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Top 10 Risks 1-10
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Attachment 2
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Risk
Issue 1
Water
Quality
Risk Statement
Water quality in the rivers of
Hawke’s Bay is declining and HBRC are not quickly and effectively addressing
this issue.
Risk Status
The potential for water quality in
the region’s water bodies to decline is real without ongoing proactive
management by HBRC. HBRC has a major focus on this issue with long term
mitigation programmes provided for in the LTP 2012/22.
Assessment
The public of Hawke’s Bay are
increasingly concerned at the quality of water in the region’s rivers, and that
there could be a decline in the quality of water in our key aquifers.
HBRC monitors water quality at a
network of sites throughout the region and reports annually on trends through
its State of the Environment report.
Risk mitigation
Water quality continues to be a
focus of HBRC. Provision for the following projects has been included in the
2012/22 LTP. These projects will in the long term result in improvements to
water quality in water bodies in HB.
· Hill Country Afforestation project
· Ruataniwha Water Storage project
· Improved focus for the Regional Landcare Scheme
· Catchment based Plan changes
The
National Policy Statement for Freshwater Management came into effect on 1 July
2011. This requires regional councils to set water quality limits and
timeframe targets in regional plans. A Plan change for the Tukituki River is
progressing.
HBRC Regional Plans include a policy
and regulatory framework for the management of water quality in the region’s water
bodies.
Through the Regional Landcare
Scheme, HBRC encourages land owners to fence stock out of waterways and improve
farming practice.
Change since May 2012
· HBRC has focused on the completion of the Ruataniwha
Water Storage project as a key element of this risk mitigation strategy.
· HBRC has adopted its 2012/22 LTP which provides for the
resources for a programme of work to mitigate this risk.
· A proactive approach continues to be taken on Taharua
catchment to reduce farming impact on water quality.
· Construction work for Mahia Beach waste water project
has commenced. This project will irrigate waste water from the Mahia Beach
Community to the HBRC forest planted last winter.
· Council has deferred the commencement of the Regional
Afforestation project due to the reduction in the carbon price, limiting HBRC’s
potential exposure to this.
Mitigation actions
completed in past 3 years
· Two Water Symposiums held and well attended.
· HBRC Strategic Plan and Hawke’s Bay Land and Water
Management Strategy completed and being implemented.
· Ruataniwha and Ngaruroro water storage feasibility
projects progressed.
· Science input appropriately targeted to sensitive
catchments and risk areas including a review of minimum river flows and
allocation limits for ground water and surface water on a targeted catchment
basis.
· Council led initiative to investigate water harvesting
opportunities, water metering and water use efficiency through rationing and
rostering.
· Water Initiatives Group established within Council to
focus on water issues.
· Programme of Regional Plan changes initiated to meet
HBRC obligation associated with NES initiated.
· Web portal established.
· More holistic approach to Council involvement with
primary sector being taken by Council with objective of reducing impact of
sector on water quality.
· Riparian fencing and planting continues to be
encouraged through Council’s Regional Landcare Scheme and Fonterra’s Clean
Streams Accord.
Risk
Issue 2
Water
Quantity
Risk Statement
HBRC is failing to appropriately
manage the allocation of water with a fair balance between protection of
environmental flows and adequate provision for irrigation leading to economic
growth.
Risk Status
As for water quality, HBRC has
recognised the need for ongoing proactive management of water quantity issues.
HBRC has a major focus on this issue with long term mitigation programmes
provided for in the LTP 2012/22.
Assessment
The appropriate allocation of water
is a balance between the needs of the public and the regional economy,
including domestic users and irrigators, with environmental requirements. This
requires a robust understanding of environmental and agricultural needs.
The map below shows that the
Tukituki, Ngaruroro including the Karamu, Maraetotara and Pouhokio catchments
are currently either fully or over allocated. The Ruataniwha water storage
project has the potential to enable this issue to be addressed in the Tukituki
catchment.
In the longer term, HBRC needs to
have an effective framework for the management of water allocation for all of
the region’s catchments.
This
is recognised as a National risk. National Policy Statement for Freshwater
Management came into effect on 1 July 2011 to provide direction on the
management of the issue. This requires regional councils to set water quality
limits/ timeframe targets and water allocation limits and minimum flows in
regional plans. It also provides for the involvement of tangata whenua in
freshwater planning and management.
Risk Mitigation
The following work has been
initiated to reduce this risk:
· HBRC’s Strategic Plan, the Hawke’s Bay Land and Water
Management Strategy and the 2012/22 Long Term Plan provides the framework and
resources for a programme of work to mitigation of this risk.
· Ruataniwha water storage project
· Ngaruroro water storage prefeasibility study
· Catchment based Plan changes
Change since May 2012
· HBRC has focused on the completion of the Ruataniwha
Water Storage project as a key element of this risk mitigation strategy.
· HBRC has adopted its 2012/22 LTP which provides for the
resources necessary to mitigate this risk.
· Collaborative engagement has commenced for the greater
Heretaunga/Ahuriri Catchments.
Mitigation actions
completed in past 3 years
· Two Water Symposiums held and well attended.
· HBRC Strategic Plan and Hawke’s Bay Land and Water
Management Strategy completed and being implemented.
