Meeting of the Corporate and Strategic Committee



Date:                 Tuesday 13 December 2016

Time:                1.00pm


Council Chamber

Hawke's Bay Regional Council

159 Dalton Street





Item       Subject                                                                                                                  Page


1.         Welcome/Notices/Apologies 

2.         Conflict of Interest Declarations  

3.         Items of Business Not on the Agenda Which Cannot be Delayed                               3

Decision Items

4.         Council's Strategic Direction                                                                                         5

Information or Performance Monitoring

5.         2017-18 Annual Plan - Requirements of the Local Government Act, Proposed Approach and Timelines                                                                                                              13

6.         Update on Matariki: Regional Economic Development Strategy                               17

7.         2.00pm HB Tourism Update                                                                                      21

8.         Items of Business Not on the Agenda Which Cannot be Delayed                             37  




Corporate and Strategic Committee

Tuesday 13 December 2016

Subject: Items of Business Not on the Agenda Which Cannot be Delayed


Reason for Report

1.      Under standing order 9.12:

A meeting may deal with an item of business that is not on the agenda where the meeting resolves to deal with that item and the Chairperson provides the following information during the public part of the meeting:

(a)   the reason the item is not on the agenda; and

(b)   the reason why the discussion of the item cannot be delayed until a subsequent meeting.

2.      Items not on the agenda may be brought before the meeting through a report from either the Chief Executive or the Chairperson.


That the Corporate and Strategic Committee accepts the following “Items of Business Not on the Agenda Which Cannot be Delayed” for discussion as Item 8:



Item Name

Reason not on Agenda

Reason discussion cannot be delayed























Leeanne Hooper


Andrew Newman






Corporate and Strategic Committee

Tuesday 13 December 2016

Subject: Council's Strategic Direction


Reason for Report

1.      This report outlines a process for elected members to develop a new strategic direction for the Council and a system for monitoring ongoing performance in delivering the outcomes the Council seeks to achieve on behalf of, and with, the Hawke’s Bay community. It is proposed that the existing HBRC Strategic Plan is refreshed as the first step to shaping the agenda for the triennium and set the context for the 2018-28 Long Term Plan (LTP).

2.      The Strategic Plan is important as it defines the organisation HBRC aspires to be and in turn will influence what activities and service levels will be funded in the 2018-28 LTP, which may require re-prioritisation of existing work and/or changes in the way HBRC delivers its functions.

3.      The proposed process sets out a path for the Council to follow between now and the start of the LTP project proper in July 2017 and begin developing the mechanisms to monitor and report on outcomes.


4.      In October 2011, the Council adopted its Strategic Plan to outline the strategic priorities for HBRC over the next ten years. The Plan provided a framework for articulating the Council’s approach to the strategic challenges and opportunities faced by the region. It is a non-statutory document intended to inform the development of Council’s long term plans (in particular the 2012 LTP) which articulate the outputs, or activities, the Council intends to fund and deliver.

5.      Since the current Strategic Plan was adopted five years ago, a number of factors have changed that influence what decisions Council makes as well as how Council makes decisions.  Factors include new policy settings, strategies and plans as well as external factors such as changes to legislation, economic outlook and community values and expectations. In light of these changes, it is timely to review the Strategic Plan.

Proposed Process

6.      This proposed process is designed to run in parallel with the annual planning process and assumes a largely business-as-usual approach to the third and final year of the current long term plan. Annual plans are intended to involve only minor modifications to the LTP in order to promote stability and continuity in the Council’s work.

7.      The proposed approach reinforces the three yearly planning cycle embedded in the Local Government Act that focuses on the LTP as the vehicle to consult on significant changes to Council’s business.

8.      The LTP is the premier planning instrument for Council. It was designed to be in year 2 of the triennium to overcome the challenge of short electoral cycles relative to the long-term nature of Council’s business, particularly the lifecycle of assets and particularly, for regional Councils, the complexity of natural resource management decisions.

9.      Whilst the Long Term Plan is the centrepiece of the triennium, there is considerable preliminary work that needs to occur over the next 6 months to ensure the LTP can give effect to the Council’s desire for change. Done well this will lay the foundations for the next LTP and position the organisation to deliver it.

10.    This paper looks specifically at the process to develop a new Strategic Plan.  A separate project plan will be developed for the broader, more resource intensive LTP process. The LTP project plan will carefully sequence the many process and content pieces required to produce a fit-for-purpose LTP. Councillor leadership of the process will be essential, as ultimately the LTP, as well as the Strategic Plan, are the Council’s expression of intent and help define the organisation’s success.

