Reinventing Tourism

The impact Covid-19 will have on the tourism sector is understandably under significant scrutiny.

Around 230,000 people have been directly employed in tourism, that’s just over 8 percent of the entire New Zealand workforce.

International tourists spent $17.2 billion last year and over five million arrivals were expected this year. International tourism contributed just over 20 percent to New Zealand’s total overseas earnings, and been the largest earner along with dairy for the last 20 years. Tourism generated a direct contribution to GDP of nearly 6 percent and indirect value from industries supporting tourism generated another $11.2 billion.

In the past 20 years Tairāwhiti has on average attracted only half of one percent of these international tourists vising New Zealand.

In contrast, spending by domestic tourists across New Zealand was nearly $24 billion last year, nearly 40 percent more than international visitors spent.

Compared to most other regions, MBIE figures suggest tourists in Tairāwhiti spend has a much higher proportion on supermarkets and fuel while other regions see more spend on restaurants and bars, accommodation and passenger transport.

Australia has said they probably will not allow foreign visitors for the rest of the year, and we can expect something similar here that could result in at least 100,000 tourism jobs lost and the subsequent flow on effect to supporting industries.

Five years ago New Zealanders were spending about $10 billion on overseas travel and New Zealand was earning just over this amount from inbound tourists. While a good proportion of New Zealanders’ overseas travel is for business, the majority is for holidays and that most of that spend is now likely to be spent domestically. Tairāwhiti has always had a much higher proportion of domestic visitors than those from overseas and once we’re back to Level 2 we can expect a surge in domestic tourists compared to any previous years.

Local tourism infrastructure has always been very limited in our region and that is part  of the attraction for visitors who want to go somewhere off the beaten track, away from the more polished and pricey tourist attractions of places like Rotorua, Queenstown and Auckland.

Accommodation options north of Gisborne are few and far between but it should not be difficult to quickly increase the number and range of accommodation to suit low, medium and high end budgets. Quickly developing an increased hospitality workforce may be a much bigger challenge.

The big opportunity I believe exists in quite a different kind of visitor experience to what we think tourists usually look for.

If set up right, Tairāwhiti has the opportunity to create a whole new class of domestic visitor experience, one that is based on deeper, lasting relationships rather than just catering to fly by nighters. By offering experiences that provide an authentic, long-term relationship between hosts and visitors we can encourage longer stays and more repeat visitors. We can also harness some of the skills and networks these visitors bring with them.

One community in the region has been doing something similar for more than ten years, every Labour Weekend between 30 and 100 visitors come into the village and reconnect with locals, help with a community project and enjoy authentic East Coast hospitality.

Another East Coast community has facilitated exchanges between young people in Wellington and the Coast for many years. The idea is to bridge the cultural and experience gaps between urban and rural New Zealand.

These kinds of deeper visitor experiences are mutually beneficial, offer more than just foreign exchange earnings for our communities and provide a unique point of difference that other regions will struggle to match.

Māori Land & ‘Utilisation’ Issues

Plenty has been written by central government agencies, local government authorities, legal experts and economic development consultants on ‘unlocking the potential of Māori land. I’m definitely no expert in these matters and perhaps shouldn’t have an opinion as I’m unlikely to ever be a Māori land owner – but my wife and tamariki are, so I like to think about what might be good for them and our descendants.
The whole notion of ‘unproductive’ Māori land is a little problematic and ironic.
Problematic because it takes a very utilitarian view of whenua, which is much more than an economic asset to be ‘utilised’ or even natural resource to be ‘managed’ or ‘protected’. Hirini Moko Mead describes it this way:
The land and the environment in which people live became the foundation of their view of the world, the centre of their universe and basis of their identity as citizens or as members of a social unit…
Land was necessary as a means of maintaining social solidarity. Land was the foundation of the social system, the base the means of giving reality to the system in the forms of residences, villages, gardens, special resource regions and so on. Continuity of the group depended every much on a home base called te wā kāinga where people could live like an extended family and actually see it on the ground as a reality.
Undoubtedly land provides a place for one to stand. This is inherent in the concept of tūrangawaewae, a place for the feet to stand; where one’s rights are not challenged, where one feels secure and at home….
The net effect of various cultural bonding mechanisms and traditional tikanga practices was to develop a relationship with the land. This relationship is about bonding to the land and having a place upon which one’s feet can be placed with confidence. The relationship is not about owning the land and being master of it, to dispose of as the owner sees fit. The land has been handed down the whakapapa line from generation to generation and the descendant fortunate enough to inherit the land does not really ‘own’ it. That person did not buy it. The land cannot be regarded as a personal asset to be traded.
(Mead, H.M. Tikanga Māori: Living By Māori Values, Huia Publishers, 2003. pp271-275)
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Legislation governing the way Māori Freehold land has been managed – since settler governments imposed British legal frameworks over most of life in Aotearoa – resulted in large tracts of Māori land being cleared for farming in the late 19th Century and many eventually having no effective administration as succession issues and urbanisation trends complicated management arrangements.
Many of those blocks left fallow for 30-50 years have started reverting to native plant cover with manuka and kanuka establishing themselves as pioneer (or seral) species that in time provide an ideal nursery for larger native trees to eventually takeover. So ironically, these ‘neglected’ land blocks are fast becoming valuable crops for the production of manuka honey, an industry experiencing exponential growth in the past ten years and on track to have a billion dollar turnover in the next five years.
The genesis of this post was when someone asked me this morning if I thought the first step to unlocking unproductive Māori land potential is improving governance of each landblock? If I had an opinion on it, I’d probably say yes and no.
Yes, I think where there is a group of shareholders already recognised by the Māori Land Court as the Responsible Trustee or Advisory Trustees for the block, then yes, they could be interested in accessing support with their governance role  – particularly planning and decision-making based on good information (getting access to the necessary ‘good information’ is another issue).
Where there isn’t that recognised group in place, or where the Māori Trustee has control of the block, there could be a service (and the government is setting up a new Māori Land Service but who knows how long establishment will take and how effective it will be) that:
  • works with any shareholders who express an interest to establish a group of owners interested in overseeing the process;
  • supports the group of engaged shareholders to contact other owners via the postal addresses held by the Māori Land Court and Te Tumu Paeroa, and via informal networks like whanau contacts and Facebook groups of various marae/hapū, to build a current database of shareholder emails that can be basis of ongoing, regular communication. Then they can start organising themselves as owners and making decisions about the land.

