Economic crossroads reached

Nikki Kaye
Nikki Kaye
The $19 million funding boost to help ease pressure on Wanaka's expanding school rolls has come at a welcome time for the region.

The announcement, made at the weekend by Education Minister Nikki Kaye, was part of the Government's $465 million pledge to spend more on education infrastructure, as set out in Budget 2017.

Also, it appears a wider redevelopment of Wanaka's only secondary school has already been discussed. Earlier, a $6.7 million redevelopment of Kaikorai Primary School was announced.

According to an ASB/Main Report regional scorecard issued yesterday, Otago remains a five-star economy but has slipped down the ranking. The scorecard says future projects remain healthy, although the total value of construction consents are off their recent peaks. It is likely the three latest education announcements are not even at the consent stage as yet, and will push the value back up. As the Christchurch earthquake rebuild winds down, particularly in the industrial sector, work is becoming available in the South, including both Otago and Southland.

A five-star ranking is as good as it gets and indicates an economy which is ``steaming''. Southland remains on two stars but has moved off the bottom of the 16-region scorecard to be ahead of Canterbury, once the top performer in the South.

If you are wondering how Otago can slip five places and yet remain a five-star economy, the answer is simple. Otago activity in both tourism and construction has been ``exceptionally strong'' but has now fallen to just ``very strong''. A small enough fall, but enough for the ASB/Main Report to notice. As this newspaper has noted before, there are some impediments to Otago continuing to steam along unimpeded. The main restriction is attracting skilled staff to the region. And the Government's latest immigration changes will not help.

The Otago-Southland Employers Association says businesses are continuing to ask for access to skilled migrants for jobs New Zealanders are not available to fill. There are marked skilled shortages across the tourism and accommodation sectors. Construction, if the current pace of activity is to be maintained, needs more workers and IT companies continue to report skill shortages.

The Otago Chamber of Commerce says the region is at a major crossroads for infrastructure renewal and construction and is suggesting the Government investigate all avenues to attract investors to the regions. One of those options is public private partnerships (PPPs), which the Government has already used with some success in the North Island. Australia uses the partnerships widely in the construction of roads, schools and hospitals.

The region is short of quality accommodation for the expected increase in tourists. Skilled staff contribute to an enhanced experience. New Zealanders are ideally suited to fill these jobs but it seems there is a lack of enthusiasm. Construction workers cannot be manufactured overnight. Training takes time.

Top-level meetings must be held between relevant Government ministers, central government and business leaders to quickly solve what may become a mini-crisis for the region. The argument is ages-old: families want their children to have access to quality jobs close to home to stop them having to move north or overseas for opportunities. Auckland is already struggling under the burden of immigration but the South is waiting with open arms - and in some cases with open wallets.

There needs to be a viable plan to attract investment to Otago because good people always follow the money. Already, the region boasts an impressive list of business people willing to use their own money for investment. Queenstown Lakes Mayor Jim Boult bestrides both sectors. He cannot do the job alone. It is time for all levels of government and business to work to ensure the economic strength of Otago continues to rise.

 

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