Pitching the region's strengths

Steven Joyce
Steven Joyce
Some impressive statistics were released this week by Economic Development Minister Steven Joyce as he launched a set of 14 regional investment profiles at the New Zealand and Australia Economic Development Forum.

The profiles will be used by the Government, New Zealand Trade and Enterprise and regional economic development agencies to identify investment opportunities where there is a regional advantage, aiming to help guide investors quickly and effectively to regions where opportunities are strongest.

Although Otago obviously has to compete with the 15 other regions for investment - both domestic and overseas - there is some remarkable information included in this region's profile.

Otago presents opportunities for investment in education and learning, design technology and niche manufacturing.

The region's university, polytechnic and support agencies combined to develop an export-focused cluster in design technology and niche manufacturing, the profile says. Looking closer at the information presented, and you find there are 40 specialised engineering firms operating in the region.

There are more patents per head of population than the New Zealand average.

Port Otago is regarded as the South Island's primary export port and the region contains two international airports in Dunedin and Queenstown.

Some clouds hang over the future of international flights out of Dunedin but, in the meantime, the airport is part of an impressive regional transport hub.

When looking at who has invested in Otago, Scott Technology is one of Dunedin's listed companies which provides specialist engineering solutions to the world.

There are others which have invested in the region, including such companies as Animated Research, Silver Fern Farms, Skyline Enterprises, Pacific Edge and myriad smaller manufacturing, tourism and technology companies.

For those interested in investing in viticulture, there are 120 wineries in the region.

Some overseas investors are listed, such as hotel owner Accor, Louis Vuitton Moet Hennessy (wineries) and Shell New Zealand.

Among the facts included in the profile was the gem of Dunedin having the highest concentration of residents with post-graduate qualifications.

The average regional housing price is $238,000 compared with the national average of $430,000.

Importantly, for those seeking to move businesses to the region, the average net office rent per square metre is $235, below the national average of $250.

The region has a higher employment rate than the rest of New Zealand but the average household income, at $78,000, is below the national average.

The latter is one of the not-so-good things in the report.

The solution to that problem appears to be in front of us all.

Higher incomes will come with new investment and a new economy.

The rural economy currently plays a huge role in the region and higher farm incomes mean benefits throughout the community, but there must be more to the regional economy than just relying on high meat, wool and dairy prices.

Tourism is growing, but perhaps wages and salaries need to increase also to help lift the average income.

Quality wine is a major export from the Queenstown-Central Otago Lakes District, but are the rewards for the effort of producing high-standard wine flowing back into the community?

Throughout Otago, world-class technology companies operate.

Business and community leaders in the province, particularly those in Dunedin, need to look at the snapshot of what Otago has to offer and throw off some of the traditional conservatism often seen.

The theme of any investment pitch must be Otago promoting itself in the private sector, with government funding coming as a secondary consideration.(Of course, that is far easier said than done because the Government, through its funding of health and education services in the city, provides a major financial boost through the University of Otago's medical and dental schools and the Otago Polytechnic's operations.)

The region needs to celebrate what it has, protect its current investments and aim much higher.

By attracting investment, sought-after high-paying jobs will come - but only if the region as a whole combines to sell a positive, innovative, forward-thinking story.

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