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ANNUAL 2007 NORTHLAND REGIONAL FOCUS

NORTHLAND'S ECONOMIC STATE OF PLAY

Results of the 2006 Census illustrate the growth which the Northland region has experienced over recent years both economically and in terms of its population. Northland has grown by approximately 10,000 people over the last two census periods since 1996. The population count for the 2006 census in Northland was 148,470, an increase of 5.9 percent over the last five years and 8.3 percent since the 1996 census. Whangarei has experienced the greatest levels of growth with five and ten year population growth rates of 10.1 and 12.2 percent respectively, compared to 4.2 and 6 percent in the Far North and 3.5 and 4.8 in the Kaipara District.

The growth in Northland’s economy is reflected in the wage growth of its residents. According to Enterprise Northland Economic Indicators 2006 the proportion of the population, aged over 15 years, earning less than $20,000 per annum fell from 60 percent in 2001 to 48 percent in 2006 as more people moved into higher income brackets, particularly $30,001 to $40,000 per annum. The proportion of local residents falling within this bracket increased from 10 percent in 2001 to 14 percent by 2006.

The unemployment rate in Northland dropped from a significant 10.2 percent recorded in the 2001 Census to 6.5 percent in 2006. The number of businesses located in Northland has almost doubled over the inter-censual period from 9,930 in 2001 to 17,461 in 2006, an increase of 76 percent.

Industry-wise, Northland has performed very well with its three most lucrative industries being pastoral farming, forestry and wood processing and tourism. The pastoral farming sector, which includes dairying, beef, sheep and deer, contributes over $1 billion to the local economy annually and provides around 14 percent of the region’s jobs. Over the last 15 years the industry has doubled in productivity as a result of research and development and looks set to continue to prosper in years to come, particularly in the current environment of high commodity prices.

Tourism is the second-biggest income generator contributing $637 million to the region’s economy and providing around 11 percent of employment. The region’s temperate climate and rich cultural history provide a strong basis for an industry which is expected to grow substantially. The Ministry of Tourism forecast visitor expenditure to increase 31.9 percent, from the 2005 total of $627 million to $827 million by 2012.

Forestry and wood processing is the region’s third largest industry employing more than 2500 people. According to the Northland Regional Council the forestry harvest in the area is expected to increase threefold from the current annual one million tonnes within the next few years.

Looking to the future, ongoing economic growth in the region will be assisted by a number of planned infrastructure improvements, primarily improved road and rail links. Included is the upgrade and realignment of State Highway 1 (SH1) between Albany and Puhoi. Construction for section B1, from Orewa to Puhoi, began in December 2004 and completion is projected for mid-2009. Completion of this highway upgrade will benefit Northland, reducing the travelling time from Auckland to Northland by ten to fifteen minutes and providing a safer route.

A rail link has been proposed which will provide another freight option for Marsden Point based businesses. The proposed rail link will be from the existing North Auckland Line (NAL) at Oakleigh, approximately 25 km south of Whangarei City. From there it will travel eastward to link with Marsden Point’s deepwater port.

The Oakleigh Marsden Point rail link has been adopted as an infrastructure priority within the latest Northland Regional Council proposed District Plan, given the contributions the rapidly developing Bream Bay area makes to Northland’s economy. In this regard the Northland Regional Council has agreed to contribute $3.3 million to the project. Benefits from the rail link would include reducing forestry-related traffic on the region’s roads and helping to attract other big businesses to the Marsden Point area.