Business South 4 2015

Page 1

September 2015

www.waterfordpress.co.nz

Transport World 12-page lift-out

Plenty to come yet - Townsend Jo Bailey Although some pundits have suggested otherwise, the Canterbury rebuild has reached a plateau, and not a peak, says Peter Townsend, chief executive of Canterbury Employers’ Chamber of Commerce (CECC). “Around $100 million a week is being spent in Canterbury, and we will continue to spend huge amounts of money over the next three or four years. “It is important the right message is sent to the community and those involved in the rebuild.” An estimated 40 percent of rebuild projects are complete or underway, leaving a significant amount of work still to do. Townsend says the general mood of the business community is positive, with the millions being poured into the local economy through insurance payouts, government funding and other sources each week providing a buffer against the worst impacts of the dairy downturn. “The downturn is significant given dairying represents 20 percent of our total exports and 5 percent of GDP. “Canterbury is now right up there with Waikato in terms of the amount of dairying activity so there will definitely be some impact. “However the money locked into the rebuild means we’re in good shape to withstand the volatility of the dairy upheaval.” Townsend expects the difficulties facing the primary sector to accelerate diversification in other sectors, “which is not a bad thing”. “The underlying economy in Canterbury is still strong. Tourism is growing, with a doubledigit increase in passenger numbers through Christchurch International Airport.” Townsend agrees there is some frustration around the delays to the development of the key anchor projects in the city, but says some “clear messages” from Earthquake Minister Gerry Brownlee are helping bring that to an end. He expects news on the convention centre soon, following the recent announcement progressing the Metro Sports Centre development. “The other key precincts are starting to progress, with the bus precinct finished; innovation precinct going gang-busters; the eastern frame housing project, river precinct and justice centre still developing, and some more definite framework being established for the health precinct.” He says there is significant activity from private investors coming back into the central city, but it is critical there is clarity around the future of the cathedral and convention centre.

INSIDE

“There is still an aura of uncertainty around this part of the city.” Around 75 percent of the vacant land in the central city is now spoken for, with many of the larger corporates such as banks and accounting firms signaling a desire to come back into the central business area. Power company Meridian recently announced its return, and will bring hundreds of staff back to the city’s heart. “We don’t expect everyone who was in the city centre before the earthquakes to come back, but that is not too concerning. “Times have changed and the central city is going somewhere new, with a different offering in terms of the mix of businesses, hospitality, retail, and accommodation providers.” The CECC is currently working on an assessment across the greater Christchurch community, which will provide a broader overview of rebuild progress. “There are a people with a lot of knowledge about small parts of the puzzle, but we don’t have an overall picture of where things are at. “We’re looking beyond the key anchor projects to the progress being made at organisations such as Port of Lyttelton, Canterbury and Lincoln Universities, and Housing New Zealand to give us a wider perspective.” The assessment should be released in early September, to coincide with the fifth anniversary of the first earthquake. Townsend says the Collaborate Canterbury initiative, which brought companies from outside the region together with companies in Canterbury to collaborate on rebuild projects has been “very successful”. “The initiative had 566 business engagements from outside the region and 299 from inside, with 32 collaborations confirmed or in progress. “It has probably reached the stage where it will carry on by itself without us being so actively involved.” Townsend is also on the transition advisory board, which presented some “quite radical” ideas on how the city’s regeneration phase should be led and governed, which included the establishment of a new entity Regenerate Canterbury. “We’ve made recommendations about what needs to change in the post-CERA environment which have been well received by the government,” he says. “We’re waiting for the ink to dry on the final structure and are confident we have the right transfer from central control to local control over time under an appropriate governance body.”

Confusion over Easter hours - PAGE 2

Alpine village draws closer - PAGE 3

Deputy Prime Minister Bill English, left, with Porters Ski Area shareholder Simon Harvey. Photo: John O’Malley

Porters all set for lift-off.... Canterbury’s Porters ski area has celebrated the official opening of its new $3.5 million Easy Rider Chairlift. Deputy Prime Minister Bill English, who did the honours, said it was encouraging to see the investment being made in the skifield. “Tourism is a major earner for New Zealand, and, despite the strong dollar, has been gowing steadily,” he said. “There is some serious capital being invested here, and it’s investment that will make a difference.” The chairlift is part of about $15m invested in the field so far by the existing owners

Red Devils heat up the ice - PAGE 4

on consents, earthworks and base area improvements. Porters shareholder Simon Harvey said the new chairlift was already paying off, with the skifield on track to getting record visitor numbers for this season. “It’s been a good snow year and we’re reaping the benefits of that investment and the changes we’ve made on the field. So it’s very encouraging. Meanwhile Harvey says plans for further investment, including the development of an alpine village at the base of the ski area are progressing well. See Story page 3

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