11.    The proposed process includes some flexibility to respond to issues that the Council considers requires more urgency than is enabled through the LTP timeframe. For example, issues arising from the Havelock North water inquiry or the Ruataniwha Water Storage Scheme (RWSS) review, may precipitate a need to amend policy settings or adjust Council’s financial structures. These more urgent issues can be isolated for action but should align with the overarching strategic framework for the council and be delivered through an integrated 2018-28 LTP.


12.    It is proposed to hold three or four workshops in the new year to crystalize the Council’s strategic direction. Suggested topics for each workshop are:

Council Workshop




1 February, 1pm (following FA&R)

Current state and context setting (where are we today and what lies ahead):

·    Environmental scan of external influences such as the demographic, economic, ecological and social factors that shape the world we live in

·    A high level view of the state of our regional environment and economy

·    Stocktake of current statutory and non-statutory  strategies and plans to ground the plan in the present

·    An assessment of current organisational state (including capability and capacity), resource allocation and operating model


15 March, 1pm (following E&S)

High level* outcome setting:

(what success for HBRC looks like):

·    Vision, values, high level objectives, purpose outcomes, outcome measures

·    Defining what a high performing, fit-for-purpose HBRC looks like

* Note detailed outcomes should be developed with the community through the Long Term Plan


19 April, 9am (full day)

Future state for organisational capability and capacity (what will we need to do and invest in to get there):

·    Finances

·    Assets

·    Capability

·    Technology

·    Partnerships, and

·    Tangata whenua



Risk and opportunity workshop:

“The road to the 2018-2028 Long Term Plan”


Workshop One: current state and context setting

13.    Before deciding where the Council goes next, and what future success looks like, it is essential that we understand our current operating context and the drivers for change.

14.    An environmental or horizon scan is important as it recognises that the Council and its LTP do not exist in isolation. An understanding of the macro external factors (such as political, economic, social, technological, legislative and environmental) that are driving Council’s operating environment provides Councillors with an outward-looking and outcomes focus for its LTP. This session will also revisit the 2050 scenarios that underpinned the 2011 Strategic Plan.

15.    This step in the process will ensure that the Council takes a big picture approach and the decisions it makes are to the extent possible future-proofed. The environmental scan also feeds into other LTP content, including the infrastructure and financial strategies, consultation documents and funding policies.

16.    HBRC has primary statutory responsibilities for regional natural resource management and regional economic development. Developing a view on what success looks like for HBRC, and what we need to do in the future to be effective, requires that we understand current state and trends in both the state of the region’s environment and our region’s economic performance. HBRC has a 5-yearly state of environment monitoring programme that enables the Council to track performance and measure outcomes from natural resource management activity. The Council also has access to data sets that enable regional economic performance to be analysed and monitored. It is proposed that data from these sets is provided to create a snap shot of our region.

17.    There are a variety of other strategies, plans and policies that influence what Council does.  These could be national (such as National Policy Statements), regional (such as the Hawke’s Bay Biodiversity Strategy) or our own internal strategies and plans. A stocktake involves assessing all of these plans and strategies for currency and relevance leading into the next 10 years.

18.    A stocktake is important as it establishes the links between strategies and plans which contributes to an integrated LTP and tests whether the objectives and activity choices in the documents align with the strategic priorities of a new Council. By doing this early, as part of strategic direction setting, it can inform the development of community outcomes and any other priorities for the Council.

19.    The stocktake also provides much of the information that goes into the right debate with the community as part of the LTP consultation by identifying those issues that provide genuine choices and those decisions that have already been consulted on via other processes. This is particularly relevant for quasi-judicial processes such as plan changes, for which the LTP on its own cannot change although an intention to make change may be signalled.

20.    In order to understand HBRC’s ability to deliver on new and different work in the future it is critical to understand how HBRC is delivering its current work and positioned to deliver on expectations in the future. In some areas of the Council’s business there will be growing demand and the need to work differently. Requirements arising from instruments of national direction under the Resource Management Act, particularly in freshwater management, will create further challenges to Council resources. HBRC is already challenged in meeting community expectations in some of its current work, such as in the implementation of Plan Change 6. It is proposed that an overview of the current state of the capacity and capability of the organisation is provided to assist Councillors in thinking about the ability to meet future challenges.

Workshop Two: high-level outcome setting

21.    The purpose of this workshop will be to agree the high-level goals for the Council and meaningful measures of success. This session is intended to shift the Council from measuring and reporting outputs to managing for outcomes.   This step follows on from workshop one, in which the current strategic direction is clarified through the stocktake of organisational drivers, existing plans and strategies, as well as current capability and capacity.