Just this activity of contacting shareholders and building a contact database is a huge undertaking that likely needs proper resourcing so interested shareholders can rebuild connections between whanau that may not have been physically connected to the whenua for a generation or more.

There could also be support for hapū groups to develop capability and capacity to take over land administration as Responsible Trustee from Te Tumu Paeroa to provide more active management and local accountability for decisions. Support may need to be provided to shareholders to go to the Land Court to make the changes once the hapū entities have the internal infrastructure to take on the responsibilities of administrating the land blocks in partnership with engaged shareholders.

In terms of then making ‘good decisions’ about the land use, shareholders and Responsible Trustees may be interested in accessing support to build consensus around the values they collectively hold for their whenua and systems for decision-making – particularly how the issue of share numbers may or may not determine the relative influence of shareholders in decision-making.

Locally we have recently invested in the establishment of an online platform to connect better with hapū and marae whānau, this will also be used to connect landowners in interested blocks.

Where did all the farmers go? Or how much useful energy is stored in human belly fat?

In his 1979 essay “Energy in Agriculture” the American farmer, author and activist (some say prophet) Wendell Berry reflects on a memoir by Donald Hall of life on his grandparents’ New England farm from the 1930s to the 1950s.

The farm produced food for the household and made a cash income from a small hand-milked herd of Holsteins (Fresians) and a flock of sheep. It had trees for firewood and mayple syrup. Sales of wood paid for the girls to go to school and while the farm and family were ‘poor’ by modern standards with only a small income, they also only spent a small amount. Its energy economy was largely independent of its money economy. The energy of this farm came largely from people and from one horse. This farm was based on patterns of agriculture that have been extinguished by the methods of industrial agriculture and modern capitalism. Farms like the Hall’s gave way to assumptions of “progress” that privileged the city over the country, the large-scale over the small, uniformity over diversity.

Profound in my context was Berry’s brief history lesson about urbanisation. Trends in the US rural drift to the cities have been mirrored in Aotearoa New Zealand, nowhere more so than the East Coast. One of Berry’s main points is that as ‘agribusiness’ grew in the 20th Century it favoured land that was easy for large, mechanised tools of production to access – namely large, flat to easy country so while small-holdings both in New England and around Ruatoria had been successfully cultivated for hundreds of years, new technology meant the small family farm could not compete with the industrial agriculture of large companies that bought or leased massive tracts of land in other parts of the country.

Rural communities that had been largely self-sufficient quickly emptied as families could no longer find work – either because farms in the area had been bought or leased to corporations and the production had been taken over by machines, or because the modest cash income – that had supplemented food grown by the household for itself – had dried up when cheaper produce was sourced from larger farms.

Apirana Ngata as Minister of Native Affairs encouraged the wholesale clearance of native bush on the East Coast and other parts of New Zealand still occupied by Māori for conversion to small scale dairy farms.

Apirana Ngata as Minister of Native Affairs encouraged the wholesale clearance of native bush on the East Coast and other parts of New Zealand still occupied by Māori for conversion to small scale dairy farms.

Uncle Tui Tibble was born in the 1930s and remembers dozens of small dairy herds being milked daily in the 10km between Makarika and Ruatoria. Likewise Aunty Patricia, born in 1940, spent her years before going to boarding school milking cows with her nanny on the East Cape. Her secondary schooling was largely paid for by the income from the cows.

Those were the days when local families would milk between 30 and 100 cows every morning, put the full containers out at the gate for collection and receive a ‘cream cheque’ each fortnight. Most of that cream went to the Butter Factory in Ruatoria.

Ruatōria was well-known for its Ngāti-Porou Co-operative Dairy Company, and the Nāti-branded butter its factory produced won the national award for the best butter for several years in succession. The cooperative was a predominantly Māori venture and the financing, which included buying herds for intending suppliers, was distinctive. It began in the 1925–26 season with 58 suppliers and an output of 61 tons of butter; within 10 years it had 377 suppliers and an output of 743 tons. The company featured in the 28 May 1952 issue of The Weekly News. The article said:

’It is staffed and managed entirely by Maoris, and 90 percent of its cream supply comes from farms under Maori ownership or management.’

