BAY OF CONNECTIONS YEARLY REPORT · industry connections. 2016 has been a stand-out year for the Bay of Connections and the progress, relationships and learnings, have us all excited

2016

BAY OF CONNECTIONS YEARLY REPORT

Growth is never by mere chance; it isthe result of forces working together

– James C Penney

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With 13 key sectors now in the Bay of Connections portfolio, its ability to adapt and evolve in a changing environment has become a fundamental element; while retaining its core philosophy of working collaboratively remains at the heart of its operations.

This Yearly Report provides an overview of the activities and achievements of the 2016 calendar year and gives insight into the year ahead.

The past two years have seen the work of the Bay of Connections come into the spotlight more than ever, particularly through the Regional Growth Programme. As the 2016 calendar year comes to a close, it’s time to take a step back and highlight the progress that has been made.

Of particular note, the Bay of Plenty Regional Action Plan moved into its implementation phase in 2016, which has involved the region and central government working together like never before.

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DOUG LEEDER – GOVERNANCE GROUP CHAIR

FIONA MCTAVISH – MANAGEMENT GROUP CHAIR

There are now 10 Regions in the Government’s Regional Growth Programme across New Zealand and with central government, stand as testament to the Programme’s value, while existing relationships have also been strengthened. These relationships are key to ongoing implementation of the Action Plan.

There are now 10 active Regional Growth Programmes across the country, so it is important that we maintain our point of difference. This will be achieved by continuing to work together as a region, without losing sight of our long established, and infinitely important, industry connections.

2016 has been a stand-out year for the Bay of Connections and the

progress, relationships and learnings, have us all excited about what 2017 will bring.

In 2015, the Bay of Plenty was the second region in New Zealand to launch its Regional Growth Study and first to launch and Economic Action Plan, and since then, it has been the leading region in terms of milestones and progress, all while continuing to deliver business as usual.

It has tested our ability to adapt quickly, innovate beyond our normal process and communicate on a wider scale. It’s this quick moving evolution that gives us the edge to excel on a national scale and deliver tangible results.

As the Bay of Plenty Regional Growth Programme has evolved over the

past 12 months, so too has the Bay of Connections. This evolution is essential for Bay of Connections to remain relevant and responsive to the needs of growth and development in the region, while maintaining its key philosophies of collaboration, connectedness and being industry led.

The RGS and its implementation has seen the wider region align growth activities, and work towards a common goal like never before. It is imperative to further build on, and maintain, this connectedness.

In addition to its strong relationships with government, Bay of Connections never loses sight of the fact that it exists for industry to grow our economy and generate jobs.

The benefits of a growing economy have a positive impact on everyone in our region – from industries and businesses, through to communities and individuals. With a more prosperous region comes a greater chance of better social and economic benefits.

With nine years of work now under its belt, Bay of Connections is well and truly in a position to play its part in helping to build a more prosperous region, where we stand together to win.

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CHERYL LEWIS – PORTFOLIO MANAGER

2016 has seen another year of evolution as Bay of Connections grows

and develops to the next stage. After its birth at the end of 2007, Bay of Connections spent the first four formative years finding its feet and establishing its connections, partners and purpose. By 2011 we had a strong portfolio, with industry groups and strategies for Forestry, Freight Logistics, Energy, Rugby Sevens and Aquaculture. We were at a point where we could credibly communicate our achievements. Over the last two years, we have consolidated our purpose and grown to another level.

The addition of the Regional Growth Programme has seen increased accountability, awareness and responsibility for Bay of Connections – a challenge we have embraced. And because Bay of Connections is a coalition of the willing and like-minded, it continues to be an enjoyable and constructive journey. Our relationship with central government is fantastic. We openly and genuinely work alongside our central government colleagues, and view them as a key part of the Bay of Connections family.

Since inception, the growth of Bay of Connections has been an organic, natural progression, not forced nor too prescribed, with the right people coming together at the right times. We’ve never underestimated the power

and importance of trusting relationships, honesty and integrity, which is the essence of Bay of Connections. We’re industry led, for the benefit of the region, and here to help regional growth happen.

So after nine years of care and nurturing, the Bay of Connections baby has come a long way and made great friends across the country. It is ready and willing to run into 2017 with more energy and enthusiasm than ever.

Thank you to everyone who has played a role in Bay of Connections during 2016, no matter how small it may have seemed, every person has been important. 2017 is going to be magnificent.

SINCE INCEPTION, THE GROWTH OF BAYOF CONNECTIONS HAS BEEN AN ORGANIC,NATURAL PROGRESSION, NOT FORCED NORTOO PRESCRIBED, WITH THE RIGHT PEOPLECOMING TOGETHER AT THE RIGHT TIMES.

WE’RE INDUSTRY LED, FOR THE BENEFITOF THE REGION, AND HERE TO

HELP REGIONAL GROWTH HAPPEN.

“2017 is going to be

magnificent”

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MISSIONTO DELIVER SECTOR-BASED

STRATEGIES AND ACTION PLANS

THAT GENERATE AND ENCOURAGE

ADDITIONAL SUSTAINABLE

EMPLOYMENT FOR THE

BAY OF PLENTY.

VALUESWE WILL COLLABORATE

IN OUR COMMUNITY WITH

INTEGRITY, RESPECT AND

TRANSPARENCY, AND IN

A FRIENDLY MANNER.

VISIONBAY OF PLENTY

– A PROSPEROUS

REGION SUPPORTED

BY SUSTAINABLE

SECTORS.

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Bay of Connections is the regional growth strategy for the wider Bay of Plenty, with a vision of creating a prosperous region supported by sustainable sectors. It is simple and aspirational, with the aim of establishing and implementing sector-based strategies that generate job growth.

At the heart of the strategy are the philosophies of collaboration and connectedness. Through working together at a regional, national and international level to connect the right people, places, businesses, organisations and industries, the benefits from within and into the region are boundless.

The Bay of Connections is also responsible for the Toi Moana Bay of Plenty Regional Growth Programme, working alongside the sub-regions of the wider Bay of Plenty, as well as the Ministry of Business, Innovation and Employment, Ministry for Primary Industries, Te

Puni Kōkiri and New Zealand Trade and Enterprise, amongst others.

