USA Tour Report (May 2013)

16 06 2014

Thanks to a generous gift from the Orangi Kaupapa Trust, I was able (and required as a condition of receiving the gift) to do something I wanted to do for myself. It’s only taken a year to write this brief account of the trip.

Manu Caddie, June 2014

 

Los Angeles – Gang Intervention & Prevention

Josh Wharehinga (Ka Pai Kaiti) and I had the privilege of visiting Homeboy Industries, an organisation started 25 years ago by a Catholic priest and a few church volunteers in a Los Angeles ghetto.

Myself, Francisco & Josh Wharehinga at Homeboy Industries

Myself, Francisco & Josh Wharehinga at Homeboy Industries

Our tour guide Francisco had parents from two rival gangs, he was six years old when his best friend had his head blown off as they walked to school and were confronted by another young person wanting to know which gang the boy affiliated to. At 14 Francisco had his first child and soon after did a ten year lag in prison after taking the rap for another gang member’s crime.

Homeboy Industries now employs around 300 ex-gang affiliated young people in a number of social enterprises. The people who come to Homeboy Industries typically stay for 18-24 months before transitioning into other businesses around the city.

The organisation bakes 1,000 loaves of bread each day and sells them in farmers markets, a café and bakery. They also run a successful screen-printing business, retail shop and tattoo removal service. A free counselling service is available and during the move to permanent work, a team of employment placement supervisors ensure the workers and employers have access to regular support over the transition period.

Francisco has been with Homeboy Industries for nearly two years and beyond all the work skills, therapy and tattoo removal he has received, the most important thing from his perspective was the unconditional love and acceptance he found in Father Greg and the other people of faith at Homeboy Industries.

Francisco now shares the faith in action he experienced through this group of believers. Rather than expecting these hurt, confused and often distrusting young people to join a church, a community of faith has been established and become a beautiful physical, social and spiritual home for many otherwise marginalised members of society.

 

Portland – Liveable City

I spent three days in Portland, Oregon primarily because I was interested experiencing the ‘cycling capital of America’.

Massive spaces on Portland roads for cycles.

Massive spaces on Portland roads for cycles.

Understanding how the city had evolved over the last 40 years – radical neighbourhood democracy in the early 70s paved the way for resident action while very conservative administrations led the city through the 80s and 90s. Now the city boasts a massive network of cycleways and neighbourhood development projects thanks in large part to the neighbourhood groups established a long time ago.

While the cycleways are an impressive feature of the city, compared to Gisborne and other New Zealand cities, there still seemed to be a high reliance on private cars. I was fortunate to participate in a May Day protest and got a taste of the culture of the city that has been the basis of the brand ‘Keep Portland Weird’ – the quirky, alternative lifestyle ‘dream of the 90s’ is alive in Portland as the ‘Portlandia’ song goes.

On my way to the Red and Black Café, an anarchist coffee shop, pub and bookstore – I popped in briefly to visit ADX, a cooperative space that ‘in a few short years has incubated over 100 start-ups and 200 crowd-sourced projects’ – an impressive shared design and construction space that a number of start-ups use to establish themselves. Kind of a craft and construction version of the Enspiral model we have seen emerge in Wellington. I think there is lots of potential for these kinds of initiatives but the capital and space required needs to come from somewhere like the philanthropic sector, local government or well-established business sponsors.

 

Chicago – Participatory Budgeting

My main reason for travelling to the USA was to attend the 2nd Annual Conference on Participatory Budgeting in the United States and Canada.

PB Chicago street sign

PB Chicago street sign

Participatory Budgeting internationally owes some of its roots to initiatives that were undertaken in Christchurch in the early 1990s – these are often cited by overseas practitioners and experts as important models they recognise as leading to further innovations in other countries like Brazil, Europe and North America.

I registered for a pre-conference workshop at the Great Cities Institute at UIC College of Urban Planning & Public Affairs. This was a valuable introduction to current PB practice and trends in the USA.

