Christchurch Economic Development Strategy

Transcription

1 503 Christchurch Economic Development Strategy SMART Framework v2a CCC 17 June 2010 Savedate 17/06/10

2 504 Intro page from the Mayor Over the past twelve months the City has undertaken wide ranging research and economic modelling to understand the economic environment, the make up of the Christchurch economy, and its distinctiveness. This model has been refined, by engaging with over 650 Christchurch businesses to understand their drivers, constraints and long term business goals. To be a globally competitive city Christchurch can not simply do the same as it has always done. Christchurch needs to differentiate itself and focus on its combination of unique strengths, showing how Christchurch is a great place to live, visit, invest and do business with. Therefore the purpose of this strategy, to enhance Christchurch s quality of life through sustained economic development, draws on a new approach; SMART Christchurch; not smart clever, nor smart ICT, but because we are a relatively small city in a competitive global market Christchurch needs to be nimble and smart in understanding our strength and challenges and acting accordingly. The Christchurch Economic development Strategy (CEDS) is aimed at doing just that. CEDS sets an ambitious Vision, bold Goals, and a range of actions for the Christchurch economy so that we can succeed as a globally competitive city and region. It has a clear, concentrated focus on economic development, one which is integrated with other strategies and sectors of the community. It promises that with a committed, coordinated approach by the City s Family and key sectors of the economy we can get Christchurch's economy moving. The council and its various investment instruments will be applied to leverage this strategy. But by themselves they will not be sufficient to achieve this bold vision we need a much broader alignment of citizens and stakeholders. I invite all stakeholders, businesses, public and private organisations to join with me in moving Christchurch towards that aspiration Bob Parker His Worship The Mayor of Christchurch Photo

3 505 Table of Contents EXECUTIVE SUMMARY... 4 THE CHALLENGE WHAT WE HAVE TO DO HOW WILL WE DO IT?...17 SMART HUB SMART PEOPLE SMART INFRASTRUCTURE SMART BUSINESSES SMART SECTORS SUSTAINABLE ENVIRONMENT SMART LIVING APPENDIX 1 SMART CITY FRAMEWORK APP 2 CONSOLIDATED TABLE OF MEASURES APP 3 RELATIONSHIP TO CCC STRATEGIES APP 4 DETAILED PRIORITISATION CRITERIA FURTHER INFORMATION... 47

4 506 EXECUTIVE SUMMARY The Christchurch Economic Development Strategy (CEDS) aims to reposition Christchurch within the regional and New Zealand economy, setting an ambitious vision, bold goals and identifying a range of initiatives so that Christchurch becomes a more globally competitive city and region. Christchurch s and New Zealand s economy needs to perform significantly better to preserve and enhance the quality of life we all hold dear. This requires some enlightened policy, along with a long term resolve, a plan, and a strong commitment from a broad cross section of the community and industry. Achieving ambitious goals is not just important for Christchurch. As New Zealand s second largest city, Christchurch s prosperity is important for New Zealand. What Do We Have To Do? The focus of CEDS is provided by Christchurch s strengths and weaknesses, opportunities and threats. Strengths Connectivity and ease of doing business Quality core infrastructure A unique innovation support system Lifestyle Low commute times Geophysical stability Broad, export focused, high growth potential businesses Stable workforce with high labour participation rate Opportunities Time zone Business friendly environment attracting business Access to capital Water and other natural resources Free trade agreements Globalising local businesses Leveraging clean green image and greentech opportunities Commercialisation of innovation Fibre and other major infrastructure developments Coordinated marketing of Christchurch Weaknesses Lack of scale Lack of visibility internationally Average workforce productivity and per capita income levels Low per capita income Regional governance SME complacency Threats Exchange rate volatility Global ageing population Competition for skilled migrants Losing skilled workers Competition with East Coast of Australia Climate change

5 507 Any strategy must have clear intent, a purpose. CEDS purpose is based on the enhancement of Christchurch s quality of life with the need for sustainable economic growth. CEDS Goals We know the challenge. What do we have to do to address the challenge? It is to make the step change required to improve, relatively and absolutely, our standard of living and quality of life. Responding to the challenge therefore begins with setting our high level goals. CEDS GOALS 1. Doubling the historic growth rate of gross domestic product (GDP in 2020 is $25.1b rather than $19.5b, an additional $5.7b) 2. Doubling the value of exports from $3.5 billion to $7.0 billion 3. Increasing the average annual earnings for workers from $39,000 to $75,000 (Increase 92%) 4. Having the highest quality of life in NZ (as measured by the Big Cities Quality of Life Survey) 5. Managing economic development in a sustainable manner How Will We Do It? Smart City The concept of a SMART city extends beyond the notion of smart information and communications infrastructure to identify and exploit areas of competitive advantage. This typically embraces creative, high value sectors and businesses, particularly those based on innovation and technology. A SMART Vision for Christchurch The SMART framework informs our vision for the City it describes what Christchurch will be like when it has achieved its goals and meet its challenges. Christchurch is a Smart City; the hub of the South Island Economy A nimble, connected city, driving exports, adding value, generating wealth and providing a superior quality of life to all

