BAY of CONNECTIONS YEARLY REPORT Growth Is Never by Mere Chance; It Is the Result of Forces Working Together – James C Penney

2016

BAY OF CONNECTIONS YEARLY REPORT Growth is never by mere chance; it is the result of forces working together – James C Penney

2 The past two years have seen the work of the Bay of With 13 key sectors now in the Bay of Connections portfolio, Connections come into the spotlight more than ever, its ability to adapt and evolve in a changing environment has particularly through the Regional Growth Programme. As the become a fundamental element; while retaining its core 2016 calendar year comes to a close, it’s time to take a step philosophy of working collaboratively remains at the heart of back and highlight the progress that has been made. its operations.

Of particular note, the Bay of Plenty Regional Action Plan This Yearly Report provides an overview of the activities and moved into its implementation phase in 2016, which has achievements of the 2016 calendar year and gives insight into involved the region and central government working together the year ahead. like never before.

3 DOUG LEEDER – GOVERNANCE GROUP CHAIR

As the Bay of Plenty Regional In addition to its strong relationships with government, Growth Programme has evolved over the Bay of Connections never loses sight of the fact that it past 12 months, so too has the Bay of Connections. exists for industry to grow our economy and generate This evolution is essential for Bay of Connections to jobs. remain relevant and responsive to the needs of growth and development in the region, while maintaining its The benefits of a growing economy have a positive key philosophies of collaboration, connectedness and impact on everyone in our region – from industries and being industry led. businesses, through to communities and individuals. With a more prosperous region comes a greater The RGS and its implementation has seen the wider chance of better social and economic benefits. region align growth activities, and work towards a common goal like never before. It is imperative to With nine years of work now under its belt, Bay of further build on, and maintain, this connectedness. Connections is well and truly in a position to play its part in helping to build a more prosperous region, where we stand together to win.

FIONA MCTAVISH – MANAGEMENT GROUP CHAIR

2016 has been a stand-out year for There are now 10 Regions in the Government’s the Bay of Connections and the Regional Growth Programme across New Zealand and progress, relationships and learnings, have us all with central government, stand as testament to the excited about what 2017 will bring. Programme’s value, while existing relationships have also been strengthened. These relationships are key to In 2015, the Bay of Plenty was the second region in ongoing implementation of the Action Plan. New Zealand to launch its Regional Growth Study and first to launch and Economic Action Plan, and since There are now 10 active Regional Growth Programmes then, it has been the leading region in terms of across the country, so it is important that we maintain milestones and progress, all while continuing to deliver our point of difference. This will be achieved by business as usual. continuing to work together as a region, without losing sight of our long established, and infinitely important, It has tested our ability to adapt quickly, innovate beyond industry connections. our normal process and communicate on a wider scale. It’s this quick moving evolution that gives us the edge to excel on a national scale and deliver tangible results.

4 CHERYL LEWIS – PORTFOLIO MANAGER

2016 has seen another year of and importance of trusting relationships, honesty and evolution as Bay of Connections grows integrity, which is the essence of Bay of Connections. and develops to the next stage. After its birth at the end We’re industry led, for the benefit of the region, and of 2007, Bay of Connections spent the first four here to help regional growth happen. formative years finding its feet and establishing its connections, partners and purpose.

By 2011 we had a strong portfolio, with industry groups WE’RE INDUSTRY LED, FOR THE BENEFIT and strategies for Forestry, Freight Logistics, Energy, OF THE REGION, AND HERE TO Rugby Sevens and Aquaculture. We were at a point HELP REGIONAL GROWTH HAPPEN. where we could credibly communicate our achievements. Over the last two years, we have consolidated our purpose and grown to another level. So after nine years of care and nurturing, the Bay of The addition of the Regional Growth Programme has Connections baby has come a long way and made seen increased accountability, awareness and great friends across the country. It is ready and willing responsibility for Bay of Connections – a challenge we to run into 2017 with more energy and enthusiasm have embraced. And because Bay of Connections is a than ever. coalition of the willing and like-minded, it continues to be an enjoyable and constructive journey. Our Thank you to everyone who has played a role in Bay of relationship with central government is fantastic. We Connections during 2016, no matter how small it may openly and genuinely work alongside our central have seemed, every person has been important. 2017 government colleagues, and view them as a key part of is going to be magnificent. the Bay of Connections family.

SINCE INCEPTION, THE GROWTH OF BAY OF CONNECTIONS HAS BEEN AN ORGANIC, NATURAL PROGRESSION, NOT FORCED NOR TOO PRESCRIBED, WITH THE RIGHT PEOPLE “2017 is COMING TOGETHER AT THE RIGHT TIMES. going to be magnificent” Since inception, the growth of Bay of Connections has been an organic, natural progression, not forced nor too prescribed, with the right people coming together at the right times. We’ve never underestimated the power

5 VISION BAY OF PLENTY – A PROSPEROUS REGION SUPPORTED BY SUSTAINABLE SECTORS.

MISSION TO DELIVER SECTOR-BASED STRATEGIES AND ACTION PLANS THAT GENERATE AND ENCOURAGE ADDITIONAL SUSTAINABLE EMPLOYMENT FOR THE BAY OF PLENTY.

VALUES WE WILL COLLABORATE IN OUR COMMUNITY WITH INTEGRITY, RESPECT AND TRANSPARENCY, AND IN A FRIENDLY MANNER.

6 BAY OF CONNECTIONS OVERVIEW

Bay of Connections is the regional growth strategy for Puni Kōkiri and New Zealand Trade and Enterprise, the wider Bay of Plenty, with a vision of creating a amongst others. prosperous region supported by sustainable sectors. It is simple and aspirational, with the aim of establishing Since its inception in 2008, Bay of Connections has and implementing sector-based strategies that generate made a significant impact on the region’s development, job growth. contributing to regional growth and national influence. As it nears its first decade of operation, the Bay of At the heart of the strategy are the philosophies of Connections continues to evolve and adapt to the collaboration and connectedness. Through working constantly changing environment, ensuring relevancy together at a regional, national and international level and value of actions, while acting as a reliable and to connect the right people, places, businesses, supportive guide for the future success of the region. organisations and industries, the benefits from within and into the region are boundless. Bay of Connections is industry-led, with a strong commercial and action focus. It is a coalition of the The Bay of Connections is also responsible for the Toi willing where participation by interested stakeholders is Moana Bay of Plenty Regional Growth Programme, wholly encouraged. working alongside the sub-regions of the wider Bay of Plenty, as well as the Ministry of Business, Innovation Join us, as we continue to evolve and work and Employment, Ministry for Primary Industries, Te together to grow our region and communities.