Following the workshop we attended the opening plenary ‘The People’s Budget: Participatory Budgeting in Mexico, New York, and Chicago’ at Madero Middle School in West Chicago, this was a public event in Spanish with English interpretation – a great example of bi-ligualism in practice and something I envied having raised our children only speaking Te Reo Māori to them. The neighbourhood is very depressed but PB is thriving and a New York City councillor shared her experience of PB as well.

PB projects that citizens can vote for.

PB projects that citizens can vote for.

I was fortunate to have a presentation selected to share on ‘Public Finance Planning in New Zealand Local Government’, it received a favourable response from attendees. It was in the first workshop session so I got to enjoy the rest of the conference without any nervous wait. I was not disappointed, all of the sessions I attended were inspiring, practical and provocative. I brought home many resources, ideas and contacts that I intend to use in my paid and voluntary work for years to come. The Pacific Centre for Participatory Democracy is an idea I have used for the last ten years and I plan to formalise it over the next few years and I expect PB will be a key part of its work plan.





Perfect timing for PCE freshwater report

21 11 2013

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A report on freshwater management released today by the Parliamentary Commissioner for the Environment was exquisite timing given the release this month of two important regulatory documents according to District Councillor Manu Caddie.

A proposed National Objectives Framework (NOF) for Freshwater by the Ministry for the Environment is currently being consulted on and has received mixed responses from freshwater experts so far. The NOF, for the first time ever, sets absolute bottom lines for freshwater quality to protect ecosystems and human health. Some scientific commentators have said it is good that these bottom lines have been established, while others have criticised the proposed acceptable levels as too low and questioned the decision to exclude macroinvertebrates (small living critters in freshwater systems) as a measure of stream health as recommended by the expert panel advising the process.

A local Freshwater Advisory Group discussion document on the development of a regional Freshwater Plan will also be released by Gisborne District Council for consultation this month with a proposal for collaborative planning in the Waipaoa catchment.

“Irrigation demand is expected to increase dramatically over the next 30 years and establishing consensus amongst stakeholders and users while protecting the life sustaining qualities of waterways is going to be really important” said Mr Caddie.

Mr Caddie said the PCE report paints a fairly positive picture of the Gisborne region in terms of water quality improvements from tree planting and hillsides reverting to indigenous bush.

“While Dr Wright’s report will have most implications for the regions that have seen massive dairy intensification, there are some good news stories in terms of the comparatively low levels of nitrogen and phosphorous in our waterways – in fact according to the report.”

“Gisborne is the only region predicted to have these nutrients decrease in our water, largely as a result of the farm conversions to forestry. Large areas of steep land have been, and are predicted to continue to be, converted to forestry. As a result, nitrogen and phosphorus loads in the Waiapu catchment are predicted to decrease by 10% and 2% respectively below 1996 levels by 2020.”

The report notes the productivity of sheep/beef farming has improved by about 20% over the last twenty years. This increase may be more attributable to efficiency gains such as advances in animal genetics than to increased fertiliser inputs. The productivity of plantation pine forestry has not significantly changed in the last two decades. The report suggests Government plans to double the value of primary exports by 2025 should not be at the expense of the environment.

ENDS





The Weight of Risk and the Risk of Waiting

15 10 2013

HDC Oil_Page_06

A paper I presented at the Oil & Gas Symposium, Hastings District Council, 11 October 2013.

DOWNLOADS:





Chamber of Commerce Q+A

21 09 2013

MyPositionFarms

 

The Gisborne Chamber of Commerce asked candidates five questions, these are my responses…

- – -

I have enjoyed first term on Council, part of that was on the Chamber Executive and I’d like to see those links strengthened a little more as I think Brian Wilson and myself acted as a useful conduit between the Council and Chamber on a number of issues.

I think I’ve been able to make intelligent, sensible and considered contributions to Council and I’ve helped raise the quality of discussion, debate and decision-making.