6 508 SMART Projects PROJECT COMPELLING CHRISTCHURCH This project establishes a focal point for the delivery of a comprehensive marketing campaign, based on Christchurch s world class quality of life, to attract new business, skills and capital from New Zealand and overseas. PROJECT TRADE ALLIANCE This Project will establish a Trade and Investment Alliance, a centre for those organisations involved in supporting exporters, facilitating trade and investment or marketing Christchurch to improve coordination across the City and better leverage current resources. PROJECT BUSINESS FRIENDLY This project will ensure that Christchurch develops a proactive approach to being a truly business friendly city by establishing a representative Ease of Doing Business Forum to identify and mitigate any process inhibitors on business growth. PROJECT REGIONAL GOVERNANCE For Christchurch to be successful regional governance structures must support the achievement of economic objectives.

7 509 PROJECT LEARNING CITY This project will establish Christchurch as an international learning centre ensuring essential skills exists through the connecting of education and business need. It will increase productivity and generate export earnings and provide effective mechanisms to meet the labour force challenges of the region. PROJECT ENRICH This project promotes the attraction of smart people (as well as capital) to Christchurch and Canterbury. In conjunction with the Workforce Strategy, this project will deliver a campaign to boost Inward Investment by targeting high wealth immigrants who have synergies with either key business sectors or high growth businesses as part of the inward investment strategy. It will investigate the potential for high wealth immigrants to invest locally in an informed way. PROJECT INFRA READY CHRISTCHURCH This Project will develop a Christchurch Infrastructure Strategy and Action Plan that will address the long term infrastructure investment priorities required to underpin economic growth. PROJECT ICT SMART CHRISTCHURCH This Project will leverage the City s investment in open access fibre infrastructure, through various projects and applications. PROJECT SMART RESOURCES This Project will monitor and assess natural resources developments in the South Island to ensure Christchurch is best placed to take advantage of the opportunities they might present. PROJECT REGIONAL PARTNER This Project will establish a Regional Partner alliance to integrate the delivery of business support services across the city and region. The project will identify the roles and expertise within each business support agency; identify any duplication and potential gaps in service delivery. PROJECT BRIGHT BUSINESS This Project establishes a sophisticated support system which looks to identify 250 high growth potential, globally competitive businesses. Once signed up to the project businesses would receive long term intensive case management and business support to meet their business growth objectives. PROJECT CAPITAL CLUSTER

8 510 This Project will establish a Capital Cluster to identify high growth potential businesses, diagnose their need for capital, and connect them to the capital markets. PROJECT INNOVATION This Project will stimulate and support high value innovation by establishing a private/pubic entity to lead and boost the funding for innovation in Canterbury (the Canterbury Regional Innovation System (CRIS) Ltd). PROJECT PACIFIC FINANCIAL SERVICES CENTRE This Project will seek to establish Christchurch as the regional financial services hub for the wealth management industry in the Pacific Rim through the attraction of key global regional offices to Christchurch by coordinating support from the city and the tertiary education sector. PROJECT ATTRACTION This project develops and implements a pro active business attraction strategy with a particular focus on attracting business and investment central to the city s key business sectors. KEY INDUSTRY SECTOR PROJECTS; AGRICULTURE, SPECMAN, INTERNATIONAL EDUCATION, HEALTH, ICT SMART Sustainability The world wide trend of increased awareness of sustainability and the impact of a changing environment presents Christchurch and individual businesses with both a challenge and potential opportunity. Worldwide, there is increasing desirability for sustainability produced products. Christchurch can build on its existing clean and green reputation to market the city and its products as environmentally friendly. There are also opportunities for Christchurch to create new products and industries to support the worldwide sustainability trends. Christchurch s Quality Of Life Quality of Life is paramount to the people of Christchurch and Canterbury. It is a large component of our value proposition, which is itself a cornerstone of making Christchurch attractive to smart people, smart capital and smart businesses. Any economic development which threatens this quality of life is self defeating. It is Christchurch s greatest asset upon which CEDS is based.

