Photo by Jet Productions

What we are trying to achieve

A close study of the Wairarapa economy and community illustrates a number of key characteristics of the region which help define the direction of the refreshed Wairarapa Economic Development Strategy (WEDS). The most important of these characteristics are listed below.

Wairarapa Economic Development Strategy, comparative advantage
Comparative Advantage
Successful regions generally have two or three areas in which they excel.

Successful regions generally have two or three areas in which they excel. Examples are Marlborough in wine, Southland in dairying, Waikato in agri-business, Taranaki in energy and Bay of Plenty and Hawke’s Bay in horticulture. Wairarapa lacks decisive areas of comparative advantage. There are areas where it has shown promise such as wine, artisan and tourism, and there are opportunities to grow and harness these sectors.

Clusters of comparative advantage can bring economies of scale to an economy, with shared infrastructure and logistics helping create a more cost-effective foundation for enterprises.
Wairarapa Economic Development Strategy, people and skills
People and skills
There is strong growth in the old and young populations, with the older population bringing cash to the economy.

There is strong growth in the old and young populations, with the older population bringing cash to the economy.But there is negligible growth in the economically productive age of 18 to 60 years. These are the people who populate the enterprises that drive the economy. Employment growth is behind the national average, and we need to attract more people in the productive age group to the region to sustain a push for robust areas of comparative advantage, to address the required quantity and range of skills.
Wairarapa Economic Development Strategy, economic trends
Economic trends
After a long period of low growth, there has been steady growth in the last five years in line with the rest of New Zealand.

After a long period of low growth, there has been steady growth in the last five years in line with the rest of New Zealand. People in the Wairarapa have felt more prosperous than they have for a long time. This has been significantly aided by population growth and people bringing wealth to the region through retirement and remote employment. These windfall gains are nice to have but need to be supported by a resilient economy. A resilient economy needs sustainable long-term growth of local employment and enterprise, ideally some of which is clustered in areas of comparative advantage.
Wairarapa Economic Development Strategy, productivity
Productivity
After a long period of low growth, there has been steady growth in the last five years in line with the rest of New Zealand.

While there has been an improvement in productivity in recent years, the Wairarapa is at best on the national productivity average. This is the result of many things, but in particular, the small scale of businesses, skill deficits and the lower level of technology enablement of businesses. Technology enablement is particularly important because it can facilitate the production of small volume and short run products marketed directly to the end user. By cutting out the middleman cost Wairarapa producers can produce bespoke products at a lower cost making them more competitive.
Wairarapa Economic Development Strategy, urbanisation
Urbanisation
After a long period of low growth, there has been steady growth in the last five years in line with the rest of New Zealand.

Wairarapa sees itself as a rural region however growth is taking place in urban based businesses and occupations. This is not sufficiently recognised, perhaps even ignored. Most of the faster growing enterprises are not in the agricultural sector. The Wairarapa is becoming, like the rest of New Zealand, increasingly urban.
Wairarapa Economic Development Strategy, shared sense of direction for the future
Shared sense of direction for the future
After a long period of low growth, there has been steady growth in the last five years in line with the rest of New Zealand.

The Wairarapa has not so far been able to articulate a shared sense of direction for the future that has resonated widely across the region. This strategy, alongside joined up leadership, is an opportunity to create strong forward momentum for the economy and community.
Wairarapa Economic Development Strategy, changing climate
Changing Climate
After a long period of low growth, there has been steady growth in the last five years in line with the rest of New Zealand.

Climate change will impact the Wairarapa significantly. Both mitigation and adaptation responses will be required. Lifestyle values are very high in the Wairarapa, and economic development needs to be considered in a way that does not erode these values.
Photo by Jet Productions
WEDS is a collaborative venture between the three Wairarapa Councils and WellingtonNZ (The Regional Economic Development Agency). Between them, these agencies allocate personnel and resources to deliver the WEDS Action Plan. The WEDS function is agreed under an MOU which is reviewed every 3 years in line with the Local Government Long Term Planning process.

