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Local Government Investment in Business and Industry Support

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Local Government Investment in Business and Industry Support ! ! ! ! ! ! ! ! ! REVIEW!OF!LOCAL! ! GOVERNMENT!INVESTMENT!IN!! BUSINESS!AND!INDUSTRY! SUPPORT!ACROSS!THE!HAWKE’S! BAY!REGION! ! ! !! !Final!Report!for!Hawke’s!Bay!Councils! !December!2020! ! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!! TABLE!OF!CONTENTS! LIST!OF!FIGURES!............................................................................................!5! 1.0! EXECUTIVE!SUMMARY!.............................................................................!6! 1.1! Economic!development!activities!and!services!currently!being!provided!..........................!6! 1.2! Current!investment!in!activities!and!services!...................................................................!8! 1.3! Assessment!of!rationale!and!fit!of!activities!and!services!being!delivered!........................!9! 1.4! Effectiveness!and!efficiency!...........................................................................................!11! 1.5! Survey!of!key!stakeholders!............................................................................................!15! 1.6! Case!for!Change!.............................................................................................................!17! 2.0! RECOMMENDATIONS!............................................................................!19! 3.0! INTRODUCTION!.....................................................................................!23! 4.0! PURPOSE!OF!REVIEW!.............................................................................!24! 5.0! SCOPE!OF!REVIEW!.................................................................................!25! 6.0! APPROACH!AND!METHODOLOGY!..........................................................!26! 6.1! Documentation!review!and!early!stage!analysis!.............................................................!26! 6.2! Critical!analysis!..............................................................................................................!27! 7.0! ECONOMIC!DEVELOPMENT!SERVICES!&!INVESTMENT!IN!HAWKE’S!BAY! 28! 7.1! Background!....................................................................................................................!28! 7.2! Activities!and!services!....................................................................................................!29! 7.3! Investment!in!activities/services!....................................................................................!32! 7.4! Investment!in!other!regions!...........................................................................................!34! 7.5! Business!Hawke’s!Bay!Incorporated!(BHB)!.....................................................................!36! 7.6! Hawke’s!Bay!Tourism!Limited!(HBTL)!.............................................................................!39! 7.7! Hawke’s!Bay!Regional!Council!(HBRC)!............................................................................!42! 7.8! Hastings!District!Council!(HDC)!.......................................................................................!45! 7.9! Napier!City!Council!(NCC)!...............................................................................................!48! 7.10! Central!Hawke’s!Bay!District!Council!(CHBDC)!................................................................!51! 7.11! Wairoa!District!Council!(WDC)!.......................................................................................!53! © Copyright Giblin Group Ltd 2019 ! 2! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!! 8.0! ASSESSMENT!OF!RATIONALE!AND!FIT!OF!ACTIVITIES/SERVICES!BEING! DELIVERED!..................................................................................................!56! 8.1! Key!findings!...................................................................................................................!56! 8.2! Challenges!and!opportunities!facing!the!Hawke’s!Bay!economy!.....................................!57! 8.2! Rationale!for!local!government!activities!in!economic!development!and!economic! wellbeing!.................................................................................................................................!61! 8.3! Central!government!expectations!..................................................................................!62! 9.0! ANALYSIS:!EFFECTIVENESS!&!EFFICIENCY!...............................................!64! 9.1! Councils!!a!Key!findings!...................................................................................................!64! 9.2! Business!Hawke’s!Bay!(BHB)!..........................................................................................!65! 9.3! Hawke’s!Bay!Tourism!Ltd!(HBTL)!....................................................................................!72! 9.4! Regional!Business!Partner!(RBP)!Programme!.................................................................!75! 9.5! Great!Things!Grow!Here!.................................................................................................!79! 10.0! SURVEY!OF!KEY!STAKEHOLDERS!.......................................................!82! 10.1! Highalevel!survey!results!................................................................................................!82! 11.0! CASE!FOR!CHANGE!...........................................................................!84! 12! FUTURE!DELIVERY!OF!ECONOMIC!DEVELOPMENT!ACTIVITIES/SERVICES!IN! HAWKE’S!BAY!..............................................................................................!87! 12.1! Objectives!and!criteria!...................................................................................................!87! 12.2! Options!for!delivery!.......................................................................................................!89! 12.3! The!recommended!option!..............................................................................................!98! 13! ANNEX!A:!Hawke’s!Bay!Economy!and!industry!Trends!.........................!105! 13.1! Overview!of!key!economic!indicators!...........................................................................!105! 14! ANNEX!B:!ECONOMIC!DVELOPMENT!ACTIVITIES!AND!THE!APPROPRIATE! ROLE!FOR!GOVERNMENT!..........................................................................!115! 15! ANNEX!C:!EFFECTIVENESS!&!EFFICIENCY!ANALYSIS!TABLES!..................!118! 15.1! Business!Hawke’s!Bay!(BHB)!........................................................................................!118! 15.2! Hawke’s!Bay!Tourism!Ltd!(HBTL)!..................................................................................!126! 15.3! Central!Hawke’s!Bay!District!Council!(CHBDC)!..............................................................!128! 15.4! Hastings!District!Council!(HDC)!.....................................................................................!130! © Copyright Giblin Group Ltd 2019 ! 3! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!! 15.5! Hawke’s!Bay!Regional!Council!(HBRC)!..........................................................................!132! 15.6! Napier!City!Council!(NCC)!.............................................................................................!133! 15.4! Wairoa!District!Council!(WDC)!.....................................................................................!136! ! LIST!OF!TABLES! Table!1:!Type!and!description!of!economic!development!and!economic!wellbeing!investments!.......!25! Table!2:!Economic!development!services!by!provider!.........................................................................!31! Table!3:!Investment!in!business!support!and!industry!development!..................................................!33! Table!4:!FTE!resources!by!provider!(estimates!only)!............................................................................!34! Table!5:!Investment!in!economic!development!activities!and!services!across!NZ!...............................!36! Table!6:!Key!elements!of!Business!Hawke’s!Bay!(BHB)!........................................................................!37! Table!7:!Key!elements!of!Hawke’s!Bay!Tourism!Ltd!(HBTL)!.................................................................!40! Table!8:!HBTL!economic!development!activities/services!...................................................................!44! Table!9:!HDC!economic!development!activities/services!....................................................................!46! Table!10:!NCC!economic!development!activities/services!...................................................................!49! Table!11:!CHBDC!economic!development!activities/services!..............................................................!52! Table!12:!WDC!economic!development!activities/services!.................................................................!54! Table!13:!Trends!that!will!influence!the!economic!outlook!and!opportunities!for!Hawke’s!Bay!.........!60! Table!14:!HB!Councils/BHB!Contract!for!Service:!Schedule!One!–!Service!Specifications!...................!67! Table!15:!RBP!–!Priority!areas,!resources,!measurement!and!performance!........................................!78! Table!16:!GTGH!Funding!Split!...............................................................................................................!80! Table!17:!Issues!and!opportunities!identified!through!the!Review!.....................................................!86! Table!18:!Description!of!main!options!.................................................................................................!90! Table!19:!Assessment!of!delivery!options!............................................................................................!93!
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