omaio governance and leadership development program

Omaio Development Strategy •  Opotiki District Council 10-Year Planning

•  Wakatu Incorporation 40-Year Development Story

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Governance and Leadership Development Program

OPOTIKI DISTRICT COUNCIL STRATEGY WORKSHOP:

SUMMARY PACK

10 November 2017

ROLE OF THIS PACK

To assist ODC to draw insight from the discussions that will inform future prioritisation and action.

To provide a high level summary of outputs from a facilitator perspective.

To provide a framework within which input materials and meeting records can be located for ease of future reference.

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OUTLINE

1. Introductory material – external stakeholders

2. Opportunity and challenge: Summary insights – Dr Rick Boven

3. Session summariesa) Economic Overview – John Galbraith – Page 17b) Aquaculture – Peter Vitasovich – Page 18c) Kiwifruit – Ian Coventry – Page 19d) Maori economy – Karamea Insley – Page 20e) Manuka – Karl Gradon – Page 21f) Social Development – Barbara MacLennan – Page 22g) Climate change – Mark Townsend – Page 23h) Water management – Ari Ericson – Page 24

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Dr Rick Boven

OPPORTUNITY AND CHALLENGE

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OPOTIKI HAS NUMEROUS VALUABLE OPPORTUNITIES FOR ECONOMIC GROWTH

Aquaculture and mussel processing expansion

Construction of harbour development, processing plant and housing

Expansion of gold kiwifruit production on Maori land

Manuka/honey development in the hinterland

Tourism growth, including adventure tourism and recreational fishing

Income increases for existing residents and the incomes from new residents.

Total GDP increase could be a very large increase on baseline GDP if fully realised

Scale and complexity of change relative to existing institutional capacity is extremely high

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Opportunities

Impacts

OPOTIKI ENJOYS AN EMERGING COMMON VISION AND RANGE OF SUPPORTIVE STAKEHOLDERS

Opotiki’s leaders are close to having a shared understanding of the opportunities and developments, and

• The potential for a common vision for the district’s future

There is goodwill and common interests and the beginnings of a practical commitment to work together

Central government appears supportive and is working through options to provide sufficient funding for the harbour development

The BoP Regional Council is also supportive

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BUT GROWTH POTENTIAL CREATES IMPORTANT AND UNUSUAL CHALLENGES

The amount of growth potential is large relative to the size of the existing town and the district population which creates important and relatively unusual challenges:

• Ensuring sufficient supply of skilled and work-ready people• Ensuring work-readiness of sufficient numbers of existing people• Ensuring the school and school-to-work transition is operating effectively• Attracting people to live in the district

Further improvements to local infrastructure and services, notably:• Housing expansion – likely new subdivision(s), town centre improvements

and expansion/infrastructure for Woodlands• Commercial land and supportive zoning• Connectivity infrastructure - bridge, road quality, electricity and

communications resilience• Services, including medical, freight, storage and courier

Expanding the capabilities and capacities of the District Council in advance of rates income growth

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THE SCALE AND COMPLEXITY OF CHANGE IMPOSES A “BALANCED GROWTH’ DILEMMA

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Business growth

Labour force

HousingConsenting/ planning

Council capacity

Multiple inter-related growth requirements

A constraint in one area could lead to impediment in another

Balanced growth causality (example)

OPOTIKI HAS SOME ADDITIONAL OBSTACLES TO OVERCOME TO ACHIEVE THE VISION

Workforce supply arrangements and accommodation which will meet the seasonality needs of local businesses

Nearby expansion of economic activity at Kawerau, creating competition for workforce

Striking the right balance between work-force development efforts that are shared among the district’s important and collaborating employers versus competing for workers

A town centre where expected sea level rises will create future costs for protection

Improving the liveability brand of the town and environs to attract and retain people

• Including by telling a compelling and authentic story about the status, the potential and the improvements planned

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THIS ADDS UP TO AN UNUSUAL SET OF CIRCUMSTANCES

Growth potential with huge economic and social prizes, with material funding almost lined up

Supportive iwi (imminent settlement) and Council (rating base challenges)

Need for large and balanced growth across a wide variety of supporting dimensions

Common interests, shared aspirations and a strong desire to collaborate

Calls for a new thinking about the approach to development

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SHS EXPERIENCE OF SIMILAR DEVELOPMENT CHALLENGES

These challenges arise when there is an economic development horizon, or strategy need, at a city-wide or national level.

