CDC is about to release its Christchurch Economic Development Strategy

The Canterbury Development Corporation, the economic development agency of the Christchurch City Council is about to release its Christchurch Economic Development Strategy. This is a well thought out and significant piece of work. It identifies the key economic drivers of our future and the sort of growth we can expect if we get things right. It also indicates where we might end up if we get things wrong! The  strategy is about more than money. It is about our community, social issues and getting our environment right. At CECC we have been close to this plan as it has been developed and we intend to stay close to it as it is realized. The plan depends on all us for its delivery. We will all need to support it and be actively engaged.  Watch out for it's release post Easter and in the meantime enjoy a well deserved Easter break!

www.cecc.org.nz

There is a stirring in the suburbs

It is so good to see the geotech work gathering momentum around the city. This, combined with increasing activity from insurance companies accelerating their settlement activity, is a sign of positive resolution to the long list of seriously damaged houses and the TC3 land issues. The flow-on effect of this area of the city’s rebuild will be very significant and we expect this to start to percolate through our regional economy in the first two quarters of this year. To date we have already seen a billion dollars paid out to contractors on the less seriously damaged homes with 30,000 out of 100,000 houses with minor damage repaired. Our regional economy is currently growing at 7.5%. Once the work really cranks up on the seriously damaged houses in Christchurch we had all better hold on to our seat belts. It will be a heady ride with positive economic activity locked in for years to come. And then there is the commercial rebuild !!!!

www.cecc.org.nz

Scale of the rebuild will require firms to collaborate

The earthquakes were huge, the impact on Christchurch and the rest of the country was huge. And the task of rebuilding Christchurch is greater still.

The numbers are mind-boggling. The damage is estimated to have cost, just in money terms, between $30 and $40 billion. It is predicted that it will take until 2017 to rebuild or replace the 45,000 homes that were destroyed or damaged. And to rebuild the city itself will take about 20 years.

Canterbury can’t do it on its own. There is simply not the workforce to do this.

Given that the policy people estimate between 10,000 and 15,000 extra trades people are going to be needed, given that we don’t have any accommodation in the city, given that we are already pouring more cubic meters of concrete that they are in greater Auckland – it all adds up to the fact that it’s absolutely inevitable that we’re going to have to harness resources from wherever we can in the rebuild. 

It’s already happening informally – companies in Christchurch are forming collaborative relationships with others across the country. And it isn’t just in the construction area.

As an example, a law firm that has formed a collaborative relationship with one based in Auckland.

The Auckland based firm is doing a lot of work assisting the local one to deal with the scale of resource consent process and other legal inquiries that are building all the time

There are groups in Christchurch using the internet to bring those looking for assistance and those keen to provide it together. The WellCan Forum will take the concept further.

It is about how we harness the capabilities of regional economies right across New Zealand to assist us in the rebuild. That’s good for those regional economies, because it keeps regional activity where it is and it keeps people where they are.

That means that componentry and other material can be sent to Christchurch in a finished or semi-finished basis, which will accelerate the rebuild.

Every home that can be built faster means one family is more secure sooner.

It’s not just homes of course. The Christchurch Central Development Unit has make real progress towards the vision of its’ Blueprint Plan. The four priority anchor projects are moving ahead steadily and the central city area is starting to repopulate, with the re-opening of Victoria Square and the New Ibis Hotel now in business.

The rebuild is the biggest economic stimulus New Zealand has ever had.  And it is going to require a shift in the business paradigm. There are going to have to be new ways of doing business because of the scale. And collaborative relationships are about building scale.

How can you get involved?
Collaborate Canterbury will help your business form positive collaborations.
Register at the Marketplace and find companines with the people, skills and resources you need to build scale and capability.

www.cecc.org.nz

We are entering a challenging but exciting growth phase of the recovery

As we enter the challenging but exciting growth phase of the recovery (with regional growth already at 7.5% and unemployment 2 percentage points lower than the rest of New Zealand) we are getting increasing interest from all sectors of the community in CECC's offering.

It is important that as a Chamber we play our role to assist all businesses to optimise their activity in this extremely active economy.