22.    This workshop will look at our current purpose, vision and values in light of what’s changed and consider their ongoing relevance.

22.1.    Purpose: Hawke’s Bay Regional Council has a long term focus and we exist because of our statutory role in four core functions –

22.1.1.      Natural resource knowledge and management

22.1.2.      Natural hazard assessment and management

22.1.3.      Regional strategic planning

22.1.4.      Regional scale infrastructure and services.

22.2.     Vision: A connected and vibrant region with resilient communities, a prosperous economy, and a clean and healthy environment.

22.3.     Values: LEIIP - leadership, excellence, innovation, integrity and partnerships.


23.    To clarify its purpose, council’s business will be presented under each of the four core functions.  This will provide elected members with a sense of the size and scale of what we do in each area and why we do it, particularly how much is a legislative requirement and where there is more discretion.

24.    Community outcomes were narrowed in scope after the 2012 LTP and redefined as “the outcomes that a local authority aims to achieve in meeting the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions”. These need to be factored into strategic direction setting as well as disclosed in the LTP document. Community outcomes inform the rationale for service delivery thus determining the levels of service provided to the community.

25.    HBRC’s current community outcomes were developed collectively with the five Hawke’s Bay Councils in 2004.  There is an opportunity to review these in light of the new definition, and to streamline the current multi-layered and therefore complicated strategic planning hierarchy. For example, Council could consider aligning the Council’s vision statement with its community outcomes and/or reviewing the resilience approach (Resilient Ecosystems, Resilient Economy and Resilient Communities) that features in the current Strategic Plan.

26.    The 5-yearly State of the Environment Reports and regional economic data used to provide a picture of the current state of the region in Workshop One also provide a rich information base to measure the Council’s outcomes in the future. Outcome measurement could build on this to monitor and report on what Council is trying to achieve and the interventions it is taking to make a difference.

27.    It is proposed that through the LTP there would be a set of organisation-wide outcome measures that cut across more than one functional or activity grouping (such as planning, engineering, science). These measurable outcomes can be used to drive integrated thinking within the organisation as the outcomes become a driver of organisational alignment and effort. These are outcomes that Council directly contributes to along with others but may not have total control over.

28.    To do this requires linking Council outputs to attributable impacts. This will enable Council to evaluate how successful activities are at delivering on outcomes.  Under the LGA, Council must also consider whether it has been efficient in achieving its outcomes. Together these measures of impact on outcomes and efficiency create the basis for ongoing evaluation of future LTPs and create a ‘strategy system’ of ongoing performance monitoring and reporting.

Workshop Three: future state for organisational capability and capacity

29.    This workshop will focus on what resources and skills Council will need for the future.  It will look at our current resource base (including HR, IT, asset and financial capability) and what will need to change to deliver the Council’s strategic direction.

30.    It will also look at organisational performance by domain or functional areas and seek agreement, in what areas we should do more or less. Focus areas for discussion could include:

30.1.     Co-governance and Treaty partnership - embedding the principles and obligations under the Hawke’s Bay Regional Planning Committee Act 2015 into business as usual as well as future treaty settlements

30.2.     Economic development – where does the Council have leverage and influence? Should Council’s role be explicitly bound to synergies with core competency in natural resource use? Who is best placed to take a lead on tourism and other investment opportunities?

30.3.     Marine management – marine management is highly fragmented between multiple agencies with unclear leadership and little information is collected to enable trend analysis or inform policy making.  Marine pests are an increasing issue for which the Council is responsible. What role should HBRC play in the marine space?

30.4.     Climate change – sea level rise and increasing coastal hazards is a certain outcome of climate change. Extreme weather events, including droughts and floods, are predicted. What is the Council’s role in assisting the community to adapt and manage this change? What role, if any, does the Council have in mitigating greenhouse gases?

30.5.     Regulation - how does the Council approach its role as a regulator (what mix of soft influencer and educator through to hard line compliance and enforcement)? What skills and capability does it need to influence behaviour? How much compliance effort should it make?

Aligning the Strategic Plan with the Long Term Plan

31.    As well as setting the general context for the LTP, the Strategic Plan will specifically feature in the LTP in three key ways:

31.1.    Levels of service (LOS) review

31.2.    Business cases for new funding (either new activities or increases to LOS)

31.3.    Key topics in the Consultation Document.

32.    Levels of service are descriptions of what we do, why and for who. They can be described as our commitment to our community. Service levels are information that must be included in the LTP. Under Schedule 10 (4) of the Local Government Act (LGA), Councils must include performance measures and targets for groups of activities to enable the public to assess the LOS for major aspects of activities.