· Ruataniwha and Ngaruroro water storage feasibility
projects progressed.
· Science input appropriately targeted to sensitive
catchments and risk areas including a review of minimum river flows and
allocation limits for ground water and surface water on a targeted catchment
basis.
· Council led initiative to investigate water harvesting
opportunities, water metering and water use efficiency through rationing and
rostering.
· Water Initiatives Group established within Council to
focus on water issues.
· Programme of Regional Plan changes initiated to meet
HBRC obligation associated with NPS initiated.
Risk
Issue 3
Land Use
Intensification
Risk Statement
HBRC
is not effectively managing the impacts of intensive land use and this is
adversely impacting on water quality in the region’s rivers.
Risk Status
The
impact of land use intensification on water quality and quantity are recognised
and ongoing proactive management of land use activities is provided for in the
LTP 2012/22.
Assessment
Intensive
land use, and particularly dairying, is widely blamed for adversely impacting
on water quality in rivers throughout New Zealand. There is evidence of this
in Hawke’s Bay through HBRC state of the environment monitoring and reporting.
Regional councils have been blamed for failing to effectively manage these
impacts.
HBRC
is actively working with individual farmers and their industry groups to
improve the management of nutrients on the land and reducing their impact on
water quality in the region’s rivers.
In
addition HBRC has commenced a programme of Regional Plan changes that will
deliver a robust approach to reducing the impact of intensive land use
Risk Mitigation
The
following has been initiated to reduce this risk:
· Improve the focus of RLS to provide for initiatives to
reduce P and N entering waterways – key initial target areas are Taharua
catchment and Ruataniwha Plains.
· Taharua and Tukituki Catchment Plan changes have been
progressed, with the long term plan to undertake further catchment based plan
changes.
· The pan-sector primary industry sector group has been
established to provide an effective focus group with which to discuss options
and approaches for mitigation, and to gain industry support in promoting those
approaches.
Change
since May 2012
· Two meetings held with pan-sector primary sector group.
· One meeting held with dairy liaison group.
· Work with Taharua and Huatokitoki communities
progressing with nutrient balance model being developed for Taharua. Proactive
approach continues to be taken on Taharua catchment with positive response from
the farming community.
· The mitigation of the impacts of land use
intensification has been thoroughly researched as part of the Ruataniwha water
storage feasibility study. A pilot project to test a mitigation approach has been
agreed by Council in October 2012, and its implementation has commenced.
· The Land Management team and its programmes have been
refocussed to increase capability of influencing uptake on good practice
farming and reducing impact of land use on water quality.
Mitigation
actions completed in past 3 years
· Strong relationship built with primary sector industry
groups and groups of farmers to encourage the use of best practice.
· Identification and prioritisation of sensitive
catchments completed and a programme of work established to address catchments
in order of priority.
· Regulation is being developed using an adaptive
management approach, with standards agreed with community.
· Science input is appropriately targeted to sensitive
catchments and risk areas
· The Ruataniwha water storage project has been
progressed.
· The Regional Landcare scheme is supporting the HBRC
approach with significant investment made in Taharua.
· Better alignment of science programme to informing
Regional Plan change programme and land management programme to implement
Plans.
Risk
Issue 4
Co-
Governance of Natural Resources
Risk Statement
Effective working relationships are
not developed and maintained with Hawke’s Bay Treaty of Waitangi settlement
groups.
Risk Status
HBRC continues to develop robust
relationships with Māori groups and is working collaboratively towards
their increased influence in HBRC decision making.
Assessment
Constructive and effective working
relationships with Treaty Settlement groups in particular and with Maori in
general will enable HBRC to more confidently progress its programmes of work
and will in the long term provide opportunities for Hawke’s Bay.
Risk mitigation
The following has been initiated to
reduce this risk:
· The Regional Planning Committee has
been formally established and is meeting regularly.
· HBRC is proactively involved in
negotiations with Treaty claimant groups where this assists in progressing
their claims.
· Staff are engaging with a number of
hapu groups to improve their understanding of HBRC’s role and work, and to
increase their involvement in decision making on environmental enhancement
projects and operational activities on the region’s water ways (at this stage
focussed on the Heretaunga Plains).
Change since May 2012
· Development of Deed of Commitment to underpin the long
term relationship between Council and Treaty Claimant groups.
· Inaugural meeting of the Regional Planning Committee in
April 2012.
· RMA and Meeting procedures training sessions held for
Treaty claimant representatives on the Committee.
· Regional Planning Committee meetings being held
regularly and currently focussing upon a change to the Regional Plan Change and
Regional Policy Statement in the area of freshwater management.
· Negotiations with Maungaharuru Tangitu Inc. over
Tangoio Soil Conservation Reserve and Tutira progressed.
Mitigation actions completed in past 3 years
· Regional Planning Committee established to undertake
HBRC’s statutory resource management functions, with equal representation of
Councillors & Treaty Claimant representatives.
· HBRC has received central government funding to work on
an agreed programme with Ngati Pahauwera around the management of the rivers in
their rohe.
· National
Policy Statement for Freshwater Management came into effect on 1 July 2011.
This requires regional councils to set water quality limits/ timeframe targets
and water allocation limits and minimum flows in regional plans. It provides
for the involvement of tangata whenua in freshwater planning and management and
this will be undertaken primarily, but not solely, through the Regional
Planning Committee.
