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Waikato Regional Council Strategy and Policy Committee Agenda Open Session Date: Tuesday, 7 May, 2019 Time: 10:00 am Location: Council Chamber Waikato Regional Council 401 Grey Street Hamilton East Members: Cr B Simcock - Chair Cr T Mahuta - Deputy Chair Cr J Hayman Cr J Hennebry Cr K Hodge Cr S Husband Cr F Lichtwark Cr A Livingston Cr D Minogue Cr S Kneebone Cr B Quayle Cr R Rimmington Cr H Vercoe Cr K White Notice of Meeting: I hereby give notice that an ordinary Meeting of the Council will be held as detailed above. VRJ Payne Chief Executive Officer

Strategy and Policy Committee Agenda Package · 2019. 7. 28. · Ihsana Ageel, Principle Advisor Community and Services ... Hobbiton have supported the Theatre and hotel development

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Page 1: Strategy and Policy Committee Agenda Package · 2019. 7. 28. · Ihsana Ageel, Principle Advisor Community and Services ... Hobbiton have supported the Theatre and hotel development

   

Waikato Regional CouncilStrategy and Policy Committee Agenda

Open Session 

 

Date: Tuesday, 7 May, 2019

Time: 10:00 am

Location: Council Chamber

Waikato Regional Council

401 Grey Street

Hamilton EastMembers: Cr B Simcock - Chair

Cr T Mahuta - Deputy ChairCr J HaymanCr J HennebryCr K HodgeCr S HusbandCr F LichtwarkCr A LivingstonCr D MinogueCr S KneeboneCr B QuayleCr R RimmingtonCr H VercoeCr K White

Notice of Meeting:I hereby give notice that an ordinary Meeting of the Council will be held as detailed above. VRJ PayneChief Executive Officer

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Pages

1. Apologies

2. Confirmation of Agenda

3. Disclosures of Interest

4. Momentum Waikato Update on the Waikato Regional Theatre Project 3

Report to provide the Committee with an update on the Waikato Regional Theatre project.

5. Environment Aotearoa 2019 – Our State of the Environment Report 5

Report for the Committee to summarise the key findings of the ‘Environment Aotearoa2019’ report recently released by the Ministry for the Environment and Statistics NewZealand.

6. Te Waka Six Monthly Report 13

Report to the Committee on the first report for Te Waka, which covers the time period fromJuly 2018 to March 2019.

7. Resolution to Exclude the PublicThis resolution is made in reliance on section 48(1)(a) of the Local Government OfficialInformation and Meetings Act 1987. The interest protected by section 6 and 7 of that Act,which would be prejudiced by the holding of the relevant part of the proceedings of themeeting in  public  are  as  follows -  Waikato Regional  Approach to  Natural  Hazard RiskManagement - Enable any local authority holding the information to carry on, withoutprejudice or disadvantage, negotiations (including commercial and industrial negotiations)(Section 7(2)(g)).

8. Public Excluded Section

9. Return to Open Session

10. Submissions Quarterly Update 20

Report  to inform the Committee of  submissions made to consultation processes,  andupcoming opportunities for Waikato Regional Council involvement.

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Report to Strategy and Policy Committee

Date: 23 April 2019

Authors: Kelvyn Eglington, Chief Executive, Momentum Waikato Community Foundation Ihsana Ageel, Principle Advisor Community and Services

Authoriser: Neville Williams, Director Community and Services

Subject: Project update – Waikato Regional Theatre

Section: A (Committee has delegated authority to make decision)

Purpose 1. To provide an update to Council on the Waikato Regional Theatre project. 2. This report will be supplemented by a verbal update from Momentum Waikato Community Foundation

(Momentum Waikato).

Staff Recommendation:

That the report ‘Project update – Waikato Regional Theatre’ (Strategy and Policy Committee 7 May 2019) be received.

Update from Momentum Waikato 3. The Waikato Regional Theatre (Theatre) is the driver for a change in visitation offering which

transitions daily visitors to overnights stays, thus ensuring viability for two hotels which are in concept development (a 32 room 5-star hotel and a 140 room 4-star hotel).

4. The Hamilton Waikato Tourism Opportunities Plan has long identified hotel accommodation as a major gap in regional tourism infrastructure to support further tourism development in the region.

5. An independent Hotel Demand assessment and the data behind the Tourism Opportunities plan identifies

the need for a Hotel to support further tourism development in the Waikato.

6. Potential future applications for Authentic Cultural Tourism development include products from South to North Waikato - this investment will require hotel accommodation within the city to ensure maximum leverage of increased tourist demand.

7. Hobbiton have supported the Theatre and hotel development (letter of support submitted) given their

desire to increase visitation.

8. The hotels provide for capital investment of $130 million to the region and along with the Theatre ($74 million dollar capital investment) creates 180 jobs (18% are regional) and returns a regional benefit of circa $13 million per annum to the region ($7 million within the city and $6 million to the wider region).

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9. Fundraising target - $73.9 million for the Theatre.

Confirmed Funding $51M HCC – $25

WRC $5

Donors $6

Trust Waikato $15

In play [$25M]

PGF – Theatre $15M Grant – expect late April/Early May notification

Naming rights $3M Naming rights options in play

Lotteries $3M Application on hold pending resource consent

Regional Culture and Heritage

$1M Last resort option when all other options exhausted

Donor list $2M Gaming and trust and donors notes approx.

Community Fundraiser $1M Seats and marketing dinners etc.

10. Application strengths

Robust Governance structures and professional project management in place

Significant partner funding contribution of $51 million

Funding plan in place for the remaining $7 million

Significant progress with community support and consultation

Support and alignment with Regional Tourism, Regional Economic Development agencies and

strategies and Waikato Tainui

Projects are progressed through planning and design phases and will commence construction in

2019 with PGF support.

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Report to Strategy and Policy Committee

Date: 26 April 2019

Author: Beat Huser, Principal Strategic Advisor, Strategy

Authoriser: Tracey May, Director Science and Strategy

Subject: A summary of the Environment Aotearoa 2019 report

Section: A (Committee has delegated authority to make decision)

Purpose 1. To summarise the key findings of the ‘Environment Aotearoa 2019’ report recently released by the

Ministry for the Environment and Statistics New Zealand.

Executive Summary

2. The Environmental Reporting Act of 2015 (the Act) requires the Secretary for the Environment and the

Government Statistician to produce a synthesis state of the environment report every three years

3. Regular six-monthly domain reports that cycle air, freshwater, marine, atmosphere and climate, and land

are also produced. This is the first synthesis report under the Act that brings all together.

4. Its purpose is to present ‘a diagnosis of the health of our environment’ to understand the things that

affect, or potentially affect the health of our environment. Environment Aotearoa 2019 provides an

overview of the state of our environment. Using five broad themes the report presents nine priority

environmental issues. Each issue includes information about why it matters, what has changed, and the

consequences.

