Presentations in Gisborne this week from two very successful New Zealanders provided clear challenges for us all to support a new direction for our district.

Sir Paul Callaghan undermined conventional thinking that has suggested primary commodities, tourism, wine or even farming can be the economic saviours of the district and nation.

Professor Callaghan made two critical points that as a district we must come to terms with.

The first was to expose the complete myth that we are an egalitarian society. Income disparities have been growing exponentially and we are one of the least equal countries in the OECD. That is a problem not only for the poor but for everyone because countries with greater inequality have worse health, education and crime problems and lower productivity than more equal countries.

The second crucial fact we must acknowledge is that the country has reached the limits of exploiting our natural environment. Resource management decisions have built the wealth of the country but also polluted most low-lying waterways, native species are disappearing forever and we can’t intensify farming to earn our way to a prosperous future.

Professor Callaghan is committed to raising productivity to a level that means the country can afford world leading health care, education and environmental protections. But his message was very clear on this – we have to preserve our natural environment and biodiversity both for its own sake and if we want to attract and retain talent. As he said recently “Talent will goes where talent chooses. And, by and large, talent likes to live where lifestyle is best. The reason is simple. These sorts of businesses can be anywhere. Their markets are entirely overseas, their major component is knowledge and their cost of transport to customers is negligible.”

We heard how Ian Taylor had ideas and opportunities that could have taken him to live in lots of great places around the world, but he wanted to live in Dunedin and raise a family there. The entrepreneurs, scientists and cultural creatives that innovate and develop world-leading products now choose places that are about the lifestyle they want not the physical proximity to markets or research facilities.

There are some basics of course: clean water, reliable electricity, broadband and transport options, decent schools, participatory democracy and a vibrant cultural life all seem pretty important. In our situation some more investment in Information Communication Technology infrastructure, start-up support and greater clarity on regional development goals wouldn’t go amiss. Overall Gisborne is well positioned and already attracting talented people who choose to live in this place – close to the beach, close to marae, without traffic jams, urban sprawl and fear of neighbours.

As Professor Callaghan says, smart firms will locate where their smartest employees want to live. They may not choose large cities. There are small town examples already and there is no reason why Gisborne, Tolaga Bay or Mautuke shouldn’t be locations for high value export manufacturers. Broadband and FedEx can deliver their products to customers anywhere in the world, as fast as from Auckland, Shanghai or London.

So knowledge-based talent can be based anywhere, we can be the place of choice if we are committed to reducing income inequality (not just raising incomes), truly protecting the environment (instead of the popular ‘balancing act’ rhetoric) and continuing with the basics (quality infrastructure and public services) we already have.