Risk
Issue 5
Investment
Portfolio
Risk Statement
HBRC’s investment
portfolio is not effectively managed to maximise both long term financial returns
and economic development in the Hawke’s Bay Region.
Risk Status
With the establishment of
HBRIC, this risk has an effective governance and management framework for its
mitigation.
Assessment
HBRC holds a portfolio of
approx. $265m of investment assets. These include Hawke’s Bay Regional
Investment Company (HBRIC) [which holds the shares in Port of Napier Limited
(PONL)], leasehold land in Napier and Wellington and cash reserves. HBRC
strategy is to invest in regional scale infrastructure and assets to deliver
sustainable regional growth.
HBRC is reliant on income
from investments to meet operational costs. There will be a period of several
years while HBRC transfers from traditional investments to new investments
aligned to its investment strategy of increased investment returns in those
areas that will be of direct benefit to growing the Hawke’s Bay GDP. During
this period there needs to be careful management of investment returns and
cashflows.
The 2012/22 Long Term
Plan makes provision for investment into the Ruataniwha water storage project
and a regional afforestation initiative. It is essential that investment into
these initiatives is effectively managed.
Through the LTP
consultation process, HBRC sought public feedback on its proposed financial
strategy.
Risk Mitigation
HBRC has resolved to
better utilise the investment portfolio to encourage economic growth in Hawke’s
Bay and use the return on these investments as the primary funding instruments
for new investments.
During 2011/12 HBRC set
up an investment company structure including related subsidiaries. This
vehicle is being used to improve the diversification of investments and the
return on HBRC investments.
Change since May 2012
· Ruataniwha Water Storage Project Feasibility Study
progressing – completed and presented to Council on 26 September 2012. Further
report to Council by 31 October 2012.
· Council has progressed realising value from the Napier
leasehold land portfolio by providing discounts to the lessees of this property.
· Financial strategy adopted as part of LTP 2012/22
process.
· Council has resolved to put on hold the first year of
the regional afforestation project (i.e., planting for the 2013 winter), and
requires a further review prior to agreement on a second year
Mitigation actions
completed in past 3 years
· An Investment Company has been established to support
Council’s proposed investments in natural infrastructure which will assist with
the drive to increase economic development in the region.
· Sell down of Napier investment properties speeded up.
· Ruataniwha water storage prefeasibility and feasibility
now completed.
· Ngaruroro water storage prefeasibility completed.
· Regional afforestation project approved in principle as
part of LTP 2012/22 process.
· The policy on the evaluation of investment
opportunities completed and is being implemented.
· Investment Company established.
Risk
Issue 6a
Ruataniwha
Water Storage Project
Risk Statement
The Ruataniwha Water Storage Project
does not deliver positive economic and environmental benefits to Hawke’s Bay
Risk Status
Financial risks associated with this
project are mitigated through its governance under HBRIC.
Assessment
A decision to proceed with applying
to the EPA for resource consent on the Ruataniwha Water Storage Project was
made by Councillor’s on 31 October 2012. Whatever the decision there are risks
to HBRC.
The rate of uptake of irrigation
water, the management of the transfer of existing water take consent holders
and management of project infrastructure costs are key risks.
Should the EPA not grant resource
consent the ongoing issue of water allocation within the catchment and water
quality within the Tukituki River remain issues to be addressed.
The feasibility study has provided
significant value through a greater understanding of the importance of water to
Hawke’s Bay and strategies to manage potential impact of intensive land use on
water quality in the region’s rivers.
Risk Mitigation
· It is proposed that the consent, final design and
construction phase be managed and funded through independent governance and
organisation, through which HBRC will be involved together with a number of
other investors.
· Communication plan to manage dissemination of decisions
made regarding future of project, and ensure public feedback is taken into
account.
· All potential impacts of the project, (including
damming of the Makaroro River and intensification of land use as a result of
irrigation) identified and addressed through robustness of the feasibility
study work and reports.
· Involvement of HBRIC independent board members in
assessing feasibility and risk management issues.
· Financial advice to assess commercial feasibility in
detail has formed part of feasibility study.
· Public comment has been obtained through the Tukituki
Choices document.
Change since May 2012
· Feasibility study report completed and presented to
Council 26 September 2012.
· Tukituki Choices document prepared and public consultation
completed.
Mitigation Actions completed in last 3 years
· Prefeasibility study completed.
· Feasibility study initiated and completed.
· Upper Tukituki Plan change process initiated and being
developed concurrently with Storage Project feasibility.
Risk
Issue 6b
Leasehold
Land Portfolio
Risk Statement
HBRC leasehold land
portfolio is not aligned to the strategic objective for HBRC investments.
Risk Status
Are these under HBRIC????
Assessment
· HBRC receives relatively low returns on Napier Leasehold
Land investment. There is some restriction on the use of Napier leasehold
income through Hawke’s Bay Endowment Land Act.
· Some lessees find it difficult to meet the cost of
leases, particularly at the transition from old to new lease periods. This
requires HBRC to consider reducing social impacts of leases.
· The leasehold land as an investment does not contribute
to economic development of the region.