Ngati-Porou Co-operative Dairy Co. Ltd. factory, Factory Rd, Ruatoria, 2015

Ngati-Porou Co-operative Dairy Co. Ltd. factory, Factory Rd, Ruatoria, 2015

The building still stands, but with a declining milk supply the factory itself closed in 1954. The factory closure didn’t come because the cows went dry, it wasn’t the impact of a prolonged drought or a milk powder contamination scare. It was in fact the intersection of two massive social shifts – urbanisation and large-scale industrialisation of the agricultural sector. The post-war baby boomers were the first generation of ‘consumers’, production shifted away from small family farms and at the same time people shifted away from farms. Before the Second World War 80% of Māori lived in rural communities, the 2013 Census found that over 80% of Māori now live in urban centres. In fact the War was largely responsible for taking men (and women) not only into active service but to work in city factories supporting the war effort.

This graph shows the increase in the percentage of Māori living in urban areas between 1926 and 1986. The rate of urban migration was particularly rapid after the Second World War. Source: Te Ara Encyclopedia of NZ

The increase in the percentage of Māori living in urban areas between 1926 and 1986. Source: Te Ara Encyclopedia of NZ

With a booming population and increasing ‘prosperity’ in the post-war years, Māori and Pākehā expectations and aspirations changed – higher education, increased mobility and expanded choices were the basis for massive relocations into cities over the next few decades.

Berry explains it this way:

…something was gaining speed in our country that I think will seem more and more strange as time goes on. This was a curious set of assumptions, both personal and public about ‘progress’. If you could get into a profession, it was assumed, then of course you must not be a farmer; if you could move to the city, then you must not stay in the country; if you could farm more profitably in the corn belt [Poverty Bay flats, Canterbury Plains, Pukekohe], then the moutainsides of New England [East Coast] must not be farmed. For years this set of assumptions was rarely spoken and more rarely questioned, and yet it has been one of the most powerful social forces at work in this country [and around the world] in modern times.

and Berry argues it was made possible by the myth of cheap energy:

But these assumptions could not accomplish much on their own. What gave them power, and made them able finally to dominate and reshape our society, was the growth of technology for the production and use of fossil fuel energy. This energy could be made available to empower such unprecedented social change because it was “cheap.” But we were able to consider it “cheap” only by a kind of moral simplicity: the assumption that we had a “right” to as much of it as we could use. This was a “right” made solely by might. Because fossil fuels, however abundant they once were, were nevertheless limited in quantity and not renewable, they obviously did not “belong” to one generation more than another. We ignored the claims of posterity simply because we could, the living being stronger than the unborn, and so worked the “miracle” of industrial progress by the theft of energy from (among others) our children.

Berry argues, not only did the cultural values of society shift along with more ‘metropolitan’ tastes and consumption habits increasingly dependent on manufactured food, but more importantly the shifts were a logical consequence of ‘marginal’ farms in New England – and the East Coast of Aotearoa New Zealand – being abandoned – not because they were unproductive or undesirable as living places.

They were given up for one very “practical” reason: they did not lend themselves readinly to exploitation by fossil fuel technology… Industrial agriculture needs large, level fields. As the scale of technology grows, the small farms with small or steep fields are pushed farther and farther toward the economic margins and are finally abandoned…

Today we find ourselves in a situation where thousands of hectares of land on the East Coast and other parts of the country that were once highly ‘productive’ as family farms are now lying fallow, gathering millions in rates debt. While some estimates classifying up to 80% of Māori land as ‘under-performing’ or ‘unproductive’ may be exaggerated, and the benefits of ‘undeveloped’ land may turn out to be quite profitable, and whether or not law reform is required to address the complexities of tenure and management, the fact remains that Māori land in our community is rarely being utilised like it was to enable whānau to grow their own food and derive some modest income from what can be sold, swapped or given away.

Tapuaeroa, Ruatoria

Tapuaeroa, Ruatoria

Berry laments the massive waste associated with the modern ‘efficient’ agricultural methods. There is the waste of solar energy that farming has depended on for millennia – both as a motive power and as a growing power; the waste of animal energy – particularly when animals are confined and feed has to be transported to them; the waste of soil and soil health as massive agricultural machinery compresses the soil and sees it blown as dust or be drained away during rain because it is more ‘efficient’ to leave large areas exposed between crops. But possibly the biggest waste is that of human energy and ability:

Industrial agriculture replaces people with machines; the ability of millions of people (maybe tens of thousands in Aotearoa New Zealand) to become skillful and to do work therefore comes to nothing. We now have millions (tens of thousands) on some kind of government support, grown useless and helpless, while our country becomes unhealthy and ugly for want of human work and care. And we have additional millions (hundreds of thousands) not on welfare who grown equally useless and helpless for want of health. How much potential useful energy do we now have stored in human belly fat? And is it costing us, not only in medical bills, but in money spent on diets, drugs and exercise machines?

A pretty harsh analysis and probably won’t go down well with the liberals, but it resonates with many of us who might even have grown up on or close to small farms but have lost the knowledge, skills and motivation to fend for ourselves, kill our own meat and grow our own fruit and vegetables… and have grown accustomed to an unhealthy way of life so different to that of Uncle Tui’s childhood or Donald Hill’s grandparents.

Makarika Valley

Makarika Valley

Of course it is easy to romanticise the ‘good old days’ and living off the land when actually there’s very little that is glamorous or easy about it. Our friends and neighbours who live ‘closer to the land’ than we do at present struggle with the challenge of the workload of growing your own – as Hirini Kaa‘s grandfather said in his diary: ‘Kumara is such hard work every day except Christmas, Easter and Sunday mornings.” A poor season and smallharvest can mean a very lean winter, living off the grid can mean cold nights, constant illness and modest incomes can mean insecure land tenure and investing everything in land that is whipped away by those who can take it… all the trappings of the ‘simple life’ that our ‘easy life’ is setup to avoid at all costs.