Since its inception in 2008, Bay of Connections has made a significant impact on the region’s development, contributing to regional growth and national influence. As it nears its first decade of operation, the Bay of Connections continues to evolve and adapt to the constantly changing environment, ensuring relevancy and value of actions, while acting as a reliable and supportive guide for the future success of the region.

Bay of Connections is industry-led, with a strong commercial and action focus. It is a coalition of the willing where participation by interested stakeholders is wholly encouraged.

Join us, as we continue to evolve and work together to grow our region and communities.

BAY OF CONNECTIONS OVERVIEW

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EDA UPDATES

Destination Rotorua, Francis Pauwels

The Bay of Connections can be proud of the way in which the region and central government is working together to implement the RGS. For the Rotorua region, this has meant tangible support and focus on Agribusiness, Forestry and Wood Products, Māori Land Utilisation and Visitor Economy.

A key highlight for 2016 was the Changing Perceptions of Engineered Timber for Construction (CPETC) conference, supported by the Ministries of Business Innovation and Employment and Primary Industries, to identify how more engineered timber can be utilised in New Zealand. By working in partnership, we start the journey of building understanding and confidence in further strategic investments. The RGS is a powerful tool to engage with central government, entities across the region and most importantly, maintain a specific focus on new investment and job opportunities.

Enterprise Great Lake Taupō, Fritz Fröhlke

As our involvement with Bay of Connections matures, we find the cooperation between economic development agencies has also deepened and added to our sense of working together. New Zealand is a very small place in the world, let alone the Bay of Plenty. So in order to attract businesses, foreign direct investment and skilled immigrants to our region, we need to stand united and offer these people what they need. Looking back on 2016 the standout success was the completion of the RGS and this project now moving into its implementation phase. As an example, even though we are miles away from Ōpōtiki, it is a great example of what can be achieved if a larger overarching organisation gets in behind a smaller town and project to provide a united push. To us, that is what the Bay of Connections is all about, and we are cheering Ōpōtiki and the region’s other communities all the way.

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Toi-EDA, John Galbraith

The Eastern Bay of Plenty grew strongly across all sectors in the economy in the year to June 2016, with a 3.7% lift in GDP flowing through to increased employment, incomes and spending. These are the best results seen in the decade that Toi EDA has been keeping records of Eastern Bay specific growth.

Workforce development is a key project area for Toi-EDA, reflecting the emerging proposition that “social development is the next wave in economic development.¹” Over the year, the project progressed from a focus on improving local employment participation in the thriving kiwifruit industry, to delivering the Pathways to Work component of the Ōpōtiki harbour validation study, in conjunction with Whakatōhea Māori Trust Board. The approach demonstrates how local and iwi-led initiatives can integrate with regionally and nationally-led strategies, including the Toi Moana Bay of Plenty Regional Growth Programme and He Mahere Matauranga Matua mo Tatau, the Bay of Plenty Tertiary Intentions Strategy.

¹Shifting Workforce Development into High Gear. Economic Development Research Partners. Author: Emily J. Brown. 2015

Priority One, Greg Simmonds

Implementation of the RGS and Action Plan has been a key area of focus for both Bay of Connections and Priority One in 2016.

The establishment of the Bay of Plenty Tertiary Intentions Leadership Group, chaired by Sir Michael Cullen, represented a significant milestone in implementing the region’s education action plan, with numerous projects underway throughout the region to support employment pathways and job related training.

In addition, the merger of Waiariki Institute of Technology and Bay of Plenty Polytechnic to create New Zealand’s third largest polytechnic – Toi-Ohomai, together with the appointment of the University of Waikato’s Academic Director for the new Tauranga CBD Campus, will see the Bay of Plenty transformed into a tertiary destination of choice. This will enable the Bay of Plenty region to grow, attract and retain the talented people required to achieve the opportunities presented in the RGS Action Plan.

Credit: Sara McGovern

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2016 HIGHLIGHTS

• First annual Bay of Connections and RGS Forum held in Whakatāne with over 150 attendees including Ministers Steven Joyce, Simon Bridges and Anne Tolley

• Mānuka Action Group (MAG) established, comprised of Māori land owners, bee keepers, research organisations, key processors, exporters and local government

• $3 million funding announcement made by Economic Development Minister Steven Joyce and Associate Economic Development Minister Te Uruora Flavell, for the Ōpōtiki harbour development validation project

• Ōpōtiki Harbour design and identifications of construction costs is underway and should be complete by mid 2017

• Whakatōhea Mussels Ōpōtiki Ltd harvested first commercial load of mussels for domestic market

• Tertiary Intentions Leadership group established

• ME Programme business case completed by New Zealand Kiwifruit Growers (NZKGI) and Katikati College

• First cohort of 20 trainees graduated from the Workforce Development Centre, Te Pou Oranga o Whakatōhea. Eight students have moved into employment while some are continuing to complete educational units.

• Engagement with a geothermal Direct Use Group (DUG) made up of geothermal industry market leaders including Mercury, Contact Energy, Ngāti Tūwharetoa Geothermal Assets Ltd, Tauhara North No.2 Trust and GNS Science

• Delivered keynote presentation profiling the Bay of Connections Energy Strategy at Downstream NZ Conference

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• Supported Bay of Plenty Film Office Trust in a fact-finding and relationship building mission to the United States

• Changing Perceptions of Engineered Timber for Construction (CPETC) 2016 conference

• Completion of the Forest Economic Advisers research on the New Zealand opportunities for engineered wood products

• The He Mauri Ohooho kiwifruit productivity cluster and Eastern Bay dairy cluster are both underway with Māori Trusts

• Taiohi Discovery Tour delivered in partnership with Tai Wānanga and DairyNZ - students were presented with an all-encompassing look into New Zealand’s primary industries – from paddock to market.