Risk mitigation
· HBRC has agreed to divest itself of lease properties
both in Wellington and Napier. In order to achieve this HBRC approved a range
of discounts available to Lessees of Napier Leasehold property, this action
being taken to encourage additional free holding by lessees. These discounts
applied to all leasehold transactions being processed prior to 30 June 2012.
· Decision by Council as part of the Long Term Plan
2012/22 finalisation that the Napier Leasehold land cash flows remaining at 30
June 2012 should be sold by the target date of 31st December 2012.
· The target date for the sell down of Wellington
Leasehold properties has been set in the Long Term Plan as 30 June 2013.
Change since May 2012
· 245 properties sold during period of discounting up to
30 September 2012 ($23m realised).
· A further 37 properties ($3.8m) to be accepted and
processed under the discounting offer.
· After all processed under discounting offer, 440
properties left in the portfolio.
· 2012/22 Long Term Plan adopted by Council.
Mitigation actions
completed in last 3 years
· Sell down of Napier leasehold properties speeded up.
Risk
Issue 6c
Regional
Forestry Investments
Risk Statement
The lack of resilience in pastoral
farms on steep erodible hill country has a potential negative long term impact
the Hawke’s Bay economy.
Risk Status
The significant reduction in the
carbon price over the past 18 months has adversely impacted on the forecast
returns from this investment. A decision to delay the commencement of the
Regional Afforestation project limits HBRC’s potential exposure to this.
Assessment
Approximately 150,000ha of steep
erodible land is currently under pasture. This land is likely to be of low
productivity and poses a risk to more productive lands and waterways during
heavy rain events because of the likelihood of erosion. The economic health of
the primary productive sector is important for the economic health of Hawke’s
Bay.
HBRC wish to increase their
influence in encouraging sustainable land management in Hawke’s Bay. Forestry,
if integrated into pastoral farming systems, can reduce erosion of the steepest
land and provide opportunities for farmers to focus on their more productive
land, thereby improving resilience and sustainability.
HBRC approved in principal as part
of their LTP 2012/22 a long term project for the afforestation of steep
erodible hill country integrated into farming systems. However due to low
carbon price the commencement of this project has been delayed. No planting in
the 2013 winter is now anticipated.
Risk mitigation
While the project is targeted at
improving the resilience of the primary productive sector in Hawke’s Bay, this
is being funded through HBRC investment portfolio. HBRC requires a return on
investment for the money invested in the project. The management of financial
risks forms part of the overall strategy.
Change since May 2012
· Concept completed and approved in principal by Council.
· Year one of the project including a carbon trading
strategy, considered by Council and postponed due to low carbon price and
carbon market uncertainty.
· Discussions held to date with farming community have
received positive response.
· A number of individual farmers have expressed their
interest in the concept.
Mitigation actions
completed in last 3 years
· Project concept developed and included in LTP 2012/22.
Submissions on proposal generally supportive of initiative.
· Land purchased and forests planted on a number of
blocks throughout the region.
· Manuka trial initiated at Tutira Country Park.
Risk Issue 7
Natural Hazard Risks
Risk Statement
A
major natural hazard event will have a significant impact on the Hawke’s Bay
region and HBRC activities
Risk Status
HBRC
is limited in its ability to influence an improvement in resilience of the
Hawke’s Bay community to natural hazards. Land use planning decisions are made
by the region’s territorial local authorities. HBRC staff continue to work at a
national level to seek ways to encourage better interpretation of hazard
information and risk mitigation approaches through holistic planning.
Assessment
HBRC
is the administering authority for Hawke’s Bay CDEM Group, HBRC are proactive
in seeking to improve resourcing of CDEM in HB.
The
Hawke’s Bay region is at risk from flooding, earthquake, tsunami, coastal
erosion and inundation and volcanic ash fall. The Heretaunga and Ruataniwha
Plains are protected from flooding from the major rivers running through them
by stopbanks with a 1% annual exceedance probability (100year return period)
design standard.
HBRC
has an ongoing programme of hazard identification research with new information
communicated to the region’s territorial local authorities and emergency
response organisations.
Major
events, severe flooding and earthquake have impacted on the region in the past
and will again in the future.
Risk mitigation
The
following has been initiated to mitigate this risk:
· HBRC maintains an incident response structure and
procedures which activates with the threat from any significant natural hazard
event.
· HB Group CDEM team resource has been increased and now
includes a dedicated group controller.
· The HB CDEM Group Plan is currently being reviewed with
the work overseen by the Coordinating Executive Group and CDEM Joint Committee.
· Joint Natural Hazard Strategy completed.
· Insurance to cover the cost of repair of infrastructure
assets is in place.
Change since May 2012
· Change the Regional Policy Statement proposed in the
Long Term Plan 2012-22 to improve policy direction on managing the effects of
natural hazards on land use.
· The CDEM Group Plan is currently under review.
· A review of HBRC arrangements for insurance of its
infrastructure assets is underway.
Mitigation actions completed in past 3 years
· Ongoing natural hazards and coastal hazard research and
is recognised nationally as proactive in these areas.
· HBRC staff are involved in a number of national and
local initiatives associated with natural hazards readiness, reduction and
response planning.
· Staff facilitates regular meetings with the HB planning
group (including TLA and RC planners) to ensure common and thorough
understanding of hazards and a common approach for risk reduction through
planning mechanisms.
