HPUDS and the shortage of sections

In his recent Talking Point (23/03/17) Peter Bevan chastises Hastings District Councillors for agreeing to provide additional land for housing which he described as wasteful and profligate. Growers have previously also objected to industrial developments.

There is no doubt the pipfruit industry is crucially important to the Hawke’s Bay economy with over 20 000 containers of apples worth at least $200 million being exported from the region each year. But here is the catch. The pip fruit industry provides mainly seasonal employment, pays many of its staff low wages, and generally does not pay them at all if it rains or if the varieties are not ready to pick.

Horticultural is clearly a major contributor to our very low incomes and consequent high levels of deprivation and other problems. The industry struggles to attract workers and finds it necessary to bring in thousands of RSE employees from the Pacific for harvesting. Recently Radio NZ found evidence incomes for RSE workers in the grape industry are actually lower than 10 years ago. Whilst the RSE scheme contributes hugely to the success of horticulture, injects, millions into the Hastings economy and is easily this country’s best international aid scheme, its very existence suggests picking apples for a pittance is not attractive to many.

Most horticultural jobs involve minimal skills that can be taught in a day or less. Skill levels have a major impact on incomes as was clearly shown in the 2011 census. For someone without qualifications the medium income was $19 400, $27 200 with NCSA level one, $37 400 with advanced trade certificate, and $46 700 for those with a bachelor degree.

Mr Bevan has previously told me he would use all means possible to oppose direct flights to Australia in effect dismissing the needs of tourism and others sectors. An industry with this sort of employment history does not have the economic or moral right to impede other sectors from obtaining the resources they need.

He claims each hectare of land taken for housing results in the loss of three horticultural jobs, a figure that surprises me based on my 20 years growing for Watties. A report prepared for the HDC in 2016 estimated that adding 31 hectares of rural production land to the Omahu Road North Industrial zone would boost regional GDP by $168 million and create 724 high paying jobs, against a loss of $1,561,625 and 21 jobs if used for pip fruit.

Published HBT 1 April 2017

In Hastings a hectare of land provides a minimum of 12–14 housing lots including allowances for reserves and roading. If each of these were occupied only by couples receiving national super, the annual value to the local economy would still be nearly half a million dollars plus millions more in land development and building costs.

The HDC has a responsibility to the community that extends beyond the pipfruit industry and the decision to release more sections is in response to a clear shortage especially in Havelock North. This shortage is costing jobs and encouraging land banking causing rising section prices, thus making it especially difficult for first time buyers. In desperation some are now building in Napier on land already identified as being at risk of liquefaction and/or tsunami with the additional possibility of being declared a hazard zone if predictions of rising sea levels prove correct.

Reverse sensitivity issues with the mushroom farm has prevented further development on Arataki Road but the inflexibility of the HPUDS (Heretaunga Plains Urban Development Strategy) has further delayed the substitution of land in Brookfields Road. As the Middle/Te Aute road development also appears delayed the HDC has decided to release 21 Hectares in Howard St, an area currently used for lifestyle and grazing horses.

HPUDS calls for 60% of growth to be accommodated with intensification. But this still requires willing developers, sellers and buyers. The Hastings Council supports intensification and has significantly reduced development levies to encourage infill housing.

That 75% of new housing is being built on greenfields or rural land shows cramming shoe boxes onto existing sections does not meet the needs of many people. Additionally neighbours often object because they perceive the character of their area will be changed, whilst multi storied and semidetached developments that are clearly attractive close to the waterfront in Napier, seem acceptable in Hastings.

Whilst Marie Antoinette is alleged to have said “let them eat cake” when told the peasants were starving, times have changed. If horticulturalists want to be taken seriously they could start paying a living wage. In any case we should not have all our eggs in one basket. One severe hail storm could wipe out an entire season. More industry could greatly improve the lives of many people.

Interestingly there never seems to be any shortage of growers willing to sell their land for development.