7 EDA UPDATES

Destination Rotorua, Enterprise Great Francis Pauwels Lake Taupō, Fritz Fröhlke The Bay of Connections can be proud of the way in As our involvement with which the region and Bay of Connections central government is matures, we find the working together to cooperation between implement the RGS. economic development agencies has also For the Rotorua region, deepened and added to this has meant tangible support and focus on our sense of working together. Agribusiness, Forestry and Wood Products, Māori Land Utilisation and Visitor Economy. New Zealand is a very small place in the world, let alone the Bay of Plenty. So in order to attract A key highlight for 2016 was the Changing Perceptions of businesses, foreign direct investment and skilled Engineered Timber for Construction (CPETC) conference, immigrants to our region, we need to stand united and supported by the Ministries of Business Innovation and offer these people what they need. Employment and Primary Industries, to identify how more engineered timber can be utilised in New Zealand. Looking back on 2016 the standout success was the completion of the RGS and this project now moving By working in partnership, we start the journey of into its implementation phase. As an example, even building understanding and confidence in further though we are miles away from Ōpōtiki, it is a great strategic investments. example of what can be achieved if a larger overarching organisation gets in behind a smaller town The RGS is a powerful tool to engage with central and project to provide a united push. To us, that is what government, entities across the region and most the Bay of Connections is all about, and we are importantly, maintain a specific focus on new cheering Ōpōtiki and the region’s other communities investment and job opportunities. all the way.

8 Credit: Sara McGovern

Priority One, Greg Toi-EDA, John Simmonds Galbraith

Implementation of the The Eastern Bay of Plenty RGS and Action Plan has grew strongly across all been a key area of focus sectors in the economy in for both Bay of the year to June 2016, with Connections and Priority a 3.7% lift in GDP flowing One in 2016. through to increased employment, incomes and The establishment of the spending. These are the Bay of Plenty Tertiary Intentions Leadership Group, best results seen in the decade that Toi EDA has been chaired by Sir Michael Cullen, represented a significant keeping records of Eastern Bay specific growth. milestone in implementing the region’s education action plan, with numerous projects underway Workforce development is a key project area for throughout the region to support employment pathways Toi-EDA, reflecting the emerging proposition that “social and job related training. development is the next wave in economic development.¹” Over the year, the project progressed In addition, the merger of Waiariki Institute of from a focus on improving local employment Technology and Bay of Plenty Polytechnic to create New participation in the thriving kiwifruit industry, to delivering Zealand’s third largest polytechnic – Toi-Ohomai, the Pathways to Work component of the Ōpōtiki harbour together with the appointment of the University of validation study, in conjunction with Whakatōhea Māori Waikato’s Academic Director for the new Tauranga Trust Board. The approach demonstrates how local and CBD Campus, will see the Bay of Plenty transformed iwi-led initiatives can integrate with regionally and into a tertiary destination of choice. This will enable the nationally-led strategies, including the Toi Moana Bay of Bay of Plenty region to grow, attract and retain the Plenty Regional Growth Programme and He Mahere talented people required to achieve the opportunities Matauranga Matua mo Tatau, the Bay of Plenty Tertiary presented in the RGS Action Plan. Intentions Strategy.

¹Shifting Workforce Development into High Gear. Economic Development Research Partners. Author: Emily J. Brown. 2015

9 2016 HIGHLIGHTS

• First annual Bay of Connections and RGS Forum • Tertiary Intentions Leadership group established held in Whakatāne with over 150 attendees including Ministers Steven Joyce, Simon Bridges and Anne • ME Programme business case completed by New Tolley Zealand Kiwifruit Growers (NZKGI) and Katikati College • Mānuka Action Group (MAG) established, comprised of Māori land owners, bee keepers, research • First cohort of 20 trainees graduated from the organisations, key processors, exporters and local Workforce Development Centre, Te Pou Oranga o government Whakatōhea. Eight students have moved into employment while some are continuing to complete • $3 million funding announcement made by educational units. Economic Development Minister Steven Joyce and Associate Economic Development Minister Te Uruora Flavell, for the Ōpōtiki harbour development • Engagement with a geothermal Direct Use Group validation project (DUG) made up of geothermal industry market leaders including Mercury, Contact Energy, Ngāti • Ōpōtiki Harbour design and identifications of Tūwharetoa Geothermal Assets Ltd, Tauhara North construction costs is underway and should be complete No.2 Trust and GNS Science by mid 2017 • Delivered keynote presentation profiling the Bay of • Whakatōhea Mussels Ōpōtiki Ltd harvested first Connections Energy Strategy at Downstream NZ commercial load of mussels for domestic market Conference

10 • Supported Bay of Plenty Film Office Trust in a • “All of government” pathway established to improve fact-finding and relationship building mission to the the wellbeing of Omaio through kiwifruit development United States • Omaio information day attended by Minister for Māori • Changing Perceptions of Engineered Timber for Development, Zespri chief executive, Ōpōtiki Mayor Construction (CPETC) 2016 conference and over 100 local landowners and trustees • Omaio based Trustee Governance and Leadership • Completion of the Forest Economic Advisers research Development programme underway and water case on the New Zealand opportunities for engineered study completed to inform the wider New Zealand water wood products policy and planning for a potential irrigation system • The He Mauri Ohooho kiwifruit productivity cluster and • Visited Japan to promote Game On English program Eastern Bay dairy cluster are both underway with Māori in partnership with New Zealand Trade & Enterprise, Trusts New Zealand Embassy and Education New Zealand

• Taiohi Discovery Tour delivered in partnership with Tai • Request for proposal issued to develop the first Wānanga and DairyNZ - students were presented with regional level visitor economy framework and identify an all-encompassing look into New Zealand’s primary regional priorities industries – from paddock to market. • Secured funding for the development of a water strategy

• Bay of Plenty Youth summit 2016 hosted with 45 Māori • Value of Water Bottling ‘think piece’ commissioned by rangatahi in attendance Whakatāne District Council

11 BAY OF PLENTY REGIONAL GROWTH PROGRAMME

The Bay of Plenty Regional Growth Programme has been a key project for the Bay of Connections since the beginning of 2014. In June 2014, government publically announced the Programme with the purpose of growing jobs, investment and income opportunities in regional New Zealand.