9 511 CHRISTCHURCH 2020 By 2020 the Christchurch economy will have grown significantly more than it has done historically, Christchurch s economy responds favourably to a multitude of City initiatives and ongoing support. Christchurch has an international reputation as a Smart City; a great place to live, work, visit and do business. It achieves this reputation because of its wonderful quality of life and its prosperity which it proactively represents to its target markets through a renowned marketing campaign. Christchurch s record for retaining and attracting jobs and investment has been spectacular over the last 10 years as a consequence. In economic terms there has since 2010 been an increase in GDP from $15.0 billion to $25.1 billion. Christchurch s innovative key business sectors have led this economic growth and now make up a substantial proportion of the total economy, The targeted support of the City to 250 globally competitive Christchurch businesses are at the heart of the doubling in value of exports from $3.5 billion to $7.0 billion over the last 10 years. This support has taken many forms and has constantly been evolving, however a few long term initiatives are noteworthy. The Business Services Cluster working on the maxim that capital flows to profit has seen Christchurch companies attract disproportionate quantities of high quality capital increasingly from competitive local sources of capital supporting local economic growth. Christchurch has established itself as a Learning Centre attracting international students, teachers and researchers and provides the qualifications demanded by our key industry sectors especially financial services, specialist engineering and ICT. Christchurch has a world class tertiary education system deeply connected to the needs of business, and the city is a magnet for highly skilled workers; primary reasons why businesses locate or are retained in Christchurch. Christchurch is recognised for its Smart ICT, enabled by its fibre infrastructure connecting every home, school and business to the world and which has provided a compelling platform for related businesses such as data centres, financial services centre and software development centres operated by the biggest names in ICT globally. Christchurch s public research and development capability, integrated seamlessly into a host of smart businesses makes the city recognised worldwide as a centre of innovation. Christchurch has an international reputation as a business friendly city through its proactive encouragement of business growth and meaningful engagement with firms on many levels. Finally, Christchurch is a city that supports and encourages businesses that are green and leverages global opportunities based on its Clean Green Image. Over the last 10 years there can be no doubt that Christchurch has enhanced its quality of life while achieving tangibly higher levels of prosperity.

10 512 THE CHALLENGE New Zealand Economic Performance New Zealand s economy needs to perform significantly better to preserve and enhance the quality of life of New Zealanders. With the tradable sector languishing, the country is slipping in its international performance. Despite seemingly strong growth since 2000, New Zealand s per capita income ranks only 22 nd out of 30 OECD countries; around 30% below Australia. To improve the country s income and New Zealanders quality of life, several key challenges and opportunities need to be addressed. Increasing Exports Improving exports will help New Zealand close the income gap. New Zealand exports a comparatively small proportion of its total output, around 29% (Canterbury 11%). The volatility of the exchange rate and commodity prices, geographic isolation, and the lack of ambition of businesses to extend into international markets have been issues in the past. Addressing these challenges and growing exports will bring more money into the New Zealand economy. Productivity Improving labour productivity is a priority for New Zealand. New Zealanders work long hours but produce a significantly lower amount for each hour worked compared to other countries. While our rate has been improving over time, it has been doing so at a much slower rate than Australia and the OECD. By increasing our efficiency in producing goods and services, through focusing on innovation, capital and talent, New Zealanders will be able to enjoy a higher level of income. Aging Demographics By 2031, the 65 and over age group is expected to make up over one fifth of the total population, compared to only 12% now. The significantly smaller proportion of the population which will be working will have to work much more efficiently to meet demands. There will be significant skills gaps in certain sectors; in Christchurch Health and Community services, Finance, Transport and Manufacturing sectors could be short of workers. The ageing issue is not unique to New Zealand. Wealthier economic development strategy (ceds) for council approval.docx Savedate 17/06/10

11 513 countries, notably Australia, will threaten our workforce further by recruiting people away from our companies. New Zealand loses a lot of skilled workers overseas, especially to Australia. Unless the country changes and addresses these key challenges we will continue to lose workers and capital, as those who remain will not be able to afford the standard of living that we have enjoyed in the past and want to improve in the future. The Christchurch and Canterbury economy is generally representative of the New Zealand economy. As such, the challenges facing the country are also those that we face locally. Christchurch s Economic Performance The Canterbury economy has had a long history in agricultural production and the Christchurch City economy has grown over the years to support this important sector through industries such as wool and meat processing, seed development, and agricultural machinery and services. The diversification of the region s agricultural activities, with growth in the wine and dairy industries in particular, has also filtered through into the city s activities. Heavy engineering was also historically important to the city at a time when the country heavily invested in large scale infrastructure. The sector's strength now lies in lighter, more specialised manufacturing, as well as with the electronics sector, several technology pioneers having set up large companies within the city. These sectors are supported by the strong engineering school at the University of Canterbury. In recent years, lower level manufacturing areas, such as textile and clothing manufacturers, have given way to service sectors such as business and finance, health and community services, education, retail trade and tourism, reflecting world wide growth in the service economy. Personal services and trade is now the city s biggest sector. Growth figures since 2000 (Publisher will scale diagrams) The Christchurch Economic Development Strategy has been developed at a time when, like most of the world, the city is coming out of a period of economic recession. Prior to 2007, the city saw stronger growth than the rest of New Zealand, supported by a buoyant Canterbury economy boosted by high commodity prices, delaying the full impact of the recession. The last decade has