33.    Reviewing LOS is a tangible way to embed the Strategic Plan into Council’s business. The objective of the review would be to assess the impact of any changes signalled in the Strategic Plan and compare relative priority. In terms of the LTP, the output would be an accurate description of the what we do in a consistent manner and better performance measures.

34.    HBRC’s current LTP has 145 non-financial performance measures, many of which are milestones of work produced rather than performance per se. This number is significantly more than other regional Councils, many of whom have streamlined their measures over progressive long term plans. For example, Bay of Plenty, Waikato and Northland Regional Councils have around 40 measures. This is an obvious area of focus for the 2018 LTP for HBRC.

35.    The key steps in a LOS review could include:

35.1.    Reviewing current LOS statements and performance measures from the 2015-25 LTP and updating them to reflect the Council’s new strategic direction

35.2.    Drawing on ‘best in class’ non-financial performance measures used by other regional Councils

35.3.    Mapping budget codes to LOS (to give size and scale)

35.4.    Assessing the impacts of external and internal drivers to build a strategic case for each LOS (including interdependencies)

35.5.    Testing whether the current funding was sufficient to deliver on the LOS

35.6.    Assessing the impact of increasing or decreasing funding

35.7.    Developing business case for increased funding or LOS.

36.    The results would be workshopped with Council during the LTP development, including recommendations for changes in LOS and new funding through business cases. Council decisions on LOS would provide the basis for the 10-year budgets and the major topics for consultation in the 2018-28 LTP Consultation Document.

37.     It is proposed to engage an independent facilitator with strategy expertise to support and advise Council in this critical task. This may have budgeting implications, depending on the extent of the external resource desired by Council.

Decision Making Process

38.    Council is required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act).  Staff have assessed the requirements in relation to this item and have concluded:

38.1.    The decision does not significantly alter the service provision or affect a strategic asset.

38.2.    The use of the special consultative procedure is not prescribed by legislation.

38.3.    The decision does not fall within the definition of Council’s policy on significance.

38.4.    The decision is not inconsistent with an existing policy or plan.

38.5.    Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.



1.      That the Corporate and Strategic Committee receives and notes the “Council’s Strategic Direction” staff report.

2.      The Corporate and Strategic Committee recommends that Council:

2.1.      Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

2.2.      Endorses the process for developing Council’s 2016-19 Strategic Plan as outlined in this report.



Authored by:

Desiree Cull

Programme Leader


Approved by:

James Palmer

Group Manager
Strategic Development




There are no attachments for this report.     


Corporate and Strategic Committee

Tuesday 13 December 2016

Subject: 2017-18 Annual Plan - Requirements of the Local Government Act, Proposed Approach and Timelines


Reason for Report

1.      This report clarifies the recent changes in the Local Government Act that cover the Annual Plan preparation and consultation. Further, this report sets out the proposed approach and timelines for the compilation of the Annual Plan 2017-18.

The Local Government Act 2002 (LGA) Covering Annual Plans

2.      Section 95(1) of the LGA states that the local authority must prepare and adopt an Annual Plan for each financial year.

3.      The purpose of an Annual Plan is set out in section 95(5) as:

3.1.      Contains the proposed annual budget and funding impact statement for the year to which the Annual Plan relates; and

3.2.      Identifies any variation from the financial statements and funding impact statement included in the local authority’s Long Term Plan (LTP) in respect of the year; and

3.3.      Provides integrated decision making and coordination of the resources of the local authority; and

3.4.      Contributes to the accountability of the local authority to the community.

4.      In regard to the need to consult on the Annual Plan, this is covered in LGA section 95 (2)(A) which sets out that consultation need only be undertaken if the proposed Annual Plan includes significant or material differences from the content of the LTP for the financial year in which the proposed Annual Plan relates. In these instances, the local authority must prepare and adopt a consultation document.

5.      This consultation document needs to:

5.1.      Identify significant or material differences between the proposed Annual Plan and the content of the LTP for the financial year to which the Annual Plan relates; and

5.2.      Explain the matters in 5.1 in a way that can be readily understood by interested or affected people; and

5.3.      Inform discussions between the local authority and its communities about the matters in paragraph 5.1.

6.      The LGA states that the content of a consultation document must be concise and presented in a simple manner.

7.      Accordingly the same approach as was taken with the development of the LTP 2015‑2025 and the Annual Plan 2016-17 will be undertaken for this Annual Plan. This will mean that supporting accountability documents which will include financial statements, funding impact statements (rating) and detailed explanations of variances from the LTP will be presented to Council for adoption. These documents need to be adopted prior to a “Consultation Document” if one is issued.