In the Bay of Plenty, the Regional Growth Programme is affectionately known and referred to as the RGS.

1 REGIONAL GROWTH STUDY

2 ACTION PLAN

3 IMPLEMENTATION

Phase 1: Regional Growth Study

Phase one involved developing the Regional Growth Study, led by the Ministries of Business, Innovation and Employment (MBIE) and Primary Industries (MPI) at the national level, and Bay of Connections at the regional level.

Consultants MartinJenkins were commissioned to prepare an independent report to identify a range of short to mid-term opportunities (0-10 years) that could assist in increasing investment, employment and incomes in the region. The RGS focused on the wider Bay of Plenty’s strengths and where central and local government, iwi, industry and the community can work together to increase investment, employment and incomes. The independent study was launched by Ministers in May 2015.

Phase 2: Action Plan

Phase two included developing an Economic Action Plan, to identify how key opportunities can be realised, who is responsible and by when.

1012 During its development, five workshops were held quarterly and Action Plan updates are available on the across the region, asking stakeholders to prioritise the Bay of Connections website every eight to ten weeks. opportunities in the RGS. The region told us that nine key areas should be prioritised for development: Oversight of the action plans takes place at Bay of Connections Management level, with overall Agribusiness governance at the Bay of Connections table.

Aquaculture Stakeholder engagement is critical for the successful implementation of the Action Plan, and as such, Bay of Education and skills Connections has strengthened its database and e-newsletter capability to ensure its messages reach Forestry and wood processing the right people.

Geothermal The first RGS annual forum, held at Mataatua marae in Whakatāne on 6 July, 2016, indicated high Horticulture stakeholder awareness, interest and engagement with more than 150 attendees. This inaugural forum Māori land utilisation provided invaluable feedback to the ongoing Visitor economy implementation.

Water management Connectedness An RGS Action Group worked with relevant stakeholders and government representatives to As anticipated in phases one and two, the Action Plan develop actions for each area of opportunity. work streams are inextricably linked with many aligned opportunities and obstacles. As phase three develops, Progress on other opportunities not listed in the Action these links have become more evident and action Plan will continue as business as usual through existing leads are ensuring connectedness across actions. Bay of Connections action groups, relevant economic development agencies and/or industry groupings. The RGS has similarities with other regional growth programmes across the country, and the region will The final Action Plan was launched by Ministers in the collaborate, contribute, share information and support region on 29 October, 2015. other regions whenever relevant.

Phase 3: Implementation

In order to achieve the successful implementation of the RGS Action Plan, regional ownership and leadership is required, including the need to be agile as things progress and change.

Bay of Connections has continued its leadership role in this programme, while central government has FIRST ANNUAL ATTENDANCE INVALUABLE remained a key partner with representation on the Bay FORUM & INTEREST FEEDBACK of Connections Governance and Management Groups. First Regional Growth High stakeholder The inaugural forum Each of the nine action plans have a regional lead Study annual forum, awareness, interest provided invaluable held at Mataatua and engagement feedback to the responsible for co-ordination and progress reporting. A marae in Whakatāne with more than RGS action plan central government action lead provides on 6 July, 2016 150 attendees implementation. implementation and central government pathway support to each regional lead. The action leads meet

13 AS BAY OF CONNECTIONS CONTINUES TO EVOLVE WITH MORE ACTIVITY AND PEOPLE INVOLVED, IT IS IMPORTANT TO ENSURE THERE IS A SOUND UNDERSTANDING OF HOW BAY OF CONNECTIONS WORKS, NOT JUST IN THE REGION, BUT ACROSS NEW ZEALAND AS WELL.

14 REGIONAL DEVELOPMENT ECOSYSTEM

CENTRA L GO VE RN AGRIBUS M CULT IN UA UR E Q E S A S EN T UCATIO ED N TRY A ES N R D O S

L S RNANCE G CONNECT E R WATE V O R RI O MEN U AO E T M G AG G P N RO A U M P R

CENTRAL G ITOR EC VIS O N GOVERNMENT O

M I

AL Y O ERM TH O

G N

ORTIC

COBOP H UL TU G R E

ERGY

EN E

E F S IL M LOGISTIC L HT S O IG E R SE F Y V GB EN C U S A R L G O V ER TRIENNIAL NM MAYORAL ENT FORUM

As Bay of Connections continues to evolve with more activity the strategies and Regional Growth Programme actions and people involved, it is important to ensure there is a under the Bay of Connections portfolio. sound understanding of how Bay of Connections works, not just in the region, but across New Zealand as well. These fast paced and dynamic relationships keep this ecosystem humming, and the ripple effect of support is This new model illustrates the Bay of Connections felt by all. By working together, a robust environment for ecosystem, where economic development agencies and success has been developed, that will ultimately see the local and central government work together to deliver Bay of Plenty thrive.

15 AGRIBUSINESS RGS action

2016 highlights:

• Appointment of Agribusiness lead, Warwick Murray following tender process

• Mānuka Action Group (MAG) established, comprised of Māori land owners, bee keepers, research organisations, key processors and exporters, and local government • Scoping work towards the development of a MAG work programme commenced

• Current status assessment of Mānuka in the region started • Māori Mānuka conference held with a high level of interest and national media coverage

Agribusiness is a significant economic driver in the wider land use options will also be promoted to Lake Rotorua Bay of Plenty, underpinned by the region’s climate and catchment landowners, under the Low Nutrient Land natural resource base. This stream of work is closely Use Fund. connected with the Forestry, Horticulture and Māori Land Utilisation work streams, as well as with other Regional There is an increasing demand across the world for Growth Programmes across New Zealand. Collaborative high Unique Mānuka Factor (UMF) grade Mānuka work with each of these is well underway. honey for cuisine, medical and healthcare products.