The WEDS Matrix

The WEDS Matrix translates the vision and key drivers into an action plan. The matrix is made up of a number of elements that build towards the whole.

The WEDS Matrix translates the vision and key drivers into an action plan. The matrix is made up of a number of elements that build towards the whole.

How we are going to do it

This section details the programmes and initiatives to deliver the outcomes we are seeking, grouped by focus area.

How we are going to do it

This section details the programmes and initiatives to deliver the outcomes we are seeking, grouped by focus area.

People focus area

There is almost a perfect storm in the skills and recruitment field resulting in acute shortages of labour at all skill levels right across the Wairarapa economy. There are strenuous efforts being made to remedy this situation and urgent support is required.

Photo by Jeff McEwan

People focus area

There is almost a perfect storm in the skills and recruitment field resulting in acute shortages of labour at all skill levels right across the Wairarapa economy. There are strenuous efforts being made to remedy this situation and urgent support is required.

Wairarapa Economic Development Strategy, building resilience: capable people
Building Resilience: Capable People


Situation
  • The progress of key growth sectors is impeded by a lack of labour.
  • A large proportion of young people who have schooled in the Wairarapa leave the region for tertiary education, including vocational training.
  • The Wairarapa has a lower population in the productive age groups (16-55 years old) than similar regions in New Zealand.
  • With the large number of self-employed or very small businesses there are a lack of capacity and capability amongst employers to bring through young staff.
  • Attitudes to employment and training are changing.
  • Levels of technology skills are low but rising.


Recommended activities
  • Support delivery of the 2022 Wairarapa Workforce Development Plan

WEDS will support and enable the Regional Skills Leadership Group (RSLG) to implement the refreshed workforce plan, where the goal is to grow the Wairarapa workforce by 2000 people by 2030.
  • It is critical to change perceptions of people about Wairarapa is from a place that people leave to learn, to a place where people increasingly stay for employment and learning.
  • There is a desire to push the Wairarapa as a “Destination Employment Region” with an emphasis on vocational skills and with stronger emphasis on sectors important to Wairarapa’s present and future.
  • This is an ambitious shift in perceptions, and a significant effort would be required to turn around these perceptions.

Leverage Workforce Opportunities
  • Harnessing results of the Government’s Reform of Vocational Education, Te Pūkenga, to maximise opportunities for learners and ensuring course offerings and skillsets are aligned with Wairarapa workforce and business needs.
  • Enabling workforce sector groups to identify industry-specific needs and act on them.
  • Creating programmes of ‘taster’ experiences to help young people navigate their options
  • Supporting and upskilling employers toward building progressive workplaces with positive culture that helps attract and retain talent.

Student/Industry Connection Hub
  • WEDS and the RSLG to support Te Pūkenga in scoping a hybrid physical/digital connection hub between students, industry, and regional employers to improve learning offerings, apprenticeship and work experience opportunities, and understand future needs/challenges of the local workforce.
  • WEDS to support the scoping of a ‘Gap Year’ style programme to promote vocational training and upskilling/earning opportunities for school leavers and young people entering the workforce.

Align with workforce plan objectives:
  • Having increased the number of young people (18 – 25-year-olds) in employment.
  • Maintaining or decreasing our unemployment and NEET1 rates.
  • Increasing the number of young people (18 – 25-year-olds) participating in training.
  • Upskilling vocational employees to meet (and ideally exceed) the national average.
  • Improved collaboration and communication between training providers and industry bodies, with programmes that consider Iwi aspirations and outcomes for Māori.
  • Expanded offerings for learners in both traditional and ‘learn while earning’ situations.

1 Not in Education, Employment, or Training
Wairarapa Economic Development Strategy, growing comparative advantage: sector development
Growing Comparative Advantage: Sector Development

The productivity and performance of people will be enhanced by strong businesses and sector groups. The point of intervention for opportunities in the “people focus” area is sector development.


