ISSUE
102
MOVING TO NEW ZEALAND?
February 2018
In this issue... State of the nation P.1 NZ’s economic booms ranked - how this era rates P.2 Tank farm to go for America’s Cup bases P.3 City Rail Link above-ground opportunities identified P.4 PM Jacinda Ardern launches $3B fund for regions P.4 Second runway critical to Auckland as profit soars P.6 Franklincoutry.wordpress.com
Get in touch There are many ways to keep in touch with us at Catalyst. Obviously this monthly newsletter is one but we are very active on Linked In and would encourage those not already there to join our groups and link to our company page in order to receive the latest news. If that’s not enough we also have our blog pages, job board and Facebook pages to keep you in the loop. Having your details is only the first step in making the move to New Zealand a reality so get in touch now to discuss your plans and aspirations and we’ll do all we can to help. Follow us via the links below; linkedin.com/company/ catalyst-recruitment catalystrecruit.wordpress.com/ catalystjobs.co.nz/ christchurchrebuild.co.nz/ facebook.com/CatalystRecNZ
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State of the nation Welcome to the Catalyst state of the nation for February 2018. New Zealand is a sporting nation and is much as the All Blacks and the Silver Ferns tend to dominate the headlines there is always an interest in the Olympic and Commonwealth Games. New Zealand’s tradition at the Winter Olympics is not that flash but in the past few days we tripled our medal tally for the competition when two 16-year-olds both secured bronze medals. Nico Porteous and Zoi Sadowski Synnott secured third place in the ski half pipe and snowboard big air respectively, making themselves instant celebrities and breaking a 26 year drought since our last Winter Olympics medal. Elsewhere in New Zealand the weather has been a little erratic next to say the least. Thanks to the tail end of Cyclone Gita various parts of the South Island were cut off due to landslips covering roads and rail, https://catalystrecruit. wordpress.com/2018/02/23/bugger-anyone-got-a-spade/ . Thankfully nobody was hurt and we can now return to what’s left of summer and enjoy the sunshine and the beach! Engineering Consultants We continue to wait for the new Government to show some leadership in the infrastructure arena. Temporarily, the country is more concerned with the Prime Ministers pregnancy and Vogue shots rather than real issues. Apparently work is going on behind the scenes and we should see the new direction once the budgets have been set in the coming week or two. One thing is certain, due to New Zealand’s economic success and growing population we continue to suffer from a considerable Infrastructure Deficit. Despite the temporary 4 month hiatus, budgets are not expected to change, just the focus towards public transport and regional development. It remains very exciting while we twiddle our thumbs. Contact Andy ahopkins@catalystrecruitment.co.nz Construction The construction sector remains busy in New Zealand, particularly in Auckland, with an ever-changing list of requirements. There has been a small slowdown of overseas requirements due to some disruption with one of the main contractors but this is expected to only be temporary. One client is currently on the lookout for junior and intermediate quantity surveyors and another has muted requirements for site manager. Things will only get busier so if you are interested in making a move to New Zealand in the construction sector then contact Phil, pponder@catalystrecruitment.co.nz
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Civil and Infrastructure As anticipated it looks like this year could be a busy year in the civil and infrastructure space. Although there has been a slight delay due to a change of government it is hoped that beyond March we should start seeing more activity around the country. This will see a particular demand for project managers, project engineers and site engineers in all disciplines. In respect of projects already underway I have a number of positions that I’m advertising for including project engineers, project managers and site engineers with bridge construction experience, project engineers with road construction experience, a project engineer with geotechnical/structures experience and a project manager with water and wastewater experience. These are just the tip of the iceberg and can be found on the catalyst job board, www.catalystjobs.co.nz. If these or any other positions are of interest to you then get in touch with Phil and we can go into more detail, pponder@catalystrecruitment.co.nz As you know there are various ways to keep in touch with Catalyst and at the moment we are making significant efforts to improve those lines of communication. LinkedIn is one of those formats and I am regularly posting articles and job vacancies on our company page. To make sure that you see those regular updates click this link, https://www.linkedin.com/ company/catalyst-recruitment and click the follow button on the company page. We look forward to seeing you there. Also keep an eye on our job board www.catalystjobs.co.nz where we will regularly place vacancies we are currently working on. Finally, I know many of you are on Twitter so please use this link, https://twitter.com/CatalystRecNZ , to follow us.