This includes the development of a cross work stream New Zealand exports of 30 approach to delivering independent information to Mānuka honey are % I NC R landowners on their land use capability, and developing continuing to grow at a E A S a simple, cost effective approach to assessing options rate of 30 per cent per E

P for their land. year, and latest figures E R

valued exports at $281 NEW ZEALAND Y E

M NUKA HONEY A Two key priorities identified in the Action Plan are the million in 2015 – it is a key Ā R diversification of income risks where farmers are priority of this action area EXPORTS exposed to a single commodity sector, and reducing to ensure ongoing growth nitrogen discharges into waterways. and sustainability for this industry in the region.

2015 EXPORTS The establishment of a Mānuka Action Group was a key VALUED AT 281 millstone for 2016. As the scope of its work programme $MILLION is identified, along with a sector assessment and mapping, the group aims to be an advocate of the In the coming year, interest levels for an agribusiness rapidly growing sector, helping to increase the region’s group will be gauged, while profitable and low nutrient Mānuka honey production.

16 AQUACULTURE Existing sector strategy & RGS action

2016 highlights:

• $3 million funding announcement made by Economic Development Minister Steven Joyce and Associate Economic Development Minister Te Ururoa Flavell on October 2015, for the Ōpōtiki harbour development validation project

• Ōpōtiki harbour development project established including Whakatōhea, industry, local and central government • Call for statements of interest and ability for the design and construction of the Ōpōtiki harbour entrance made in February 2016 • Two tenderers selected to complete request for proposal in September 2016 • Two tenderers selected to complete request for proposal for design and construction, due March 2017

• Whakatōhea Mussels Ōpōtiki Ltd purchased a purpose-built marine farming vessel • Whakatōhea Mussels Ōpōtiki Ltd released shares to raise capital to put extra lines in the water, and received significant support from the Ōpōtiki community • Whakatōhea Mussels Ōpōtiki Ltd harvested first commercial mussels for domestic market in October 2016, which were hugely popular and sold out within days

Aquaculture has been a key focus for Bay of The government support felt by the Ōpōtiki community Connections since its inception and the development of during the visit from Economic Development Minister its Aquaculture Strategy in 2013. The Regional Steven Joyce and Associate Economic Development Aquaculture Organisation (RAO), which steers the Minister Te Ururoa Flavell and Anne Tolley was strategy, was heavily involved in the development of the invaluable to the progress of the Ōpōtiki developments. RGS and continues to be involved in the current implementation of the Action Plan. The volume of shares purchased by Ōpōtiki locals emphasised this support and as a result, additional lines were able to be placed in the water – increasing to 136 lines in October 2016. A new purpose-built GOAL OF vessel has allowed these lines to be installed, maintained and harvested with a local crew.

$250m Significant work is underway on five key elements of the IN EXPORT SALES harbour project – harbour entrance, processing plant, wharf and land, marine farm, pathways to work and additional harbour uses. Additional work to add value BY 2025 is also underway by a range of stakeholders. Work on each of these elements will be pulled together into a business case for Government in 2017/18, and will Aquaculture is a small sector in the Bay of Plenty, ensure success and sustainability of the harbour once however the growth potential suggests the Bay of complete. Connections Regional Aquaculture Strategy could be well on its way to achieving its goal of $250 million in Once in full operation, the combined activity from the export sales by 2025. A key component of this is the sea farm and mussel processing facility is Ōpōtiki seafarm and harbour development venture, conservatively projected to generate an increase in which is a cornerstone of the Bay of Connections GDP of $40-55 million annually and at least 220 new Regional Aquaculture Strategy and RGS Action Plan. sustainable jobs.

17 EDUCATION & SKILLS RGS action

2016 highlights:

• Tertiary Intentions Leadership Group established • ME business case completed by New Zealand Kiwifruit Growers (NZKGI) and Katikati College • Eastern Bay of Plenty Pathways to Work project implemented

• He Mauri Ohooho Māori Youth project initiated • Ngā Wahine Whakamana programme initiated through Instep • Education hui held with 26 Mataatua iwi leaders in attendance • Te Rau Aroha Leadership and Governance Development programme advanced to support the Omaio kiwifruit project • University of Waikato campus in Tauranga architectural plans developed • Waiariki Institute of Technology and Bay of Plenty Polytechnic merged to create Toi-Ohomai

Having an educated and skilled workforce is critical to TERTIARY improving productivity and incomes in the Bay of Plenty. DESTINATION Bay of Plenty OF CHOICE, Education and skills were identified as key enabling has the potential opportunities in the RGS, and since the launch of the helping to grow, retain and to become a attract the talent needed Action Plan in October 2015, the work stream has for a sustainable and made significant progress. prosperous region.

The forecast growth across the region’s key industries is set to create increased demand for skilled labour. A business and education provider representatives. commitment to raising young Māori participation and Moving into 2017, the Leadership Group will implement attainment levels in education lies at the heart of this its priority actions which include developing a work stream, and significant work is underway to build framework for secondary school engagement with trusting relationships with iwi, education providers, Māori, showcasing education and employment industry and community stakeholders. pathways in the region’s key sectors and drivers licensing. In 2014, the Bay of Plenty Tertiary Intentions Strategy (TIS) was developed as a guide to ensuring the needs of Through the advocacy work of the TIS and actions of the region are met by an educated and skilled the education and skills work stream, the Bay of Plenty workforce. Off the back of this strategy, a Leadership has the potential to become a tertiary destination of Group has been established, chaired by Sir Michael choice, helping to grow, retain and attract the talent Cullen and comprised of 18 local community, iwi, needed for a sustainable and prosperous region.

