DCC briefed on economy

The key to Dunedin lifting itself out of recession is population and public/private investment, one of several analysts giving Dunedin City Council councillors a closed-door briefing yesterday said.

It was the second annual briefing, arranged by the council's economic development unit, to give an impartial view on international and national economics and the implications for Dunedin, unit manager Peter Harris said.

The four speakers were Kel Sanderson, director of Business and Economic Research Ltd, ANZ/National Bank chief economist Cameron Bagrie, Dunedin-based Asian economy analyst Rodney Jones, and Joy Gunn, of the Ministry of Social Development.

Before the briefing, Mr Sanderson said the key for Dunedin was population and investment, both private and local body.

He was a keen supporter of Dunedin's rugby stadium ambitions.

"Once finished it can be used to enhance the city through hosting other events and attracting people here," he said.

While aware Dunedin rates were rising by possibly 7.3%, in part to pay for the stadium, and council debt ballooning more than 10-fold in a decade to $360 million, he said the rating would "smooth out the inter-generational burden" of payments and the council was right to have borrowed, as opposed to charging ratepayers.

"Studies on Wellington's stadium have its economic benefits at two-times those forecast," he said.

Dunedin's population gains had increased from 300 annually in 2006-08 to almost 800 in 2008-09.

While the gains were small, Auckland had gone from a 4000 person gain per year to a 3500 annual loss, mainly domestic.

Mr Sanderson favoured development of mixed-use "high density" areas nearer city centres, which were cheaper to develop per head of occupant, with council's rezoning when necessary to allow for mixed use, residential and commercial development, by private developers.

"It is often overlooked; population growth means density in the heart of the city."

Mr Sanderson said the model was not high density "slum" development.

Auckland's use of the concept had worked to good effect in up-market suburbs of Remuera and Newmarket.

Mr Harris said yesterday the unit was initiating a new 10-year economic development strategy for the city.

The year-long process would include the Otago Chamber of Commerce, Otago Southland Employers Association, University of Otago and other organisations.

"It will not be just a strategy for the council to adopt, but all participants," Mr Harris said.