Situation
  • Most sectors in the Wairarapa are small.
  • There is limited support to the businesses within sectors and the load of leading the sector often falls on a small number of people.
  • Sectors with a strong sector identity and viable sector leadership tend to prosper.
  • There are several sectors that are highly active, notably the tourism sector which has recently completed a Destination Management Plan and a Māori Tourism Strategy.
  • Other sectors with this self-starting mindset include construction and to an extent the primary sector, health, wellbeing and social assistance and the digital sector. There is also a Māori business group that is active.
  • There is a history across New Zealand and in the Wairarapa of sectors pushing for hub developments such as a food and beverage, an agri-business hub, or a technology hub. To be successful they need to be built on the sound foundation of a sector plan and committed leadership.


Recommended activities
Support for the Tourism Sector
  • This sector already has a plan and is now moving to the implementation phase.
  • Activity should not only take account of tourism and visitors, but also the attraction of people to live and work in the region, and those wishing to relocate new and existing businesses to complement the sector (including accommodation and services).
  • This sector is given priority not only because it is well-advanced but because of its potential to be a pathfinder for other sectors.

Support sectors to develop sector plans.
  • This would involve identifying the most willing and ready sectors and those with sufficient scale to impact the economy.
  • A format for sector development planning would be valuable.
See People Focus Key Priorities

Business focus area

The most basic building block of a regional economy is the businesses that conduct the day-to-day economic transactions of the region. The stronger the businesses, the stronger the regional economy and community. The Wairarapa is a region of small business because of its small size. That can be an asset in terms of agility and flexibility and a handicap in terms of lack of scale.

Photo by Larissa Carlson

Business focus area

The most basic building block of a regional economy is the businesses that conduct the day-to-day economic transactions of the region. The stronger the businesses, the stronger the regional economy and community. The Wairarapa is a region of small business because of its small size. That can be an asset in terms of agility and flexibility and a handicap in terms of lack of scale.

Wairarapa Economic Development Strategy, building resilience: capable people
Building Resilience: Robust Businesses


Situation
  • Small number of substantial businesses to provide sector leadership.
  • Small number of people in roles who can offer operational leadership and encourage innovation.
  • The Chamber of Commerce (Business Wairarapa), which has a role in business support, is small and without access to stable funding sources.
  • Support for business is split between local provision through Business Wairarapa, and regional provision through the Wellington Chamber and WellingtonNZ, an approach which lacks coordination development.
  • There is no effective mentor programme available locally.


Recommended activities
Support for generic business capability development
  • WEDS activites to leverage the full suite of business development opportunities available through WellingtonNZ, CreativeHQ and Business Wairarapa to foster development and growth.
  • WEDS activities to identify businesses and business groups with significant regional potential and connect them with acceleration and funding opportunities available through central government and other networks.
  • Communicate, connect, and leverage all region-wide opportunities to ensure maximum local benefit and uptake.
Wairarapa Economic Development Strategy, growing comparative advantage: sector development
Growing Comparative Advantage: Business Acceleration

There may only be a handful of businesses in the Wairarapa with the potential to scale up their operation and either form the basis of or enhance the evolving area of comparative advantage. These businesses are strategically important to the Wairarapa, and attention should be given to them.


Situation
There are a number of organisations and entities that can help with scale-up such as:
  • Creative HQ - this is a Wellington-based incubator which operates nationally and online. Its focus is bringing forward cohorts of start-ups.
  • WellingtonNZ employs a team of dedicated Business Growth Managers who support local employers to upskill, innovate and grow. This includes a dedicated Māori business development team. This service connects businesses with the expertise and resources they need to adapt and grow.
  • Callaghan Innovation - this is an R&D based incubator and source of grant-funding for innovation.
  • 3 Mile - looking at ways of strengthening this shared space concept.

The difficulty is that support services often operate on a commercial model, or are city-centric, which makes it difficult for small Wairarapa businesses to take advantage of their services. WEDS will identify solutions to enable business support in a way which is accessible and sustainable for Wairarapa.


Recommended activities
Develop scaling services for promising Wairarapa businesses
  • This service is so specific it may be that arrangements are on a case-by-case basis.
  • It is vital if this is the case that promising businesses do not fall through the cracks.
See Business Focus Key Priorities

Iwi focus area

There are opportunities to actively align Iwi/
Māori economic development initiatives with the overall WEDS programme. Having Iwi representation at the WEDS Forum at a governance level ensures that opportunities can be both identified and agreed.

