded?
Councils in the Auckland region are providing the bulk of the in-kind resources. An
external funding requirement is being sought from Industry NZ. It is hoped that some
resource will also be provided by the partner groups.


In Conclusion
This process is about bringing together work that has already been done. It is a regional
approach to economic development.

We will create a true partnership with a diverse group.

This group will share a vision and a common goal which is to bring economic growth to
the region.

There has never been a more important time to identify where we are now, where we
want to be in the future and how we are going to get there.


How To Contact Us
Questions and comments can be directed to:

Peter Menzies
Chairman
Auckland Regional Economic Development Strategy
Ph      486 3325
Fax     486 3326
pfmenzies@xtra.co.nz


Jane Mottershead
Project Manager
Auckland Regional Economic Development Strategy
Ph      373 6815
Fax     307 7516
mottersj@akcity.govt.nz




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Some Definitions
The Region
The whole of the Auckland region administered by the Auckland Regional Council,
including the Cities of Auckland, Manukau, North Shore and Waitakere, and the districts
of Rodney, Papakura and part of Franklin.

Economic Development
The process of improving an economy’s structure, the activities and interrelationships
within that structure and people’s capability. An economy may undergo a period of
development that does not immediately generate economic growth, but in the long term
should enable increased prosperity and quality of life.

Economic Growth
The increase in the flow of goods and services or income, usually measured by Gross
Domestic Product (GDP) on a quarterly or annual basis. This measure does not capture
“non-market” activities like the black economy or costs such as pollution.

Sustainable Economic Development
Economic development where current needs are met without compromising the ability of
future generations to meet their own needs. In this way, sustainable economic
development explicitly considers environmental, social, economic, political and moral
dimensions. Economic development would be considered unsustainable if it resulted in
incompatible resource depletion, destruction of the environment, poverty and/or
untenable social conditions or was incompatible with dominant political and moral
values.

Community Economic Development
A process by which communities can initiate and generate their own solutions to their
common economic problems.        Community economic development usually takes
macroeconomic and structural elements of the economy as a given.

Values
Over-riding principles that define the way we do things and the limitations of what we
would do. To ignore the values would take us outside what would be considered
acceptable actions or behaviour.

Vision
A high-level statement of where and what we want to be – should reflect stakeholders’
needs.

Goals
Specific and measurable targets that will deliver the vision.

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Measures
The metrics around goals.

Strategies
The methods by which goals will be achieved. Utilises the toolbox of instruments
available to council and stakeholders, and indicates broadly how they will be applied to
the key areas to achieve which goals.

Actions
The specific day-to-day actions that will deliver the strategies, and therefore the goals.




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