Still, a small and determined group of hardy souls have kept the faith and whether it was pacifist religious communities after the war, hippy communes and intentional communities through the 70s, the NZ Small Farmers Association that my father Graham Caddie was briefly President of in the late 80s, more recent Catholic Worker farms in the Hokianga, Kapiti Coast and Central Hawkes Bay or stubborn whānau who simply refuse to leave their whenua and have continued to farm the blocks handed down to them – authentic examples have been quietly growing about their business while the rest of society chases the Kiwi Dream- however that is defined in these days of three quarters of a million dollars average house prices.

Te Ao Hou Marae, Tikitiki/Rangitukia

Te Ao Hou Marae, Tikitiki/Rangitukia

Moving rural this year, back to Tarsh’s marae at Makarika just south of Ruatoria was largely motivated by a cultural imperative around the retention and revitalisation of Te Reo Māori for our children and ourselves, but it seems to be increasingly offering a much wider range of opportunities to deepen our relationship with each other and the rest of Creation in a surprisingly spiritual encounter with the whenua, our collective histories and potential futures as Berry again articulated so much of so well in a recent article last month.

It feels like new beginnings for our family in so many ways – and while there’s nothing romantic about killing field mice that are just trying to shelter from the cold on a frosty morning – there is so much beauty all around us, so much potential to live in a more balanced way with the world around and inside us, and so much opportunity to have fun while making mistakes and growing together. It’s a bit scary but all exciting journeys should be.

Gigtopia

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Gisborne/Tairāwhiti is fighting hard to win the Chorus Gigatown competition that ends this month. Like many around the country, I’ve been a bit cynical about the way Chorus decided to start Gigabit Ultra-Fast Broadband (UFB) rollout and the competition hasn’t helped my feelings much.

Having said that – while some of the social media and news stories almost seem to suggest that with the gig that no one will ever cry, no one will ever die in our special community should we win – I can see some real benefits if Gisborne is successful in securing the gig speed connection first.

So as Project Manager for the Tairāwhiti Technology Trust, I’ve been keeping track of #gigatowngis social media progress and helping with the top secret ‘Plan for Gig Success’ that each of the final five ‘towns’ have to prepare and will be judged on by the country and an expert panel of judges.

As you do in such situations, I’ve been doing a little online research on the topic and found a few articles of interest related to gigabit internet services, particularly the US experience to date – and more broadly, which I am most interested in, efforts to close the Digital Divide that seems to be increasing as fast as technology develops:

USA Tour Report (May 2013)

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

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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

Chamber of Commerce Q+A

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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.

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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?

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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.

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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

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?

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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.

A Dark Day for the District

Maungahaumi

A decision by Gisborne District Council to give the green light to Canadian company TAG Oil for an exploratory well to be drilled west of Gisborne city has been condemned by an RMA Commissioner.

Manu Caddie, who is also a Gisborne District Councillor, says he is supporting an application for a judicial review of the decision based on the public interest test, cumulative effects and the way potential cultural impacts have been handled in the assessment phase.

“Two thousand local residents signed a petition last year requesting any application to drill in the district be publicly notified. All they want is a chance to look into the application and make submissions if they have concerns.”

The Council’s Regional Policy Statement and Combined Regional and District Plan are largely silent on drilling activities and the Council has agreed to review the plan once the Parliamentary Commissioner for the Environment issues her report on fracking later this year.

“The PCE in her interim report on fracking raised a number of real concerns about drilling on the East Coast and the lack of regulation in the petroleum industry as a whole” said Mr Caddie. “Until those concerns are addressed the public should have the right to examine applications and comment on them.”

“An industry representative said just last week that they have nothing to hide, so why are they afraid to give our community the opportunity to be part of the decision-making process.”

Mr Caddie said he understood the company had threatened to leave the district if the application was publicly notified and comments from vested interests meant staff felt pressure to let the application go through non-notified. “I’m sure everyone will deny that is the case, but this is what staff have told me.”

Mr Caddie said it was a sad day for the district and democracy. “The petition of 2,000 citizens must be the largest set of submissions Council has received on a single issue and it is bitterly disappointing that a simple request to have the opportunity to make comments at a public hearing – for or against the proposal – has been seen as less important than the desire of the company to rush into drilling.

Mr Caddie said he believed Council had good grounds to notify the application – while the risk of significant immediate pollution may be limited to a well explosion like the one that happened in the United States last month or limited contamination of land and streams, the cumulative effects of the activity should be taken into account at each stage and the RMA allows for public notification when the risk may be small but the potential effects significant if something goes wrong.

“There is scant information in the application on the process for rehabilitating the site while industry publications suggest at least half of all wells corrode within 30 years allowing fugitive emissions of gas and oil, long after they have ceased production. The area is around known fault lines and aquifers, who knows what impact drilling into those could have.”

The documentation provided with the Council decision suggests one or two individuals within local iwi had signed off on behalf of the tribe with no evidence of hui-a-iwi to provide a mandate or majority of iwi members’ endorsement.