8.      It is worth noting that a significant number of local authorities did not issue a consultation document for the 2016-17 Annual Plan. They believed that, for their Council, there were no material or significant variances from the LTP and hence no consultation was required.

9.      For the 2016-17 Annual Plan, HBRC did issue a consultation document, which covered:

9.1.      Staff resources covering the management and monitoring of land use activities

9.2.      Increased investment in technology

9.3.      Retention of Wellington leasehold property

9.4.      Changes in drawdown of cashflow for the RWSS.

10.    An amendment to the 2015-25 LTP was also issued on the proposal to purchase environmental flows from the RWSS. This amendment was audited, as required by the LGA.

Local Government Act Audit Requirements for Annual Plan

11.    There is no requirement in the LGA for an audit to be carried out on the Annual Plan. The only exception in this regard is if there is an amendment to the LTP which affects that Annual Plan year and the variations/amendments have been included in the Annual Plan. Amendments to the Annual Plan which require special consultation can be triggered by section 97 of the LGA which includes significant changes to the intended level of service or a decision to transfer ownership or control of a strategic asset from the local authority. It is not envisaged that this Annual Plan will trigger either of these provisions under section 97 of the LGA.

12.    An amendment to an LTP can also be triggered where there is a significant change to revenue and financing/funding impact statements. As significant changes to these policies are normally included in an LTP and form part of the consultation for that Plan, it is not envisaged that there will be an LTP amendment for these policies as part of this 2017-18 Annual Plan process.

Principles Supporting the Compilation of the Annual Plan 2017-18

13.    Significant work has been undertaken during the LTP 2015-2025 to include strategies and projects, including both financial and performance management information. The Annual Plan for 2016-17 made changes to the LTP and these changes, where material, were consulted on in the Annual Plan Consultation Document. It is therefore proposed to use the current Annual Plan 2016-17 figures as the base for the development of the 2017-18 Annual Plan, and make adjustments to incorporate any additional items included in the LTP that relate to that year.

14.    The LTP showed a surplus position of $16,000 for the year 2017-18. The objective of the revised Annual Plan is to maintain the LTP position as far as possible. This operating result was achieved on the back of a cost efficiency exercise undertaken by Council, specifically $1M in cost reductions achieved during 2013-14 and a further $300,000 in 2015-16.

Issues to be Addressed in the Annual Plan Development

15.    As part of the Annual Plan 2017-18 development, there are a number of issues that may require consideration by Council and these issues will either be the subject of separate papers to Council over the next few months, or be part of the Council workshop on the Annual Plan which is proposed to be held on 23 February 2017.  Some of the issues that will be covered at the workshop are:

15.1.    Rates Increase: The LTP for the year 2017-18 was based on a rates increase of 5.51%. this rates increase included a further $300,000 being made available to Hawke’s Bay Tourism. The financial strategy in the LTP set down the policy for the increases in levels and services. As part of the Annual Plan preparation there needs to be consideration of any current movements in the local government cost index or in the increases in level of service that Council wishes to provide.

15.2.    Interest Rates: Interest rates on term deposits have been subject to a number of fluctuations during the current financial year. The Official Cash Rate (OCR) was reduced to 1.75% in November 2016. Council is currently receiving 3.5% on term deposits.

15.3.    Sale of Land Investment Reserves: At the commencement of the Annual Plan year (1 July 2017) Council will have approximately $60M in the sale of land investment reserves, therefore the interest rate on term deposits used for projection purposes will have a major influence on the Plan.

15.4.    Ruataniwha Water Storage Scheme: This Annual Plan will need to review the assumptions made in the previous Annual Plan (2016-17) which had all $80M of RWSS funding drawn down by HBRIC Ltd by the end of June 2017. If this project proceeds, the timing of cash drawdowns needs to be revised.

15.5.    LTP Capital Budgets: LTP capital budgets for 2017-18 need to be reviewed, and then amended if necessary. Included in this evaluation of additional capital requirements will be the implementation of the computer system for resource management activities.

Proposed Timelines



Annual Plan compilation/scrutiny by Executive

December 2016/January 2017

Workshop papers to be distributed to Council

Thursday 15 February 2017

Summary of Annual Plan proposals and strategy to be presented to Council workshop

Thursday 23 February 2017

Further Council workshop to consider any Annual Plan issues, the draft Consultation Document (CD) and supporting accountability documents

Wednesday 8 March 2017

Adoption of final Annual Plan CD and supporting accountability documents

Wednesday 29 March 2017 (papers out Thursday 23 March 2017)

Special consultative period of five weeks’ duration

Monday 10 April  – Friday 12 May 2017

Staff responses and submissions to be sent to Council

Wednesday 7 June 2017

Council hears submissions

Monday and/or Tuesday 12 & 13 June 2017

Council adoption of final Annual Plan

Wednesday 28 June 2017 (papers out Thursday 22 June 2017)


Decision Making Process

16.    Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.