I’ve had a focus on increasing public involvement in planning and decisions and been a strong advocate for the city and the district as a whole.

I have listened to residents and ratepayers (even after being elected!), worked well with others (who don’t always share the same values and views) and helped make good decisions in the best interest of the region as a whole.

- – – 

1. What do you see as the GDC’s role in contributing to economic development and growth in this region?

Council has a key role in a number of areas contributing to economic development:

  1. Providing good quality infrastructure, predictable regulation & consistent planning
  2. Collecting and disseminating information that helps the community make informed decisions on the direction for the district
  3. Advocating for the district at central government – ensuring our big issues are nationally significant issues.
  4. Facilitating relationships between stakeholders to realise opportunities and achieve sustainable solutions in the best interest of the district where there are competing priorities.

Some of functions within these areas, particulatly information gathering and sharing, advocacy and relationship brokerage could be devolved to an Economic Development Agency run separate to Council. But the Mayor and Council have a critical leadership role in advocating on behalf of the region – especially on things like roading, new costs being imposed by central government legislation, etc. And political leadership can help broker mutually beneficial relationships with industry, iwi, land owners, research institutions, entrepreneurs, etc.

Council can also have procurement and banking policies that benefit the local community in different ways.

- – -

2. What is your view of the core role of council? Do you consider there are any current council activities that do not fit this role?

Under new legislation the purpose of local government is now to provide quality infrastructure, regulation & essential services. Opposition parties have pledged to revert the purpose back to promoting sustainable development and local cultural, environmental, social and economic wellbeing.

I’m not completely wedded to Council providing social housing. I have argued it could be sold to a Charitable Trust, housing cooperative or something like ECT but wouldn’t want to see them go to private ownership. I’m also open to Council not owning any or all of its commercial assets (WOF station, holiday park, farms) if there are compelling financial reasons to divest from these enterprises. We need an urgent review of Council asset ownership to identify options and the benefits of retaining or releasing these enterprises.

Tauwhareparae Farms are being well run but I’m not convinced we need to retain them. They were acquired to supplement port income and will always provide low value compared to capital committed, as the trees appreciate so will the capital value. There is no legal risk in selling them and my preference would be as Margaret Thorpe suggests to land-bank them via OTS as they are subject to Treaty claims. This will ensure we get a premium price, they are retained in local ownership and we demonstrate goodwill to the traditional owners.

- – -

3. Businesses have to live within their means, or face the consequences. What is your view with regard to GDC achieving the same discipline around keeping rates increases in check?

Significant savings have been made by previous and current CEO to trim as much as possible. More ‘savings’ could be found but that depends on what we want to give up and what quality of life we can tolerate.

I campaigned on rates rises at or below inflation and we have achieved that. The ‘razor gang’ didn’t make any significant savings. I also campaigned on getting more predictable rates system with smaller variations year on year and we are making good progress on this through the participatory rates review process.

Council league tables suggest we are now one of the most financially sustainable and we rank 26 out of 73 councils for cost of rates.

Councillors are financially conservative and understand the limits of affordability for residents, but the WMT suggests this is not the case. That massive blowout and the need to address some basic first suggest some of the fancy projects need to be reviewed while we attend to the basics first.

If the community has things they think we should stop doing or not start they have the opportunity every year and we listen to that feedback.

- – -

4. What is your position with respect to the re-opening of the Gisborne to Napier rail line?

The railway line a billion dollar public asset that is lying idle while Gisborne and Wairoa businesses scream out for it to make our products more competitive. Some people say logs will never go South on it but there are massive forests between Napier and Gisborne that will provide the anchor business for the line so that containerised seasonal produce and timber coming out and fertiliser going to Gisborne can be transported by rail instead of trucks. Coastal shipping is unlikely to ever be viable if the rail is operating.