• The challenge is usually material, the solution is not in the hands of businesses or governments alone and a collaborative planning effort is required

• Examples include national economic strategies for Ireland, Israel, Australia and Sweden, and city strategies for Toronto and Auckland

• What is unique here, in our experience, is the absolute small scale of the Opotiki District relative to size of the growth and infrastructure challenge.

The solution we suggest is a collaborative planning and development approach that reaches beyond the mandate and resources of ODC:

• A “guiding coalition” of senior stakeholders to support an integrated transformation programme

• Within that a partnership with central government for infrastructure and social development

• Closer cooperation with regional council, and ongoing cooperation with Toi EDA (reflecting “the opportunities are in the East; the resources are in the West”)

• Building substance on a strong and well governed relationship with iwi (principally but not exclusively Whakatohea) as implementing partners on key social programmes.

With further development of a promotion strategy for Opotiki to help attract and retain skilled people (noting housing and education needs)

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Participant set-up material

EXTERNAL STAKEHOLDER DISCUSSIONS

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AGENDA: THE RUN SHEET FOR THE AFTERNOON

Time Name Role Content

1.00 John Forbes Mayor, Opotiki District

Welcome, introduction and Harbour Update

1.20 Rick and David Stakeholder Strategies Overview of the process and outcomes

1.30 John Galbraith Economic Development

Aquaculture, kiwifruit, packing, manuka

2.00 Group discussion and feedback

You do the work Divide into four groups ( Aquaculture/ Peter Vitasovich; Manuka/ Karl Gradon; Hort/Maori land/Chris Insley; Kiwifruit packing/ Ian Coventry)

3.00 Barbara MacLennan(Abby Tozer to assist)

Social issues and opportunities

Mark TownsendAri Ericson

Infrastructure / Waters

3.30 Group discussion and feedback

More work for you Divide into two groups for each workstream (Barbara, TBC, Mark, Ari)

3.45 Refreshments Beer O’clock You know what to do…

4.30 Rick and David Stakeholder Strategies Summary and next steps

4.45 John Forbes Mayor Wrap and thanks

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GOAL: IDENTIFYING WHAT IS BIG, UGLY AND NOT SORTED YET?

What does everything that is happening mean for us?

What are our opportunities? (hint: this is a once in a lifetime breakthrough)

What needs to be put in place locally to take advantage of these?• Of these things, what have we got, in train, and not got yet?• Of the gaps, what should be our top priorities

What does this mean for Council actions?

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METHOD: PERSUING A LOGICAL CASCADE FROM OPPORTUNITIES TO CONSTRAINTS TO ACTION

Opport-unities

• Examples: Aquaculture, Kiwifruit, Omaio, Manuka

Obstacles overcome

• Harbour infrastructure design, potential Crown funding, labour supply, water planning

Remaining issues

• Skills and training, housing, helping families

Strategy to resolve?

• Training courses, , community housing?

Priorities and

capacity• Work on

in LTP

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SESSION SUMMARIES

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THERE IS EXTRAORDINARY BREADTH AND SCALE IN THE LOCAL ECONOMIC OPPORTUNITY

The harbour proposal could see 4 sea farms run over 12,500 ha and creating over 1000 jobs and generating $250m pa

Kiwifruit generates $322m EBIT from $600m revenue, and Zespri is planning to release up 3000 ha of gold kiwifruit licences, nearly doubling production

• 3500 ha arable area currently in Maori land

Dairy generates $37m revenue and $5m EBIT in the Opotiki region• A further 2500 ha of arable area is in Maori land

Kawerau is also implementing a rapid development plan that will increase labour demand in the Eastern Bay, including:

• Poutama Trust dairy factory opening late 2020• Penglin particle board plant• New container terminal

17Source: John Galbraith, workshop participants; more detail contained in presentation slides

AQUACULTURE INDUSTRY NEEDS SIX CONDITIONS TO BE MET TO MAKE OPOTIKI AQUACULTURE SUSTAINABLE

Aquaculture development should be seen as an end to end value chain• Involving farming, processing, transport and marketing

Six key conditions must be met to enable the aquaculture proposition:1. Finance and the support of shareholders2. Trained labour force: on water, processing, marketing, 1000+ FTEs3. Shared resources (both within and between industries) to lower costs:

• IT and communications• Skills and training, quality control• Transport and logistics

4. Land/industrial park as part of Harbour development5. Housing for expanding labour force6. Image/social amenity of Opotiki