“Iwi and hapū have a right under Te Tiriti o Waitangi, New Zealand law and international agreements to make free, prior and informed decisions on activities that impact on their traditional lands, waterways and air space. From the information supplied I can’t see evidence of that happening in this situation and a number of iwi members have expressed extreme frustration with the process used by the company to consult with iwi.“

Mr Caddie said central government should provide much more support and resources to iwi and hapū that are faced with extractive industries moving into their area.

“Around the world we have seen indigenous peoples welcome industries that make grand promises then leave after ruining the environment local peoples have depended on for generations. It is a familiar story we are seeing played out in our own backyard.”

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Gisborne District Council: Decision Documents

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CONTACT: Manu Caddie – Tel. 0274202957 / Email: manu@ahi.co.nz

 

Are we all Placemakers?

Imagell

While the Cycle and Walkways have consistently been the most popular of the Major Projects in the Council’s Ten Year Plan, the Navigations Project has been one of the least popular and most controversial. Both projects are arguably about ‘placemaking’ and economic development – cycleways focus on making the city a more attractive, healthy and liveable city, the Navigations Project is more about telling local history stories to locals and visitors.

Research recently published by an initiative called the Project for Public Spaces and promoted by the Institute of Public Governance at the University of California Berkeley has explored the links between placemaking and economic growth in communities.

The research suggests creation of great public spaces is good for the economy, but only when it’s truly community-driven, open and inclusive. The more attached to a place local people are, the higher a city or region’s economic activity: “Placemaking, in other words, is a vital part of economic development.” True placemaking involves an open process that welcomes everyone who wants in, which provides the opportunity for residents — who may or may not know each other — to share ideas and be heard.

“The end result should be a space that’s flexible enough to make room for many different communities, and encourage connections between them.” Or, the flip side:  “If Placemaking is project-led, development-led, design-led or artist-led, then it does likely lead to… a more limited set of community outcomes.”

The success of the cycle ways and inner-harbour development will depend on the level of ownership we all have in the planning and implementation of both projects.

The study also argues that communities can change governance for the better “by positioning public spaces at the heart of action-oriented community dialog, making room both physically and philosophically by re-framing citizenship as an on-going, creative collaboration between neighbors. The result is not merely vibrancy, but equity.”

Gisborne District Council has not had a great history of fostering public participation in planning and decision-making, usually opting for the minimum required. In fact the Consultation Policy adopted in 2008 specifically excluded citizen empowerment from the continuum of public involvement.

“Place Governance” on the other hand is a process by which decisions about places are made not from the top down, but by a collaborative process involving everyone. The Gisborne Fresh Water Advisory Group is a move toward this approach as it involves a wide cross-section of the community. However the FWAG falls short of real Place Governance because it is an exclusive group of organisations, meetings are not open to the public and the process is still controlled by Council.

The key actors in a Place Governance structure are not official agencies that deal with a few prescribed issues, but the people who use the area in question and are most intimately acquainted with its challenges. Officials who strive to implement this type of governance structure do so because they understand that the best solutions don’t come from within narrow disciplines, but from the points where people of different backgrounds come together.

I know some residents along the Taraheru River are concerned about how a boardwalk from Campion College to Grey Street may impact on the views, river access, tranquility and largely unspoiled riverfront they currently enjoy. While this project is on hold for the time being it will be essential for the residents, river users, iwi representatives, walkers and cyclists to work through how we can best utilise the public spaces along the river as this project proceeds. And I’m confident Council will ensure that happens.

Call for investigation into alleged human rights abuses

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Opening of the Tongan language immersion unit at Kaiti School, 2012

Gisborne District Councillor Manu Caddie is calling for an investigation into alleged human rights abuses by Immigration New Zealand in Gisborne. Mr Caddie is very concerned about reports that two Tongan men being held at Gisborne Police Station have been denied access to lawyers and interpreters.

“Apparently the men are accused of being in New Zealand unlawfully and their lawyer says immigrants in Gisborne are being ‘actively discouraged’ from accessing legal counsel and interpreters.”

“These are serious accusations of human rights violations in our community by a government agency, we need an urgent and full investigation of the situation before anything happens to the men who should not be languishing in Police cells any longer than is necessary.”

Gisborne has a growing population of new immigrants, some who stay longer than their visa allows.

“My few experiences with Immigration New Zealand has suggested the agency often operates with impunity and forces people in similar circumstances to be deported so they cannot apply for the right to return for at least five years. These are hardworking people who contribute to the local economy, who have children in local schools and are often church leaders and positive, contributing members of our community.”

“The Tongan community is a vibrant part of the Gisborne population and it is important they have access to the support required. The Pacific island Community Trust does a good job of providing information to our Pasifika community but have very few resources to serve the rapidly expanding multicultural communities.”

Mr Caddie, who is of Tongan descent himself, says he understands there are approximately 2,500 Tongans now living in Gisborne, many work in low paid employment such as forestry and seasonal field work.

“I have just returned from the United States where undocumented workers is a massive issue across the country but the US government is finding constructive ways to address the challenges rather than use the dawn raids and deportation that still seem popular here. New Zealand needs to mature in the way we deal with new and ‘illegal’ immigrants as these families usually bring a work ethic and civic pride that seems to be missing in many Kiwis.”

ENDS

Radio Australia article: http://www.radioaustralia.net.au/international/radio/program/pacific-beat/nz-immigration-accused-of-denying-rights-to-overstayers/1128512

Regional Economic Development

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A Gisborne District Councillor says the government is picking winners and industries other than oil and gas would grow the regional economy if similar public funds were committed to other parts of the economy.