· Council has a business Continuance Plan setting out how
Council will continue to do its business if staff are unable to access the
office. The plan is regularly updated.
Risk
Issue 8
Local
Government Reform
Risk Statement
Local government reform results in
significantly reduced commitment to Regional Council functions.
Risk Status
The value to the region of an
organisation such as HBRC focussing on long term sustainable management of the
region’s resources is not well understood by the public. The risk of the loss
of this focus through local government amalgamation is real.
Assessment
Local government reform is currently
being considered by central government through a discussion document “Better
Local Government”.
The current focus of HBRC is on
· Natural resource knowledge and
management
· Natural hazard assessment and
management
· Regional strategic planning
· Regional scale infrastructure and
services
This focus may not be as strong under
a structure possible as a result of possible reforms in HB.
Risk mitigation
The following has been initiated to
reduce or quantify this risk:
· Submission made on “Better Local
Government” discussion document.
· Submission made to the Local
Government and Environment Select Committee on the proposed local government
law reforms (Phase 1).
· A prosperity study has been
initiated and is programmed for completion end November 2012.
Change since May 2012
· Chair and Chief Executive continue to be active in
working with Central Government agencies and politicians to communicate the
regional council value proposition in national resource management and economic
development, including environmental, cultural, economic and social aspects.
· Regional Planning Committee with equal representation
of Treaty Claimant Groups reinforcing the resource management role of HBRC has
been established and has a regular forward meeting timetable.
· The option of joining a shared services company with
the region’s territorial authorities was consulted upon through the Draft
2012/22 Long-Term Plan. Recommendations from this were presented to Council in
September 2012.
· HBRC continues to develop very good profile –
Government Ministers, Local central government politicians, Government
Department CEs, (MPI, MfE, and DoC etc.) The relevance of regional councils
continues to be demonstrated and promoted. There is now a much greater
awareness of the value of regional councils by central government.
· Stage 1
of Prosperity Study notes that any consideration of local government reform
must avoid undermining or compromising the delivery of the Ruataniwha water
storage scheme.
· Substantial improvement across regional council sector
in collaboration and coordination.
· Establishment of “Nature Central” with central
government and other regional councils focussing on the sharing of services and
expertise in the areas of natural resource management, community engagement,
open spaces and biosecurity.
Mitigation actions
completed in past 3 years
· Background work leading
to the above achievements since May 2012.
Risk
Issue 9
New
Technologies
Risk Statement
The impacts of new technologies with
the potential to be used in Hawke’s Bay are unable to be effectively managed as
they were not foreseen in the development of Regional Plans and/or policies.
Risk Status
New technologies will continue to be
developed that challenge established resource management approaches.
Assessment
The effective management of new
technologies may not be effectively covered by Regional Plans. These include
hydraulic fracturing and genetically modified organisms
· A report is being prepared by the Parliamentary
Commissioner for the Environment on hydraulic fracturing.
· Potential environmental risks from hydraulic fracturing
have been investigated through:
o Working closely with other regional councils.
o Investigating approaches taken to regulate the activity
internationally.
· Potential environmental and economic risks from
genetically modified organisms are addressed under Environmental Risk
Management Agency legislation. The potential advantage to the Hawke’s Bay
economy of remaining GE free was raised in submissions on HBRC draft LTP
2012/22.
Risk mitigation approach
· Maintain an awareness and watching brief on new
technologies that could be used in Hawke’s Bay, including out to the 12
nautical mile area offshore which is within the HBRC area of jurisdiction.
Mitigation actions
completed in past 3 years
· Reference to both of these risks has been included in
HBRC LTP 2012/22.
o The outcome of a report being prepared by the
Parliamentary Commissioner for the Environment on hydraulic fracturing is
awaited before HBRC considers what action if any should be taken.
o HBRC will join with interested parties in participating
in a forum to determine a collective regional response to GMO.
Risk
Issue 10
Operational
Risks
Risk statement
Financial, health and safety,
contractual, and other operational risks are not effectively managed and
controlled.
Risk Status
Operational risks are managed
through established protocols, procedures and processes. These must be reviewed,
and where appropriate improved, to ensure operational risks continue to be
effectively mitigated.
Assessment
HBRC has numerous controls and
systems for management of operational risks. These include:
· Established corporate structure with clear responsibilities,
established levels of expertise and experience, and performance expectations,
including for emergency response situations.
· Financial – levels of financial delegation, regular and
transparent financial management reporting, and annual audits.
· Health and Safety – Codes of practice for activities
commonly undertaken by staff, the provision and use of appropriate personal
safety gear, an active Health and safety committee.
· Adequate budget provision to enable an appropriate
expertise, review and peer review for projects and activities.
Change since May 2012
· 2012/22 LTP completed, consulted on and audited
· 2011/12 Annual report completed and audited and
reported to Council.
· Tertiary level of Work Safe Management Programme with
ACC maintained following audit.
Mitigation actions
completed in past 3 years
· Tertiary
level of WSMP maintained throughout last 3 years.
|
Hawke's Bay Tourism 2012-13 First
Quarter Report
|
Attachment 1
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Hawke’s Bay Tourism Ltd –
1st Quarter Report July - September 2012
Prepared by Annie Dundas,
GM Hawke’s Bay Tourism
Overall
Hawke’s Bay Tourism Limited is now
into its second year of operation. Membership numbers are sitting at 193
tourism and related businesses. After meeting all first year KPI’s we are in
the early stages of completing our second year KPI’s.