Photo by Lucia Zanmonti

Iwi focus area

There are opportunities to actively align Iwi/
Māori economic development initiatives with the overall WEDS programme. Having Iwi representation at the WEDS Forum at a governance level ensures that opportunities can be both identified and agreed.

Wairarapa Economic Development Strategy, building resilience: capable people
Building Resilience: Sustainable relationships with Iwi


Situation
  • Iwi relationships with local and regional government are strengthening.
  • The current WEDS Forum includes iwi representation, with their oversight, advice and input providing significant value.


Recommended activities
Iwi representation
  • That Iwi continue as representatives on the WEDS Forum to provide oversight and direction on the implementation of the WEDS and its associated Action Plan.
  • That iwi/Post-Settlement Governance Entity representatives continue to be members of the WEDS Forum and common economic development goals can be considered in Iwi/Council Memorandum of Partnership Agreements.
Wairarapa Economic Development Strategy, growing comparative advantage: sector development
Growing Comparative Advantage: Iwi/ Maori Economy


Situation
  • Both Rangitāne o Wairarapa and Ngāti Kahungunu ki Wairarapa have Iwi-wide economic development activities and have formalised investment arms.
  • Both Iwi have commercial developments underway.
  • Māori tourism is gaining an identity and is a key part of the Wairarapa Tourism Destination and Action Plan.


Recommended activities
Development of Māori Economic Development Strategies
  • Iwi are working towards  developing their own economic development strategies that outlines their priorities and aspirations for the Wairarapa.
  • Include Wairarapa Māori business representation in the WEDS Forum.

Māori in Business Network
  • A Māori in Business Network would provide the operational underpinning for this framework. This could take the form of a formal entity or just a network and could draw on similar initiatives in other parts of the country.

Māori Tourism
  • A Māori Tourism Plan is in development under the auspices of Destination Wairarapa.

Māori-owned specialist products and services enterprises
  • The Māori Economic Development Strategy may identify opportunities around Māori owned specialist products and services enterprises.

Whānau at the centre
  • Whānau and whānau resilience/wellbeing are at the centre of Māori economic development. An important aspect of this is a focus on employment of whānau, capacity and capability building, and increasing and strengthening Māori owned businesses.
See Iwi Focus Key Priorities

Land use focus area

Water resilience is a subject with a wider significance than the scope of WEDS. It is an area where WEDS has an interest, can potentially play a role, but is one party in a collaborative enterprise.

Land use focus area

Water resilience is a subject with a wider significance than the scope of WEDS. It is an area where WEDS has an interest, can potentially play a role, but is one party in a collaborative enterprise.

Wairarapa Economic Development Strategy, building resilience: capable people
Building Resilience: Adequate Water


Situation
  • The freshwater challenges involved in climate change in the next few decades are immense. There will be benefits and challenges. In terms of shortfalls in available water, the Wairarapa will be one of the most affected areas in New Zealand.
  • Public awareness of the implications of those challenges for the Wairarapa economy and community is low and out of proportion to the likely scale of the impact.
  • Water is vital to the Wairarapa economy as most core industries are water users and there is growing urban demand. Insufficient available water will stifle economic growth and will challenge the strongly held value of people in the Wairarapa around lifestyle and environment.
  • Agricultural water is already fully allocated in the water deficit period of summer and climate change will further severely constrain water availability, reaching crisis proportions as soon as 2040, if not before.
  • There are also pressures on urban water availability and the impending Three Waters arrangement will change the oversight of municipal water supply and disposal.
  • Local Iwi have a strong interest in the future of water, and this is built into legislation under Te Mana o te Wai (National Policy Statement for Freshwater Management).
  • Prior to the preparation of the Wairarapa Water Resilience Strategy the dimensions of the water resilience challenge were not well understood. Even with the Water Strategy, there are still many very important and as yet unanswered questions. For example, what is the capacity of aquifers, what is the potential of nature based (green solutions) and how will water resilience be funded in a fair and equitable manner?