Big demands for increased working capital, new ways of building business relationships and how to manage  resources constraints, including skill shortages, are all critical issues currently facing our members.

For me, these are positive problems as opposed to some of the negative issues we were dealing with in the survival phase immediately post-earthquake.

We are busy refining our offering in the context of this  new environment. Like all progressive businesses we know that new business models are required and  that we are all going somewhere new, not back to where we came from.

We are always receptive to suggestions on how we can use our resources more effectively to add value to our members and to all prospective members. We have 30 good people dedicated to  maximising positive outcomes for all business. They are all energised and excited by the prospects resulting from the rebuild and they are at your service.

February 22, 2013

Just a short time to reflect, 
To look back over the past two years,
And think of all that happened then,
And much that has happened since.

Also a time to look ahead
To the positive challenges we will embrace
And how we, all together
Will take this city to a bright new place. 

www.cecc.org.nz 

There is an increasing sense of positive progress in the city

Last Friday I attended the presentation by Mayor Bob Parker, Minister Brownlee and Roger Sutton in the Red Zone, giving an update on the status of the rebuild.

It was a very positive experience, we were positioned right beside the new Health facility being built in Kilmore St and heard of the shift from deconstruction and red zones to rebuild and the opening up of cordons. It is hoped that the central city cordon be lifted within six months and we are 90% of the way through the demolition process in the city.

The Ministers speech was content rich and an excellent summary of where we are at and where we are going. You can read on the Government’s website by clicking the following link: 

http://www.beehive.govt.nz/minister/gerry-brownlee/speech

It is well worth a read, whether you are directly involved in the Central city or not.

There is an increasing sense of positive progress in the city. It has been a long time coming but the good news is that it is going to be with us for a long time to come!

www.cecc.org.nz

We’ve moved our six monthly Training & Events Directory to an interactive online format.

Our training and development programme has grown and changed significantly over the past year. It is extremely well supported by members. We have also recently changed the way we bring details of the offering to you.

We’ve moved our six monthly Training & Events Directory to an interactive online format, it's easy to access and user friendly. The Directory covers all of our scheduled training and events from 1 January to 30 June 2013. It’s easy to find your way around it and book online with navigation buttons and links on every page – honestly, I’ve looked through it myself! Having said that, if you want a copy next to your desk it’s been designed for easy printing. Training courses and workshops are arranged in business areas - Operations (including health & safety), Business Strategy, HR, Marketing, Finance and Sales. Our most popular courses and workshops return and we’ve a great mix of new training content designed to meet the changing needs and priorities of members as we enter the rebuild proper. If you need anything more, contact the training and events team on 03 366 5096 or at registrations@cecc.org.nz.

Have a look at what is on offer and join the increasing number of businesses who are enhancing their  capabilities through our current, relevant and interesting offerings.

www.cecc.org.nz

Reducing business tax to a flat 10% - good or bad?

Last week there was a flurry of media activity around reducing business tax to a flat 10% to aid  recovery and investment in Canterbury.

Superficially this sounds attractive but practically I cannot see how it would work.

I was asked for comment by the media and the full text of my comment is as follows

"I personally do not favor a differential business tax rate. My board has not considered this specific proposal. It would create too many distortions and would be an administrative nightmare. The relative  simplicity of our NZ Tax system is one of this country advantages. The key to encouraging business and investment is to concentrate on creating an environment that is overtly supportive of business. All stakeholders need to recognise the importance of being encouraging and welcoming of business. We need to establish a reputation as a city, and a community, of being seen to be overtly supportive of existing and new business and investment. We also need to be seen to be action-orientated, strategic and efficient in the context of the rebuild. Finally it is vitally important that Central Government, Local Government and the community are all being seen to be working towards common objectives. That will encourage investment."    

As we gear up fully for the recovery, supporting businesses right across the rebuild environment in all ways is going to be critical. We want Christchurch to be seen to be the easiest place to do business in New Zealand and we want all stakeholders to embrace and deliver on that concept.

www.cecc.org.nz