• Bay of Plenty Youth summit 2016 hosted with 45 Māori rangatahi in attendance

• “All of government” pathway established to improve the wellbeing of Omaio through kiwifruit development

• Omaio information day attended by Minister for Māori Development, Zespri chief executive, Ōpōtiki Mayor and over 100 local landowners and trustees

• Omaio based Trustee Governance and Leadership Development programme underway and water case study completed to inform the wider New Zealand water policy and planning for a potential irrigation system

• Visited Japan to promote Game On English program in partnership with New Zealand Trade & Enterprise, New Zealand Embassy and Education New Zealand

• Request for proposal issued to develop the first regional level visitor economy framework and identify regional priorities

• Secured funding for the development of a water strategy

• Value of Water Bottling ‘think piece’ commissioned by Whakatāne District Council

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BAY OF PLENTY REGIONAL GROWTHPROGRAMME

The Bay of Plenty Regional Growth Programme has been a key project for the Bay of Connections since the beginning of 2014. In June 2014, government publically announced the Programme with the purpose of growing jobs, investment and income opportunities in regional New Zealand.

In the Bay of Plenty, the Regional Growth Programme is affectionately known and referred to as the RGS.

Phase 1: Regional Growth Study

Phase one involved developing the Regional Growth Study, led by the Ministries of Business, Innovation and Employment (MBIE) and Primary Industries (MPI) at the national level, and Bay of Connections at the regional level. Consultants MartinJenkins were commissioned to prepare an independent report to identify a range of short to mid-term opportunities (0-10 years) that could assist in increasing investment, employment and incomes in the region. The RGS focused on the wider Bay of Plenty’s strengths and where central and local government, iwi, industry and the community can work together to increase investment, employment and incomes. The independent study was launched by Ministers in May 2015.

Phase 2: Action Plan

Phase two included developing an Economic Action Plan, to identify how key opportunities can be realised, who is responsible and by when.

1 REGIONAL GROWTH STUDY

3 IMPLEMENTATION

2 ACTION PLAN

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First Regional GrowthStudy annual forum,

held at Mataatuamarae in Whakatāne

on 6 July, 2016

FIRST ANNUALFORUM

High stakeholderawareness, interestand engagementwith more than150 attendees

ATTENDANCE& INTEREST

The inaugural forumprovided invaluable

feedback to theRGS action planimplementation.

INVALUABLEFEEDBACK

quarterly and Action Plan updates are available on the Bay of Connections website every eight to ten weeks.

Oversight of the action plans takes place at Bay of Connections Management level, with overall governance at the Bay of Connections table.

Stakeholder engagement is critical for the successful implementation of the Action Plan, and as such, Bay of Connections has strengthened its database and e-newsletter capability to ensure its messages reach the right people.

The first RGS annual forum, held at Mataatua marae in Whakatāne on 6 July, 2016, indicated high stakeholder awareness, interest and engagement with more than 150 attendees. This inaugural forum provided invaluable feedback to the ongoing implementation.

Connectedness

As anticipated in phases one and two, the Action Plan work streams are inextricably linked with many aligned opportunities and obstacles. As phase three develops, these links have become more evident and action leads are ensuring connectedness across actions.

The RGS has similarities with other regional growth programmes across the country, and the region will collaborate, contribute, share information and support other regions whenever relevant.

During its development, five workshops were held across the region, asking stakeholders to prioritise the opportunities in the RGS. The region told us that nine key areas should be prioritised for development:

Agribusiness

Aquaculture

Education and skills

Forestry and wood processing

Geothermal

Horticulture

Māori land utilisation

Visitor economy

Water management

An RGS Action Group worked with relevant stakeholders and government representatives to develop actions for each area of opportunity.

Progress on other opportunities not listed in the Action Plan will continue as business as usual through existing Bay of Connections action groups, relevant economic development agencies and/or industry groupings.

The final Action Plan was launched by Ministers in the region on 29 October, 2015.

Phase 3: Implementation

In order to achieve the successful implementation of the RGS Action Plan, regional ownership and leadership is required, including the need to be agile as things progress and change.

Bay of Connections has continued its leadership role in this programme, while central government has remained a key partner with representation on the Bay of Connections Governance and Management Groups.

Each of the nine action plans have a regional lead responsible for co-ordination and progress reporting. A central government action lead provides implementation and central government pathway support to each regional lead. The action leads meet

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AS BAY OFCONNECTIONS

CONTINUES TO EVOLVEWITH MORE ACTIVITY AND

PEOPLE INVOLVED, IT ISIMPORTANT TO ENSURE THEREIS A SOUND UNDERSTANDING

OF HOW BAY OF CONNECTIONSWORKS, NOT JUST IN THE

REGION, BUT ACROSS NEWZEALAND AS WELL.

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As Bay of Connections continues to evolve with more activity and people involved, it is important to ensure there is a sound understanding of how Bay of Connections works, not just in the region, but across New Zealand as well.

This new model illustrates the Bay of Connections ecosystem, where economic development agencies and local and central government work together to deliver

the strategies and Regional Growth Programme actions under the Bay of Connections portfolio.

These fast paced and dynamic relationships keep this ecosystem humming, and the ripple effect of support is felt by all. By working together, a robust environment for success has been developed, that will ultimately see the Bay of Plenty thrive.

REGIONAL DEVELOPMENT ECOSYSTEM

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CENTRAL GOVERNMENT

REGIO

NA

L AGEN

CIES

MANAGEMENT GROUP

GOVERNANCE GROUP

LOCAL GOVERNMENT

AQUACULTURE

AGRIBUSINESSEDUCATION AN

D S KILLS

ENERGY

WATER

VISITOR ECONOM

Y

RUGBY SEVENS

FILM

HORTICULTURE

GEO

THERMAL

FREIG

HT LOGISTICS

FORE

STRY

CONNECT

TRIENNIAL MAYORAL FORUM

COBOP

MAORI

CENTRAL GOVERNMENT

Agribusiness is a significant economic driver in the wider Bay of Plenty, underpinned by the region’s climate and natural resource base. This stream of work is closely connected with the Forestry, Horticulture and Māori Land Utilisation work streams, as well as with other Regional Growth Programmes across New Zealand. Collaborative work with each of these is well underway.

This includes the development of a cross work stream approach to delivering independent information to landowners on their land use capability, and developing a simple, cost effective approach to assessing options for their land.

Two key priorities identified in the Action Plan are the diversification of income risks where farmers are exposed to a single commodity sector, and reducing nitrogen discharges into waterways.