5. The nine priority issues the report identifies are: Our native plants, animals and ecosystems are under threat

Changes to the vegetation on our land are degrading the soil and water

Urban growth is reducing versatile land and native biodiversity

Our waterways are polluted in farming areas

Our environment is polluted in urban areas

Taking water changes flows which affects our freshwater ecosystems

The way we fish is affecting the health of our ocean environment

New Zealand has high greenhouse gas emissions per person

Climate change is already affecting Aotearoa New Zealand.

Staff Recommendation:

That the report ‘A summary of the Environment Aotearoa 2019 report’ (Strategy and Policy Committee 7 May 2019) be received.

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Background 6. The Environmental Reporting Act of 2015 (the Act) requires the Secretary for the Environment and the

Government Statistician to produce a synthesis state of the environment report every three years. This is

the first synthesis report under the Act.

7. The data used in Environment Aotearoa 2019 are from the most

recent domain reports (Our marine environment 2016, Our fresh

water 2017, Our atmosphere and climate 2017, Our land 2018, and

Our air 2018), including a set of environmental indicator web pages

that are available on the Stats NZ website.1 The report also draws on

a body of evidence, such as government reports and peer-reviewed

science papers.

8. Its purpose is to present ‘a diagnosis of the health of our environment’

to understand the things that affect, or potentially affect the health

of our environment. The report has three main parts: a. ‘About Environment Aotearoa 2019’ helps to orient us and explain

our environment b. ‘Themes and issues’ uses five themes to present nine priority

environmental issues c. ‘Towards a better understanding of our environment’ sets out the challenges we must we must

overcome so future decisions about the environment are as effective as they can be.

9. The themes and issues in this report show how the way we live and make a living affects our environment

and the things we value. four criteria below to help describe the significance and urgency of different

issues, and identify those that matter most:

Spatial extent and scale: how much of New Zealand is affected by the issue?

Magnitude of change: is the issue increasing in scale and/or distribution, or accelerating?

Irreversibility and lasting effects of change: how hard is it to fix?

Scale of effect on culture, recreation, health, and economy: how much does it affect the things we value?

10. The nine priority issues the reports identifies are grouped under five themes (refer to diagram):

Theme 1: Our ecosystems and biodiversity:

Our native plants, animals and ecosystems are under threat.

Theme 2: How we use our land:

Changes to the vegetation on our land are degrading the soil and water.

Urban growth is reducing versatile land and native biodiversity. Theme 3: How we use our land:

Our waterways are polluted in farming areas.

Our environment is polluted in urban areas. Theme 4: How we use our freshwater and marine resources:

Taking water changes flows which affects our freshwater ecosystems.

The way we fish is affecting the health of our ocean environment. Theme 5: Our changing climate:

New Zealand has high greenhouse gas emissions per person.

Climate change is already affecting Aotearoa New Zealand.

1 www.stats.govt.nz/information-releases/new-zealands-environmental-reporting-series-environment-aotearoa-2019?stage=Live

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11. Each issue addresses six questions: 1.Why does this issue matter? 2. What is the current state of this

issue? 3. What has changed? 4. What has contributed to this issue? 5. What are the consequences of this

issue? 6. What are the gaps in our knowledge about this issue?

Key findings 12. The major issues include thousands of species threatened or at risk of extinction, rivers unsafe for

swimming, the loss of productive land due to urban expansion, and a warming climate likely to destabilise many parts of the environment.

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Issue 1: Our unique native biodiversity is under significant pressure from introduced species, pollution, physical changes to our landscapes and coast, harvesting of wild species, and other factors. Almost 4,000 of our native species are currently threatened with or at risk of extinction. Many of our native ecosystems have been cleared or extensively altered, and this trend continues today.

13. Our biodiversity has declined significantly. At least 75 animal and plant species have become extinct since humans arrived in New Zealand. Marine, freshwater, and land ecosystems all have species at risk: 90 percent of seabirds, 76 percent of freshwater fish, 84 percent of reptiles, and 46 percent of vascular plants are currently threatened with or at risk of extinction. The extinction risk has worsened for 86 species in the past 15 years. The conservation status has improved for 26 species in the past 10 years, but more than half require active management to stay that way. Kākāpō is one example. Issue 2: Logging native forests, draining wetlands, and clearing land have degraded a range of benefits provided by native vegetation, accelerated our naturally high rates of soil loss, and affected our waterways.

14. The changes we have made to our land have significantly altered the wider environment. The report highlights two specific types of physical changes we humans have made to the world around us:

What we have removed: Cutting down native forests, draining wetlands, and clearing land for farming and development have accelerated our naturally high rates of soil loss.

What we have built: Human-made structures and hard surfaces affect the natural systems we rely on. There is a particular focus in this issue on the spread of urban areas over versatile land.

15. In 2012, just over half of our land had a modified land cover like urban areas and non-native (exotic)

vegetation. Exotic grassland (pasture) is now the largest single type of land cover and accounts for about 40 percent of our total land area. Exotic (plantation) forest covers about 8 percent of the country, concentrated in the central North Island. The loss of native vegetation has continued in recent years, with more than 70,000 hectares lost between 1996 and 2012 through conversion to pasture, plantation forestry, and urban areas. Wetland areas have also continued to shrink, with at least 1,247 hectares lost between 2001 and 2016. Issue 3: Growth of urban centres has led to land fragmentation and threatens the limited supply of versatile land near Auckland and other regional centres.

16. Most New Zealanders live in cities. According to 2018 population estimates, 86 percent of us live in urban areas, which make up only a small proportion of our total land area (0.85 percent in 2012). Our urban areas are spreading – the area of urban land increased by 10 percent between 1996 and 2012, especially around Auckland, Waikato, and Canterbury. Between 1990 and 2008, 29 percent of new urban areas were on ‘versatile’ land. The fringes of our urban areas are increasingly being fragmented – broken into smaller land parcels – and sold as lifestyle blocks. Issue 4: Waterways in farming areas are polluted by excess nutrients, pathogens, and sediment. This threatens our freshwater ecosystems and cultural values, and may make our water unsafe for drinking and recreation.

17. Compared to catchments dominated by native vegetation, waterways in areas of pastoral farming have markedly higher levels of pollution by excess nutrients (like nitrogen), sediment, and pathogens. Recent measurements show that water quality has been improving at some places, but worsening at others. It can be difficult to understand exactly what is causing the changes in water quality because water catchments can contain a mix of different types of farms and land uses, and the effects of natural variations in climate and the connections between rivers and groundwater are also poorly understood.

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Issue 5: Some of our cities and towns have polluted air, land, and water. This comes from home heating, vehicle use, industry, and disposal of waste, wastewater, and stormwater. Pollution affects ecosystems, health, and use of nature.

18. Our air quality is good in most places and at most times of the year. Urban waterways contain many of the same pollutants found in farming areas – excess nutrients (such as nitrogen), sediment, and pathogens – but their levels are typically even higher in our cities and towns. Urban waterways can also contain other pollutants, like heavy metals. Less information is available about other types of urban pollution, like heavy metals and persistent chemicals. Data is also not available to assess trends in light pollution, noise pollution, odours, or pollution in urban soil, land, or coastal waters. Issue 6: Using freshwater for hydroelectric generation, irrigation, domestic, and other purposes changes the water flows in rivers and aquifers. This affects freshwater ecosystems and the ways we relate to and use our waterways.