More trucks on the road means more cost in maintenance, more congestion and more danger for other motorists – it also means more cost for local businesses and more competition from other places that have lower freight costs.

With the support of 10,000 signatures and $20,000 given by local businesses and residents, we commissioned a study that demonstrated the lack of rigor in the government’s position and the potential for a realistic business case if roads and rail were considered on a level playing field by central government.

A different government next year will reinstate the line if the local business consortium is unable to raise the funds required. Some candidates say they don’t don’t support ratepayers funding the line operation – that has never been a realistic option – but Council could be a stronger advocate for the line.

- – -

5. If you were elected to the council, what activities or actions would you take to ensure Gisborne becomes an even better place to work, live and play?

I will keep doing what I have been:

-  all of the above, plus…

-  working with the IT sector to establish local computer hubs for young people and families with few opportunities to access IT, career pathways via the Techxpo and partnership with major NZ telcos

- advocating for more central government support for our district (transport, rail, imposed costs, renewable energy, forestry carbon credits, aquaculture, etc.) and working with iwi and other stakeholders on these issues

- leading a gang transformation project focused on employment and working with employers and support services

- review commercial assets

- keep rates at or below inflation

- continue support for better commuter cycling and walking infrastructure

- more emphasis on local housing issues – affordable, healthy housing for everyone, not provided by Council but Council facilitating government, community and private sectors working together

- continue emphasising the importance of opportunities for public input on issues like forestry harvest rules, petroleum exploration applications, legislative submissions, etc.

- continue work on Māori land issues – Council working with landowners to look at how to make the land more productive and/or revert to indigenous forest

-  continue supporting illegal dumping prevention and removal, and more ambitious waste minimisation targets.

- continue bringing diverse parts of the community together to address complex issues

- continue voluntary involvement in a wide range of community groups and local issues.





Boom Town – Rats?

14 09 2013
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Life in a ‘Man Camp’ is not for everyone: http://www.pressherald.com/life/man-camp.html

When it comes to mining, Australia has many lessons for us. A 2009 report from the Queensland Government and Centre for Social Responsibility in Mining (CSRM) at University of Queensland showed that housing affordability often declines for people in mining towns who aren’t working in the industry.

Stats from the Real Estate Institute of Queensland (REIQ) show a close correlation between Queensland resources and property booms — median house prices in one suburb soared 65 percent in a year. Great if you’re a property investor, but if you just want an affordable home for your family you might be out of luck.

CSRM studies have documented the “two-speed economy” that follows mining “boom towns”, where people who aren’t working in the industry get a sharp shock when they realise that normal life is suddenly a lot more expensive.

A US Department of Agriculture study published last year found that in three states experiencing petroleum booms, a large increase in production caused only modest increases in local jobs and median household income and employment rose 1.5 percent on pre-boom levels.

There is a range of other peer-reviewed empirical studies on the subject (a few listed below), and I’m happy to look at evidence to the contrary.

So while some incomes will rise during an oil boom, the cost of living for everyone is likely to increase as well — meaning those on a fixed income are in fact worse off. We know that most of the high-paying jobs that go with the territory go to specialists who are brought in.

While this may not on its own be reason enough to say “no” to oil and gas exploration here, it’s important to understand the real opportunities and risks before rolling out the red carpet.

And communities aren’t the only ones thinking hard about the pros and cons. Two months ago Rabobank Group said it would no longer provide finance to anyone involved in extracting unconventional fossil fuels such as oil shales through fracking (see their Oil & Gas policy).

One of the world’s largest lenders, Rabobank is worried about the impact oil and gas production is having on people, productive agricultural land, wildlife and the climate — as well as the release of greenhouse gases and their warming of the planet.

As we are seeing in Taranaki now, there is increasing conflict in the communities affected by the expansion of oil and gas there and a perceived risk to the rural sector from residents near new developments.