18 ENERGY Existing sector strategy & RGS action

2016 highlights:

• Revised 2016 Energy Strategy published • Energy Management for Business breakfast held and presentations made to groups throughout the region • Establishment of electric vehicle infrastructure forum and funding submission made the Energy Efficiency and Conservation Authority • Engaging with a geothermal Direct Use Group (DUG) made up of geothermal industry market leaders, to identify investment barriers and next steps • Delivered keynote presentation profiling the BOC Energy Strategy at Downstream NZ Conference

• Engagement with Māori Geothermal Advisory Group • Visit to Iceland to scope geothermal direct use opportunities • Presentation to Minister Bridges and government officials on geothermal direct use operations in Iceland

The Bay of Plenty has a considerable number of formed a commercial proposition which includes geothermal resources, including the seventh largest financials, branding and tangible business benefits, geothermal field in the world, however, this source of which will be communicated to target markets. energy is currently underutilised. The development of a ‘geothermal honey’ business case is underway, intended to start a conversation with potential users, and further case studies will be developed in 2017 in conjunction with other Action Plan Bay of Plenty TH work streams. In addition to this, a business model for has the LARGEST GEOTHERMAL FIELD geothermal distribution and business attraction will be 7IN THE WORLD developed. Geothermal energy brings with it a number of benefits Iceland is the leading country at utilising its geothermal including financial cost savings, particularly for resource for a broad range of industries, including energy-intensive industries, as well as reinforcing New tourism, horticulture, energy and many more. Acting Zealand’s ‘clean, green’ brand as it is a low-carbon, action lead, Andrea Blair’s visit to Iceland was as much renewable energy. insightful as it was inspirational, and she will be leading a Direct Use Group delegation to Iceland in 2017. Geothermal energy is a key enabling opportunity in the RGS, and has the potential to add a competitive The coming year will also see the delivery of the Start to advantage to other action streams that cannot be realised Steam Direct Use Geothermal Workshop. in any other region across New Zealand. The activity undertaken by the Energy Strategy and Action In 2016, the key focus of activity has been on achieving Plan Geothermal work stream has seen swift momentum greater insights into target markets to understand key over the past year and will see this energy resource grow drivers and influencers. These learnings have then alongside the businesses that harness its benefits.

19 FILM Emerging strategy

An exciting opportunity has emerged to support the Bay of Plenty Film Office Trust to grow the screen industry in the Bay of Plenty.

Bay of Plenty Film is a not-for-profit trust, which aims to attract international productions to base themselves and film in the Bay of Plenty, as well as grow the industry at a grassroots level by encouraging and fostering local productions and raising the skill base in the region.

Bay of Connections supported the Trust in a fact-finding and relationship building mission to the United States. This included attending the Association of Film Commissioner’s International Cineposium 2016 and meeting with influential industry members in Los Angeles.

2016 highlights:

• Bay of Plenty Film launch with keynote speaker Sir Bob Harvey endorsing vision for a thriving screen media industry in the Bay of Plenty • Produced the short film Just 3 Girls as part of the Mainstreet mid-winter festival • Establishing connections that have seen the industry begin to flourish, with individuals getting employed and others encouraged to develop their own projects • Support from Bay of Connections • Visited the United States to attend the Association of Film Commissioners International (AFCI) Cineposium

Following the United States visit, BOP Film’s current Developing a thriving screen media industry in the Bay focus is now on the development of an ‘Establishment of Plenty can contribute to the economic development Package’, which consists of a business case, stock-take of our region, not only in the immediate financial of the local skill base, equipment and locations, a injection that screen productions bring, but also in the revamped website and a show reel to market the Bay of long term visitor economy that follows the screening of Plenty internationally as a home for international screen a production. productions.

The Trust has also since received calls from overseas 13% producers, and is looking forward to proactively THE HOBBIT WAS A FACTOR IN STIMULATING marketing the wealth of Bay of Plenty filming assets INTEREST FOR 13% OF PEOPLE VISITING NZ nationally and internationally. The 2013-2014 International Visitors Survey shows that The exposure that Pete’s Dragon recently gave our The Hobbit was a factor in stimulating interest for 13 region, along with the unquestionable success of per cent of people visiting New Zealand, and in Los Hobbitton in Matamata, highlight the positive impact Angeles as an example, the economy sees greater that the screen media industry has on a visitor value from its associated tours, than from the initial film economy. production.

20 FORESTRY & WOOD PRODUCTS Existing sector strategy & RGS action

Credit: Norske Skog Tasman Ltd

2016 highlights:

• Submission made to the Emissions Trading Scheme • Changing Perceptions of Engineered Timber for Construction (CPETC) 2016 conference • Examining the forward wood flow projections for the Central North Island to better understand the log supply over the next 30 years • FWAG visit to Sequal Lumber in Kawerau • Kawerau container terminal/rail extension feasibility study commenced • Forest Economic Advisors (FEA) review on the global outlook for engineered wood products with research on NZ opportunities for engineered wood products • Promoting afforestation on suitable land • Appointment of FWAG chairman, Bryce Heard, as coordinator • Six well-attended bi-monthly meetings

The Central North Island is New Zealand’s centre for Engineered wood products have been a key focus for forestry and related processing. The combination of the 2016, as they offer a way to add further value to New region’s natural resources, emerging technologies, Zealand logs, while meeting a growing market established support infrastructure, research capabilities, demand. and the increasing relevance of Māori as land and forest owners, present a unique set of opportunities to The Changing Perceptions of Engineered Timber for stimulate the industry’s future growth. Construction (CPETC) 2016 conference highlighted three key challenges the New Zealand industry is facing: The Bay of Connections Forestry and Wood Processing 1. Limited awareness, understanding and knowledge of Action Group (FWAG) has a responsibility to support engineered timber soloutions industry growth through advocacy, communication and collaboration, through which it strives to achieve 2. Mindset and perception its goal of maximising growth opportunities though 3. Availability of technical data and costs two key areas – improved market access and afforestation. Leveraging these learnings for timber use opportunities STRONG PROJECTED will be a key focus for FWAG in the coming year, while DEMAND GROWTH, working alongside industry and government to improve PARTICULARLY FROM the uptake of engineered wood products. ASIA, JAPAN, AND KOREA Landowners are facing increasing pressures in the form of Emissions Trading Scheme considerations and water Significant processing capability investment by quality regulations, bringing alternative land uses to the operators within the region, combined with a strong fore. It is possible that afforestation will be a real projected demand growth, particularly from Asia, alternative for landowners and land use modelling work, means the Bay of Plenty has the potential to compete which is currently underway, will assist in the decision internationally in processed wood product markets. and promotion of forestry as a credible alternative.