12 514 seen modest real economic growth and little change in the profile of the economy. The fallout from the recession, including capital constraints and increased risk aversion, may continue to shape the economy for some time without a change of approach. CDC commissioned the development of an economic model of the Christchurch economy, carried out extensive data and statistical analysis, interviewed over six hundred businesses, and ran a series of consultation workshops with all key stakeholders. This informed a SWOT analysis, an examination of our existing value proposition, and allowed us to distil a vast amount of information into a number of key themes which have informed this strategy. Christchurch SWOT Analysis As part of our research and consultation process a SWOT analysis was carried out to identify the major issues and opportunities which CEDS needs to address. Strengths Connectivity and ease of doing business Quality core infrastructure A unique innovation support system Lifestyle Low commute times Geophysical stability Broad, export focused, high growth potential businesses Stable workforce with high labour participation rate Opportunities Time zone Business friendly environment attracting business Access to capital Water and other natural resources Free trade agreements Globalising local businesses Leveraging clean green image and greentech opportunities Commercialisation of innovation Fibre and other major infrastructure developments Coordinated marketing of Christchurch Weaknesses Lack of scale Lack of visibility internationally Average workforce productivity and per capita income levels Low per capita income Regional governance SME complacency Threats Exchange rate volatility Global ageing population Competition for skilled migrants Losing skilled workers Competition with East Coast of Australia Climate change Christchurch Value Proposition Our businesses and our people tell us that Christchurch is a wonderful place to live, work, visit and play. A number of unique characteristics for Christchurch have been identified which, if promoted effectively, have the potential to attract more visitors, investors and businesses. These include: 1. Lifestyle Christchurch City has all the intimacy of a village with the scale of a city. Christchurch has excellent public amenities, ready access to the outdoors, cultural activities and a temperate climate. In the 2008 National Quality of Life Survey, 93.1 percent of

13 515 Christchurch residents rated their quality of life as good or extremely good, higher than the national average. 2. Innovation Christchurch has a number of tertiary institutions including two Universities, an Institute of Technology and medical school and raft of Crown Research Institutes. Christchurch s most significant strengths in research and development lie in engineering, information communications technologies, agriculture and environmental studies. 3. Mobility Christchurch is well connected with a comprehensive public transport network, a 24/7 international airport and deep water port. 4. Connectivity Christchurch is a connected city with open access fibre networks which are among the best in New Zealand and deliver almost unlimited bandwidth. Workers in Christchurch are technologically capable, with 62 percent of households having access to the Internet. 5. People Christchurch has a diverse and skilled workforce with a higher percentage of people with a post school qualification that the rest of New Zealand. Weekly earnings in Christchurch are lower than the national average as is worker turnover making Christchurch a cost competitive destination. 6. Resources Christchurch, Canterbury and the South Island s resources are plentiful, safe, reliable and consistent. Christchurch s water originates from a natural underground aquifer and is neither chlorinated nor fluoridated. Energy supply is reliable and energy prices and lease rates on commercial land are lower when compared to other New Zealand cities. Christchurch also has a number of purpose built facilities such as the Christchurch Convention Centre and Westpac Arena.

14 516 WHAT WE HAVE TO DO CEDS Purpose Any strategy must have clear intent, a purpose. CEDS is based on the integration of Christchurch s quality of life with the need for sustainable economic growth. Quality of Life Christchurch is a city that we are rightly proud of. Quality of life is more than just lifestyle, and is measured not only in terms of our ability to produce, buy and consume to meet our needs and wants, but in such diverse factors as the political and social environment, medical and health considerations, public services and transport, schools and education, recreation, housing and our political and socio cultural environments. Sustainable Economic Development To maintain, let alone enhance our quality of life, we need to boost the rate of growth of our economy but in a way which protects our environment and preserves the very best of what makes Christchurch the great city that it is. While CEDS focuses on generating the wealth and income needed to enhance the standard of living for all our citizens, it must achieve this in concert with the other social and environmental initiatives being undertaken in Christchurch. CEDS PURPOSE Enhancing Christchurch s Quality of Life through Superior and Sustainable Economic Growth CEDS Goals We know the challenge. What do we have to do to address the challenge? It is to make the step change required to improve, relatively and absolutely, our standard of living and quality of life. Responding to the challenge therefore begins with setting our high level goals. These are: CEDS GOALS 1. Doubling the historic growth rate of gross domestic product (GDP in 2020 is $25.1b rather than $19.5b, an additional $5.7b) 2. Doubling the value of exports from $3.5 billion to $7.0 billion 3. Increasing the average annual earnings for workers from $39,000 to $75,000 (Increase 92%) 4. Having the highest quality of life in NZ (as measured by the Big Cities Quality of Life Survey) economic development strategy (ceds) for council approval.docx Savedate 17/06/10