In the coming year, interest levels for an agribusiness group will be gauged, while profitable and low nutrient

land use options will also be promoted to Lake Rotorua catchment landowners, under the Low Nutrient Land Use Fund.

There is an increasing demand across the world for high Unique Mānuka Factor (UMF) grade Mānuka honey for cuisine, medical and healthcare products.

New Zealand exports of Mānuka honey are continuing to grow at a rate of 30 per cent per year, and latest figures valued exports at $281 million in 2015 – it is a key priority of this action area to ensure ongoing growth and sustainability for this industry in the region.

The establishment of a Mānuka Action Group was a key millstone for 2016. As the scope of its work programme is identified, along with a sector assessment and mapping, the group aims to be an advocate of the rapidly growing sector, helping to increase the region’s Mānuka honey production.

30% INCREASE PER YEAR

NEW ZEALANDMĀNUKA HONEY

EXPORTS

2016 highlights:

• Appointment of Agribusiness lead, Warwick Murray following tender process

• Mānuka Action Group (MAG) established, comprised of Māori land owners, bee keepers, research organisations, key processors and exporters, and local government

• Scoping work towards the development of a MAG work programme commenced

• Current status assessment of Mānuka in the region started

• Māori Mānuka conference held with a high level of interest and national media coverage

AGRIBUSINESSRGS action

2015 EXPORTSVALUED AT $281

MILLION

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Aquaculture has been a key focus for Bay of Connections since its inception and the development of its Aquaculture Strategy in 2013. The Regional Aquaculture Organisation (RAO), which steers the strategy, was heavily involved in the development of the RGS and continues to be involved in the current implementation of the Action Plan.

Aquaculture is a small sector in the Bay of Plenty, however the growth potential suggests the Bay of Connections Regional Aquaculture Strategy could be well on its way to achieving its goal of $250 million in export sales by 2025. A key component of this is the Ōpōtiki seafarm and harbour development venture, which is a cornerstone of the Bay of Connections Regional Aquaculture Strategy and RGS Action Plan.

The government support felt by the Ōpōtiki community during the visit from Economic Development Minister Steven Joyce and Associate Economic Development Minister Te Ururoa Flavell and Anne Tolley was invaluable to the progress of the Ōpōtiki developments.

The volume of shares purchased by Ōpōtiki locals emphasised this support and as a result, additional lines were able to be placed in the water – increasing to 136 lines in October 2016. A new purpose-built vessel has allowed these lines to be installed, maintained and harvested with a local crew.

Significant work is underway on five key elements of the harbour project – harbour entrance, processing plant, wharf and land, marine farm, pathways to work and additional harbour uses. Additional work to add value is also underway by a range of stakeholders. Work on each of these elements will be pulled together into a business case for Government in 2017/18, and will ensure success and sustainability of the harbour once complete.

Once in full operation, the combined activity from the sea farm and mussel processing facility is conservatively projected to generate an increase in GDP of $40-55 million annually and at least 220 new sustainable jobs.

$250m

BY 2025

GOAL OF

IN EXPORT SALES

2016 highlights:

• $3 million funding announcement made by Economic Development Minister Steven Joyce and Associate Economic Development Minister Te Ururoa Flavell on October 2015, for the Ōpōtiki harbour development validation project

• Ōpōtiki harbour development project established including Whakatōhea, industry, local and central government

• Call for statements of interest and ability for the design and construction of the Ōpōtiki harbour entrance made in February 2016

• Two tenderers selected to complete request for proposal in September 2016

• Two tenderers selected to complete request for proposal for design and construction, due March 2017

• Whakatōhea Mussels Ōpōtiki Ltd purchased a purpose-built marine farming vessel

• Whakatōhea Mussels Ōpōtiki Ltd released shares to raise capital to put extra lines in the water, and received significant support from the Ōpōtiki community

• Whakatōhea Mussels Ōpōtiki Ltd harvested first commercial mussels for domestic market in October 2016, which were hugely popular and sold out within days

AQUACULTUREExisting sector strategy & RGS action

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Having an educated and skilled workforce is critical to improving productivity and incomes in the Bay of Plenty.

Education and skills were identified as key enabling opportunities in the RGS, and since the launch of the Action Plan in October 2015, the work stream has made significant progress.

The forecast growth across the region’s key industries is set to create increased demand for skilled labour. A commitment to raising young Māori participation and attainment levels in education lies at the heart of this work stream, and significant work is underway to build trusting relationships with iwi, education providers, industry and community stakeholders.

In 2014, the Bay of Plenty Tertiary Intentions Strategy (TIS) was developed as a guide to ensuring the needs of the region are met by an educated and skilled workforce. Off the back of this strategy, a Leadership Group has been established, chaired by Sir Michael Cullen and comprised of 18 local community, iwi,

business and education provider representatives. Moving into 2017, the Leadership Group will implement its priority actions which include developing a framework for secondary school engagement with Māori, showcasing education and employment pathways in the region’s key sectors and drivers licensing.

Through the advocacy work of the TIS and actions of the education and skills work stream, the Bay of Plenty has the potential to become a tertiary destination of choice, helping to grow, retain and attract the talent needed for a sustainable and prosperous region.

helping to grow, retain andattract the talent neededfor a sustainable andprosperous region.

Bay of Plentyhas the potential

to become a

TERTIARYDESTINATIONOF CHOICE,

2016 highlights:

• Tertiary Intentions Leadership Group established

• ME business case completed by New Zealand Kiwifruit Growers (NZKGI) and Katikati College

• Eastern Bay of Plenty Pathways to Work project implemented

• He Mauri Ohooho Māori Youth project initiated

• Ngā Wahine Whakamana programme initiated through Instep

• Education hui held with 26 Mataatua iwi leaders in attendance

• Te Rau Aroha Leadership and Governance Development programme advanced to support the Omaio kiwifruit project

• University of Waikato campus in Tauranga architectural plans developed

• Waiariki Institute of Technology and Bay of Plenty Polytechnic merged to create Toi-Ohomai

EDUCATION & SKILLSRGS action

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The Bay of Plenty has a considerable number of geothermal resources, including the seventh largest geothermal field in the world, however, this source of energy is currently underutilised.