21 FREIGHT LOGISTICS Existing sector strategy & RGS action

2016 highlights:

• Provided infrastructure opportunity insights into the RGS • Facilitated discussions on Verified Gross Mass (VGM) for container shipping and its impact • Submitted on high productivity vehicles and the vehicle dimensions and mass review proposal consultations • Supported NZTA planning workshops for key routes in Waikato/Bay of Plenty – SH1 / SH2 / SH29 and provided forecasts for forest yields and locations for road planning • Freight advisor representation on Regional Land Transport Committee • Supported Ruakura inland port / freight hub in district plan • Assessed the impact of a major biosecurity event on the region’s logistics and supply chains and initiated management plans • Promoted logistics careers at the Western Bay @ Work Careers Expo held in Tauranga • Strengthened relationship with the Road Transport Forum in a view to continue to grow sector collaboration • Support of potential development of Kawerau Container terminal • Started a conversation on electric vehicles and the technology development required for powering heavy freight vehicles

The Freight Logistics Action group (FLAG) has established economic and logistical feasibility study nears its role as an authoritative and representative voice for completion. If successful, the container terminal will the logistics sector in the central and upper North Island. connect Kawerau and the wider Eastern Bay of Plenty Insights provided by the group to the development of the with the Port of Tauranga or Auckland, harnessing the RGS were invaluable, and transport infrastructure is efficiency opportunities of rail over road. viewed as an enabling opportunity that has an influence on all other action streams. In 2016, FLAG made a submission to the New Zealand Transport Agency (NZTA) on progressing high productivity motor vehicle (HPMV) to the 25m/64 tonne envelope and developed a suite of high-volume, point-to-point designated routes within the region for interim implementation. FLAG will continue to promote this case for container and freight handling in 2017. Proposed container terminal to connect Kawerau and the wider Eastern BOP There is a current focus on providing input into the with the Port of Tauranga, harnessing the NZTA research project, which aims to model freight efficiency opportunities of rail over road. flows and economic development in the upper North Island.

Support for the Kawerau container terminal and rail FLAG will continue to explore and advocate for extension project, which was included in the Action Plan alternative transport options, while addressing their and initiated in April 2016, will continue in 2017 as the implications in a climate changing world.

22 HORTICULTURE RGS action

2016 highlights:

• He Mauri Ohooho kiwifruit productivity cluster underway with Māori Trusts • ME business case completed by New Zealand Kiwifruit Growers (NZKGI) and Katikati College • Cross work stream activity to develop a targeted approach to supporting landowners make informed land-use decisions • “All of government” pathway established to improve the wellbeing of Omaio, through 150ha of kiwifruit development across multiple Māori land blocks • Omaio information day attended by Minister for Māori Development, Zespri chief executive, Ōpōtiki Mayor and over 100 local landowners and trustees • Omaio based Trustee Governance and Leadership Development programme underway with 20 students studying towards a level 4 certificate in Māori Governance • Omaio water case study completed by Ministry for Primary Industries and Ministry for the Environment, to inform wider New Zealand water policy and feed into the business case for a potential irrigation scheme

The Bay of Plenty has use development, with the potential to transform 150ha a well-established of low productivity land into kiwifruit orchards. The horticulture sector, with project seeks to create 100 new local jobs with greater kiwifruit comprising utilisation of Māori land, fully owned and led by the over two thirds of the Omaio community. The Bay of Plenty region’s horticulture responsible for GDP and being nearly 80% of NZ’s It has been established as the first “all of government” responsible for nearly kiwifruit exports initiative and government support has been received for 80 per cent of New three key work streams – joint venture/investment, a Zealand’s kiwifruit water case study and a trustee governance and exports. leadership development programme.

Consultation during the development of the Action Plan Education and skills were seen as requiring significant highlighted the immediate priority of unlocking Māori focus in the RGS, particularly in relation to the land for kiwifruit development, through promotion of horticulture sector. During the implementation of the the industry as a key opportunity to increase land Action Plan, the two streams have been closely aligned productivity. and the launch of the ME Programme at Katikati College will see an increase in skilled students A kiwifruit productivity cluster has been established transitioning to the horticulture industry. through the Bay of Plenty’s Māori Economic Development Strategy, He Mauri Ohooho, and a number of Māori The horticulture work stream has begun its journey to Trusts are currently undertaking a 12-month programme harness the opportunities set out in the Action Plan, and to improve orchard productivity and business resilience. is already showing signs of contributing towards both the Zespri goal of increasing revenue from its current Omaio, near Te Kaha in the Eastern Bay of Plenty, was $1 billion to $3 billion by 2025, and the RGS goal of identified in the Action Plan as a key location for land job creation and land development in the region.

23 MĀORI LAND UTILISATION | HE MAURI OHOOHO Existing sector strategy & RGS action

2016 highlights:

• Taiohi Discovery Tour delivered in partnership with Tai Wānanga and DairyNZ • 2016 Bay of Plenty Youth summit hosted with 45 Māori rangatahi in attendance • Dairy and horticulture cluster projects initiated • Secured representation from Rotorua and Eastern Bay of Plenty on the He Mauri Ohooho Advisory Board • Relationships with key networks and agencies being developed to realise shared opportunities for He Mauri Ohooho and Māori Land Utilisation • Provided support for several Māori Collectives to make application for central government funds • Held six engagement hui for regional consultation and identification of development projects • Attended and contributed to Te Oniao Conference, He Kai Kei Ringa Forum and the Bay of Connections and RGS Forum

He Mauri Ohooho is the Bay of Connections Māori In 2015, the RGS reinforced the importance of the work Economic Development Strategy for the wider Bay of of He Mauri Ohooho, and added another layer of Plenty, and is New Zealand’s first regionally-coordinated impact through the establishment of the Māori Land Māori development strategy of its kind. Launched in Utilisation action work stream. 2014, the strategy strives to improve health and wellbeing for Māori in the region, as iwi are seen as key to realising economic development. ENGAGING MĀORI TODAY IS Māori account for 15 per cent of New Zealand’s FUNDAMENTAL FOR THE FUTURE population and growing numbers indicate this proportion SUCCESS OF THE REGION. could be 20 per cent by 2038. Engaging Māori today is fundamental for the future success of the region.