That the Corporate and Strategic Committee receives and notes the “2017-18 Annual Plan - Requirements of the Local Government Act, Proposed Approach and Timelines” staff report.



Authored by:                                                       Approved by:

Leeanne Hooper

Governance & Corporate Administration Manager

Paul Drury

Group Manager
Corporate Services






There are no attachments for this report.


Corporate and Strategic Committee

Tuesday 13 December 2016

Subject: Update on Matariki: Regional Economic Development Strategy


Reason for Report

1.      This report provides the Corporate and Strategic Committee with an update on activities relating to Matariki, the Hawke’s Bay Regional Economic Development Strategy and Action Plan 2016, launched in July 2016.


2.      Following a mandatory review process Hawke’s Bay councils committed to build upon the collaborative initiatives championed by the 2011 REDS strategy and undertake a refresh of that document.

3.      Matariki was designed in partnership between “the public sector at all levels and the private sector of all sizes”, and Maori via Te Kahui Ohanga o Takitimu (TKO) – a collective of Ngati Kahungunu Iwi and Hapu post treaty settlement groups. Matariki “is focused on building from the whanau level to generate a healthier, wealthier, more inclusive and fulfilled population”. The Matariki Governance group comprises representatives from central government, all councils, TKO, business, EIT and the District Health Board.

4.      Matariki identifies 6 strategic directions:

4.1.      Improve pathways to and through employment

4.2.      Identify and support existing businesses wanting to grow

4.3.      Promote greater innovation, productivity and agility

4.4.      Become a beacon for investment, new business, and skilled migrants

4.5.      Lead in the provision of resilient physical, community, and business infrastructure

4.6.      Enhance visitor satisfaction and increase spend.

5.      In addition, Matariki identifies actions to enhance the overall strategic framework regional economic development in Hawke’s Bay. For example, Action 1.1 requires the Matariki Governance Group to “Undertake a stock take of the organisations involved in economic development in the region and recommend the regional economic delivery model to give effect to this strategy.”

6.      Supporting the strategic themes are 45 Actions, each of which have been allocated to a lead agency together with identified key partners. As a part of local government and in its own right HBRC is designated as a key partner for over 20 actions, and is designated lead agency for the following actions.

Strategic Direction

HBRC Lead or Co-Lead

Lead in the provision of resilient physical, community, and business infrastructure.

4.1 Improve access to the Port of Napier to increase regional economic performance (Regional Transport Committee)

4.2 Support the timely implementation of the key strategic initiatives in the Regional Transport Plan. (Regional Transport Committee)

4.2.1 Support the combined approach with Tairawhiti to achieve significant upgrades to SH2 between Napier and Opotiki (Regional Transport Committee)

4.3 Accelerate the deployment of Ultra-Fast Broadband throughout the Region, in particular to rural communities and marae. (Co Lead with all councils)

4.4 Ensure regional and district plans take a coherent and consistent approach to regulating common activities. (Co Lead with all councils)

4.5 Investigate a common approach to consenting and regulatory approval. (Co Lead with all councils)

4.6 Identify land available to support new business growth by liaising with councils. (Co Lead with all councils)

4.7 Explore opportunities arising from water storage schemes, should they proceed, in order to promote increased regional productivity. (HBRC lead)

Promote greater innovation, productivity and agility.

5.4 Work with primary sector producers to ensure productivity gains deliver the improved environmental performance required for freshwater reform. (HBRC lead)

5.5 Support natural resource users to identify and proactively manage business risks and opportunities arising from a changing climate. (HBRC lead)

5.6 Ensure sustained funding for productivity and innovation development programmes to meet the needs of businesses in Hawke’s Bay (Via Callaghan Innovation and the Regional Business Partner Program)

5.9 Conduct a regional natural-capital stock take of primary sector productivity potential. (HBRC lead)

Become a beacon for investment, new business, and skilled migrants

6.2 Develop a targeted regional strategy for the attraction of businesses, investment and migrants. (Co Lead with all councils and Business Hawke’s Bay)

Enhance visitor satisfaction and increase spend

7.1 Improve collaboration between organisations tasked with tourism product development and infrastructure spend and establish a coordinated approach to developing tourism products and a programme of initiatives in order to optimize visitor spend in Hawke’s Bay. (HBRC lead)


Current Activity

7.      Although not the designated lead agency, in addition to the above HBRC is providing resource to Action 1.1 – Economic Delivery model review. MBIE is funding an independent review of current economic development activity within the region to generate a recommendation on a model that will give best effect to Matariki (see para 5). A consultancy has been appointed to undertake the review which is expected to be completed by March 2017.

