Late last year as Wellington City Council went to the public with its concept of a smart city, and a connected city that will create opportunities for businesses, investors, expats and migrants, Mayor Celia Wade-Brown was being asked by The Dominion Post newspaper to comment on its report the City needs to cut its budget by up to $180 million over the next decade.

The Mayor was reported as saying she did not favour a “slash and burn approach” but the reality was that people won’t accept 7.5 per cent rates rises, or higher.
“It’s relatively early in the piece as to where delays or savings might be found. My preference is that it would be in delays [in undertaking projects] than in stopping things altogether,” she told the newspaper.

A report to council’s strategy and policy committee said a sense of urgency for a strategic approach to economic development for the City has been further reinforced by the recent National Bank Report on regional economic development. This report highlighted that while both Christchurch and Auckland have posted growth in economic activity in the September quarter of 1.8 per cent and 1.2 per cent respectively, Wellington returned a 0.2 per cent growth rate despite activity generated by the Rugby World Cup. Gisborne, Hawkes Bay, Bay of Plenty, Otago and Southland regions all achieved higher than average growth. During this period the Wellington region showed a 0.0 per cent growth rate.

“This would suggest the Wellington regional economy has absorbed public sector cuts over the year, but has not yet managed to sufficiently offset these reductions elsewhere in the economy to achieve growth. There is clearly an urgent need for the city to begin to address this lack of growth if it is to remain a vibrant and attractive destination for business talent and investment, in partnership with key stakeholders and agencies,” the report said.

Announcing its 10-year plan to respond to “global economic challenges, central government’s increased focus on Auckland and Christchurch and the downsizing of the public sector in the capital”, council detailed an aim of introducing long-haul flights from Wellington to Asia by 2013, creating 10,000 new jobs by 2015 and doubling from 25 to 50 the number of new projects involving direct foreign investment by 2021.
The strategy sets a course for Wellington to increase exports by $500 million a year and grow its per capita GDP 10 per cent by 2021 (an average annual growth rate of 3.25 per cent).

The strategy focuses on four main areas:

• destination Wellington – clearly defining and promoting Wellington’s competitive advantage and better communicating the city’s strengths internationally – to tourists, expats, international students, migrants, businesses and investors;
• the smart capital – creating a business environment where innovative, creative and knowledge-intensive firms can flourish and access the resources they need to grow and where tertiary and research institutions work closely with the business community;
• the connected capital – strengthening international business and trade connections, improving infrastructure that enhances the economy and supporting good transport options between the suburbs and CBD;
• open for business – foster an efficient and affordable business environment in the city and protect and enhance the central city’s role as the economic engine room of the region.

“This is about attracting and retaining talent and growing investment and creating jobs,” the Mayor says. “Wellington is a great place to live and run business but not everyone knows that in government, New Zealand and overseas.

The Council’s economy portfolio leader, Councillor Jo Coughlan, says the strategy is about developing a more sustainable, diverse economy for Wellington.

“We need some game-changing initiatives to set Wellington on a positive growth path in the face of challenging economic conditions,” says Cr Coughlan.