15 Managing economic development in a sustainable manner Measuring CEDS Success The following table shows the growth targets we have set ourselves against each of our High Level Goals and the measures which will determine if we have been successful. Goal Indicators Measure Christchurch 2010 Christchurch 2020 Gross Domestic Product (level) Estimated value of GDP $15b $25b Gross Domestic Estimated annual average (3.1)%pa 4.8%pa Product (growth rate) growth rate of GDP Commodity Exports Estimated value of $4.7b $9.4b commodity exports Service Exports Estimated value of service TBD Double exports current Average Earnings Estimated average annual $39,000 $59,000 earnings Skilled Workforce Proportion of workers with 40.5% 55.5% post school qualification Double the historic growth Double the value of exports Increase worker earnings Increase quality of life Manage development in a sustainable manner Quality of Living Sub components of Quality of Living Index Business Sustainability Practices Pollution Deprivation Business Deaths Index measure of quality of living Political and Social Environment Medical and Health Considerations Public Services and Transport Consumer Goods Economic Environment Schools and Education Recreation Housing Socio Cultural Environment Natural Environment Proportion of businesses practicing sustainability measures Number of high pollution nights in Christchurch Proportion of people living in areas that have the most deprived NZ Dep scores Number of Ceased Businesses TBD TBD TBD % 10.0% 4,164 2,500 Top quartile Mercer Survey Top quartile Mercer Survey

16 518 Developing Christchurch, Developing New Zealand Achieving our goals is not just important for Christchurch. As New Zealand s second largest city Christchurch s prosperity is important for New Zealand. The Auckland Super city is a major engine room of economic growth in New Zealand, central to fulfilling the Government's goal of bridging the per capita earnings gap with Australia. Creating leading urban centres and their ability to create critical mass and the resultant economies of scale, a term know as agglomeration, is central to the focus for the creation of the Auckland Super city. To achieve this goal, New Zealand will require diversity and resilience for growth which Auckland alone can not possess. Christchurch, due to its excellent transport, energy and communications infrastructure, and the scale and concentration of its export focused business sectors needs to make a strong contribution to ensure New Zealand achieves its economic goals. Christchurch must become a second growth engine alongside Auckland. This growth will not occur by aspiration alone; rather Christchurch must clearly identify its competitive strengths and leverage these. Christchurch s Competitive Strengths Being New Zealand s second largest city, the largest in the South Island Being a unitary local city authority, well connected and coordinated Being a significant export economy with exports being a higher percentage of GDP than the Auckland region Having diverse and robust infrastructure in place ahead of demand Being an innovation centre based on its tertiary education and crown research institutes, as well as an available skilled and well educated workforce Being accessible and connected; with a 24/7 port, airport and open access fibre Being a major tourist centre; the biggest in New Zealand, and gateway to the South Having a wonderful quality of life which makes Christchurch a great place to visit, live, work and play Christchurch s role as the hub of the South Island economy strengthens this positioning. The South Island as a single economic entity, must contribute significantly to New Zealand s economic aspirations. Christchurch has a leading role to play in the wider Canterbury and South Island economies, adding value to the productivity of the South Island s primary production base and natural resources by focusing on complementary high value add business sectors that will cement Christchurch s position as the Hub and Service Centre of the South Island economy. Christchurch has the potential to claim that Government, businesses and residents get a better return on their various investments in Christchurch than elsewhere.

17 519 HOW WILL WE DO IT? BEING SMARTER Christchurch a medium sized city in a global market Christchurch is a medium sized city working to succeed in a global market. Globally, markets and organisations are generally self interested, flexible and pragmatic in making investment decisions. Modern technology and communications reduce the ability of any one location to differentiate itself from another. Cities therefore have to compete with each other in attracting customers, skills and investment. Larger cities benefit from having critical mass, more resources and greater organising capacity. Christchurch is not dissimilar to many other medium sized cities (those with a population between thousand, at least one recognised tertiary institution, and a hinterland of less than 1.5 million people). However, in comparison to cities in Europe and other continents, our challenges of medium scale are exacerbated by our distance from markets. Medium sized cities are typically unable to compete in all fields of economic activity so they must identify their strengths, their competitive advantage, and position themselves accordingly. To be a globally competitive city Christchurch can not compete simply by doing the same as we have always done. We need to differentiate ourselves and focus on our combination of unique strengths, showing how Christchurch is a great place to live, visit, invest and do business with. In short, we must become SMART. Smart Cities The European Smart Cities project ( has developed a framework called the SMART CITY upon which Christchurch can address its challenges and opportunities and overcome the difficulties associated with being of medium scale. The concept of a SMART city extends beyond the notion of smart information and communications infrastructure to identify and exploit areas of competitive advantage. This typically embraces creative, high value sectors and businesses, particularly those based on innovation and technology. SMART cities are evaluated on six dimensions their competitiveness (Smart Economy), their social and human capital (Smart People), their connectedness and use of technology (Smart Mobility), their use and protection of natural resources (Smart Environment), their Quality of Life (Smart Living) and their participation in the development and governance of their own city (Smart Governance). See Appendix 1 for a table of the factors which make up these dimensions. Fundamental to developing a smart economy is the existence of workforce skills and superior education levels (SMART people) which have been shown to correlate with economic growth. Quality of life (SMART mobility, SMART environment, SMART living, SMART governance) are demanded by such a workforce.