8.      In the meantime, MBIE, the Matariki Governance Group and Councils have agreed to the appoint a Programme Manager (1 year fixed-term) to coordinate progression on all action plans during the review process. The position will report to the governance group. HBRC is coordinating the recruitment process and the position will formally sit within this organization. MBIE is funding 50% of the role with all councils contributing to the balance.

9.      HBRC is also supporting Action 6.1 – Working with Rocket Lab to develop opportunities to leverage business attraction off the Te Mahia initiative. Here HBRC has co-funded an independent assessment of the tourism opportunities as well as providing ongoing resourcing for the Rocket Tourism Steering Committee, established to support WDC’s management of the test-launch phase and its analysis of the tourism opportunities and challenges of a regular commercial launch operation.

10.    HBRC is providing advice and input into the business case development, led by NCC, for a significant expansion of the National Aquarium for tourism, education and research.

11.    As advised to the previous council on 31 August 2016, HBRC has agreed to lead actions that leverage existing work areas of the council. All councils have committed to actions on the basis of any significant new activity or expenditure being subject to council planning process. Due to recent resource pressures staff have not begun detailed implementation planning for the HBRC-led Matariki actions. This work will commence early in 2017 and further advice will be provided to the committee on proposed work programmes and associated resourcing implications.

Decision Making Process

12.    Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.



That the Corporate and Strategic Committee receives and notes the “Update on Matariki: Regional Economic Development Strategy” staff report.



Authored by:

Tom Skerman

Economic Development Manager


Approved by:

James Palmer

Group Manager
Strategic Development




There are no attachments for this report.


Corporate and Strategic Committee

Tuesday 13 December 2016

Subject: HB Tourism Update

Reason for Report

1.      HB Tourism reports to Council quarterly, against the KPIs (following) as resolved by Council on 30 September 2015.

2.      A report from HB Tourism setting out achievements, progress towards the key performance indicators and the Organisation’s financials to 31 March 2016, is attached to this paper.

3.      While many of the KPIs listed below are annualised measures, a review of Hawke’s Bay Tourism Activity on pages 5 to 9 of the attached report indicates that measures are on track to be met.





Consumer Marketing

Deliver an annual consumer marketing plan to ensure Hawke's Bay maximises all media opportunities both paid and unpaid. This includes the delivery of an annual consumer marketing plan to drive visitors to come now, do more and come back.



Manage and protect the Hawke's Bay brand to ensure the brands integrity in all use by all parties

Manage and protect the Hawke's Bay brand to ensure the brands integrity


The development and delivery of an annual media plan that is based around a Seasonal Campaign Strategy.

Campaign activity will deliver Increased website traffic to and other targeted channels. Success is measured by increased traffic to the regions websites and other digital channels- Facebook, Twitter, Instagram.


The delivery of the Hawke's Bay Tourism International and Domestic Media Programme

Host a minimum of 30 international and domestic media per annum.



Deliver stories and Hawke’s Bay content to over 100m people per annum



Coverage received will have the equivalent EAV of $10m per annum


The delivery of a strong digital platform to share Hawke's Bay content and information for visitors.

The development of one visitor website for Hawke's Bay. To be completed by June 2017.



Increased traffic to digital channels by 50% annually



Deliver 60,000 leads directly to member websites in year one. Grow by 50% per annum.

Collateral & Promotional Material

Deliver a series of promotional material both digital and printed to serve the needs of visitors and in line with the overall brand positioning for Hawke's Bay

Produce and deliver the annual Hawke's Bay Visitor Guide.  Produce the Hawke's Bay Trails Map as well as other regional collateral as required.


Deliver a consumer content strategy for all channels used by HBT

 Pull together a content calendar for year round seasonal content for all cities and districts


Deliver an annual research programme to monitor and measure the regions visitor performance

Provide the industry with up to date data pertaining to the visitor industry in Hawke's Bay. This will be distributed via the industry website.


Deliver the Regional Events Strategy

Implement the Regional Events Strategy via joint collaboration with all Councils, Sport Hawke's Bay and other relevant agencies. Key outcomes - a regional events calendar updated, a well balanced portfolio of events year round, off-season events developed


FAWC! Food and Wine Classic Hawke’s Bay

Deliver both Summer and Winter F.A.W.C!  FAWC! to deliver at least 40-50% of participants from out of town each year. Continue to grow the event in terms of numbers -10,000 tickets available by 2018.