Recommended activities
Give support to the Greater Wellington Regional Council for the implementation of the Wairarapa Water Resilience Strategy and the Committee for practical implementation of the programme of work.
  • Greater Wellington Regional Council are refreshing the Wairarapa Water Resilience Strategy, and developing an implementation plan, which will guide the work in this space. The WEDS programme will reflect this implementation plan, with opportunities explored for targeted support to the implementation team expected to be established by the Committee.
Wairarapa Economic Development Strategy, growing comparative advantage: sector development
Growing Comparative Advantage Programme: Optimise Land Use
Optimising land use opens up the possibility of the development of comparative advantage in specialised horticulture and arable land uses. This is arguably the strongest opportunity for enhanced comparative advantage in the Wairarapa at present.


Situation
  • Gaining greater wealth and more resilience than presently from the land and water assets of the Wairarapa, is a key element of the WEDS.
  • This will arise from a greater variety of land uses with an emphasis on higher value and more specialist uses such as various types of horticulture and arable farming systems.
  • The question of appropriate land use has also come into focus as a result of trends such as reduced water availability, changing market conditions, population increase and the demand for lifestyle properties.
  • An aspect of the land use equation is the development of the Wairarapa Combined District Plan where the local councils have a joined-up approach to planning and land use.
  • In addition, spatial planning will gain a higher profile with the advent of the proposed Spatial Planning Act which is part of the suite of Acts designed to replace the Resource Management Act.
  • The land use issue has at least three facets:
  • Pasture to other uses – horticulture, arable leading to more intensive use on the valley floor
  • Residential growth – around towns and lifestyle holdings gobbling up agricultural land
  • Pasture to trees – driven by carbon farming
  • The drivers are market forces, lifestyle trends and to an extent regulatory (water quality) effects.
  • In the longer term a key driver of land use change will be climate change.
  • Opportunities in optimising land use:
  • Over a longer period, there has been growth in wine production though that has stalled in recent years.
  • There has been growth in a number of alternative crops such as olives, but like wine, their volumes are small when measured on a national scale.
  • There has also been steady growth in artisan products of various types produced from agricultural diversification.



Recommended activities
Develop capacity to facilitate land use change with a land use initiatives identification and support brief.
  • This would involve the  provision of a leadership facilitation capability working in association with stakeholders and the regional council, to encourage serious consideration of the potential of land use change as a basis for expanding comparative advantage in horticulture and arable farming systems.
  • Leverage existing capacity through Ministry of Primary Industry’s Sustainable Food and Fibre Futures fund, and the Māori agri-business programme.

Develop stakeholder innovation hubs when and where appropriate.
  • It is possible that the facilitation work would build the basis of future development which might then be taken over by development hubs such as a food and fibre hub, but there is much groundwork to be done before such a hub could become a successful reality.

Determine food and fibre priorities
  • Pursue opportunities to grow jobs, value and connections in the food and fibre sector in Wairarapa, contributing to our regional food story while considering climate change impacts
See Land Use Focus Key Priorities

Digital / technology focus area

The problem of ageing or inadequate infrastructure is not unique to the Wairarapa, but the problem with some infrastructure assets in the Wairarapa is becoming acute, such as municipal water. It is particularly acute for the Wairarapa because of the population growth it has experienced in recent years, and which is likely to continue.

Digital / technology focus area

The problem of ageing or inadequate infrastructure is not unique to the Wairarapa, but the problem with some infrastructure assets in the Wairarapa is becoming acute, such as municipal water. It is particularly acute for the Wairarapa because of the population growth it has experienced in recent years, and which is likely to continue.

Wairarapa Economic Development Strategy, building resilience: capable people
Building Resilience: Enabling infrastructure
There are two areas that have been on the Wairarapa “to do” list for many years, namely road and rail. Air, in the sense of Hood Aerodrome, has also been on the list and was included in the 2018 WEDS following which, it received a significant financial input from the Provincial Growth Fund for the development of ancillary services.


