LEADER COLUMN SEPTEMBER 2012

Two recent news events highlighted both the contribution that a single industry can make to a region’s economy and the risk that those economies can be exposed to when external market pressures impact on the performance of those businesses. Spring Creek Coal Mine and Tiwai Point are both major contributors to the communities in which they are located. The fact that they have provided a source of employment and income for many years means in many cases results in a strong level of dependance. If these were to no longer operate or operate in a reduced capacity then the impact on their local economies would be dramatic. Many of New Zealand’s regions will have one or two businesses or industries that a significant economic drivers whose absence would be sorely felt. While Northland has one of the more diverse economies in New Zealand we are still strongly reliant on dairy, tourism and the refinery. We would all hope that they will continue to be major contributors to Northland’s growth, but this cannot be taken for granted. We cannot control or influence outside market pressures but we need to ensure that the internal environment in which they operate makes it as easy as possible for them to remain operating here. When these businesses are successful we all benefit. Taking these three sectors as an example I imagine they have more different requirements than they would have in common when it comes to what constitutes a business friendly environment for them. Fortunately those things they do have in common are within our control to influence and enable. We can influence the regulatory framework in which they operate to bring about fair and consistent rules and plans. The local government reforms are intended to help do this through continuing to build a more productive and competitive economy and delivering better public services to New Zealanders. All these sectors require a capable workforce. While it is no secret that Northland has high unemployment when compared to many other regions, recent survey results revealed that many Northland businesses struggle to find people with the necessary skills to employ. It is important that we ensure that private sector and education providers engage early to ensure that the skills and knowledge being taught, match with those required by the region’s employees. Failing to do so fails both our businesses and our communities.