19. We rely on surface water and groundwater (taken from aquifers) for drinking, domestic, and industrial uses, and irrigation from these sources is vital for farming. Although New Zealand has plenty of fresh water, we are also heavy users. In 2014, New Zealand had the second highest volume of water take per person of OECD countries. Consents to take water have specified conditions, such as how much water can be taken, from where, at what rate, and at what times. Nationally, most of the consented water allocation was for irrigation (51 percent in the 2013/14 year). Household consumption made up 14 percent, and industrial use made up 13 percent. Issue 7: Harvesting marine species affects the health of the marine environment and its social, cultural, and economic value to us. Fishing could change the relationship that future generations have with the sea and how they use its resources.

20. Many New Zealanders have a strong connection to the sea. Commercial fishing and the pressures associated with it have reduced in the last decade, and most (97 percent) commercially caught fish come from stocks that are considered to be managed sustainably. In 2017 16 percent of routinely assessed stocks were overfished and 10 stocks are considered collapsed. Bycatch of protected species like Hector’s and Māui dolphins, fur seals, sea lions, and seabirds has a serious effect because many of these species are already threatened. Trawling the sea floor with large nets or dredges to catch fish and species like scallops and oysters are the most destructive fishing methods and cause damage to the seabed. The area trawled and the number of tows have decreased over the past 15 to 20 years, but still cover a large area, and some areas have been trawled every year for the past 27 years. Between 1990 and 2016 trawling occurred over approximately 28 percent of the seabed where the water depth was less than 200 meters, and 40 percent where depth was 200–400 meters. Issue 8: Our per-person rate of greenhouse gas emissions is one of the highest for an industrialised country. Most of our emissions in 2016 came from livestock and road transport.

21. Global greenhouse gas emissions have increased dramatically and are at a record high. New Zealand makes a small contribution to global emissions, but we have high emissions per person when compared internationally. In 2015, New Zealand emitted 17.5 tonnes of carbon dioxide equivalent greenhouse gases per person, which was higher than all but five of the 43 Annex I (industrialised) countries. Agriculture is responsible for nearly half of our gross greenhouse gas emissions, followed by road transport. Our gross greenhouse gas emissions have increased by 20 percent since 1990. Issue 9: Changes to our climate are already being felt in our land, freshwater, and marine environments. We can expect further wide-ranging consequences for our culture, economy, infrastructure, coasts, and native species.

22. Many significant changes in our climate are being seen across the country. These include higher land and sea temperatures, sealevel rise (14–22 centimetres in the last century), ocean acidification, more sunshine, and melting glaciers (our glaciers have lost 25 percent of their ice in the past 40 years). Some locations are experiencing drier soils, altered precipitation patterns, fewer frost days, and more warm days. Extreme wind has decreased at some locations. Many of the impacts of climate change are

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irreversible on a human timescale, and some impacts, like erosion from extreme rainfall or species extinction, cannot be reversed at all.

References to the Waikato region 23. While the report tells a national story, the identified issues are relevant to all regions, including the

Waikato (acknowledging regional variations). The Waikato region is specifically referred to with regard

to:

a. Highly erodible land area by region (p.32, fig 5): The area of highly erodible land in the Waikato region

is relatively small, with 10 regions having a larger area in 2012 (Gisborne, Manawatu-Wanganui,

Canterbury, Hawke’s Bay, Southland, Northland, Otago, Marlborough, Taranaki, West Coast).

b. Spreading of urban areas, loss of versatile land and land fragmentation (p.40): The largest expansion

was in Auckland (up 4,211 hectares), followed by Waikato (up 3,900 hectares) and Canterbury (up

3,829 hectares). Land fragmentation has been identified as an issue in Northland, Auckland, Waikato,

Bay of Plenty, Gisborne, and Tasman regions.

c. Urban expansion (p.42): Population growth is projected to be higher in Tauranga, Auckland, and Hamilton, and lower in Wellington and Dunedin.

d. Water quality (p.54, fig 6): Many sites with worsening nitrate-nitrogen trends were in the central

North Island, including parts of Waikato, Gisborne, Taranaki, and Manawatu-Wanganui, and in the

south-eastern South Island. Many sites with improving E. coli trends were in Gisborne, Waikato, and

Northland. Many sites with worsening turbidity trends were in parts of Waikato, Gisborne,

Manawatu-Wanganui, Canterbury, and the West Coast.

e. Livestock numbers and nitrogen leaching (p.58, fig 13): Models of the total amount of nitrate-

nitrogen leached from livestock show this has increased from 189,000 tonnes per year nationwide in

1990 to about 200,000 tonnes per year in 2017. According to the model (OVERSEER), the highest

nitrate-nitrogen leaching from livestock in 2017 occurred in Waikato, Manawatu-Wanganui,

Taranaki, and Canterbury.

f. Consented water takes for hydroelectricity generation (p.74-76): Hydroelectric generation is an

important consented use of freshwater. Electricity is generated at about 100 sites nationwide but is

dominated by large power stations like Manapouri. Some of our major river systems like the Clutha,

Waikato, and Waitaki have multiple dams. The 1950s, ’60s and ’70s saw dams built on the Waikato,

Waitaki, and Rangitāiki rivers.

Discussion 24. The Environment Aotearoa 2019 report received extensive coverage in the media, including from Local

Government NZ (LGNZ)2, Land Air Water Aotearoa (LAWA)3, some regional councils and internationally.4,5

25. Recommendations in response to the issues raised in the report are out of scope under the report’s

governing legislation. However Environment Aotearoa 2019 provides evidence to enable an open and

honest conversation about what we have, what we are at risk of losing, and where we can make changes.

26. While the Government has done the work to assess the national state of our environment, much of the

response will come from regional and unitary councils, working alongside landowners and the community.

2 www.lgnz.co.nz/environment-aotearoa-yardstick-welcomed-by-lgnz/ 3 www.lawa.org.nz/get-involved/news-and-stories/national-news/2019/april/environment-aotearoa-2019-response-strong-data-networks-for-better-

environmental-guardianship/ 4 ' Decades of denial': major report finds New Zealand's environment is in serious trouble. 5 www.ecan.govt.nz/get-involved/news-and-events/2019/environmental-data-improvement-key-in-environment-aotearoa-2019-report/

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27. Good progress has been made on understanding particular aspects of our environment but many

significant gaps in our knowledge remain. These are highlighted throughout Environment Aotearoa 2019

and include how the environment functions as a whole system, the cumulative impacts of multiple

pressures, regional variations, and where tipping points (when change becomes irreversible) may

exist. More work is needed to address these challenges.