18 520 To be successful therefore, Christchurch needs to understand the drivers of the local economy, address the key issues and constraints, capitalise on our existing strengths and future opportunities, and focus our efforts on those key sectors which have the scale, resources and organising capacity which will produce the required growth in exports. SMART Christchurch CEDS selectively utilises the SMART City framework to ensure that we meet the multiple goals of economic growth, quality of life and sustainability. CEDS is one among a number of central Government, Regional Council and Christchurch City Council strategies which will contribute to achieving our goal of sustainable economic development. More detail on the inter relationship with other CCC strategies is provided in App 4. CEDS focuses on creating and accelerating the smart economy, however without the other elements Christchurch cannot become a SMART city. CEDS focuses on the elements of SMART cities which will make the most difference to us in reaching our goals. For each element, CEDS promotes a number of Smart Projects. A SMART Vision for Christchurch The SMART framework informs our vision for the City it describes what Christchurch will be like when it has achieved its goals and meet its challenges. Christchurch is a Smart City; the hub of the South Island Economy SMART Focus A nimble, connected city, driving exports, adding value, generating wealth and providing a superior quality of life to all

19 521 Any proposed initiative must meet certain criteria must be in order to confirm its strategic fit with the vision, goals and themes of CEDS. 1. Meaningful Aligns with the vision and goals of the CEDS strategy 2. Material Has the potential to add materiality (minimum $100m for a multi sector project, or $10m for an individual intervention) 3. Timely Potential is likely to be realised in a reasonable timeframe (3 5 years) 4. Enduring Has the potential for sustainable competitive advantage 5. Exportable Has export potential If a proposed initiative satisfies the strategic criteria, it is then assessed against a set of detailed criteria appropriate to the relevant SMART Christchurch result area to assess its impact and determine its priority. DELIVERING SMART PROJECTS CEDS will be delivered through multi agency projects, each composed of a number of initiatives, grouped under the Key Result Areas suggested by the SMART city framework. The projects create a framework for subsequent initiatives and for new projects to be developed as the strategy evolves. The projects outlined in this document represent the starting set those which are assessed as having major impact, are feasible, and can be initiated quickly. CDC, as author of CEDS, will not have all the resources and capabilities to deliver each project. This is a strategy for Christchurch, and needs the sponsorship and support of many of the City s public agencies and key businesses. CDC, in its role as the economic development agency for Christchurch City, will marshal the city s forces to implement CEDS while remaining accountable for the execution of the strategy. Local organisations and industry will provide Project Champions to help pull together all the necessary support to achieve the desired outcomes. The following sections describe the headline projects under each SMART Christchurch Key Result Areas.

20 522 SMART HUB New Zealand s domestic market is too small to sustain continued economic growth on its own. It is therefore critical for economic development that Christchurch businesses look to external markets to drive wealth. Christchurch needs to raise its global presence as a Smart City and a place to do business and ensure that businesses with high growth potential can access the support they require to enter new global markets and drive exports. Christchurch currently lacks a coordinated, strategic approach to economic branding and marketing. A key component necessary for attracting businesses is developing a consistent economic development value proposition which clearly differentiates the city by focusing on its combination of unique strengths, showing how Christchurch is a Smart City; a great place to live, work, visit, invest and do business. Identifying existing and potential Christchurch exporters and supporting them to grow into globally competitive businesses is critical to building Christchurch s export profile and value. The CEDS research has shown that Christchurch only exports 11% of total industry output. Feedback from non exporting company s shows that a lack of knowledge of exporting, export markets and market access regulations are contributors to this situation. It is therefore important that Christchurch focuses on creating an environment that can overcome these issues and encourage and support more businesses to export and globalise. Navigating through regulations and consenting processes and their associated compliance costs can become significant inhibitors to business growth. CEDS Research highlighted a number of significant regulatory inhibitors to business growth, on a local, national and international level. Not only is a concerted plan to minimise any constraints called for, but developing Christchurch into a City which proactively assists business doing business represents an opportunity for differentiation. These projects aim to put the City on the side of Businesses. Economic development is currently managed at the district level by individual economic development agencies with no agency responsible for coordinating a regional approach. Current priorities and polices at a Local, Regional and Central Government level present both a challenge and opportunity for economic development in Christchurch. SMART HUB HEADLINE PROJECTS PROJECT COMPELLING CHRISTCHURCH This project establishes a focal point for the delivery of a comprehensive marketing campaign, based on Christchurch s world class quality of life, to attract new business, skills and capital from New Zealand and overseas. This will consider targeting market segments (eg: business, leisure tourism, business tourism, conferences etc) and potential opportunities for growing Christchurch s international presence. The implementation of the strategy would be coordinated through its partner organisations.