Manu Caddie would prefer to see government support for developing industries on the East Coast such as renewable biofuels and biochemicals, internet-based small businesses, high tech food production with the associated intellectual property and what he terms ‘lifestyle relocators’.

“We could wait for a new mill to be built and employ a few hundred on minimum wage or we could get on with attracting a hundred innovative, high earning business owners that want to live in places that are vibrant and well connected but out of the rat race of the sprawling metropolitan areas. Compared to the larger centres we have very cheap commercial and residential property prices, a compact city, relaxed lifestyles and relatively unspoiled environment.”

Mr Caddie says the Government has a fundamentally flawed policy of prioritising petroleum development without any plan to reduce greenhouse gas emissions let alone transition the country away from fossil fuels.

“There may well be some short-term economic gain for some members of the community if a significant amount of hydrocarbons can be extracted, but the evidence from overseas is that in mining boomtowns the economic benefits accrue to a certain part of the population while others are worse off and inequalities increase.”

“The region has not had a properly informed debate on the costs and benefits of mining here. There has been no independent analysis and advice on our situation and what the alternatives could be that would deliver more sustainable employment and environmental benefits. If the Government wants to pick winners then at least make it evidence-based instead of ideological. Environmentally sustainable mining is an oxymoron and given the scientific evidence on the impacts of fossil fuel consumption, the issue really is a moral question more than anything else.”

Mr Caddie says he agrees with Steven Joyce and Meng Foon that education needs even more attention.

“This is as much about families and students getting the support they need and taking responsibility as it is about the quality of teaching and approaches to formal learning. More sophiscated understanding of and flexibility around the relationships between schooling, family dynamics, employment and lifestyle choices is critical.”

“Only one in four Gisborne school leavers have NCEA Level 3 or above, nearly ten percent lower than the national average. Between half and three quarters of young people say they do not plan to continue with any form tertiary training after leaving school. A higher proportion of Gisborne young people work in agriculture, fishing, forestry and manufacturing than the national average.”

Gisborne has about 150 young offenders under 17 years. Based on 2001 estimates from PriceWaterhouseCoopers, each year offences committed by young people in Gisborne cost around $2.5 million in Police, court and sentencing costs.

“There is a significant underclass emerging that are extremely disconnected from mainstream society, community leaders, public institutions, employers and community organisations need to get a whole lot smarter about how we think about this part of the population and just focusing on economic development will not be sufficient.”

Overdue petroleum study slated by councillors

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An overdue government report on the “benefits, impacts and risks” of petroleum development across the East Coast is a sloppy marketing campaign for the industry paid for by taxes and council rates, according to some councillors from Gisborne and the Hawkes Bay.

Gisborne District Councillor Manu Caddie said the $130,000 report released today was originally due in November and the lack of a good news story must be embarrassing for the Government. “The study is riddled with errors, clearly biased and provides less than half of the information promised in the Terms of Reference” said Mr Caddie.

The East Coast Oil and Gas Development Study was funded by the Ministry of Business, Innovation & Employment with support from local authorities on the East Coast from Tararua to Gisborne.

“The study makes some optimistic claims about benefits but glosses over the risks and has almost no worthwhile analysis of the economic impacts let alone social and cultural impacts of this industry should it come to dominate the region” said Mr Caddie.

“One of the few redeeming features of the report is that, based on geological analysis and economic modelling, it suggests commercial petroleum development in the region is highly unlikely” said Mr Caddie. “The study provides a good case for the government to support industries that will produce more sustainable, long-term employment with much lower risk to the environment and existing primary industries.”

One of the bitter ironies of the report is that it relies on production scenarios supplied by Apache Corporation, a company that has since pulled out of exploration in the region. While the report tries to reassure the public and decision makers that well integrity is not a risk, just last week Apache Corporation had a blowout at an exploratory well being drilled only 330m below the surface near New Orleans.

Similarly the study suggests a subsurface safety valve eliminates the risk of hydrocarbon or chemical leaks should a well be compromised, yet according to the US Minerals Management Service such valves have a ‘high failure rate’.

Hawkes Bay Regional Councillor Liz Remmerswaal said the study is inconsistent and selectively quotes from the Parliamentary Commissioner for the Environment’s interim report on fracking.

“The PCE report identified seven key concerns about any petroleum exploration or production on the East Coast and while the MoBIE study says it will not make recommendations it then suggests the questions raised by the PCE do not need to be addressed before exploration starts” said Ms Remmerswaal.

The PCE report also provides evidence on how reinjection processes used in fracking operations overseas have caused significant earthquakes. The MoBIE report is not only silent on these concerns, it recommends the reinjection of waste products from the drilling process.

Both councillors believe the government and councils should commit similar funds to a study on sustainable energy opportunities for the region.

Last month a government-funded trade delegation visited DLR, one of the world’s leading energy market analysts, the same organisation that was recently commissioned by Greenpeace to produce a plan for 100 percent renewable energy use by 2050 for New Zealand.

The Greenpeace report reveals that 250 companies in New Zealand are already researching and commercialising clean technology with Investment NZ suggesting at least 60 of these are world-class enterprises. These companies have potential revenues of $7.5-22billion, significantly higher than the total revenue for even the most optimistic East Coast petroleum development scenarios. The Greenpeace report also provides evidence that clean energy jobs are more secure, safer, often pay better and are created at 3-4 times the number of fossil fuel jobs for the same investment.