Harbour project dealt with in detail separately but noting that user charges to be agreed

Potential tourism (e.g. recreational fishing) spinoffs

18Source: Peter Vitasovich, workshop participants

KIWIFRUIT IS SET FOR RAPID LOCAL EXPANSION WITH MAJOR CAPEX, LABOUR AND INFRASTRUCTURE NEEDS

Zespri is soon to release 3500 additional ha of growing area, which over time will almost double the current size of the gold kiwifruit harvest

Around $2 billion of capex will be required to fully develop the permitted area• It is unclear whether this capital requirement will compete with/crowd out other capital

demands in the Bay (hopefully unlikely)• Further intensification implies higher concentration of risk (PSA)

Massive seasonal labour force, including accommodation and pastoral requirements; and the Opotiki community has a brand and social facilities deficit to overcome

• Drug-free workforce• Housing, education

Scale of kiwifruit expansion will put additional pressure on Eastern Bay’s infrastructure• 1300 trucks, 5000 driver movements), one bridge out• Electricity, one line out• Broadband for real time data connectivity• Resilience is a concern

19Source; Ian Coventry, kiwifruit working group, workshop participants

THERE IS CONSIDERABLE OPPORTUNITY AND CHALLENGE IN MAORI LAND GOVERNANCE

The vast majority of developable land is Maori owned, requiring a different business model reflecting the need to identify and manage collective owners. The potential scale is very large

• “5000 ha, $400m EBIT pa, $2bn revenue, 10,000 jobs” (Insley)• Growth rate of Maori economy: CAGR = 15-20%

Access to Maori land and collective decision with dispersed, sometimes unknown rights holders. The legislative framework is under review

• Local landowners want to retain the Office of the Maori Trustee• Te Ture Whenua Act review - Minister Mahuta invited to visit Omaio

Social issues are multiple and complex: • Whanau support, training, scaling up, climate change response• Bottom up and top down solutions: iwi by iwi, hapu by hapu, whanau by whanau

There are multiple, well-enabled iwi involved (Whakatohea, Omaio)• Is there a commonly understood action plan to move these issues forward?

Shared management and services may assist development: OSH, training, data, governance

20Source: Karamea Insley, workshop participants, Maori Economy working group.

THE MANUKA INDUSTRY IS ALREADY A MAJOR EMPLOYER AND POISED FOR FURTHER GROWTH

Current scale is already substantial • Grown to 170 staff, $100m pa revenue in 3 years• Exporting to Asia, Middle East and US

Deep partnerships with iwi allow effective operation on Maori owned land

Further expansion facilitated by improved public infrastructure (roads, UFB)

Skills training (often from work-readiness level) is a fundamental requirement

More workforce planning across the various growth sectors is required• Social enablers like housing and quality education are increasingly seen as key

success factors for industry

21Source: Karl Gradon, manuka working group, workshop participants

WORKFORCE CHALLENGES AND ASPIRATIONS REFLECT A WIDE RANGE OF NEEDS

Workforce Challenges

� Local understanding of opportunity

� Aspiration/willingness

� Literacy/numeracy

� Housing

� Drugs and alcohol

� Driver licensing

� Disjointed policy and systems

� Confidence and freedom to learn by doing

Workforce Aspiration

� Work security

� A living wage (note rising minimum)

� Being valued – opportunity to learn and contribute

� Good workplace culture incl. OSH

� Families and whanau valued (incl. flexibility to meet whanau needs)

� Regular hours where possible

� A future in the Eastern Bay

22Source: B MacLennan, Toi EDA, workshop discussion; more detail contained in presentation slides

Multiple organisations, iwi groups and community groups seek to be part of the solution

INFRASTRUCTURE AND CLIMATE CHANGE REQUIRE LONG TERM PLANNING AND INVESTMENT

Climate change requires planning for a 1+m sea level rise, 2.5 degrees warmer and 10% + higher rain intensity within the next 100 years

This has significant impacts• Harbour project engineering and cost• Flood protection and river works• Storm-water management • Wastewater treatment• Resilience of roads, electricity, broadband links

Town planning – will some areas be unliveable?• A tipping point exists beyond which stop banks cannot be increased • “resilient development in problem areas, “vulnerable” development in

safe areas• Provision for ponding areas

23Sources: Mark Townsend, EBOP, Ari Ericson, ODC, more detail in presentation slides