Major initiatives completed this
quarter include the introduction of F.A.W.C! – Food and Wine Classic Hawke’s
Bay as a new food and wine event platform for the region, attendance at Hot Red
and the Foodshow in Auckland, industry sector updates, conference group famils
and continued PR, and media planning. Please see the detail within the KPI
report.
Visitor
Statistics
Overall results for Hawke’s Bay year
end August combining Commercial Accommodation and Private Household figures
show a flat result with only 2,195 additional guest nights or 0.1% growth.
July – August is not traditionally a
busy travel period and the economic climate combined with the hangover from RWC
(particularly in August and September) has compounded to reveal poor arrival
results in the commercial accommodation sector.
Overall the Commercial Accommodation
Monitor for August 2012 shows Hawke’s Bay guest nights down 27.8% compared to
the same period in August 2011. This equates to 15,845 less visitor nights in
the region in August. Hawke’s Bays closest neighbors have also seen the same
result with the Bay of Plenty down 31,000 guest nights (-37.9%) and Taupo down
12,000 guest nights (-18.6%).
The Private Household Monitor estimated 35,359 visitors to the
Hawke's Bay Region stayed 146,523 nights in private accommodation during August
2012. This was an increase 4,300 guest nights on the previous August. Note
this excludes those who stayed in holiday homes and baches, but includes
children aged 15 or under. The major reasons for visiting Hawke's Bay were
visiting friends and family (48.2% of total nights stayed), international
students (16.5%) and general holiday or leisure (15.1%) of total nights stayed.
Visitors to the region stayed an average of 4.1 nights in private
accommodation.
International visitor arrivals into
New Zealand are again being propped up by massive arrivals from China (+24.9%
for August and +33.8% year end August). An additional 45,706 Chinese visited NZ
this year compared to the previous year. Australia remains the number one
visitor market for New Zealand with 1.178m arrivals recorded year end August
2012.
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International
Visitors to NZ
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August 2012
|
Year end August
2012
|
|
Total
|
178,298
|
+1.4%
|
2,635,570
|
+5.3%
(133,259)
|
|
Australia
|
95,552
|
+ 3.0%
|
1,178,432
|
+5.9 % (65,556)
|
|
UK
|
6,720
|
-26.4%
|
210,400
|
-4.0% (-8,865)
|
|
USA
|
8,368
|
-5.4%
|
181,856
|
-3.3% (-2,610)
|
|
China
|
14,368
|
+24.9%
|
180,768
|
+33.8% (45,706)
|
Commercial
Accommodation
|
August 2012
|
Year end August
2012
|
|
Hawke’s Bay
|
|
|
|
|
|
Total visitors
|
21,789
|
|
460,892
|
|
|
Total guest
nights
|
41,182
|
-3.6%
|
940,220
|
- 4.3%
|
|
International
guest nights
|
7,178
|
-11.3%
|
253,598
|
+3.1%
|
|
Domestic guest
nights
|
34,004
|
-30.5%
|
686,622
|
-6.8 %
|
|
Average length of
stay
|
1.89 nights
|
Down
(2.03 nights)
|
2.04 nights
|
Down (2.07
nights)
|
|
Overall occupancy
rate
|
18.7%
|
Down (25%)
|
32.4%
|
31.5%
|
|
Occupancy excl
Holiday Parks
|
28.1%
|
|
45.1%
|
|
|
Hotels
|
7,774
|
-33.3%
|
154,947
|
+10.3%
|
|
Motels/Apartments
|
23,577
|
-21.7%
|
468,743
|
-1.7%
|
|
Backpackers
|
4,254
|
-36.0%
|
119,786
|
-6.1%
|
|
Holiday Parks
|
5,577
|
-35.2%
|
196,744
|
-17.3%
|
|
Other Regions
Total Guest Nights
|
|
|
|
|
Coromandel
|
21,980
|
-8.4%
|
|
|
|
Bay of Plenty
|
50,798
|
-37.9%
|
|
|
|
Rotorua
|
107,537
|
-9.6%
|
|
|
|
Taupo
|
52,681
|
-18.6%
|
|
|
|
Gisborne
|
15,569
|
-8.4%
|
|
|
|
Wellington
|
156,937
|
-22.8%
|
|
|
|
Nelson
|
43,502
|
-20.4%
|
|
|
|
Wanaka
|
62,643
|
-6.0%
|
|
|
|
Queenstown
|
246,359
|
+0.2%
|
|
|
|
Private Household
Monitor
|
August 2012
|
Year end August
2012
|
|
Total Visitors
|
35,359 (1,345)
|
+4.0%
|
616,578 (20,868)
|
+4.4%
|
|
Total Visitor
nights
|
146,523 (4,322)
|
+3.0%
|
2,579,626 (120,953)
|
+5.7%
|
|
|
|
|
|
|
|
Key
Performance Indicators for Hawke’s Bay Tourism
The organisation has been
working towards the goals and objectives set out in the Strategic Plan signed
off by HBRC in May 2011.