“The MoBIE study has some generous claims about how many local people will be employed but why they assume at least half will be local residents is unclear, especially as Apache Corporation representatives speaking at public presentations very clearly refused to promise any direct local employment in the industry” said Mr Caddie.

The report identifies known aquifers in the region and discusses their protection and exclusion from exploration zones though some confusion exists about how the Napier MP and Minister for Local Government Chris Tremain claimed credit for excluding aquifer areas in Hawkes Bay but no where else in country.

“The Minister acknowledges the significant risk to aquifers during drilling and production phases but has only focused on protecting his home patch” said Mr Caddie. The study suggests excluded areas should be identified through changes to regional and district plans.

“It’s a bit fresh that this study is launched the same week as Hawkes Bay Regional Council is asking for a drought to be declared and the study says fracking requires ‘large volumes of water’” said Ms Remmerswaal. “But other than implying a massive new dam will solve the problem, little assessment is made of the existing competition for scarce water resources let alone the impacts of a new industry requiring large volumes to be used and contaminated in the process.”

The councillors are also concerned that the report relies heavily on the few examples of fracking in Taranaki which has very different geology and the regulatory history of the Taranaki Regional Council which the PCE report revealed had been operating outside the law in relation to fracking according to their own lawyers assessment.

Apache Corporation announced the withdrawal from a joint venture on the East Coast in January leaving Canadian company TAG Oil with responsibility for an exploration operation in a complex area both in terms of the geological and cultural landscape. Marauder Resources which holds other permits for exploration in Hawkes Bay received a warning from auditor KPMG last year that the company may not be able to ‘continue as a going concern’.

CONTACTS:

Liz Remmerswaal 027 333 1066 (will be outside HBRC from 11am-12pm)

Manu Caddie 0274 202 957

Download the MoBIE study and government comments here:

http://www.med.govt.nz/sectors-industries/natural-resources/oil-and-gas/petroleum-expert-reports/east-coast-oil-and-gas-development-study

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Labour announces rail retention policy at public meeting

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A Gisborne public meeting hosted by Mayor Meng Foon was the platform for Labour Party MP Moana Mackey to announce her party’s intention to reopen the Gisborne to Napier railway line if they are in power after next year’s election and the current Government abandons it.
“Having read the BERL report the Labour Party can now see the economic opportunity the rail provides and we are convinced it makes sense to retain the line, keep the extra trucks off the road and keep East Coast products competitive” said Ms Mackey.
“The National Party received a real bollocking at the meeting” said organiser and District Councillor Manu Caddie.
A member of the public moved a vote of no confidence in Anne Tolley and Chris Tremain that was almost unanimously supported by the more than 100 residents present and speakers suggested while the provinces have been loyal to National, the party leadership seem to have forgotten about rural New Zealanders.
Forest owner Roger Dickie said he had 18 million tonnes of trees to be harvested in the region and he wants to send at least 7.5 million tonnes south by rail. Mr Dickie also criticised Juken Nisho who own a mill in Gisborne and Eastland Port for lobbying the Government against retention of the line in an effort to bolster their own businesses at the expense of others in the region.
Mr Dickie responded to KiwiRail Chief Executive Jim Quinn’s claims that short haul railways are uneconomic by pointing out a number of similar and shorter lines carting logs profitably for KiwiRail.
Green MP Julie Genter said the $500,000 for a comprehensive cost-benefit analysis was small change compared to the $100 million of taxpayers funds the Government has spent on consultants for a $3-5 billion motorway in Wellington.
“If the Government wants to take this public asset away from the region then they need to be able to justify the decision with accurate figures” said Mr Caddie. “BERL have shown the numbers are much closer than KiwiRail suggested and that doesn’t even take into account the massive extra cost to road maintenance, road safety issues, environmental benefits and the cost to regional jobs if Gisborne products are less competitive.”
“$4 million is the cheapest the repair is ever going to be, so fix it now” said Ms Mackey.
“Many of the regional roads in our district would not exist if Council applied the same economic rationale to them as KiwiRail has to” said Mayor Foon. Gisborne deserves to have services and infrastructure similar to every other part of the country. We deserve good schools, good hospitals, good roads and a good railway line.”

Boomtown Rats

Proposed new permit areas in yellow. Existing permit blocks in green and unassigned block in brown.

It has been an exciting week for the oil and gas industry. Todd Energy published a 180 page ‘no worries’ fracking tract and the Government announced plans to open up a large area across the flats and into the hills between Te Karaka, Tiniroto and Frasertown for petroleum exploration.

Todd acknowledges in its submission to the Parliamentary Commissioner for the Environment’s inquiry that “many of the environmental risks raised as concerns relating to hydraulic fracturing apply to all exploration and production drilling.” That’s been my concern for some time and I agree to a point with industry suggestions that most of these risks can be managed with ‘best practice’ and strong regulation.

The claim that opposition to fracking in New Zealand is being based not on evidence, but on misinformation and emotion really is ironic. Are the professors at Duke University, Cornell University, Penn State or the University of Alberta misinforming us with their peer-reviewed, published empirically evidenced papers? Which regulators that have concluded fracking was the cause of water contamination, earthquakes and/or air pollution were being too emotional in their reports?

We hear claims that there has ‘never been a major incident in Taranaki’, yet a recent oil spill that reached the Kapiti Coast took 265 days to ‘clean up’ and in one year alone three workers were killed on Taranaki wells. Taranaki Regional Council reports reveal chemical contamination of ground water near the Kapuni well so bad that it should not even be used for irrigation, let alone stock or human consumption.