SOCIAL AND INFRASTRUCTURE WORKSHOPS STRESSED COMMUNITY CO-DEVELOPMENT

Key issues raised by workshop participants• Whanau engagement• Local Mana Whenua• Need for an emotional value proposition to harness local commitment• Jobs need to be decent and fair• Tertiary providers need to step up and deliver in the E Bay• Pastoral care remains essential

Implications going forward• Opotiki cannot achieve economic potential without social development• It needs a unified vision • Shared social and economic service hubs would be helpful• Rangatahi need exposure and education about the opportunities

24Workshop participants: social development workshops

Governance and Leadership Development Program (Omaio) December 2017

PresentationpreparedforFederationofMaoriAuthoritiesInc.byPaulMorgan,ChairWakatuInc.

November2018OurFuture.

Kiamaukiamuri.


Wakatū•  AMāoriownedorganisation

basedontraditionalvaluesandproactiveleadership

•  BasedinNelson,TopoftheSouthIslandofNZ

•  Formedin1977fromtheremnantsoftheNelsontenths,MotuekaandMohuaReserves

•  Ownersaredescendantsfromfouriwi(tribes)–NgātiRarua,NgātiKoata,NgātiTamaandTeAtiawa


Wakatū•  Ourfocusisintergenerational

•  TePaeTāwhiti–planningforWakatū1000yearsintothefuture

•  Assetbaseof$330m

•  70%ofassetsinproperty

•  30%ofassetsinFoodandBeverage

•  Employ500FTE’s

•  Revenue$100m+


WakatūandKonoNZLP

Kono Foods


Māorivaluesdriven,integratedF&Borganisation

wellpositionedwithourlongtermcustomerstodevelopandsellarangeofvalueaddproductsutilising

ourresourcesoftheWHENUAandtheMOANA.


•  Establishedin1986•  Apples,pears,kiwifruitandhops•  Farmingover200ha(1200ha

available),$10m+revenue•  Employinexcessof140peopleto

coverourorchard,packhouseandcoolstoreoperations

•  InvestmentwithENZAinEnvyapples•  Objectiveistodoublecurrent

productionandestablishsubstantialthirdpartysupply

•  Involvedinberryresearchgroup•  Co-opstateoftheartprocessing

KonoHorticultureGovernance and Leadership Development Program (Omaio) December 2017

•  Beganinvestmentsin1998

•  Employ230+people

•  $45m+revenuewithatargetof$60mby2017

•  Strategyistogrowanddiversify(waterspace,quotaownershipandprocessing)

•  Valueandvolumestrategy(livelobsterandoysters–musselsandotherseafoods)

•  StrongR&Dfocus(oystersaquaculture),undaria,seacucumbers,bioactives.

KonoSeafoodGovernance and Leadership Development Program (Omaio) December 2017

•  Beganin1998withTohuWines•  3vineyardsandawinery•  3brands–Tohu,AronuiandKono•  25people,NZsalesteam•  Growthobjectiveto240kcasesby

2017•  Export20pluscountries,$25m+

revenue•  Furtherexpansionintonew

productsplanned–craftbeer?•  GoldMedals–Tohu2014–15best

year,launchedcider2015

KonoBeveragesGovernance and Leadership Development Program (Omaio) December 2017

Beverages fami ly

Tutū Cider is the newest addition to the beverage family, joining Tohu, Aronui & Kono wines. It’s the sprightlier younger sibling of the whānau. The name Tutū is a Māori colloquial term for being cheeky and mischievous, as often a younger sibling is.


TASTE THE DIFFERENCE

NOSE Fresh ocean and seaweed aroma BODY Vibrant hints of brine, while creamy & sweet FINISH Long sweet cucumber finish with a mild metallic flavour on the lips TEXTURE Firm, but uniquely creamy and decadent, almost velvety


•  Acquiredanaturalfruitleatherbusiness2014

•  Fitswellintherangeoffoodandbeveragebrandsweownandexport

•  Wastestreamutilisation

•  Focusonnutrition,healthandwellness

•  $10m+revenue

•  52employees

KonoFoodsGovernance and Leadership Development Program (Omaio) December 2017

OurFuture

•  Investinginpeople,skills,creativity;•  Focusofhighvalueadd,margins;•  Accesstoanduseofdata•  Co-operation,collaboration,scale-ability;•  Investtogether.•  Understandingasustainablefuture!Science,technology,businesstools,IP;

•  OwningPVR’s,brands,connectedtoconsumers;


omaio governance and leadership development program

Leadership & Management