28. The gaps identified provide a useful platform for considering how we might continue to build on and

improve New Zealand’s environmental monitoring networks. Regional councils have a key role and

supplied their monitoring data to MfE and Stats NZ to synthesise a national picture. Taking opportunities

to align our efforts across the knowledge and reporting system enables New Zealand to be better

equipped to understand the effect our actions are having on the environment, as well as deciding what

our response to that understanding should be. However, gathering and analysis of information and

enhancing our knowledge comes at a cost.

29. More work needs to be done on developing, testing and using cultural indicators from a te ao Māori

perspective (Māori world view). Co-management and co-governance between councils and iwi will

increasingly require a more balanced evidence base that acknowledges and applies te o Māori.

30. While recognising the importance of the environment on economic prosperity and the wellbeing people

and communities, the focus of the Environment Aotearoa 2019 report is on environmental resources and

issues. Government’s focus on wellbeing (Wellbeing Budget 2019) and the Local Government (Community

Well-being) Amendment Bill that aims to restore the purpose of local government to be "to promote the

social, economic, environmental, and cultural well-being of communities"6 require a more integrated

analysis and reporting of issues7, especially consideration of the dependency of our resource-based

economy and the health and wellbeing of our people from the environment.

Assessment of Significance 31. Having regard to the decision making provisions in the LGA 2002 and Councils Significance Policy, a

decision in accordance with the recommendations is not considered to have a high degree of significance.

Policy Considerations 32. To the best of the writer’s knowledge, this decision is not significantly inconsistent with nor is anticipated

to have consequences that will be significantly inconsistent with any policy adopted by this local authority

or any plan required by the Local Government Act 2002 or any other enactment.

Conclusion

33. Environment Aotearoa 2019 was prepared independently of government jointly by the Ministry for the

Environment and Stats NZ under the terms of the Environmental Reporting Act 2015.

34. The report provides an overview of the state of our environment. Using five broad themes the report

presents nine priority environmental issues. Each issue includes information about why it matters, what

has changed, and the consequences.

35. The report paints a rather grim picture of the current state and recent trends of our environment. The

major issues include thousands of species threatened or at risk of extinction, rivers unsafe for swimming,

the loss of productive land due to urban expansion, and a warming climate likely to destabilise many parts

of the environment.

6 www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_77941/local-government-community-well-being-amendment-bill 7 Waikato Regional Council regularly reports on all four wellbeings through the Waikato Progress Indicators.

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36. Responses to these issues and recommendations for actions are out of scope under the report’s governing

legislation (Environmental Reporting Act 2015), much of the response will come from regional and unitary

councils, working alongside stakeholders, iwi, landowners and the community.

37. Good progress has been made on understanding particular aspects of our environment, but many

significant gaps in our knowledge remain. The report is an opportunity to use the data and information to

build on existing work to address identified issues and fill remaining gaps in our data and knowledge. For

more information see www.mfe.govt.nz/environment-aotearoa-2019.

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Report to Strategy and Policy Committee

Date: 24 April 2019 Author: Michael Bassett-Foss, Te Waka Authoriser: Tracey May, Director Science and Strategy Subject: Te Waka six-monthly performance report and update Section: A (Committee has delegated authority to make decision)

Purpose 1. This report presents the first report for Te Waka, which covers the time period from July 2018 to March

2019.

Executive Summary 2. The work programme of Te Waka is guided by our 2018-2022 Waikato Regional Economic Development

Action Plan.1 The plan identifies the focus areas and projects which, as a result of the Waikato Economic Summit and extensive stakeholder engagement following that event, the Te Waka Board considered had the greatest potential to advance economic and general wellbeing in the Waikato region.

3. Since the launch of the Action Plan, progress has been made with several major projects which are summarised below for the information and consideration of the committee. These are:

Southern Waikato Economic Development Action Plan (SWEAP)

A major Te Waka project which was commenced by Waikato Means Business, transferred to Te Waka

and is now nearing the completion of the first stage. The action plan will identify 25 major sub regional

projects which have the potential to significantly improve wellbeing in Southern Waikato- not only in

terms of jobs and prosperity, but also in ways related to environmental sustainability, cultural and

social wellbeing. The results of this process, a proposed implementation and governance framework

and funding considerations will be reported to the Te Waka Board on 20 March and the SWEAP

Governance Group on 25 March

Waikato Cultural Tourism and Education Cluster

Which is a new and major initiative for Te Waka, which arose from the Waikato Economic Summit and

the desire from many of our key stakeholders to pull together a coherent umbrella framework for

cultural tourism and education in the Waikato, with an initial focus on the Waikato River between Port

Waikato and Lake Karapiro. Considerable preliminary work has now been undertaken on this umbrella

concept and Te Waka wants to share this with our regional partners, including the Waikato Regional

Council.

4. In both projects, Te Waka’s purpose and motivation is to get quality investment, on-the ground developments and jobs for the people of the Waikato as quickly as possible. Both programmes reflect a “package” approach to economic development, which is consistent with advice we have received from Minsters and senior PGF officials. Key points from our engagement with government in terms of success with the PGF in 2019-20 include:

1 https://www.tewaka.nz/site_files/18710/upload_files/756_TeWaka_Waikato_Regional_Economic_Development_Programme_2018-

2022_screen.pdf?dl=1

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It is Te Waka’s role as the regional EDA, to package up discrete singular projects into a more

coordinated ad coherent programme of integrated and “at scale” initiatives which will have impact

The government will respond to such proposals against the criteria set out in the PGF guidelines, and

in all cases a co-investment approach is expected between the region and the government. Proposals

which seek 100% funding from the government are unlikely to succeed

The PGF is focused on the provinces- so while urban areas outside the main centres are not excluded,

proposals from non-urban areas will be treated positively

Implementation is important, so feasibility studies and business cases need to be framed in terms of

quickly moving towards physical/tangible developments and results

The role of Te Waka in these packages will vary from being the programme manager and coordinator for SWEAP, to the facilitator and convenor of an enabling strategic framework umbrella for the cultural tourism cluster. In both cases we see ourselves, and others expect us to be, the regional strategic leader and investment broker. Brokering will involve us assisting entrepreneurs, firms, community and Maori enterprises to acquire and deploy capital and people resources to make things happen as quickly as possible, using the funding and resources which are available locally, regionally and nationally. Further detail on these projects, the funding approaches and the short-lists of projects will be presented to the committee on 26 March.

Staff Recommendation: That the report ‘Te Waka six-monthly performance report and update’ (Strategy and Policy Committee 7 May 2019) be received.

Southern Waikato Economic Development Action Plan (SWEAP) update 5. On 3 December 2018 the SWEAP Programme Governance Group met and approved for final development,

a package of projects and support resources to move into the implementation phase of the Southern Waikato Sub Regional Economic Action Plan (SWEAP). In December, the Te Waka board also received an update paper and a presentation from Te Waka and MartinJenkins on the status of the SWEAP. At the meeting the full suite of projects identified and developed was outlined, including the proposed the funding package and approach to move into the implementation phase of the project.

6. The paper estimated the initial funding required for the proposals. Funding for the next stage of the project

was proposed to be split between the Provincial Growth Fund and the Waikato region, including the Regional Council’s Regional Development Fund.