Situation
  • The challenges of water, particularly rural water, have been covered in the “Adequate Water” enabler.
  • The question of urban water is clouded by the proposed “Three Waters” programme which will detach municipal water management from district councils and transfer it to a wider regional entity. For that reason, consideration of urban water infrastructure is largely beyond the scope of this Strategy.
  • Future upgrade programmes for rail, both the rails themselves and rolling stock, are at various stages in a regional process associated with the Regional Land Transport Committee, Waka Kotahi, and Kiwi Rail.
  • The prospect of a commercial air service out of the Wairarapa is less an infrastructure issue and more a commercial one. Air New Zealand withdrew its regional services across the country in the early to mid 2010, and it is unlikely they will be re-established. Other operators have indicated a strong interest in establishing a commercial air service and are monitoring the development of Hood Aerodrome closely.
  • A broader consideration of infrastructure might include public buildings, facilities and amenities which are part of district plans and are seen as outside the scope of this Strategy.
  • Digital infrastructure is the other major consideration and while there has been steady improvement, development in the Wairarapa has always been a bit behind the cities and is still sub-standard in some rural areas. There is also an argument that it is not future-proofed when the question of emerging technologies is considered. This situation is unacceptable if the Wairarapa sees itself as becoming more digitally sophisticated and relying on digital capability to build robustness into its local businesses.
  • Anecdotal evidence of deficits in digital infrastructure abounds, but a definitive analysis of the current situation and future digital infrastructure needs has not been undertaken, as a result of which this matter does not progress.


Recommended activities
Undertake a digital infrastructure stocktake within the next two years with digital advocacy as required.
  • This should have a problem-solving focus and should be linked to the business acceleration goals of this Strategy.
  • The action coming out of this may be advocacy.
Wairarapa Economic Development Strategy, growing comparative advantage: sector development
Growing Comparative Advantage:
Advanced Digital and Technology Adoption
The advancement of digital technology will be based on the emergence of a digital technology culture in the Wairarapa. In some respects, this is a generational development as young people move through the age groups and bringing with them increasing levels of digital capability. The Wairarapa needs more focused and active development than the generational incoming tide of digital awareness and practice.


Situation
  • Although only anecdotal evidence is available, it appears that the active integration of digital technology into the Wairarapa is slower than the national average.
  • There is evidence of local businesses operating in digital media and digital gaming markets, for example, but it is limited.
  • There are service companies providing digital support to companies, but these are generally small.
  • Being co-located with Wellington, which has a strong digital and technology industry, and sees itself as a leader in the growth of these technologies in New Zealand, then the Wairarapa has the potential to share in that development.
  • For example, there is potential for remote working based on Wellington businesses and service companies supplying not only Wellington businesses, but businesses nation-wide.
  • There is also the question of emerging technologies that are going to be crucial to economic development in the future such as 5G and AI.



Recommended activities
Prepare a Digital Sector Strategy.
  • It would be focused on development of the digital culture with particular attention being paid to the growth of digitally based enterprises such as gaming companies.
  • It is assumed that subsequent initiatives would emerge from the WEDS.
  • This would include a review of access to emerging technologies and their benefits to Wairarapa.

Instigate digital training and capability-building in Wairarapa.
  • Connect and leverage national and online digital training programmes for business.
  • Expand the digital training offering in schools and communities through Grow WaiTech.

Encourage digital culture initiatives.
  • That WEDS provides encouragement for emerging digital culture initiatives that are already taking place or contemplated.
See Digital/Technology Focus Key Priorities

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"Striving for our community thriving"

The refreshed WEDS focuses on what is good for the Wairarapa, recognising our strengths and challenges, and builds and leverages off the work that has come before. It focuses on the uniqueness of the Wairarapa region, and our key priorities and opportunities. It is practical and deliverable.

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The refreshed WEDS focuses on what is good for the Wairarapa, recognising our strengths and challenges, and builds and leverages off the work that has come before. It focuses on the uniqueness of the Wairarapa region, and our key priorities and opportunities. It is practical and deliverable.
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