24 Credit: Kieran Scott and Firstlight

With an established Māori Advisory Board guiding the actions of the strategy, it made sense from a knowledge, relationship and resource point of view to task this Growing group with the implementation of the Māori Land Māori numbers indicate Utilisation action stream. 2016 has proved this decision account for 15% this proportion was the right one, with the actions becoming of New Zealand’s could be 20% inextricably linked and a number of efficiencies realised. population by 2038 RGS Action Plan sets out two key opportunities for Māori – building a Māori land eco-system to support optimisation, and a Māori land cluster project to engage and support Māori land optimisation at an Six regional hui were also held across the region during enterprise level. the year to create greater awareness and participation of Māori communities with Bay of Connections, He Two of the five cluster projects have been established – Mauri Ohooho, the RGS and other economic activity a dairy cluster based in Ruātoki/Ōpōtiki in association underway. A priority for 2017 is to develop and with Dairy NZ, and a horticulture cluster based in Te implement a robust communications strategy to ensure Puke in association with Tūhono Whenua Ltd. ongoing engagement and awareness.

Another key opportunity identified in the RGS is the The Taiohi Discovery Tour was delivered in March 2016 growing population of Māori youth who can meet the to provide secondary students with a look into New skilled labour shortage. However, it has also been Zealand’s primary industries. It was considered a discovered that smaller communities are finding it success by all involved, with many of the attending difficult to train, develop, attract and retain these youth. students creating a learning plan as a result. The tour demonstrated He Mauri Ohooho’s strong Māori land A Youth Summit was held to engage and work with and industry networks, and provided a base to advance Māori youth, attended by a number of well-known and further youth initiatives. influential Māori. The summit provided a forum to involve Māori youth in the resolution of some of the The coming year will see an increase in consultation most pressing economic and social problems at hand, and collaboration with the regions’ communities, to while also encouraging them to engage and establish develop and implement initiatives with a focus on lasting relationships. economic development at a local level.

25 RUGBY SEVENS Existing sector strategy

2016 highlights:

• Visited Japan to promote the Game On English programme in partnership with New Zealand Trade & Enterprise (NZTE), New Zealand Embassy and Education New Zealand (ENZ) • Met with officials in Tokyo, Fukuoka and Beppu about potential partnerships and Rugby World Cup 2019 • Hosted players from Hong Kong and Japan • Hosted a group from Colombia in partnership with Education New Zealand • Hosted a visit from Sport Nippon University, Japan • Hosted the Bayleys National Sevens tournament • Hosted the North Island Secondary School Girls Tournament and National U15 Sevens Tournament • Hosted the AIMS Games Sevens with record number of teams from across New Zealand • Moved into the new University of Waikato Adams High Performance Centre • Relationship building with University of California • Discussions with Ryugasaki University, Japan to host players in the Bay of Plenty

Establishing the Bay of Plenty as the world’s leading all of which have delivered a number of international rugby sevens service provider, the Bay of Connections team visits to the region in 2016. Sevens strategy is a truly international strategy, implemented in partnership with the Bay of Plenty As well as linking with NZTE key market opportunities, Rugby Union (BOPRU) and supported by ENZ and Bay the strategy also addresses NZRU’s strategic objectives of Connections. around growing the game nationally.

Its goal is to attract the interest and commitment of the In 2016 this was observed by a record number of teams world’s sevens nations, delivering sporting and in the AIMS Games tournament, and increased media economic benefit to the Bay of Plenty through and social media engagement at the 2016 Bayleys employment, revenue and investment. National Sevens tournament.

Promotion of the Game On English programme to the tourname umbers a es nt r n t th Japanese market has continued in 2016 and will m of team to onal Seve e a er s ta ati n escalate in the lead up to the 2019 Rugby World Cup G b c N s m e s S u p y and 2020 Summer Olympics. s e M n l I y d A d a r e B o s 6

c a 1 6 Strong relationships remain at the heart of this strategy

1 0

c and this focus will continue as the team explores further

2 n

I event and team hosting opportunities.

On a wider scale, the strategy maintains a close link with local authorities, and strives to support sister city Close relationships with key off-shore markets identified partnerships, using rugby to unite different cultures on by NZTE include Japan, the United States and China, a social and business level.

26 VISITOR ECONOMY RGS action

2016 highlights:

• Collective agreement to establish a framework to develop four sub-regional strategies and regional priorities • Development of a regional level visitor sector framework • Focus on key streams of work to provide support, including cycling and mountain biking, spa and wellbeing and BOP film industry • Over 10 sub regional stakeholder meetings held • Rotorua Trails Trust appointed to explore strategic cycle development options in Rotorua

Tourism has the potential to grow significantly across A request for proposal was issued in October to develop the wider region and both the Western Bay of Plenty the sub regional and regional strategies with the regional and Rotorua Regional Tourism Organisations have set strategy and cross regional priorities due for completion targets of doubling the value of their visitor industries to in early 2017. The visitor economy work stream has also $1 billion each. With Taupō included, this could been scoping common points of leverage across the become a $2.5 billion regional sector. region with respect to product and propositions.