7. Following exhaustive engagement and assessment, the programme has now settled on 25

projects/programmes which span the following tranches:

A. Pre-Implementation (scoping, feasibility and business case) Projects (Funding requests submitted by Te Waka and funds managed by Te Waka)

9 sector-based and 4 cross-cutting projects seeking funding support for pre-implementation work ($2.215m)

3 sector-based and 1 cross-cutting concepts seeking further engagement with the government on potential funding for pre-implementation work

1 sector-based pre-implementation proposal which has already been PGF funded (Waitomo Hotel).

B. SWEAP Implementation Programme Resources (Funding request from Te Waka and fund managed

by Te Waka)

Funding to recover the additional costs to MartinJenkins for completing Action Plan ($0.08m)

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Economic development planning and capability for the SWEAP Programme implementation process – to resource programme leadership, Maori economic development, local economic development and programme analyst resources for a three-year period ($2.030m).

C. Implementation Ready Projects (PGF Funding applications submitted by project owners/sponsors at

the same time as the Te Waka PGF request above)

3 implementation-ready projects (total package- $5.893m)

2 implementation-ready proposals - requiring further PGF consideration (total package- $3.500m)

Expansion of the Secondary School Employer Partnership and Smart Waikato initiatives ($0.704m)

1 implementation-ready proposal being funded from other sources (Predator Free Pureora) ($1.360m)

Implementation Process 8. Stage 1 (2019) of the programme will focus on:

Securing all necessary programme funding

Setting up and supporting the programme governance framework

Securing programme premises

Recruiting programme staff

Advancing the 13 pre-implementation (scoping, feasibility and business case) projects to investment-ready status by December 2019/early 2020

Coordinating and supporting the 4 implementation-ready projects

Supporting the development and funding of other pre-implementation and implementation projects. 9. Stage 2 (2020-22) of the programme will focus on:

Lodging a package PGF and other funding sources application(s) to implement/fund the projects which have successfully completed pre-implementation (scoping, feasibility and business case) in 2019

Developing any other projects and concepts which are developed while the programme is in operation

Determining and seeking agreement with key funders on BAU implementation and support post June 2022

10. In terms of a funding split, for the pre-implementation and SWEAP implementation programme packages

(A and B above) it is proposed that a 2/3rd-1/3rd split is explored, with the PGF being asked to grant fund 2/3rds of these costs (Table 2). The Waikato region, including the Waikato Regional Council’s Regional Development Fund, would be requested to fund the 1/3rd balance.

11. This programme aims to address deeply entrenched issues which have developed over the past three decades to the point where considerable investment is required. Without a significant investment from the PGF the solutions developed as part of the SWEAP will not happen or will take much longer to implement.

12. While funding is likely to be a point of further discussion with all partners, the rationale for this approach

is that it is consistent with that taken in other regions’ regional growth programmes, and the fiscal capacity of the local communities, councils and Te Waka are limited for such an ambitious and transformational programme. Notwithstanding this, the clear advice we have from the government is that without a regional contribution, a request for PGF funding is unlikely to be successful.

Programme Governance and Management

13. The SWEAP programme implementation structure will be an evolution from that which was successfully designed and developed for the SWEAP action plan process. The close involvement of the Provincial Growth Team in this programme will be essential from the beginning. This includes at the programme governance and the project management level.

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14. Our close working relationships with key senior officials including Kathy Mansell (SRO) and officials from MBIE, MPI, TPK and MSD are vitally important to the success of this programme. Invitations will also be sent to NZTA and the Ministry of Education to take part in the programme as appropriate. MBIE will also asked to facilitate engagement with other key MBIE officials in areas such as minerals, energy and tourism.

15. The overall programme approach will include (upon acceptance of invitation):

Governance

Overall governance and oversight by the Te Waka Board

An implementation governance group comprised of: o An independent chair, who may be selected from the group or selected by the members from

outside the group o A Te Waka Board member or appointee o Local government mayors o Hamilton Waikato Tourism o Business o Maori enterprise and business o Community leaders; and o Waikato Senior Regional Official

Management

A Programme Director and small team, collectively comprising a programme office

A project reference/management group, led by the Programme Director which will include officials from (upon acceptance of invitation):

o Te Waka o South Waikato District Council o Waitomo District Council o Otorohanga district Council o Hamilton Waikato Tourism o MBIE o MPI o TPK o MSD o Ngati Raukawa o Ngati Maniapoto

Figure 1. SWEAP Programme Governance and Management Structure

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16. The programme office would be composed of a core group:

A SWEAP Programme Director - who would provide executive leadership oversight of the programme and who would report to the Programme Governance Group. The Director would manage key relationships and build the network of partners with whom the programme will be developed and delivered with

A Maori Enterprise and Iwi Engagement Leader- who will support Raukawa and Maniapoto to participate in the range of SWEAP proposals and working groups and to assist in developing bespoke iwi-supported proposals and actions.

A Programme Management Leader - to prioritise and implement local economic development projects (e.g., sub-regional economic development advisors) to bolster the stretched roles that current Council officers play

A Programme Analyst - to provide expertise to coordinate SWEAP and to provide advice on validation processes and the development of PGF applications (e.g., a SWEAP programme manager/analyst.

17. The programme will establish a presence in the SWEAP area- most likely in either Tokoroa, Te Kuiti or

Otorohanga. This is considered essential to build and maintain strong day to day relationships with the programme partners and stakeholders. Co-location options with local government and shared services will be investigated to reduce overhead costs to a minimum.

18. This will be complemented by staff from Te Waka- including our Business Growth Team who deliver NZTE

and Callaghan business capability, innovation and mentoring services in the Waikato. Te Waka will also provide communications, strategic advice/support, labour market, additional Maori economic development strategic support and advice, sector development and investment facilitation advice. South Waikato, Waitomo and Otorohanga District Councils will be asked to provide in-kind resources and other resources (including potentially housing the programme office) to also assist with the project.

Waikato Cultural Tourism and Education Package 19. As part of the Te Waka Waikato Economic Summit, the concept of a river-based culturally authentic

package of tourism and cultural education attractions and infrastructure was developed by several groups and emerged as the major priory from the summit. This was articulated in the Figure 2 and shows how a cluster/network of attractions and supporting infrastructure, connected by the (Waikato) River and focused on cultural tourism, could generate at-scale economic and employment returns.

20. The concept developed at the summit was focused in the first instance on the Waikato River and activities

which could leverage and support its significant cultural tourism potential in the region. While all parts of the region have significant tourism and cultural tourism potential, the group has agreed to focus on the Waikato River, mainly north of Lake Karapiro, in the first instance. Cultural tourism projects outside of this area have also been included in the assessment, and while many of these have not scored highly because of the criteria used, many of them will be included in the Southern Waikato Economic Action Plan (SWEAP) package of projects.

