November 2015
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Chch development 36-page liftout - inside
Coast stays positive despite drop Hugh de Lacy It may be the only region in the country to have experienced a decline in population this year, but the figures mask a major shift to sustainability on the South Island’s West Coast, Grey District Mayor Tony Kokshoorn says. “It was a [population] drop of only 128 people – 0.4% of the 32,000 who live here,” Kokshoorn told Business South, “and that’s a very small number if you put it against the huge adjustments we’ve been making over the last five years.” Most of the decline in population occurred in the Buller District, which has been haemorrhaging coal-mining jobs since the Pike River Mine Disaster in 2010 and the subsequent collapse in global coal prices, while the Grey and Westland Districts both recorded slight increases.
“We’ve lost about 1500 jobs all up in the [regional] coal industry and the associated trickledown in other industries associated with mining, yet experienced a population drop of only 128, and if you look at it in that vein we’re holding our ground.” Kokshoorn said he was not expecting a recovery in global coal prices to reignite the industry which has been a major player on the west Coast for most of the last 150 years. “It’s hard to see coal ever getting back to what it used to be, so we’re doing a lot of renewal work, such as infrastructure building for the tourist industry.” Forward tourist bookings for the coming summer were the highest yet, while agriculture, led by dairying was in growth mode despite the recent volatility in milk prices. “The [Hokitika-based] Westland Dairy Company
is just concluding a $120m value-adding expansion that bodes well for the whole region, and in Greymouth we’ve recently finished a new $12m fish processing factory that’s employing well over 100 people,” Kokshoorn said. The expansion of the agriculture, tourism, fishing and service industries had come within a whisker of completely offsetting the near-collapse of the coal industry, the shrinkage in gold-mining and the close-down of Westport’s cement manufacturing industry. “We knew the writing was on the wall for a lot of our extractive industries, so we’ve made a tangible shift to other industries which will hold us in good stead. We might have had a small decline in the face of one of the toughest patches in our history, but we’ve seen the worst now, and we’ve got a strategy in place to re-build the West Coast,” Kokshoorn said.
Tourism, which has shown rapid and consistent growth over the past decade, has been bolstered by environmentally sensitive refurbishing of sewerage and water services in Greymouth, while more than $10 million has been spent developing cycleways throughout the region. Te Tai Poutini, the Greymouth polytechnical institute, was also continuing its long-term expansion, work was expected to start in November on a new $68m hospital in the town, and a new $11m sports stadium was nearing completion to complement that recently built $11m aquatic and spa complex. In the context of a net immigration gain for New Zealand of more than 60,000 in the last year, every South Island region other than the West Coast recorded rises in its population, these were led by Canterbury (2.1%), Otago (1.6%) and Nelson (1.3%).
Kiwi Rail signs contract with Solid Energy Chris Hutching Kiwi Rail and Solid Energy (in voluntary administration) have signed a new contract to move coal over the Midland Line for export through the Port of Lyttelton. Solid Energy has refused to provide any further details about the contract in response about whether the deal would have any constraining effect on its forthcoming sale of assets. The arrangement came to light recently when Kiwi Rail chief executive Peter Reidy told West Coast staff the company had secured a 10-year contract. Reidy said the contract also included a penalty clause should Solid Energy quit the contract. Kiwi Rail’s public relations department says the new contract is “good news” for its staff and the West Coast, which has been hit by the downtusrn in the extractive industry sector. “While the terms and conditions are confidential, signing a new contract means that it can be re-assigned to any potential buyer of Solid Energy or its assets,” Kiwi Rail says. It also means that Kiwi Rail would be able to work with any new operator to meet its freight requirements, the company says.
INSIDE
A taste of London in Queenstown.... New basement bar The London Flatbread Pizza Co & Bar has brought a taste of London nightlife to the heart of Queensown. The Shotover Street venue has proved a hit with locals and visitors alike since it opened in mid-June. General manager Peter Robertson says the simple doorway off the street adds a sense of mystery to the venue, and customers have
Farmers slow on environment plans - PAGE 2
I Port gathering momentum - PAGE 3
been “wowed” by what lies beyond. “People come through the door and are hit by a big vibrant entranceway with music posters plastering the walls, neon signs and a stairwell which has been designed to resemble an underground tube station. When they reach the bar downstairs they are blown away by its size and atmosphere.” See story page 6
Tax changes for holiday homes - PAGE 4
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