Geothermal energy brings with it a number of benefits including financial cost savings, particularly for energy-intensive industries, as well as reinforcing New Zealand’s ‘clean, green’ brand as it is a low-carbon, renewable energy.

Geothermal energy is a key enabling opportunity in the RGS, and has the potential to add a competitive advantage to other action streams that cannot be realised in any other region across New Zealand.

In 2016, the key focus of activity has been on achieving greater insights into target markets to understand key drivers and influencers. These learnings have then

formed a commercial proposition which includes financials, branding and tangible business benefits, which will be communicated to target markets.

The development of a ‘geothermal honey’ business case is underway, intended to start a conversation with potential users, and further case studies will be developed in 2017 in conjunction with other Action Plan work streams. In addition to this, a business model for geothermal distribution and business attraction will be developed.

Iceland is the leading country at utilising its geothermal resource for a broad range of industries, including tourism, horticulture, energy and many more. Acting action lead, Andrea Blair’s visit to Iceland was as much insightful as it was inspirational, and she will be leading a Direct Use Group delegation to Iceland in 2017.

The coming year will also see the delivery of the Start to Steam Direct Use Geothermal Workshop.

The activity undertaken by the Energy Strategy and Action Plan Geothermal work stream has seen swift momentum over the past year and will see this energy resource grow alongside the businesses that harness its benefits.

LARGEST GEOTHERMAL FIELDBay of Plenty

has the 7THWORLDIN THE

2016 highlights:

• Revised 2016 Energy Strategy published

• Energy Management for Business breakfast held and presentations made to groups throughout the region

• Establishment of electric vehicle infrastructure forum and funding submission made the Energy Efficiency and Conservation Authority

• Engaging with a geothermal Direct Use Group (DUG) made up of geothermal industry market leaders, to identify investment barriers and next steps

• Delivered keynote presentation profiling the BOC Energy Strategy at Downstream NZ Conference

• Engagement with Māori Geothermal Advisory Group

• Visit to Iceland to scope geothermal direct use opportunities

• Presentation to Minister Bridges and government officials on geothermal direct use operations in Iceland

ENERGYExisting sector strategy & RGS action

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2016 highlights:

• Bay of Plenty Film launch with keynote speaker Sir Bob Harvey endorsing vision for a thriving screen media industry in the Bay of Plenty

• Produced the short film Just 3 Girls as part of the Mainstreet mid-winter festival

• Establishing connections that have seen the industry begin to flourish, with individuals getting employed and others encouraged to develop their own projects

• Support from Bay of Connections

• Visited the United States to attend the Association of Film Commissioners International (AFCI) Cineposium

An exciting opportunity has emerged to support the Bay of Plenty Film Office Trust to grow the screen industry in the Bay of Plenty.

Bay of Plenty Film is a not-for-profit trust, which aims to attract international productions to base themselves and film in the Bay of Plenty, as well as grow the industry at a grassroots level by encouraging and fostering local productions and raising the skill base in the region.

Bay of Connections supported the Trust in a fact-finding and relationship building mission to the United States. This included attending the Association of Film Commissioner’s International Cineposium 2016 and meeting with influential industry members in Los Angeles.

Following the United States visit, BOP Film’s current focus is now on the development of an ‘Establishment Package’, which consists of a business case, stock-take of the local skill base, equipment and locations, a revamped website and a show reel to market the Bay of Plenty internationally as a home for international screen productions.

The Trust has also since received calls from overseas producers, and is looking forward to proactively marketing the wealth of Bay of Plenty filming assets nationally and internationally.

The exposure that Pete’s Dragon recently gave our region, along with the unquestionable success of Hobbitton in Matamata, highlight the positive impact that the screen media industry has on a visitor economy.

Developing a thriving screen media industry in the Bay of Plenty can contribute to the economic development of our region, not only in the immediate financial injection that screen productions bring, but also in the long term visitor economy that follows the screening of a production.

The 2013-2014 International Visitors Survey shows that The Hobbit was a factor in stimulating interest for 13 per cent of people visiting New Zealand, and in Los Angeles as an example, the economy sees greater value from its associated tours, than from the initial film production.

13%THE HOBBIT WAS A FACTOR IN STIMULATINGINTEREST FOR 13% OF PEOPLE VISITING NZ

FILMEmerging strategy

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The Central North Island is New Zealand’s centre for forestry and related processing. The combination of the region’s natural resources, emerging technologies, established support infrastructure, research capabilities, and the increasing relevance of Māori as land and forest owners, present a unique set of opportunities to stimulate the industry’s future growth.

The Bay of Connections Forestry and Wood Processing Action Group (FWAG) has a responsibility to support industry growth through advocacy, communication and collaboration, through which it strives to achieve its goal of maximising growth opportunities though two key areas – improved market access and afforestation.

Significant processing capability investment by operators within the region, combined with a strong projected demand growth, particularly from Asia, means the Bay of Plenty has the potential to compete internationally in processed wood product markets.

Engineered wood products have been a key focus for 2016, as they offer a way to add further value to New Zealand logs, while meeting a growing market demand.

The Changing Perceptions of Engineered Timber for Construction (CPETC) 2016 conference highlighted three key challenges the New Zealand industry is facing:

1. Limited awareness, understanding and knowledge of engineered timber soloutions

2. Mindset and perception

3. Availability of technical data and costs

Leveraging these learnings for timber use opportunities will be a key focus for FWAG in the coming year, while working alongside industry and government to improve the uptake of engineered wood products.

Landowners are facing increasing pressures in the form of Emissions Trading Scheme considerations and water quality regulations, bringing alternative land uses to the fore. It is possible that afforestation will be a real alternative for landowners and land use modelling work, which is currently underway, will assist in the decision and promotion of forestry as a credible alternative.