Figure 2. Waikato Economic Development Summit- “The Entrepreneurs Hotel”

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21. At a workshop on 30 January, Te Waka convened a range of northern Waikato tourism, cultural tourism and economic development entities met to jointly develop a package and approach to guide development of cultural tourism and education in the Waikato region. The purpose of the package is to create an umbrella framework which will provide confidence to regional and national decision makers and funders on the best projects to support and advance over the next 2-4 years.

22. Te Waka has stressed that its role has been to frame up and support an investment package- but that the individual projects belong to the people and groups who own them/are developing them. Te Waka will not be putting in any PGF applications itself in relation to this package- rather our aim to build the umbrella which gives key ministers and officials full confidence and maximises the chances of the projects within the package succeeding- whether it be in terms of PGF funding or for any other source.

Principles

23. A strategic framework was jointly developed to assess and prioritise the long list of cultural tourism projects which are either underway or in the development stage across the Waikato (Table 1). In a dynamic economy, new ideas will emerge continuously, and some ideas may not proceed any further once they are properly tested. Also, once the projects are prioritised, there may be 2 or more tranches of projects which are put forward for consideration and support. As well as prioritising those which perform most strongly against the criteria, the level of conceptual development and investment-readiness of the projects should drive the prioritisation process.

The region will prioritise and promote projects which: 1. Are culturally authentic. In this context authenticity, while being context specific, is also about projects, led

by iwi and Maori enterprise that are anchored in the mana whenua of the Waikato, people based, genuine and unmistakably Waikato in their history, meaning and intent. It is focused on those which reflect a sense of history and place for the Waikato- for example telling the story of kingitanga and the land wars. It also reflects contemporary2 culturally enriched experiences which are being increasingly sought by the market. “Cultural tourism” is not restricted to “traditional” and “historical” elements.

2. Are designed for, are driven by, the customer/visitor and the real journey/experience they are likely to take. This includes the likely role of Hamilton as the main accommodation hub for the region and its spokes of destinations and assets, and the general flow of tourists (especially international) from Auckland southwards.

3. Are commercially viable and sustainable, with a focus on projects requiring a marketing orientation approach vs production orientation approach, while recognising that certain projects will require public funding to achieve sustainability (e.g. theatre, visitor centres, museums, events etc.)

4. Have economic benefits (especially via investment and jobs) for the immediate and wider communities of the Waikato region. This includes projects which may not be able to operate on a fully commercial basis but contribute towards the development of a stronger regional offering and commercial platform.

5. Strongly relate to the rivers of the Waikato region, especially the Waikato River and the stories they tell of the region, its culture and history and its unique value proposition. This includes validity in terms of environmental sustainability of both the rivers and the wider environment. There may be an initial focus on the Waikato River as a priority organising concept for the first tranche of projects.

Table 1. Strategic Criteria

Conceptual Model and Candidate Projects

24. Figure 3 shows a simple non-dimensional model of the Waikato tourism system. All elements need to be present for the sector to succeed and add value. The model also emphasises the critical role of Hamilton as the key hub for the Waikato cultural (and general) ecosystem. Hamilton is, and will increasingly be, the preferred destination for major cultural tourism infrastructure- such as the Waikato Theatre, HAKA and other potent national scale assets. This will create the associated demand for at scale (>100 rooms) accommodation in the form of hotels at the 4-star+ level. The cluster package being developed through this process will focus on the key physical assets and infrastructure needed to ensure the system operates effectively and succeeds.

2 “Contemporary” refers to the need for a diverse range of product that is informed by Māori cultural values, tikanga, histories, stories, etc. to provide

an “authentic” experience

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Figure 3. Tourism System Model

25. An initial list of Waikato Cultural Tourism projects was provided by Hamilton Waikato Tourism. This was

expanded to include all known tourism development projects (new projects and/or expansion of existing projects) in the broader Waikato sub-region, so that the relative importance of these versus other projects in terms of their alignment with the above principles/criteria could be tested. All tourism projects from the Southern Waikato Economic Development Action Plan (SWEAP) were also included for completeness. The list of projects focuses on the infrastructure needed to leverage physical and cultural assets, and to allow events to be developed and commissioned. On advice from Waikato Tainui, Turangawaewae related events and assets have not been included at this stage.

26. There are a series of important tourism enablers, especially in relation to hotels/accommodation. As these

are largely commercial developments whose development depends on detailed knowledge of requisite demand, development and operation costs, no specific assessment of the known concepts has been undertaken. One of these- the Waitomo Hotel is currently seeking PGF funding, and others may also be in the process of development. Hamilton City have been seeking expressions of interests from the investment community to develop several of these. These should, to some extent, form part of the final package as a key part of overall offering for the Waikato.

Conclusion

27. Once the Te Waka Board considers and approves this package and approach, a summary paper will be drafted to be presented to economic ministers. While we expect there to be some discussion required with officials on the detail, we anticipate that this paper and the background to it will give PDU officials and ministers the confidence to support individual PGF applications for these projects as they are presented for support and funding. An overview of the first tranche of projects will be presented to the committee on 26 March.

28. Tourism and cultural tourism opportunities in the eastern Waikato also already being taken and have considerable further potential and, if supported by the relevant councils, Destination Coromandel, Maori enterprise, iwi and key tourism operators, work will commence shortly to explore a package approach for Thames-Coromandel, Hauraki and Matamata-Piako in a similar way to what has been done in this report.

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Report to Strategy and Policy Committee

Date: 23 April 2019

Author: Lisette Balsom, Team Lead Policy Implementation

Authoriser: Tracey May, Director Science and Strategy

Subject: Submissions summary report

Section: A (Committee has delegated authority to make decision)

Purpose 1. To inform the Committee of submissions made to consultation processes, and upcoming opportunities for

Waikato Regional Council (WRC) involvement.

Executive Summary 2. Through submissions, WRC has made contributions to a number of district planning matters and central

government consultations.

3. Over the previous six months, WRC has made around 16 submissions on a range of issues from district planning issues to inter-regional and national matters. Particularly important matters have been:

Waikato District Council’s review of their District Plan

Hamilton City Council’s Te Awa Lakes Proposed Private Plan Change 2

the Productivity Commission’s Inquiry into Local Government Funding and Financing.

4. Important upcoming opportunities for submission are a substantial national direction programme from the Ministry for the Environment, and District Plan reviews for Waitomo and Taupo districts.

5. Submissions update reports will be provided periodically to the Committee to provide an overview of

WRC’s input and outcomes to date.

Staff Recommendation:

That the report ‘Submissions summary report’ (Strategy and Policy Committee 26 March 2019) be received.

Background 6. WRC regularly makes submissions on matters considered important to its functions, in order to take up

important opportunities to influence decision making by ensuring matters of regional significance are addressed.

7. At the November 2018 meeting, the Committee requested that it be provided with periodic updates on outcomes of submissions made. This submissions update report therefore provides an overview of recent WRC submissions, and an update on outcomes achieved and/or status of key processes that the council has sought to influence through submissions.

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Submissions made 8. The following provides an overview of recent submissions made by WRC, and current processes underway,

both at a district and national level.