A letter to Tiniroto resident John Brodie from the FMG Service Centre says:

“Our Underwriters have confirmed we exclude cover of Fracking and anything related to this activity. Fracking is outside of FMG’s preferred risk profile and is not something we would be willing to cover as we do not insure any risks relating to the mining industry.”

I agree that Gisborne refusing to welcome fossil fuels production here won’t make a serious dent in global greenhouse gas emissions. But global agreements don’t happen out of thin air — they tend to come from grassroots movements that influence local government, national legislation and eventually international diplomacy.

The people of Gisborne taking a stand would help the industry and government to think twice and take notice. But that’s a decision for our community to make, and soon. Last year 2000 locals asked for public notification of any mining resource consent yet Gisborne District Council has chosen not to do so. I think now more than ever we need a forum for the community, our government, iwi and industry to sit down and talk about what the pros and cons really mean for Tairawhiti.

- – -

REFERENCES:

http://www.csrm.uq.edu.au/publications/247-local-government-mining-companies-and-resource-development-in-regional-australia

http://apo.org.au/research/benefits-boom

http://www.regionalaustralia.org.au/research-policy/policy-issues/

http://www.cis.org.au/publications/policy-monographs/article/3309-australias-angry-mayors-how-population-growth-frustrates-local-councils

http://www.lgaq.asn.au/c/document_library/get_file?p_l_id=189033&folderId=98699&name=DLFE-9119.pdf

http://www.regions.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=16447

Weber, J. G. (2012). The effects of a natural gas boom on employment and income in Colorado, Texas, and Wyoming. Energy Economics, 34(5), 1580-1588. doi: http://dx.doi.org/10.1016/j.eneco.2011.11.013

Jacquet, J. 2009.  Energy Boomtowns & Natural Gas: Implications for Marcellus Shale Local Governments & Rural Communities, NERCD Rural Development Paper No. 43, January 2009, 63 pp., University Park, Pennsylvania: The Northeast Regional Centre for Rural Development, The Pennsylvania State University. http://www.sciencedirect.com/science/article/pii/S0301421512006702





Moral challenge requires alternative investments

1 09 2013

SAMSUNG

Always a voice for sensible decision-making, Brian Wilson’s Opinion Piece on local petroleum exploration was no exception. Brian succinctly outlined some of the fundamental challenges we have as a community if the oil industry gets established in Gisborne and questioned any benefits the industry might bring.

The greatest challenge of course is a moral one: why would we welcome an industry that is, probably more than any other, responsible for causing catastrophic changes in our climate? What are we going to tell our grandchildren when they ask why didn’t we make the transition to renewable energy faster?

And yes, anyone suggesting we need to change and still using fossil fuels is compromised, but that’s a bit like saying Gandhi and Mandela should not have spoken English during their struggle against colonisation.

The transition to renewables will take time – it took petroleum a few decades in the early 20th Century to supersede coal as the primary fuel – but the longer we allow cheap access to fossil fuels, the longer the transition takes.

Humans have already discovered five times more oil and gas than we can consume without pushing planetary warming above the critical two degrees increase. We don’t need to find any more.

I was at a meeting with a representative from Z Energy recently where they talked about the concept of ‘permitted oil’ as opposed to ‘peak oil’. Last month Z Energy partnered with Norske Skog and others to invest over $13 million in a biomass development project in the Bay of Plenty using woodchips and sawdust to create biofuels. That kind of money is not just green-washing, they are serious about using our existing resources to reduce New Zealand’s $6 billlion/year addiction to fossil fuels and our community should be talking to them.

Scion, the forestry research institute has estimated that eight biomass plants around the country could replace ten percent of our crude oil requirements using just the current waste from the wood industry.

A recent Auckland University and Vivid Economics report commissioned a group New Zealand’s most influential business leaders, suggested that green growth may not out perform the dirty alternatives if the goal is short-term profit but a different way of measuring growth and wealth may be required.