STRONG PROJECTEDDEMAND GROWTH,PARTICULARLY FROMASIA, JAPAN, AND KOREA

2016 highlights:

• Submission made to the Emissions Trading Scheme

• Changing Perceptions of Engineered Timber for Construction (CPETC) 2016 conference

• Examining the forward wood flow projections for the Central North Island to better understand the log supply over the next 30 years

• FWAG visit to Sequal Lumber in Kawerau

• Kawerau container terminal/rail extension feasibility study commenced

• Forest Economic Advisors (FEA) review on the global outlook for engineered wood products with research on NZ opportunities for engineered wood products

• Promoting afforestation on suitable land

• Appointment of FWAG chairman, Bryce Heard, as coordinator

• Six well-attended bi-monthly meetings

FORESTRY & WOOD PRODUCTSExisting sector strategy & RGS action

Credit: Norske Skog Tasman Ltd

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The Freight Logistics Action group (FLAG) has established its role as an authoritative and representative voice for the logistics sector in the central and upper North Island. Insights provided by the group to the development of the RGS were invaluable, and transport infrastructure is viewed as an enabling opportunity that has an influence on all other action streams.

Support for the Kawerau container terminal and rail extension project, which was included in the Action Plan and initiated in April 2016, will continue in 2017 as the

economic and logistical feasibility study nears completion. If successful, the container terminal will connect Kawerau and the wider Eastern Bay of Plenty with the Port of Tauranga or Auckland, harnessing the efficiency opportunities of rail over road.

In 2016, FLAG made a submission to the New Zealand Transport Agency (NZTA) on progressing high productivity motor vehicle (HPMV) to the 25m/64 tonne envelope and developed a suite of high-volume, point-to-point designated routes within the region for interim implementation. FLAG will continue to promote this case for container and freight handling in 2017.

There is a current focus on providing input into the NZTA research project, which aims to model freight flows and economic development in the upper North Island.

FLAG will continue to explore and advocate for alternative transport options, while addressing their implications in a climate changing world.

Proposed container terminal to connectKawerau and the wider Eastern BOPwith the Port of Tauranga, harnessing theefficiency opportunities of rail over road.

2016 highlights:

• Provided infrastructure opportunity insights into the RGS

• Facilitated discussions on Verified Gross Mass (VGM) for container shipping and its impact

• Submitted on high productivity vehicles and the vehicle dimensions and mass review proposal consultations

• Supported NZTA planning workshops for key routes in Waikato/Bay of Plenty – SH1 / SH2 / SH29 and provided forecasts for forest yields and locations for road planning

• Freight advisor representation on Regional Land Transport Committee

• Supported Ruakura inland port / freight hub in district plan

• Assessed the impact of a major biosecurity event on the region’s logistics and supply chains and initiated management plans

• Promoted logistics careers at the Western Bay @ Work Careers Expo held in Tauranga

• Strengthened relationship with the Road Transport Forum in a view to continue to grow sector collaboration

• Support of potential development of Kawerau Container terminal

• Started a conversation on electric vehicles and the technology development required for powering heavy freight vehicles

FREIGHT LOGISTICSExisting sector strategy & RGS action

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2016 highlights:

• He Mauri Ohooho kiwifruit productivity cluster underway with Māori Trusts

• ME business case completed by New Zealand Kiwifruit Growers (NZKGI) and Katikati College

• Cross work stream activity to develop a targeted approach to supporting landowners make informed land-use decisions

• “All of government” pathway established to improve the wellbeing of Omaio, through 150ha of kiwifruit development across multiple Māori land blocks

• Omaio information day attended by Minister for Māori Development, Zespri chief executive, Ōpōtiki Mayor and over 100 local landowners and trustees

• Omaio based Trustee Governance and Leadership Development programme underway with 20 students studying towards a level 4 certificate in Māori Governance

• Omaio water case study completed by Ministry for Primary Industries and Ministry for the Environment, to inform wider New Zealand water policy and feed into the business case for a potential irrigation scheme

use development, with the potential to transform 150ha of low productivity land into kiwifruit orchards. The project seeks to create 100 new local jobs with greater utilisation of Māori land, fully owned and led by the Omaio community.

It has been established as the first “all of government” initiative and government support has been received for three key work streams – joint venture/investment, a water case study and a trustee governance and leadership development programme.

Education and skills were seen as requiring significant focus in the RGS, particularly in relation to the horticulture sector. During the implementation of the Action Plan, the two streams have been closely aligned and the launch of the ME Programme at Katikati College will see an increase in skilled students transitioning to the horticulture industry.

The horticulture work stream has begun its journey to harness the opportunities set out in the Action Plan, and is already showing signs of contributing towards both the Zespri goal of increasing revenue from its current $1 billion to $3 billion by 2025, and the RGS goal of job creation and land development in the region.

The Bay of Plenty has a well-established horticulture sector, with kiwifruit comprising over two thirds of the region’s horticulture GDP and being responsible for nearly 80 per cent of New Zealand’s kiwifruit exports.

Consultation during the development of the Action Plan highlighted the immediate priority of unlocking Māori land for kiwifruit development, through promotion of the industry as a key opportunity to increase land productivity.

A kiwifruit productivity cluster has been established through the Bay of Plenty’s Māori Economic Development Strategy, He Mauri Ohooho, and a number of Māori Trusts are currently undertaking a 12-month programme to improve orchard productivity and business resilience.

Omaio, near Te Kaha in the Eastern Bay of Plenty, was identified in the Action Plan as a key location for land

The Bay of Plentyresponsible for

nearly 80% of NZ’skiwifruit exports

HORTICULTURERGS action

23

Existing sector strategy & RGS action

MĀORI LAND UTILISATION |HE MAURI OHOOHO

2016 highlights:

• Taiohi Discovery Tour delivered in partnership with Tai Wānanga and DairyNZ

• 2016 Bay of Plenty Youth summit hosted with 45 Māori rangatahi in attendance

• Dairy and horticulture cluster projects initiated

• Secured representation from Rotorua and Eastern Bay of Plenty on the He Mauri Ohooho Advisory Board

• Relationships with key networks and agencies being developed to realise shared opportunities for He Mauri Ohooho and Māori Land Utilisation

• Provided support for several Māori Collectives to make application for central government funds

• Held six engagement hui for regional consultation and identification of development projects

• Attended and contributed to Te Oniao Conference, He Kai Kei Ringa Forum and the Bay of Connections and RGS Forum

He Mauri Ohooho is the Bay of Connections Māori Economic Development Strategy for the wider Bay of Plenty, and is New Zealand’s first regionally-coordinated Māori development strategy of its kind. Launched in 2014, the strategy strives to improve health and wellbeing for Māori in the region, as iwi are seen as key to realising economic development.