District Planning Matters Hamilton City Council (HCC): Te Awa Lakes Proposed Private Plan Change 2 9. Lodged in July 2017, Proposed Private Plan Change 2 Te Awa Lakes sought to rezone a 62ha block of land

north of Hutchinson Road in Hamilton, from Industrial to enable mix of residential, business and adventure park activities.

10. The land forms part of a strategic industrial node in Waikato Regional Policy Statement (WRPS) and Future

Proof strategy. WRC’s submission raised matters related to:

inconsistency with the Future Proof settlement pattern

the extent to which criteria for alternative land release had been met

coordinating growth and provision of infrastructure

reverse sensitivity

transport

indigenous biodiversity

the management of alligator weed

hazards

water quality and regional consents.

11. The plan change has been suspended pending the outcome of a Special Housing Area (SHA) on the same site. In early April 2019 the Associate Minister for Housing and Urban Development advised that she has declined the application. The SHA was supported by HCC and recommended to the Minister in late 2018. The application for an SHA was submitted on by WRC consistent with the Council’s submission on the Plan Change.

12. HCC has undertaken an investigation into Industrial Land supply. This has shown a ‘tight’ industrial land

market where supply may not meet demand. HCC is currently doing further investigation to determine if a plan change is required to zone additional land for industry in order to address this issue.

13. In the west of Hamilton city, HCC has notified Plan Change 3 which applies to land within the Temple View

area. It intends to zone 14 hectares of land, transferred from Waipa District Council, from a rural zone to the Temple View zone which allows for predominately residential uses. The plan change includes minor changes to the significant natural area (SNA) boundary in the Temple View locality as well as other minor changes of an administrative nature. WRC’s submission supports the overall intention of the plan change and suggests areas for better implementing the WRPS.

Thames Coromandel District Council - TCDC Proposed District Plan Appeals 14. WRC appealed the TCDC District Plan decision in 2016. Matters addressed in the appeal included

indigenous biodiversity, natural character, landscapes and coastal environment. WRC has also joined with other parties on topics such as Kauri Dieback Disease and Transport. The WRC appeal and s274 notices all sought that the district plan give effect to the Waikato Regional Policy Statement, as required by the Resource Management Act 1991.

15. Following extensive mediation, most matters have been resolved and are with the Court to confirm pending the outcome of other topics. The key ‘live’ matters are:

a. Indigenous biodiversity, which for the most part had been agreed between the parties with the exception of provisions that relate to plantation forestry. Parties are currently discussing this matter and expect that a mediated outcome will be arrived at.

b. A hearing has been undertaken for the Kauri Dieback topic and we are currently awaiting a decision from the Court.

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Waikato District Council (WDC) – Proposed Plan Stage 1: Review of District Plan

16. This work includes combining Franklin and Waikato sections into one single district plan with a consistent approach to development and growth management.

17. This work links to the WRPS strategic direction in a number of areas, including regional growth,

management, biodiversity, hazards, management of council assets and their operation, and coastal management.

18. In December 2017 WDC sought initial public feedback on a draft district plan, and council staff provided

comment. The Proposed Waikato District Plan was notified on 17 July 2018. A comprehensive report and draft submission were brought to the 18 September Strategy and Policy Committee meeting to seek approval of the submission with the submission subsequently being lodged. WDC is currently summarising submissions and a further submission period will likely open in April.

19. WRC are also working with WDC on natural hazards and climate change provisions which will be publicly

notified later in the year. Waipa District Council – Proposed Plan Change 11: Private plan change by Bardowie Investments Limited

20. This private plan change seeks to provide for 56.7 hectares of industrial development and associated services within the Hautapu Industrial Node. WRC’s August 2018 submission sought consistency with the direction set by the WRPS, requesting amendments regarding the provision of non-industrial activities, and storm water and drainage infrastructure. Amendments were made in late 2018 in line with WRC comments. The plan change is not yet operative.

Taupo 2050 District Growth Management Strategy

21. The September 2018 Strategy and Policy Committee approved WRC’s submission on the Taupo 2050 growth management strategy. The submission noted that WRC was generally supportive of the proposed changes, but sought clarification and amendments on specific matters. Some amendments were made in line with WRC’s comments, and the strategy was adopted in October 2018.

Taupo District Council’s Proposed Alcohol Control Bylaw

22. The October 2018 Strategy and Policy Committee approved WRC’s October 2018 submission, which supported the liquor bylaw making Otumuheke Stream an area in which the consumption and possession of alcohol is prohibited. The Otumuheke Stream was included as a liquor ban area in the final Alcohol Control Bylaw.

Inter-regional and national matters Kauri Dieback Disease National Programme 23. This programme includes developing:

• A National Strategy for kauri dieback • A National Pest Management Plan (NPMP) for kauri dieback • A management agency that will implement the NPMP.

24. The NPMP will set minimum requirements which the Council's regional plan, regional pest management

plan and resource consents must be consistent with. NPMP and Management Agency will impact on the intended biodiversity outcomes for the region. Aspects of the NPMP are likely to be relevant to the regional pest management plan review. These will all impact on WRC operational role.

25. WRC submitted during Round 2 Consultation and Council’s draft submission on Round 3 was presented at the February 2019 Council meeting for subsequent lodgement with Biosecurity New Zealand prior to 18 March 2019.

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Proposed improvements to the New Zealand Emissions Trading Scheme, September 2018 26. WRC submitted limited comment on aspects of the emissions trading scheme’s (ETS) proposed changes

for forestry. Council also provided general comment on some issues and asked the ministries to consider: • Increased flexibility to bring a larger portion of riparian planting into the ETS • Inclusion of wetlands of 0.5 hectares or more in the ETS • Including naturally regenerating forest in the ETS • An invitation for the system to consider using WRC’s carbon calculator as the basis for other region’s

calculation tool. 27. WRC’s submission noted overall support for proposed improvements. The government is currently

evaluating submissions, considering policy and drafting amendments to the Climate Change Response Act. The signalled timeframe for this work is up to mid-2019.

Bay of Plenty Regional Council Regional Pest Management Plan, October 2018 28. WRC offered support of the majority of the Bay of Plenty Regional Pest Management Plan and offered

minor suggestions for change. WRC’s submission was lodged and staff understand that Bay of Plenty Regional Council are still working through all submissions.

Conservation (Indigenous Freshwater Fish) Amendment Bill, September 2018 29. WRC supported the intention of the amendment Bill, but noted it will not significantly improve the

management of freshwater fisheries, freshwater biodiversity values, and the efficiency of government administration. Council acknowledged that the scope of the proposed bill is deliberately narrow due to the time and cost required by a wider statutory reform.

30. The Bill is currently being discussed by the Environment Select Committee. The date for the Bill’s second reading is to be confirmed.

Upper North Island Supply Chain Supply Study, January 2019 31. WRC provided feedback to an Upper North Island (UNI) logistics and freight review, to guide the

development and delivery of a freight and logistics strategy. This includes exploring options for moving some of Ports of Auckland activities (such as cargo) to Northport or Port of Tauranga, while retaining cruise-liner visits. WRC’s points noted the need to take a systems view to the review, and note the importance of road and rail networks, and inland ports. Further consultation on preferred options will occur later in 2019.

