TelferYoung Limited
Northland Economy As Easy As 1 2 3
31 March 2008
In an era of pessimism it is interesting to focus on a number of factors relevant to three key elements of the Northland economy, these being the dairy industry, marine engineering and tourism.
1. Dairy Industry
At a time of peak prices for dairy products, Northland remains one of the few areas in New Zealand where production has not been affected by recent drought conditions. With some regions anticipating reductions in production of up to 30%, Northland is projecting an increase of around 5%. The resulting impact on businesses supporting the rural sector is unlikely to go unnoticed. New Zealand's continued success as a dairy exporter is achieved in spite of an exchange rate high enough to kill many manufacturing businesses, and you can only speculate on the impact to the general economy if the dollar ever drops to what people would regard as a more realistic level. So whilst the rest of the country burns, Northland dairy farmers are quite justified in continuing to tune their fiddles.
2. Marine Engineering
Whangarei has long been a prominent boat building centre and recent years have seen growth in scale and status of many local businesses, to international level. Whilst Super Yacht City failed to catch the world's imagination, the resultant development has provided a substantial luxury boat building facility now fully committed to upmarket maintenance and refurbishment. SMI, a specialist interiors company has recently developed a yard in Croatia to better service the European market. The company has also diversified into refurbishing private aircraft interiors.
Recent years have also seen a revival in the steel hull sector with a number of projects including construction of modules for the ANZAC frigate project as well as a number of coastal patrol vessels for the New Zealand Navy.
The government has recently announced a $2,000,000 funding package to assist a consortium of local business in the further development of this sector. The partnership which includes well known Whangarei companies Culham Engineering and Donovan Engineering are already chasing projects as diverse as a naval vessel for Asia and a major luxury yacht. The group is seen as offering a significant edge over competitors due to their degree of experience. Culhams have long been a leader in chemical storage vessels with construction of coastal tankers being a natural extension.
With private funding the scheme is anticipated to provide an initial boost to the region economy of $20,000,000 with optimum projects seen to lie in vessels up to 95 metres and $30,000,000 in value.
3. Tourism
The Whangarei District Council recently announced a $9,000,000 proposal to develop the former Northland Regional Council offices as a museum and gallery featuring the works of Artist and Sculptor Friedensreich Hundertwasser.
When this proposal was originally raised some years ago by the then District Council, it was treated by many of the Whangarei populus with a degree of scepticism. Whilst known in New Zealand as the designer of the Koru Flag it is probably the subsequent development of a toilet block in Kawakawa which has brought greater local fame.
The success or should we say popularity of his curious toilet block at Kawakawa has now put "train town" back on the tourist map, snapping tourists are now a frequent local traffic hazard.
The original District Council scheme fell by the wayside due to limited public support, including the Regional Council who at the time still owned and occupied the building. The purchase of the property by the District Council as a strategic extension of the Town Basin Environment has solved one obstruction to its development. The acquisition was completed by the previous District Council who sought private sector operators to provide a suitable use for this prime waterfront site. Watch this space to see whether this project comes to fruition.
Whilst the work of Hundertwasser was little known in the southern hemisphere, within northern Europe particularly within his native Austria, he commands a status akin to Le Corbusier (in France) and Antoni Gaudi (in Spain). Love or hate it, the architecture it is impossible to ignore, both its presence and its influence on the modern movement. His style now appears as an intrinsic part of any commercial refurbishment project in Kawakawa and may have a similar effect in Whangarei.
The projected budget has already raised a degree of local objection, however the likely impact of additional tourist spending is likely to be appreciated by the adjoining Town Basin hospitality businesses as well as local motels.
All in all 1, 2, 3 adds up to a positive outlook for Whangarei and Northland.
Nigel Kenny
This monthly paper reflects the views of the writer and may not represent the views of all TelferYoung staff.