In the first three months
of our second year of operation the following KPI’s have been met;
1. Hawke’s Bay Tourism -
Establishment of a new Regional Tourism Organisation achieved July 1, 2011.
The organisation continues to gain traction with sector groups within Hawke’s
Bay and is well established within the national tourism framework as the
official Regional Tourism Organisation.
2. Brand - Establishment
of a “Hawke’s Bay” brand and communication tagline. The brand “Hawke’s Bay” and
tagline “Get me to Hawke’s Bay” continue to be used in all communication.
Extensions to the campaign include a focus on the family and boomer age
markets.
3. Consumer Marketing - HBT has taken a far
stronger domestic focus in the first quarter with solid plans around attracting
visitors for F.A.W.C! Food and Wine Classic in November, and the family market
for visits over the summer holidays and into February. Grab a Seat Campaigns
with Air New Zealand have resulted in good bookings for the latter part of the
year as well and a campaign with Jason’s Travel to over 100,000 domestic
travellers has seen positive results. Hawke’s Bay has featured heavily online
in this first quarter both with online banners and dedicated search engine
marketing.
Public
relations
Hawke’s Bay
Tourism has hosted 4 media in the first quarter, they include;
· Australian
Women’s Weekly
· New
Zealand Herald Travel
· Sunday
Star Times
· Weekend
Herald
Media results in this
period;
· USA
Cruise Critic 667 458
· Vagobond.com
USA –blog
Digital Strategy
For the 12 months
to year end September hawkesbaynz.com has delivered the
following.
|
www.hawkesbaynz.com
over 12 months
|
July 1 –
September 30 2011
|
July 1 –
September 30 2012
|
+/-
|
|
Visits to site
|
42,647
|
49,535
|
+14%
|
|
Unique Users
|
8,591
|
36,659
|
+234%
|
|
Page views
|
207,119
|
188,944
|
+6.6%
|
|
Average pages per
visit
|
4.86
|
3.81
|
-
|
|
Average time on
site
|
3.42
|
3.81
|
-
|
The
revised website is performing exceptionally well and unique visits have
increased over 200% in the first quarter. While time spent on the site is
lower, this is a reflection of people finding what they want more efficiently.
Search activity in the first quarter is generating solid traffic to the website
per month. Search is fundamental and provides a strong base of traffic to the
Hawke’s Bay website.
Research – the quarterly visitor performance monitor has been
established to accurately report on all aspects of tourism for Hawke’s Bay,
this is communicated to industry quarterly.
4. Trade Marketing
Hawke’s
Bay Tourism has hosted four famils in the first quarter. They include inbound
operator famils focused on the cruise market, an industry famil to Haumoana and
Te Awanga of 43 local operators, a Carnival Cruise Famil and a group from
wholesaler ANZCRO UK.
Cruise
62
ships scheduled to visit Hawke’s Bay this cruise season with the first Sun
Princess having arrived 30 October. It is estimated 96,010 passengers will
visit Hawke’s Bay which is an increase of 2.9% on the previous year. 61,319 are
due from Australia, 13,494 from the USA, and 8,861 from the UK. Crew visits are
expected to total 43,244 which is an increase of 16.6% on the previous year.
5. Product & Industry development
Annual
tourism update/report was presented to over 120 operators in July. This was a
look back at the previous year as well as a look ahead to future plans for the
organization.
Hawke’s
Bay staged the first Tourism Awards for the region in September. Twenty six
local businesses entered the awards. The top three finalists were Birdwood’s
Gallery & Sweet Shop, Hawthorne House and The Dome Apartments. The overall
winner, announced at the Chamber Business Awards was Birdwoods Gallery. The
judging panel consisted of Peter Blackwell (General Manager of AA Tourism),
Dave Simmons (General Manager, Online & Leisure at Air NZ), Jenny Robertson
(Head of the Tourism & Hospitality School at EIT) and Stuart Webster
(partner at Sainsbury Logan & Williams and director of Hawke’s Bay
Airport). Over 200 tourism operators attended the awards night in September.
Industry forum held in
Central Hawke’s Bay with a group of 8 local tourism operators.
Individual
workshops with tourism industry partners continue.
6. Events
The
Regional Events Strategy is well underway and in the first quarter of this
financial year we have launched the promotion of F.A.W.C! Food and Wine Classic
Hawke’s Bay. This was a major objective of the Regional Events Strategy - to
establish a food and wine related flagship event for the region. The Event
Advisory Group is also well established and meets on a regular basis.
HBT
also assisted in the promotion of “Napier – for the Ride of your Life” in July.
Hawke’s
Bay Tourism – Financial Statement
Hawke’s Bay Tourism Ltd
is tracking favourably in the first quarter of the financial year.
Appendix
1
Summary of Visitor
Arrivals Year end June 20010-12 (Commercial and Private Household stays)
HAWKE’S BAY REGIONAL COUNCIL
Corporate
and Strategic Committee
Wednesday 14 November 2012
SUBJECT: Nature Central
Reason for Report
1. This
report updates Council on an initiative to work collaboratively through a joint initiative called ‘Nature Central” with the Department of Conservation, Greater Wellington
Regional Council and Horizons Regional Council. The objective of this
initiative is to:
1.1. Reduce costs and
improve efficiencies
1.2. Undertake more
integrated planning and commit to shared outcomes across the lower North Island
1.3. More effectively
prioritise, across a broader scale, all in the business of natural resource
management across the lower North Island
1.4. Be more inclusive,
cohesive, and responsive to communities/iwi/business.