No one is suggesting that every injected well results in drinking water pollution or dangerous earthquakes, but the evidence from independent scientists all over the world confirming contamination makes it clear that fracking is causing serious issues. The Todd submission acknowledges that there are real problems to deal with. Common concerns relate to water pollution through fugitive emissions from well casings, air pollution from flaring and spray disposal, soil pollution from spills, leaks and dispersal, significant earthquakes caused by the pressurised reinjection of fracking waste, radioactive material to be disposed of as part of the fracking process and the list goes on.

Todd Energy says a moratorium on fracking until we sort out the regulations would scare off overseas oil companies. These are the companies that spend well over $100million every year lobbying US politicians and threatening all sorts of calamity if profits are not prioritised over other considerations.

There will be stronger measures on climate change from the US after Hurricane Sandy and Obama’s reelection, but New Zealand politicians are still not prepared to commit the country to a realistic transition plan away from fossil fuels. Todd Energy argues that natural gas is a better option than coal, but conveniently overlooks recent research including a study from Cornell University that found the greenhouse gas footprint of natural gas could be at least 20 percent higher than that of coal (Howarth, R. W., R. Santoro, and A. Ingraffea, 2011).

Putting aside any moral obligation to future generations who will be the victims of a lack of climate justice in our time, we should be clear about the local risks and benefits of the industry. Three studies due before Christmas will help with that assessment and Gisborne District Council will consider them all carefully.

In the meantime interested members of the public might like to check out the maps of the proposed exploration permit areas, find out some more about what is planned and give feedback to local councilors, iwi leaders and/or the Minister of Energy and Resources by the end of January.

Auckland-centric national policy won’t help here

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Government announcements to make more land available to reduce house prices may backfire in Gisborne according to a District Councillor.

Manu Caddie said there are more than 40 empty state houses in Kaiti alone, and he knows of situations in his neighbourhood where 12 people are living in a one bedroom flat. “This is a bizarre situation when there are half a dozen empty three and four bedroom state houses in the same street that are being vandalised since the tenants were moved out by Housing New Zealand.”

“This is an increasingly common situation since the government reduced eligibility for public housing. We don’t have a housing shortage in Gisborne, we have a logic shortage. One size fits all policies are the problem with central government, our situation is the opposite of Auckland but policy is being designed for the Auckland situation and applied here.”

“Housing materials and construction are a much higher proportion of costs in the Gisborne District, we don’t have a land shortage issue like Auckland. Making it easier to expand the city boundaries will not make it easier for low income families on the East Coast to afford safe and healthy housing” said Mr Caddie. “If the government was serious about finding policy to make housing affordable they would introduce a capital gains tax or other mechanisms to put a damper on the rampant speculation that ramps up property prices.”

Mr Caddie is sceptical about introducing income related rents for private rentals. “That would see a massive transfer of taxes to landlords at the same time as the government is also planning to privatise a large proportion of the public housing stock by transferring state houses to ‘social housing providers’.

Mr Caddie recently wrote on behalf of the Tairāwhiti Housing Advisory Group to the Minister of Social Development requesting a review of the Accommodation Supplement that is supposed to help tenants with rents relative to the average housing costs in their region. Gisborne residents are on a lower rate of subsidy than those who live in regions where the average rental price is lower. Paula Bennett said in a letter that the Ministry would not be reviewing Accommodation Supplement in Gisborne because it would be inappropriate to focus on only one region. The Tairāwhiti Housing Advisory Group agreed last week to ask Anne Tolley and Parekura Horomia to take up this issue on behalf of the region they represent.

Kainga Whenua changes ‘best achievement’ of current Government

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Making it easier for whanau to build on multiply-owned Māori is probably the best achievement of the current government to date says Gisborne District Councillor Manu Caddie.

Changes in eligibility criteria and an increase in the amount Kiwibank will loan under the Kainga Whenua scheme were announced yesterday by Māori Party co-leader and Associate Minister of Housing Tariana Turia.

“If anything can make a difference to unlocking the potential of Māori land on the East Coast then this will” said Mr Caddie.

Mr Caddie said the changes that will allow non-resident shareholders to be guarantors for a loan, lifting the restriction from only first home buyers and raising the income threshold will make it easier for people earning more money, who can afford to service a mortgage, to look at returning to their traditional lands.

Mr Caddie said rates arrears on Māori land in the northern part of Gisborne District were spiraling out of control and this kind of policy would make it much easier for families to return to the land and make it even more productive than it had been 100 years ago.

“With the opportunities technology offers to work anywhere, the idea of living on tribal lands and trading globally is going to be very appealing to more families.”

Mr Caddie has been critical of the Kainga Whenua scheme in the past because the restrictive criteria had severely limited its uptake. “These are the changes we have been calling for and it is great to see both the Maori Party and National Party have been listening.”

Mr Caddie said a presentation on the new criteria would be on the agenda of the Tairawhiti Housing Advisory Group meeting at Council on 24th October.

The fund will now be open to Maori Land Trusts, whanau or hapu groups who wish to build on Maori land and to all individual borrowers assessed as able to service a mortgage, not just first home buyers.

The income cap for borrowers has been raised from $85,000 to $120,000 for one borrower and up to $160,000 for two or more borrowers.

Loans can also now be used for home improvements, repairs and maintenance.

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