Productivity Commission’s Inquiry into Local Government Funding and Financing, February 2019 32. WRC’s submission answered numerous questions on funding and financing issues. Some key points are:

• The submission sought additional Crown contributions to council to help address costs to implement Treaty of Waitangi settlements

• The cost of maintaining flood protection and land drainage infrastructure is a case where greater central government funding transfers is justified

• Advocating for new funding tools for regional councils, including the ability to charge development contributions, GST exemption on rates, and cost recovery for permitted activities.

33. Outcomes are not yet known. Staff are waiting for the Commission inquiry draft report to be released for

consultation. This report will outline recommendations from the Commission to central government. This round of consultation is expected in June 2019.

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Predator Free 2050, February 2019 34. The February 2019 Strategy and Policy Committee approved WRC’s submission which affirmed support of

the Department of Conservation (DoC) Predator Free 2050 discussion guide. The discussion guide represents important progress in describing the principles underlying landscape-scale predator free-type projects, as well as goals and anticipated outcomes. Agreement to, and support for, the principles, goals and outcomes set out in the discussion guide provide a useful basis for the subsequent preparation of a national predator free 2050 strategy.

WRC’s submission was lodged with DoC in early March 2019. Tax Working Group report 35. The April 2018 meeting of Council approved WRC’s submission based on the release of the working group’s

interim report. The submission indicated WRC’s interest in matters such as resource/environmental taxes, the funding of infrastructure, and the potential for the principles of Te Ao Maori to influence the design of the tax system.

36. The Tax Working Group issued its final report on its review of the tax system on 21 February 2019. The report focused mainly on options that could be developed in the medium and short term. Overall, changes in the taxation system to ensure specific environmental and ecological outcomes have the potential to affect council by creating new responsibilities and affecting ratepayers’ financial capacity to meet already existing obligations.

37. The TWG recommends better use of environmental taxes to price environmental externalities within the next 1-5 years. Changes in taxation to price negative externalities could affect activities controlled by council like discharges to land. Council could acquire additional responsibilities to monitor certain activities and collate data to inform the pricing system and ensure its functioning.

38. The report found that tax incentives could be conducive to incentivise the use of public transport - it suggests the Government consider allowing employers to subsidise public transport use by employees without incurring fringe benefit tax.

39. The discussion of tax concessions may be of interest to council. In particular, the idea of tax deductibility of costs associated with covenanted land (e.g. QEII covenants), but also the review of farming-specific deduction rules to “…ensure they do not incentivise activities that destroy natural capital or disincentivise activities that enhance natural capital.”

40. The key questions if any of the tax options evaluated by the TWG are implemented would be who would manage this allocation of resources after the changes are introduced, who collects the tax and who decides what to do with the revenue.

41. The government is currently considering the recommendations of the Tax Working Group and is expected to propose legislative changes dependent on the outcomes of its deliberations.

Upcoming opportunities for submission 42. The opportunities outlined below have been identified as upcoming opportunities for Council submissions.

Council staff are keeping updated on progress with these opportunities, and will bring submissions to Council at appropriate times.

Submission opportunity Description/key issues Timing

District planning

Waitomo District Council - District Plan Review

Waitomo District Council commenced a review of its District Plan in 2018. Key issues: Provisions relate to subdivision, infrastructure, biodiversity, hazards management, earthworks, coastal.

From March 19

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Taupo District Council - District Plan Review

Taupo District Council is in the early stages of a comprehensive review of its District Plan. Key issues: provisions related to integrated growth management, subdivision, infrastructure, biodiversity, hazards management, earthworks, coastal.

From March 19

South Waikato District Council

Plan change to accommodate future residential development at Putaruru, which it forecasts will grow from an estimated 4,030 in 2016 to about 5,500 in 2048.

From May 19

Hamilton City Council Rotokauri North Future Urban to Residential Private Plan Change.

From March 19

Peacocke - two associated plan changes - to remove master plan provisions, and to strengthen structure plan.

From March 19

Plan change on review of efficiency and effectiveness of District Plan.

From March 19

Matamata Piako District Council

A number of plan changes are currently underway. WRC staff will engage with MPDC staff to ensure consistency with the WRPS. MPDC also continues a rolling review of its District Plan.

From March 19

Hauraki District Council A number of plan changes and resource consent applications (for example, Kaimai Wind Farm, and residential subdivision in Ngatea) are currently underway, as well as community planning in Kaiaua-Miranda. Hauraki District Council has also met with WRC staff to discuss minor changes to their District Plan to provide for more Residential Zone land in Waihi and Paeroa, and to provide for more flexible infill subdivision in Waihi. WRC staff are engaging with HDC staff to ensure consistency with the WRPS.

From November 2018

National work

Zero Carbon Bill Proposed legislation by Ministry for the Environment. August 19

Climate Change Response Act Amendment (Emissions Trading Scheme regulations)

Proposed legislation. August 19

Freshwater: Allocation work programme

Improvement initiatives for the freshwater allocation regime.

May-September 19

NPS - Freshwater Management amendments and new NES Freshwater

Changes to current NPS on Freshwater management and the creation of a new National Environmental Standard (NES) for Freshwater.

April 19

NPS - Versatile Land and High Class Soils

Consultation on the creation of a "Versatile Soils" NPS. April-June 19

NPS - Indigenous Biodiversity

Consultation on the adoption of a new NPS for Indigenous Biodiversity. The Strategy and Policy Committee considered the NPS Biodiversity report, which included a draft NPS. The draft NPS was presented to government for its consideration; and the government will release a draft NPS later this year for consultation.

July- September 19

Urban Growth Agenda Urban planning pillar (spatial planning) public consultation.

April-June 19

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Conclusion 43. The above report has provided an overview of submissions Waikato Regional Council has made, plus

upcoming opportunities for involvement. These reports will be provided periodically to the Committee.

Legislation on establishing Housing and Urban Development Authority

• Cabinet papers about the Urban Development Authority (UDA) will be released for public feedback. Ministry of Housing and Urban Development will report back to Cabinet on the plans within the next few months.

• Legislation will then be needed to establish the authority through Parliament.

• The UDA is expected to be created by 2020 and carry out its first projects – including developments announced in Porirua and Mount Roskill and Māngere.

2019

Air Quality NES review Changes to current (NES) for Air Quality, updating particulate matter provisions to reflect costs of compliance and current science on health impacts.

June-September 19

National Biodiversity Strategy

A new national strategy will be developed to address the critical state of the country’s indigenous biodiversity. Review of the 2000-2020 strategy.

March-June 19

Resource management reform

First stage is minor amendments mostly around consenting and enforcement. Second stage later in 2019 relates to principles of engagement etc.

From early 2019

NPS - Natural Hazards National objectives and policies on managing significant risks from natural hazards.

TBC

NPS - Urban Development Capacity

RPS change to insert minimum targets completed December 2018. Consequential RPS changes and regional plan required.

2019

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