Background
2. Chief Executives of the
Greater Wellington, Hawke’s Bay and Horizons regional councils, as well as the
Department of Conservation’s Director-General, met recently and agreed to formal
collaboration in the management of natural resources and recreation across the
lower North Island. Through greater collaboration
between the organisations far more can be achieved than any of the individual
organisations can achieve alone.
3. The vision for the
initiative is for a significant shift in the way organisations approach the
management of natural resources across the lower North Island. This includes
the following.
3.1. A more explicit
recognition that the economic, cultural and social wellbeing of all our
communities is reliant on ‘services’ provided by the natural environment and
the effective management of them. Sustaining our current levels of economic
activity will require the sustaining of ecosystem services.
3.2. Recognition that the
organisations need to better understand a wider range of values and work on a
scale and in a way that makes more sense to communities. There will be a shift
away from establishing management priorities based on administrative
boundaries, toward establishing management priorities that are based on more
logical ecological or social boundaries. It is recognised that landscape or
catchment scale management will generally be more appropriate for understanding
and managing ecosystem processes together with social, economic and political
considerations.
3.3. More emphasis on
prioritising and working together, as well as with iwi, communities and
business both to identify the full range of values associated with areas and to
look after them. Greater investment in these inclusive processes has huge
potential to deliver wide benefits for protection of services that humans rely
on for their wellbeing, and for the conservation of our natural heritage.
3.4. Recognition that
because the organisations are all working within the same social, economic and
environmental context with the same broad objectives in mind, they need more
formal collaborative structures. The aim of the collaboration will be to
achieve:
3.4.1. better understanding
and management of environmental values – including but not limited to water
quality, erosion control, nutrient cycling and biodiversity
3.4.2. better understanding
and integration of social, economic, and cultural considerations into planning
and decision making processes
3.4.3. more efficient promotion
and management of recreation facilities
3.4.4. more effective and
consistent engagement and communication with communities
3.4.5. more effective use of
limited resources and less duplication of services and processes.
4. The project will
initially focus on combining efforts in the areas of recreation, biodiversity,
regional park management, biosecurity and the sharing of technical advice and
expertise.
5. A framework for working
together and an action plan for the coming 12 months to put specific initiatives
in place have been agreed, including:
5.1. the development of a
wilding pine strategy and associated funding arrangements to maximize the
effectiveness of control throughout the southern North Island
5.2. an assessment of all
recreational opportunities (including regional, national and forest parks and
reserves) to determine potential efficiencies in their operation and
maintenance, as well as opportunities for improved promotion
5.3. an assessment of
collaborative opportunities for environmental education, the establishment of
more shared training opportunities, and staff secondments and swaps between
agencies
5.4. wide scale predator
protection on Maungaharuru Range including Boundary Stream and Lake Opouahi in
Hawke’s Bay and other similar biodiversity enhancement initiatives within the
Wellington and Horizons regions.
6. This is a shift away
from the traditional management which was based on the roles and
responsibilities of the respective organizations as well as geographic and
administrative boundaries, however it is only the first step in the process and
the Nature Central partners will be exploring more initiatives in the near
future.
7. In addition to the
projects outlined above a number of initiatives are being progressed within the
Hawke’s Bay region. These include:
7.1. joint promotion of
recreational opportunities and more collaborative management of the forest and
regional parks
7.2. the development of a
biodiversity strategy for Hawke’s Bay
7.3. DoC staff sharing the
HBRC Wairoa office from 1 October 2012 upon expiry of the lease for their
previous office
7.4. the possibility of
DoC staff sharing HBRC office space in Central Hawke’s Bay, and DoC and HBRC
operations group staff operating as a single team in that area
7.5. DoC and HBRC animal
and plant pest control activities being delivered through contracts or other
arrangements, covering the activities of both organisations
7.6. DoC and HBRC open
space facilities management and maintenance being delivered collaboratively.
8. It is proposed to
secure a person (possibly seconded from Department of Conservation) to provide
the necessary resource to work with each of the organisations, identify and
develop opportunities, and to assist in the implementation of the high priority
initiatives. HBRC has agreed to contribute to the cost of this secondment. As
many of the opportunities are expected to fall within the biosecurity and open
space areas of HBRC business, funding of HBRC’s contribution (expected to be
approximately $40,000 spread over 2 financial years) will be sourced from those
budgets. No new funding is expected to be required.
Decision Making
Process
9. Council is required to
make a decision in accordance with Part 6 Sub-Part 1, of the Local Government
Act 2002 (the Act). Staff have assessed the requirements contained within this
section of the Act in relation to this item and have concluded that, as this
report is for information only and no decision is to be made, the decision
making provisions of the Local Government Act 2002 do not apply.
|
Recommendation
1. That the Corporate and Strategic Committee receives the report.
|
|
Mike Adye
Group
Manager
Asset
Management
|
Andrew Newman
Chief
Executive
|
Attachment/s
There are no
attachments for this report.
