Shabby Treatment Shackles Bay

Published  5 Jan 2015 

Hawke’s Bay’s economic performance is not great.  We have near the highest unemployment figures in the country, and lowest wages. Our qualifications profile show we have one of the lowest proportion of university graduates, and highest numbers of people with few if any formal qualifications. 

Our influence in the affairs of the nation is declining as our lack of population growth makes us less relevant. Hawke’s Bay may have already lost its 5th place population ranking to Tauranga and Dunedin.

If we are going to have any hope of turning things around we must drop the pretence that everything is all right. It may be all right for some but far too many people are seriously disadvantaged by subsistence incomes and the inevitable deprivation, while our brightest young leave, either because we do not offer attractive education opportunities, or because they see no future in remaining. Those who think amalgamating our councils into a single administrative juggernaut will fix everything are delusional. We are controlled by a very influential, mutually supportive and well off elite who are either not capable or not interested in supporting changes that might not improve their own wellbeing. Amalgamation is a side show designed to divert attention from the real issues. 

Pastoral farming, viticulture, forestry and especially horticulture are the backbone of our economy but they are also a major part of our problem. Two many jobs are seasonal and are therefore unreliable and poorly paid. If it rains, or the crop is not ready the workers are simply not needed and not paid. Nor does the repetitious work appeal to our brightest and most talented.  That’s why the industry has become dependant on RSE  workers from overseas. We need to diversify our economy.

The new  Kiwi Bank call centre in Hastings is the best thing that has happened in decades but will only replace a few of the well paying skilled employment opportunities that have been lost with the departure of PDL,  Ericssons and the head offices of Richmond’s, Wliiiams and Kettle, and Farmlands. 

Our tertiary education offerings do not meet the expectations of many of our young. We are the largest urban population centre in the country without a university campus. It is a huge problem for a number of reasons. Firstly our young leave to obtain an education elsewhere and often don’t return. Secondly this vacuums millions of dollars from our region as parents fund their children’s living and education expenses in places like Dunedin, Palmerston North and elsewhere. But perhaps the biggest cost is we fail to get the economic injection of hundreds of millions of dollars each year from government and student spending, plus we miss out on the employment and other opportunities that a university campus would provide.

Our fundamental disadvantage is our isolation and this is exacerbated by Air New Zealand’s monopoly pricing and service levels. Whilst we think of ourselves as a tourist and conference destination  progress is stifled by air services that are simply not competitive in price or quality.  Its generally possible to fly a thousand kilometres from Auckland to Queenstown or Dunedin for less than the 300 Km to Hawke’s Bay. A year ago the Hastings and Napier Councils buckled when told it could require a $4 million annual subsidy and possible $10 million upgrade of airport facilities to implement trans-Tasman flights. Yet Napier has spent $18 million on a museum with a $4 million annual operating deficit that attracts fewer patrons than the facility it replaced, whilst Hastings has poured nearly $30 million into the Opera House in renovation costs, interest on borrowings and operating subsidies. It now needs millions more to make it safe in an earthquake. 

  

Other instances of unwise Council spending include the disasterous Art Deco buses and $12 million Civic Square development plus the $5 million ratepayer contribution towards a new CBD hotel in Hastings. Both will add significantly to both council debt and interest costs. Money that could instead be used to accelerate additional industrial development that will create jobs.  

 

We have too many representatives claiming to be working for us when in fact they are simply furthering their own vested interests. We need new people who will take us forward instead of trying to cover their past inacation and mistakes. It’s a long time since Michael Laws got Flaxmere a College, and Jeff Whitticar opened up Sunday trading for our wineries.

We are also far too willing to accept excuses from Government, and others for not doing the things that need to be done. To put it bluntly we get a shabby deal. There seems to be no problem finding the money for billion dollar motorways, subway rail systems, stadiums, and all sorts of other flash projects elsewhere, but Hawke’s Bay gets nothing. Its time our MP’s came to the party and obtained firm commitments for Government  starting with funding for improved air services, and a university campus.