Māori account for 15 per cent of New Zealand’s population and growing numbers indicate this proportion could be 20 per cent by 2038. Engaging Māori today is fundamental for the future success of the region.

In 2015, the RGS reinforced the importance of the work of He Mauri Ohooho, and added another layer of impact through the establishment of the Māori Land Utilisation action work stream.

ENGAGING MĀORI TODAY IS

FUNDAMENTAL FOR THE FUTURE

SUCCESS OF THE REGION.

24

Credit: Kieran Scott and Firstlight

With an established Māori Advisory Board guiding the actions of the strategy, it made sense from a knowledge, relationship and resource point of view to task this group with the implementation of the Māori Land Utilisation action stream. 2016 has proved this decision was the right one, with the actions becoming inextricably linked and a number of efficiencies realised.

RGS Action Plan sets out two key opportunities for Māori – building a Māori land eco-system to support optimisation, and a Māori land cluster project to engage and support Māori land optimisation at an enterprise level.

Two of the five cluster projects have been established – a dairy cluster based in Ruātoki/Ōpōtiki in association with Dairy NZ, and a horticulture cluster based in Te Puke in association with Tūhono Whenua Ltd.

Another key opportunity identified in the RGS is the growing population of Māori youth who can meet the skilled labour shortage. However, it has also been discovered that smaller communities are finding it difficult to train, develop, attract and retain these youth.

A Youth Summit was held to engage and work with Māori youth, attended by a number of well-known and influential Māori. The summit provided a forum to involve Māori youth in the resolution of some of the most pressing economic and social problems at hand, while also encouraging them to engage and establish lasting relationships.

Six regional hui were also held across the region during the year to create greater awareness and participation of Māori communities with Bay of Connections, He Mauri Ohooho, the RGS and other economic activity underway. A priority for 2017 is to develop and implement a robust communications strategy to ensure ongoing engagement and awareness.

The Taiohi Discovery Tour was delivered in March 2016 to provide secondary students with a look into New Zealand’s primary industries. It was considered a success by all involved, with many of the attending students creating a learning plan as a result. The tour demonstrated He Mauri Ohooho’s strong Māori land and industry networks, and provided a base to advance further youth initiatives.

The coming year will see an increase in consultation and collaboration with the regions’ communities, to develop and implement initiatives with a focus on economic development at a local level.

Māoriaccount for 15%

of New Zealand’spopulation

Growingnumbers indicatethis proportioncould be 20%

by 2038

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2016 highlights:

• Visited Japan to promote the Game On English programme in partnership with New Zealand Trade & Enterprise (NZTE), New Zealand Embassy and Education New Zealand (ENZ)

• Met with officials in Tokyo, Fukuoka and Beppu about potential partnerships and Rugby World Cup 2019

• Hosted players from Hong Kong and Japan

• Hosted a group from Colombia in partnership with Education New Zealand

• Hosted a visit from Sport Nippon University, Japan

• Hosted the Bayleys National Sevens tournament

• Hosted the North Island Secondary School Girls Tournament and National U15 Sevens Tournament

• Hosted the AIMS Games Sevens with record number of teams from across New Zealand

• Moved into the new University of Waikato Adams High Performance Centre

• Relationship building with University of California

• Discussions with Ryugasaki University, Japan to host players in the Bay of Plenty

Establishing the Bay of Plenty as the world’s leading rugby sevens service provider, the Bay of Connections Sevens strategy is a truly international strategy, implemented in partnership with the Bay of Plenty Rugby Union (BOPRU) and supported by ENZ and Bay of Connections.

Its goal is to attract the interest and commitment of the world’s sevens nations, delivering sporting and economic benefit to the Bay of Plenty through employment, revenue and investment.

Close relationships with key off-shore markets identified by NZTE include Japan, the United States and China,

all of which have delivered a number of international team visits to the region in 2016.

As well as linking with NZTE key market opportunities, the strategy also addresses NZRU’s strategic objectives around growing the game nationally.

In 2016 this was observed by a record number of teams in the AIMS Games tournament, and increased media and social media engagement at the 2016 Bayleys National Sevens tournament.

Promotion of the Game On English programme to the Japanese market has continued in 2016 and will escalate in the lead up to the 2019 Rugby World Cup and 2020 Summer Olympics.

Strong relationships remain at the heart of this strategy and this focus will continue as the team explores further event and team hosting opportunities.

On a wider scale, the strategy maintains a close link with local authorities, and strives to support sister city partnerships, using rugby to unite different cultures on a social and business level.

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Existing sector strategy

RUGBY SEVENS

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TARGET TODOUBLE THE

VALUE OF VISITORINDUSTRIES

WESTERN BAY OF PLENTY

$1 BILLION EACH

ROTORUA

REGIONAL TOURISM ORGANISATIONS

TARGET VALUE

With Taupō included, visitor economycould become a $2.5 billion regional sector

Tourism has the potential to grow significantly across the wider region and both the Western Bay of Plenty and Rotorua Regional Tourism Organisations have set targets of doubling the value of their visitor industries to $1 billion each. With Taupō included, this could become a $2.5 billion regional sector.

For the coming year, focus will be on the development of action plans around the key cross regional priorities and sub regional strategies, with a strong emphasis on progressing the regional destination management approach.

A request for proposal was issued in October to develop the sub regional and regional strategies with the regional strategy and cross regional priorities due for completion in early 2017. The visitor economy work stream has also been scoping common points of leverage across the region with respect to product and propositions.

It has been particularly pleasing and significant to see a cross regional commitment to the Visitor Economy action area, which will undoubtedly deliver economic and social benefit for each sub-region, as well as the wider Bay of Plenty as a whole.