21 523 In addition to the core responsibility of raising the City s international profile, Compelling Christchurch, will also have a local focus promoting the City s vision, celebrating success, changing attitudes and will be integrated with Project Trade Alliance (see below) As a result of this Project, Christchurch will have an integrated international marketing strategy positioning itself as a Smart City and an international reputation as a great place to live, work, visit and do business. Christchurch and New Zealand will celebrate this success. CHAMPION Bryan Pearson = photo and Intro in Sidebox PROJECT TRADE ALLIANCE This Project will establish a Trade and Investment Alliance, a centre for those organisations involved in supporting exporters, facilitating trade and investment or marketing Christchurch to improve coordination across the City and better leverage current resources. The Alliance will have three key foci: 1. Supporting businesses exporting or looking to export, including: Integrating export services across the alliance partners. Providing contacts, facilitating sharing of market knowledge etc. 2. Promoting inward investment and international trade, including: Working as a reverse Beachhead for businesses looking to establish themselves within Christchurch. Working with the Marketing Christchurch Entity to implement the Marketing Christchurch Strategy with a specific focus on: o Pro active business attraction (local, national and international) o Market development activities, central point for inbound / outbound delegations and trade activities, facilitating joint marketing activities etc. o Developing regional marketing collateral 3. Developing international linkages and partnerships PROJECT BUSINESS FRIENDLY This project will ensure that Christchurch develops a proactive approach to being a truly business friendly city by establishing a representative Ease of Doing Business Forum to identify and mitigate any process inhibitors on business growth. The project will: Clarify the nature and extent of current regulatory and compliance inhibitors to business growth Promote positive experiences for both council s and high growth potential businesses seeking consents Provide feedback on the impact of compliance to the business community of proposed new national, regional and local regulatory, consenting and policy initiatives in order to mitigate compliance costs. Because of this project, Christchurch will develop an international reputation as a business friendly city through its proactive encouragement of business growth which contributes to the City s prosperity. It will also exhibit an integrated approach to leading economic and business development within the City and wider Canterbury region.

22 524 CHAMPION Bob Parker = photo and Intro in Sidebox PROJECT REGIONAL GOVERNANCE For Christchurch to be successful regional governance structures must support the achievement of economic objectives. This Project will: 1. Facilitate a dialogue towards an effective regional economic development governance structure to enhance the coordination of South Island wide economic development opportunities. 2. Consider development of multi agency agreements within the city, across the region and wider South Island where appropriate. 3. Integrate Economic Development objectives into key public policy and strategies, e.g. the Greater Christchurch Urban Development Strategy UDS. 4. Contribute to the development and articulation of Macroeconomic policies which are considered to be helpful / necessary for economic development in New Zealand 5. Work with Ngai Tahu ensure that iwi interests are integrated into CEDS. SMART HUB; MEASURING PROGRESS Smart Governance Council Confidence in Council decision making Perception of public s influence on Council decision Making Compelling Christchurch National and International recognition of Christchurch as a SMART City Smart Projects Trade Alliance Business Friendly Regional Governance Number of business partners Export Performance Reduction in average consent processing time Perception of Local Businesses Establishment of collaborative governance arrangements Regional projects of value

23 525 SMART PEOPLE Christchurch s future economic prosperity will depend on its ability to create a highly skilled and engaged workforce. Christchurch, like many other cities in the developed world, faces substantial workforce challenges over the next ten years. Lifting the level of business productivity, attracting and retaining highly skilled people, a rapidly aging population and an increasing need for workers to be higher skilled and innovative are some of the key issues that will need to be addressed. Targeted economic growth will also create pressures on skills which needs addressing. We need to consider the impacts of an aging population coupled with a decrease in the number of young Cantabrians, access to skilled staff, the necessary levels of education, and the social effects of unemployment. To overcome these issues Christchurch needs to raise aspirations, encourage leadership, driving demand for skills and ensuring that suppliers of training and skills are fully responsive to the needs of employers. It is vital to develop a high quality environment which attracts and retains highly skilled people and businesses, and confronts head on the need to stimulate a greater appetite for skills among people living and working in the region. Access to working capital or funding was the biggest business constraint faced by businesses surveyed with almost a quarter of those surveyed identifying access as a constraint and almost half believing their growth was inhibited by their access to cash or capital. This dimension of Smart CHRISTCHURCH also focuses on the links between smart people and smart capital. SMART PEOPLE HEADLINE PROJECTS PROJECT LEARNING CITY This project will establish Christchurch as an international learning centre ensuring essential skills exists through the connecting of education and business need. It will increase productivity and generate export earnings and provide effective mechanisms to meet the labour force challenges of the region. Early initiatives include: 1. Creation of a High Skilled Talent Portal that takes a proactive approach in retaining high level talent in the city, attracting talent to return or encouraging new talent to locate to the city in areas of skill need. The portal will include: A graduate employment service focussed on retaining graduates and attracting graduates from other cities / regions / countries. Managing the connections between education providers and employers; brokering work placements, internships and post graduate research opportunities. Creation of Christchurch City Alumni. 2. Establishment of a Christchurch Employment and Skills Board whose primary objective would be to drive a co ordinated city response to skills and talent needs, including: Developing a Christchurch specific skills strategy that supports CEDS. Creation of a Supply / Demand model capable of forecasting future skill needs of businesses so that tertiary providers can respond appropriately. Creating a regional skills observatory. Creating of a Skills Performance Index to illustrate skills performance improvement.

