Held in Whakatāne on Friday 20th of September 2024
I reiterate my welcome to the Bay of Plenty and in particular to the Eastern Bay of Plenty. Thank you Mayor Tunui and Mayor Moore for entrusting me to speak on behalf of the Councils of the Kawerau, Ōpōtiki and Whakatāne Districts.
Before I get into what it is that we have plenty of in the Eastern BOP a few introductory remarks are in order.
The current state of human civilization has depended for its advancement on what have been termed the 4C’s: Creativity, Critical thinking, Collaboration, and Communication. i.e. we got to where we are by using our brains, communicating and working together.
The harnessing of fossil energy, an indirect result of the powering of Earth by the Sun, led to the steam engine and the first industrial revolution. Energy can come externally or internally.
It is energy plus materials that generates useful stuff which enhances well-being.
Nobel prize-winning economist Joseph Stiglitz - an economist I respect - has put it this way:
“The ‘wealth of nations’ is the result of scientific inquiry - learning about the world around us - and social organisation that allows large groups of people to work together for the common good.
Markets on their own are short-sighted, and the financialization of the economy has made them even more so. They do not fully account for key risks – especially those that seem distant – even when the consequences can be enormous.”
We need Government I say.
Stiglitz goes on to remark:
“Slow economic growth, rising inequality, financial instability and environmental degradation are problems born of the market, and thus cannot and will not be overcome by the market on its own. Governments have a duty to limit and shape markets through environmental, health, occupational safety and other types of regulation. It is also the government’s job to do what the market cannot or will not do, such as actively investing in basic research, technology, education and the health of its constituents.”
Again I say, well-spoken Professor Stiglitz.
If our objective is to lift people out of poverty, then I can’t help but conclude that your Government will play a pivotal role whether that’s banging the broken electricity market into shape or investing in the infrastructure we need for the next century.
The Bay of Plenty
The Bay of Plenty received its English name in 1769 from Capt. James Cook, in recognition of the generous provisions received from Maori living along its shore. He noted golden beaches, abundant marine life, a benign climate and luxuriant forests.
So what is it that we have plenty of?
Our sub-region supports dairy and sheep farming, especially on the fertile Rangitāiki Plains. We are home to the Fonterra milk processing factory, employing 400.
The sub-region is also known for avocado and kiwifruit production which are in a growth phase.
Whakatāne district has 108,500 Ha of planted forest second only to Taupo in the Central North Island region. Kaingaroa Forest covers 2,900 square kilometres of the BOP and is the largest forest plantation in the country.
Timber is processed at Kawerau & Whakatāne to produce pulp, paper and cardboard products for local consumption and export through NZ’s largest export port in neighboring Tauranga. We have the highest concentration of forestry product processing in the country. These were foundational industries in two of the EBOP districts. Combined they probably represent the largest concentration of heavy and energy-hungry industry in the country.
But energy we have aplenty
Whakatāne often ranks #1 for the highest sunshine hours in country. And so is it any wonder that soon we will be the highest solar energy generating district in the country with 180 MW of installed capacity. Hydro plus solar generates a total of 256 MW.
Kawerau generates 182 MW of electricity and 63 MW of process heat. Ōpōtiki will soon be generating 30 MW (Lodestone @ Waiotahi).
This means that EBOP will soon generate about 11% of NZ’s electricity although it accounts for a mere 1% of the country’s population. And there is plenty of additional solar and geothermal capacity to drive more energy-hungry industry. Our ambition is to continue to unlock solar and geothermal energy, helping feed the expansion of industry. Without this additional energy, New Zealand is at risk of de-industrialising.
Our three districts also have plenty of other stuff. Ōhope is one of NZ’s best beaches and the coast to the east is spectacular. Our coastline and ocean resources are assets that not only support tourism. Good sports fishing and offshore Islands have led to a rapidly growing boat building sector currently employing 150 staff.
The ocean off the coast of both Whakatāne and Ōpōtiki are ripe for the development of an aquaculture industry that could potentially be worth billions in the years to come if properly nurtured.
Whakatāne is home to the EBOP’s only hospital which employs 800 staff.
What we don’t have much of is housing and the level of deprivation in our districts is higher than it should be. We would all like to see uplift.
There is also no need why we should stick to primary production. We have abundant energy. The high tech industry in New Zealand is growing and there is no reason why we couldn’t host some of it. The lack of traffic alone must make an argument for enhanced efficiency.
Summing up
We must look for a competitive edge and we must think outside the box!
We have taken all of the aforementioned commentary that I made into account in building our EBOP economic development strategy that is currently under review.
The strategy has been work-shopped with each of the EBOP councils and feedback received as we move toward finalization.
The sub-regional strategy needs to fold into the Regional Economic Strategy and thesub-regional strategy will be approved if it is deemed by council to meet the EBOP needs.
We are not ready today to show our hand because we are not quite there yet and to do so would not be authentic or even useful.
We can however tell you that our sub-regional priorities will play off our combined strengths by focusing on energy, energy intensive industry including aquaculture, agriculture & forestry and waste management. Housing will also form part of the strategy since new workers will need accommodating. Tourism and some other localised priorities in each district will likely be included.
We are very excited by this work and believe it is pulling together a strong sub-regional narrative that defines what is important and where we are going.
We look forward to sharing with you the strategy and projects identified as soon as we are able to.
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