REGIONAL TOURISM ORGANISATIONS

TARGET TO TARGET VALUE WESTERN BAY OF PLENTY DOUBLE THE $1 BILLION EACH VALUE OF VISITOR ROTORUA INDUSTRIES With Taupō included, visitor economy could become a $2.5 billion regional sector

For the coming year, focus will be on the development It has been particularly pleasing and significant to see a of action plans around the key cross regional priorities cross regional commitment to the Visitor Economy and sub regional strategies, with a strong emphasis on action area, which will undoubtedly deliver economic progressing the regional destination management and social benefit for each sub-region, as well as the approach. wider Bay of Plenty as a whole.

27 WATER RGS action

2016 highlights:

• With funding secured from Bay of Plenty Regional Council, the work stream is looking to gain support from ministry and industry representatives for the development of a water strategy

• Value of Water Bottling ‘think piece’ commissioned by Whakatāne District Council • Completion of strategic assessment of Upper Rangitāiki Plains to determine if flood management can support irrigation opportunities • Worked with Territorial Authorities and IrrigationNZ to progress a SMART watering campaign

Water management is classified as an enabling opportunity in the RGS and as such, it plays a key role ? VALUE OF WATER BOTTLING ‘THINK PIECE’ in the success of the various Action Plan work streams. COMMISSIONED BY WHAKATĀNE DISTRICT COUNCIL With funding secured from Bay of Plenty Regional Council, the work stream is looking to gain support from ministry and industry representatives for the The Bay of Plenty’s fresh water resource is central to the development of a water strategy. This development will future industry growth and economic development of involve engaging with other regional councils to share our region. It is a precious commodity which must be water insights and learnings, while remaining alert to managed with care – water is a tāonga (treasure) and discussions on the national policy statement for fresh mauri (life principle) for Māori, and it is also the water management. lifeblood for our natural environment. A range of initial research and funding work has been The Bay of Plenty is at the forefront of water completed and 2017 will see a water accounting management in New Zealand, with the establishment of framework come to fruition, opportunities outlined in the Lake Taupō Protection Trust and the Rotorua Te the Rangitāiki Plains irrigation study harnessed, water Arawa Lakes Programme. The region also has a bottling ‘think piece’ recommendations executed, and regional water advisory panel in place to assist with the open data water solutions created to provide relevant challenges of fresh water management, which the Bay water information to Bay of Plenty communities. of Connections actively engages with. This panel is made up of representatives from Horticulture New The region’s fresh water management is moving into a Zealand, DairyNZ, Federated Farmers of New Zealand, space where it can be responsibly managed, while Beef + Lamb New Zealand, IrrigationNZ, Forest & Bird, enabling other Action Plan opportunities to maximise Fish & Game, Department of Conservation and iwi. outcomes.

28 FAQs

What is the Bay of Connections? How does the Bay of Connections work?

The Bay of Connections is the regional growth strategy The Bay of Connections identifies the key strengths and for the wider Bay of Plenty region with a vision of areas of opportunity for the wider region, from both creating a prosperous region supported by sustainable developed and developing sectors. It is informed by sectors. It is simple and aspirational, with the aim of data, research, analysis and consultation at a local, establishing and implementing sector-based strategies regional and national level, and is export and that generate job growth. It is also about growing a globally-focused. strong and vibrant community, encouraging collaboration between business and industry, improving wellbeing and encouraging innovation and leadership. Why is it working?

The Bay of Connections provides a simple framework Who is involved in the Bay of for the region to work together, to achieve greater Connections? economic growth. Together, the region has the scale to be nationally and internationally significant. Quite The Bay of Connections is led by a Governance Group simply, it just makes sense to work together. of 12 members – three from business, four from the economic development agencies, two Māori business representatives, a local and central government How will success be measured? representative, and a Collaboration Bay of Plenty representative. The Governance Group is supported by The ultimate measure of success for the Bay of the region’s economic development agencies, central Connections will be through job growth. Other government and the Bay of Plenty Regional Council. measures of success include continual progress and implementation of sector action plans, retention of top industry experts and continued involvement from central Where is the Bay of Connections region? and local government.

The Bay of Connections region covers the wider Bay of Plenty, including Taupō, Rotorua, Tuhua (Mayor I) and Western and Eastern Bay. It covers Waihi Beach 34,000 square kilometres of land and sea. The Bay of Connections also has strong links Whakaari/ White I Katikati Tauranga Cape Runaway into the Waikato. City

Tauranga Te Puke Western Te Kaha Bay of Plenty Moutohora I EASTERN BAY OF PLENTY District Whakatane L Rotorua Opotiki Rotorua Kawerau Opotiki District WESTERN BAY OF PLENTY Kawerau Rotorua District District

Whakatane District ROTORUA Murupara

TAUPO Taupo

L Taupo Taupo District Locality North Island

Turangi

New Zealand

29 BAY OF CONNECTIONS IS THE REGIONAL GROWTH STRATEGY FOR THE WIDER BAY OF PLENTY REGION WITH A VISION OF CREATING A PROSPEROUS REGION SUPPORTED BY SUSTAINABLE SECTORS.

30 Credit: Chris Williams OUR PEOPLE

Pictured left to right

Bryce Heard John Galbraith Jacob Kajavala Fiona McTavish Stacey Whitiora Governance Group Governance Group Governance Group Management Group Chair Management Group Rotorua Business Acting Management Eastern Bay Business BOP Regional Council MPI Toi EDA

Paul Stocks Francis Pauwels Riri Ellis Graeme Marshall Stuart Taylor Governance Group Management Group Governance Group Governance Group Management Group MBIE Destination Rotorua Māori Business Western Bay Business MBIE

Andrea Blair Greg Simmonds Cheryl Lewis Fritz Fröhlke Jacky James Governance Group Management Group Management Group Management Group Management Group Enterprise Great Priority One Bay of Connections Enterprise Great Bay of Connections Lake Taupō Portfolio Manger Lake Taupō Communications

Not Pictured

Andrew Coker Lionel Crawley John Green Doug Leeder Anthony Olsen Jackie Read Governance Group Governance Group Governance Group Governance Group Chair Governance Group Management Group Priority One Collaboration BOP Destination Rotorua BOP Regional Council Chair Māori Business Bay of Connections Support

31 WWW.BAYOFCONNECTIONS.COM