24 Creation of a Virtual Careers Network utilising the Enable Schools Network that would provide world leading careers education and guidance to all Christchurch secondary students by: Developing an online careers tool that would enable students to access information on key business sectors and those industries with projected skills shortages. Creating a virtual careers expo. 4. Development of a Regional Skills Partnership that will encourage business owners to invest in up skilling their workforces by: Committing to a Skills Pledge. Up skilling business consultants to provide connections for businesses to training provision. Creating of a menu of short training programmes aimed at increasing key skills and the productivity of workers. This Project will ensure that availability of skills and talent is not an impediment to doing business in Christchurch. CHAMPION Rod Carr = photo and Intro in Sidebox PROJECT ENRICH This project promotes the attraction of smart people, as well as smart capital, to Christchurch and Canterbury. In conjunction with the Workforce Strategy, this project will target the attraction of appropriately skilled people to meet the needs of our key local sectors. It will also deliver a campaign to boost Inward Investment by targeting high wealth immigrants who have synergies with either key business sectors or high growth businesses as part of the inward investment strategy (see Project Attraction below). It will investigate the potential for high wealth immigrants to invest locally in an informed way. This Project increases the skill pool in Christchurch while contributing to of the availability of local investment capital, which will increase productivity and generate export earnings. SMART PEOPLE; MEASURING PROGRESS Smart People Smart Projects Qualifications Social and ethnic plurality Cosmopolitanism/ Open mindedness Learning City Enrich Proportion of population with post school qualification Share of national born abroad Perception of cultural diversity improving lives Establishment of Virtual Skills Network Establishment of High Skills Talent Portal Internships filled Graduates retained Number of targeted immigrants relocated Capital invested by targeted immigrants

25 527 SMART INFRASTRUCTURE Modern, reliable, effective infrastructure is critical to regional economic development. Specific aspects of economic infrastructure covered within CEDS include transport, energy, water, land use, communications, and large capital intensive projects that contribute to or rely directly upon the nature and quality of the available core infrastructure. The wider Canterbury region possesses a rich endowment of natural resources such as land and water which have the potential to provide flow on economic benefits to the city. This strategy must identify such opportunities and ensure the City is best placed to capitalise on them. This dimension of SMART Infrastructure will also look at how we can utilise and extract the best value from our abundant natural resources, in a sustainable way which preserves the quality of life enjoyed by our citizens. Investment in water storage and reticulation is likely to have more impact on the Canterbury economy than any other single initiative. Increased irrigation enables greater return per hectare, and irrigation schemes should produce agricultural products with high value added to get the greatest benefit. It is also one of the most difficult areas to progress given the diversity of stakeholders and lack of cohesive regional strategy. Christchurch must also seek to maintain a high quality of water with the potential opportunity around promoting our pure water. Competition for land use will increase in the future. The best return per hectare and increased value added opportunities for agricultural products need to be identified to create economic growth. Land needs to be utilised in a sustainable way to protect future economic output. Electricity generation requires effective management to balance the competing demand for power and environmental impact. Competitively priced electricity and reliability of supply is critical to economic growth. Christchurch International Airport and Lyttelton Port Company are major assets of the city and the ability of the airport to operate on a 24/7 basis is critical. It is vitally important to develop and maintain an efficient and robust transport system linking the airport, port, rail and roading network which will accommodate, cost effectively, the real increase in exports being considered. Christchurch is in the process of reticulating an open access fibre network throughout the city. In anticipation that Christchurch will have fibre to the home ahead of other New Zealand cities, CEDS places a high priority on planning to take full advantage of this infrastructure. Christchurch has quality core infrastructure, much of which remains within public ownership and operated on a commercial basis. Consequently enabling infrastructure within the City is cost effective when compared to other parts of New Zealand. We must maintain this advantage and ensure potential barriers to infrastructure investment such as lack of recognition of the intergenerational and wider community economic benefits of projects, capital, the time taken to process consents, and statutory restrictions (e.g. Resource Management Act, Conservation Act) do not threaten it.