“The benefits of green growth policies do not always show up rapidly as higher growth, and higher short-run growth should not be a necessary criterion for a good green growth policy. This is because conventional measures of growth do not measure the state of the economy’s stocks of wealth, and many valuable environmental outcomes are not traded in markets, so improvements do not appear as growth. A green account addresses these deficiencies.”

Renewable energy industries do however have a much higher job creation result for the same investment in fossil fuels, and Tairawhiti is well placed to take advantage of any shifts in the allocation of resources around the national economy during the transition period.

Gisborne District Council has committed to reviewing our policies and plans as they apply to petroleum exploration and production. As a result of public concern, our Council reportedly has the most robust process for assessing resource consent applications from this industry.

As a community we are still waiting to have a well-informed, rationale discussion on the issues and while central government has indicated a willingness to resource this, they are still rolling out more exploration permits and changing laws to reduce opportunities for public input in the decision-making process.

The local body elections will not provide the best opportunity to have this discussion but candidates should all be able to clarify their understanding of the issues.





What would you do with 40 million dollars?

29 08 2013

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The possible sale of the Tauwhareparae farms should be part of a review of all council owned property says City Ward district councillor Manu Caddie who is making it part of his election policy for the October local government elections.

While he is not committed to a sale at present he feels the financial returns from the farms do not justify the capital investment they represent. One possible solution would be  to have the Office of Treaty Settlements buy them on behalf of the traditional Maori owners.

Mr Caddie is frustrated that a promised review of the council’s business units has not yet happened, mostly because of staffing issues following the departure of the chief financial officer and the delay in finding a replacement until after the rest of the staffing restructure was completed.

“Philosophically I have no problem with the council owning commercial entities provided they have either a strong income earning capacity or provide some other significant social, cultural or environmental benefit,” he said..

“I have complete confidence in the governance, management and operations of the farms, they are in the top ten performing units in the district and I believe those responsible for maximising profits from them are doing a good job of getting the best out of them. I also agree with Hilton Collier that there are opportunities for innovation and value-adding along the supply chain that the directors could focus more resources on.

“However, the financial returns provided by the farms do not justify the capital investment they represent.

“I disagree with the assessment that the return on investment has been over 15 percent for the last ten years. Including the land value in the ROI is dishonest accounting as it is not realised until the asset is actually sold and land values can go down as easily as they go up, though admittedly it is less fickle than some other investment options.

“If we took the actual dividends paid, and perhaps even a portion of the capital reinvestment retained, it seems term deposits and even conservative options like Government bonds would have delivered millions more to offset income that the council otherwise derives from our rates.

“Some sectors of the community have a strong emotional attachment – our rural councillors have tended to favour retention of the farms no matter what, though I have heard a number of farmers are keen to see council ownership reviewed as soon as possible.

“The farm directors and managers over the years have been responsible stewards of the land by committing significant Overlay 3A areas to reforestation, though I would like to know more about the biodiversity offsetting proposed that would allow them to clear a substantial Protected Management Area of indigenous vegetation that will take some time to replicate elsewhere.

“The farms have significance for local Māori and competing Treaty claims on the land meant that they were left out of settlements to date. So there is an option here that would take the risk out of the valuation price not being realised if the property went to market as the Office of Treaty Settlements would be obliged to purchase for no less than the latest registered valuation.

“That option would guarantee that the farms will be retained in local ownership rather than being snapped up by an absentee owner. It would also provide a significant gesture of goodwill from the people of Gisborne to the traditional ‘owners’ of the area and combined with other investment capital from Treaty settlements could pursue some of the innovation potential.

“So, at this stage I’m not saying I am committed to the sale but I am very motivated to have a thorough and independent review of council retaining ownership.

“We should not let politicians get in the way of the facts! I think we need to have a good long look at the likely scenarios should we decide to sell or retain the farms and what protections can be put in place to ensure councillors don’t just squander any proceeds on popular projects that could diminish rather than enhance the overall financial position of council,” said Mr Caddie.








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