2016 highlights:

• Collective agreement to establish a framework to develop four sub-regional strategies and regional priorities

• Development of a regional level visitor sector framework

• Focus on key streams of work to provide support, including cycling and mountain biking, spa and wellbeing and BOP film industry

• Over 10 sub regional stakeholder meetings held

• Rotorua Trails Trust appointed to explore strategic cycle development options in Rotorua

RGS action

VISITOR ECONOMY

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2016 highlights:

• With funding secured from Bay of Plenty Regional Council, the work stream is looking to gain support from ministry and industry representatives for the development of a water strategy

• Value of Water Bottling ‘think piece’ commissioned by Whakatāne District Council

• Completion of strategic assessment of Upper Rangitāiki Plains to determine if flood management can support irrigation opportunities

• Worked with Territorial Authorities and IrrigationNZ to progress a SMART watering campaign

The Bay of Plenty’s fresh water resource is central to the future industry growth and economic development of our region. It is a precious commodity which must be managed with care – water is a tāonga (treasure) and mauri (life principle) for Māori, and it is also the lifeblood for our natural environment.

The Bay of Plenty is at the forefront of water management in New Zealand, with the establishment of the Lake Taupō Protection Trust and the Rotorua Te Arawa Lakes Programme. The region also has a regional water advisory panel in place to assist with the challenges of fresh water management, which the Bay of Connections actively engages with. This panel is made up of representatives from Horticulture New Zealand, DairyNZ, Federated Farmers of New Zealand, Beef + Lamb New Zealand, IrrigationNZ, Forest & Bird, Fish & Game, Department of Conservation and iwi.

Water management is classified as an enabling opportunity in the RGS and as such, it plays a key role in the success of the various Action Plan work streams.

With funding secured from Bay of Plenty Regional Council, the work stream is looking to gain support from ministry and industry representatives for the development of a water strategy. This development will involve engaging with other regional councils to share water insights and learnings, while remaining alert to discussions on the national policy statement for fresh water management.

A range of initial research and funding work has been completed and 2017 will see a water accounting framework come to fruition, opportunities outlined in the Rangitāiki Plains irrigation study harnessed, water bottling ‘think piece’ recommendations executed, and open data water solutions created to provide relevant water information to Bay of Plenty communities.

The region’s fresh water management is moving into a space where it can be responsibly managed, while enabling other Action Plan opportunities to maximise outcomes.

VALUE OF WATER BOTTLING‘THINK PIECE’

COMMISSIONED BYWHAKATĀNE DISTRICT COUNCIL

?

WATERRGS action

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FAQs

What is the Bay of Connections?

The Bay of Connections is the regional growth strategy for the wider Bay of Plenty region with a vision of creating a prosperous region supported by sustainable sectors. It is simple and aspirational, with the aim of establishing and implementing sector-based strategies that generate job growth. It is also about growing a strong and vibrant community, encouraging collaboration between business and industry, improving wellbeing and encouraging innovation and leadership.

Who is involved in the Bay of Connections?

The Bay of Connections is led by a Governance Group of 12 members – three from business, four from the economic development agencies, two Māori business representatives, a local and central government representative, and a Collaboration Bay of Plenty representative. The Governance Group is supported by the region’s economic development agencies, central government and the Bay of Plenty Regional Council.

Where is the Bay of Connections region?

The Bay of Connections region covers the wider Bay of Plenty, including Taupō, Rotorua, and Western and Eastern Bay. It covers 34,000 square kilometres of land and sea. The Bay of Connections also has strong links into the Waikato.

How does the Bay of Connections work?

The Bay of Connections identifies the key strengths and areas of opportunity for the wider region, from both developed and developing sectors. It is informed by data, research, analysis and consultation at a local, regional and national level, and is export and globally-focused.

Why is it working?

The Bay of Connections provides a simple framework for the region to work together, to achieve greater economic growth. Together, the region has the scale to be nationally and internationally significant. Quite simply, it just makes sense to work together.

How will success be measured?

The ultimate measure of success for the Bay of Connections will be through job growth. Other measures of success include continual progress and implementation of sector action plans, retention of top industry experts and continued involvement from central and local government.

Whakatane

Tuhua (Mayor I)

Moutohora I

Whakaari/White I

L Taupo

Te Puke

Cape Runaway

Waihi Beach

WesternBay of Plenty

District

TaurangaCity

LocalityNorth Island

New Zealand

Tauranga

Rotorua

RotoruaDistrict

Kawerau

KawerauDistrict

L Rotorua

Katikati

Murupara

Whakatane District

Opotiki

Opotiki District

Te Kaha

Taupo

Taupo District

Turangi

EASTERN BAY OF PLENTY

WESTERN BAY OF PLENTY

ROTORUA

TAUPO

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BAY OF CONNECTIONSIS THE REGIONAL GROWTHSTRATEGY FOR THE WIDER

BAY OF PLENTY REGION WITH AVISION OF CREATING APROSPEROUS REGION

SUPPORTED BYSUSTAINABLE SECTORS.

Credit: Chris Williams30

Pictured left to right

Not Pictured

Paul StocksGovernance Group

MBIE

Stuart TaylorManagement Group

MBIE

Greg SimmondsManagement Group

Priority One

Andrew CokerGovernance Group

Priority One

Anthony OlsenGovernance Group

Māori Business

John GreenGovernance Group

Destination Rotorua

Fritz FröhlkeManagement Group

Enterprise GreatLake Taupō

Fiona McTavishManagement Group Chair

BOP Regional Council

Stacey WhitioraManagement Group

MPI

Jacob KajavalaGovernance Group

Eastern Bay Business

Bryce HeardGovernance Group

Rotorua Business

John GalbraithGovernance GroupActing Management

Toi EDA

Cheryl LewisManagement Group

Bay of ConnectionsPortfolio Manger

Jacky JamesManagement Group

Bay of ConnectionsCommunications

Jackie ReadManagement Group

Bay of ConnectionsSupport

Doug LeederGovernance Group Chair

BOP Regional Council Chair

Riri EllisGovernance Group

Māori Business

Francis PauwelsManagement Group

Destination Rotorua

Andrea BlairGovernance Group

Enterprise GreatLake Taupō

Graeme MarshallGovernance Group

Western Bay Business

Lionel CrawleyGovernance Group

Collaboration BOP

OUR PEOPLE

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WWW.BAYOFCONNECTIONS.COM