The Big Easy

Deliver The Big Easy at Easter to ensure the event captures at least 40-50% of participants from out of town each year. Continue to grow the event to

2000 participants by 2017.


Hawke’s International Bay Marathon

Deliver a world class event alongside organisers Lagadere for three years. This will involve a starting base of 2500 competitors in year one to grow to 4,000 by 2018.

Trade Marketing

Deliver the annual trade marketing plan to ensure Hawke's Bay is well represented within the distribution channel both offshore and in New Zealand.

International Marketing Alliances

Maintain membership of both Explore Central North Island Alliance which promotes the Pacific Coast Highway and Thermal Explorer Highway. (8 North Island regions) and Classic New Zealand Wine trail Alliance (4 regions) to ensure international presence for Hawke’s Bay.

Deliver international trade initiatives alongside other regional partners. Attend a minimum of 3 international trade shows (see below) and participate in growing the touring routes Hawke’s Bay is part of. Full international focus of activity and all directed at the travel agent community.

Trade Famils

Deliver an international trade famil programme to educate the travel industry about Hawke's Bay with the aim to sell more of the region via the Distribution Channel

Host  a minimum of 50 travel agents, product managers and inbound tour operators in the region annually


Deliver and maintain a Tourism Industry Website for operators within Hawke's Bay.

Keep updated the industry website with relevant press releases, research, presentations and industry news.


Conduct a Workshop Series to educate local operators

6 - 10 workshops to be held annually. Topics to include new markets, market segments, and social channels

Trade Shows

Represent Hawke's Bay and its tourism sector at a range of leisure/FIT (free and independent travellers) trade shows throughout the year in New Zealand and overseas

HBT to attend the following trade shows annually; TRENZ and Explore. HBT to represent Pacific Coast Highway (Explore Central North Island Alliance) at Kiwi Link events in China, USA, UK.

Business Tourism Events

Represent Hawke's Bay and the Conference and Meetings sector at a range of business trade shows throughout the year in New Zealand

HBT to attend the following business trade shows annually; Meetings and Convene

Tourism Awards

Deliver the annual Hawke's Bay Tourism Industry Awards

Generate at least 20 entries per annum into the Hawke's Bay Tourism Awards (September each year)

Tourism Development

Identify key tourism development projects to encourage economic growth to the region.

Outcomes - Begin scoping of tourism opportunities in the region particularly in relation to Maori tourism development. Work with local iwi to understand Maori tourism product - the gaps and opportunities


Develop plans for targeting international visitors that suit the tourism product in Hawke’s Bay e.g. Premium product offering for USA/Australia, Cycling product Australia etc

Develop a clear plan for China tourism to Hawke's Bay.

Continue to engage with key target markets to ensure Hawke’s Bay is well-represented and sold – particularly in relation to premium and luxury product, cycling, food and wine and Art Deco.

Develop and maintain Hawke's Bay content for the China market - to be distributed via Weibo. Build a China Marketing Group to develop joint marketing opportunities


Manage and grow the annual membership programme of the Hawke’s Bay Tourism Industry Association



Deliver an annual membership programme in order to generate additional funds for the organisation and develop a strong well educated and coordinated industry.

Generate a minimum of $100,000 in revenue from the annual membership programme.

Stakeholder Management

Deliver quarterly reports to the Hawke's Bay Regional Council

4 x Quarterly reports delivered as well as Financials

Financial Management

Manage all budgets and deliver monthly and quarterly financial reports to both the HBT, HBTIA Boards and to HBRC

Manage all budgets and deliver monthly and quarterly financial reports to both the HBT, HBTIA Boards and to HBRC

Staff Management

Manage all staff and conduct annual reviews

Annual reviews it be conducted for all staff. Training needs worked through and planned to improve staff skills


Decision Making Process

4.      Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.



That the Corporate and Strategic Committee receives and notes the “HB Tourism Quarter 1 and Quarter 2 2016-17 Update” report.


Authored by:                                                       Approved by:

Tom Skerman

Economic Development Manager

James Palmer

Group Manager
Strategic Development







HB Tourism Q1 and Q2 2016-17 Report




HB Tourism Q1 and Q2 2016-17 Report

Attachment 1



Corporate and Strategic Committee

Tuesday 13 December 2016

Subject: Items of Business Not on the Agenda Which Cannot be Delayed


Reason for Report

This document has been prepared to assist Councillors note the Items of Business Not on the Agenda Which Cannot be Delayed resolved to be discussed as determined earlier in Agenda Item 3.



Item Name

Reason not on Agenda

Reason discussion cannot be delayed