NZ’s economic booms ranked - how this era rates As New Zealand’s economy heads into its 10th year of expansion, how does this era rate compared to our other post-war booms. For that matter, is it even a boom? The past few years have been great for homeowners and share investors, but have seen many wage earners struggling to keep up. The current growth phase has been unusually shallow – in length, it is now running third-equal among growth periods since WWII, but it only ranks fifth in terms of its strength. The numbers are based on a research paper produced by Reserve Bank head of economics John McDermott and Victoria University professor Viv Hall in 2014. The Herald updated those numbers – with McDermott’s help – to get a sense of how good the current economy really is. The most recent confirmed GDP figures are for the year to September 2017 - which means we now have 34 quarters of growth in the tank. In that time we’ve had a total rise in real GDP (adjusted for inflation) of 25.7 per cent. New Zealand has been dubbed a rock star economy for its growth, compared with other major economies. But that star pales in comparison with New Zealand’s golden era of postwar economic growth. It’s fair to say that baby boomers’ fond memories of the 1950s and 60s are more than just nostalgia. From 1952, the economy grew for 58 quarters in a row, and by 86.7 per cent, until a short sharp crash in the wool market – which then accounted for 31 per cent of our exports – ended the golden run in 1967. “I think we even called it the
golden age,” says McDermott. “It was a rebuilding phase for the world. It took quite a few years for the rationing systems in Europe to be unwound and for the trade system to be rebuilt – the Americans stepped into Europe with the Marshall plan and they fostered an open environment for the world to expand.” New Zealand, with its infrastructure and farming systems largely untroubled by the war, was ready and waiting to make the most of the new environment, with its exports of meat, dairy and wool. “That was the recipe for a long and quite rapid growth period for New Zealand,” McDermott says. By comparison, the current expansion hasn’t really felt like a boom. “It has been a story of duration – not so much amplitude – it was a very slow start. “It does seem that credit is being used to support this moderate enduring cycle rather than creating it into a boom scenario,” he says, referring to the artificially low interest rates and quantitative easing that central banks have maintained since the global financial crisis in 2008. It is also the case – as the last Government’s critics pointed out through the past decade – that growth has been flattered by record levels of immigration. But one thing we can say about the current boom is that it isn’t finished yet. New Zealand was ahead of the curve, recovering from the GFC sooner than most major economies, and could now cash in as global conditions improve. Forecasts for the next 18 months suggest that - barring a major external shock - the current expansion is likely to leap up the rankings to rate as our second-longest and third-strongest. Source: Liam Dann, NZ Herald
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Tank farm to go for America’s Cup bases at Auckland waterfront A deal has been struck to free up land on Wynyard Point and pursue the possibility of a new option for the America’s Cup bases. The Government and Auckland Council are pursuing an option that provides for at least seven syndicate bases around two basins in the Wynyard area with provision for restaurants and bars, public viewing, and hospitality areas. Dutch company Stolthaven Terminals has agreed to vacate its southern tank farm site on Wynyard Point early. “The deal which sees Stolthaven Terminals vacate the premises earlier is great for Auckland regardless of where the bases for the America’s Cup will be,” Mayor Phil Goff said. “It is a good legacy for our city.” The deal also clears the way for more land-based locations for America’s Cup bases and reduced the proposed extension to Halsey Wharf from 75m to 35m.
Economic Development Minister David Parker says the proposal is a win-win for all parties involved. “Our main aim alongside creating a top-class venue for Team New Zealand and the Cup defence in 2021 and, hopefully, beyond,” Parker said. Reducing costs and environmental impact while offering an excellent venue for the Cup defence is the main focus of talks. Parker said that he was very pleased to have proven that there was an option that has less intrusion into the harbour, gets rid of the tank farm early and is cheaper. “We’re yet to meet final agreements with either the council or Team New Zealand - but certainly, this is progress,” he added. The relative cost of the proposal is expected to be around $20 million less than the Basin option before putting a value on the harbour intrusion - which had been significantly reduced. Parker says that it could have been possible to have a smaller extension of Halsey Wharf, but the Government is prepared to compromise for Team NZ. Under the hybrid option there is no change to Hobson Wharf, which will be extended by 75m with plans for a permanent home for Team NZ. “The Wynyard
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hybrid option proposal reduces the need for large extensions into the harbour while creating a vibrant and connected America’s Cup village that competitors and the public can enjoy,” Goff said. “With Stolthaven Terminals vacating its premises we are able to reclaim previously unusable land on Wynyard wharf and accelerate aspects of the redevelopment of Wynyard Point that will create a lasting legacy for Auckland after the Cup. Economic Development Minister David Parker says the proposal is a win-win-win for all parties, reducing costs and environmental impact while offering an excellent venue for the defence. “I believe the proposal will create a legacy for Auckland and all of New Zealand – our main aim alongside creating a top-class venue for Team NZ and the Cup defence in 2021 and, hopefully, beyond,” Parker says. Goff has discussed the Wynyard hybrid option with Auckland’s councillors and it will be considered by council’s Governing Body in the near future. The Government and Auckland Council will continue discussions with Emirates Team New Zealand. Source: NZ Herald
City Rail Link above-ground opportunities identified Development opportunities for up to 20ha of new Auckland CBD and fringe city floor space have been identified around the $3.4 billion City Rail Link, as the time to award the tunnelling and station contracts draws near. Images have been released showing development potential of the land once the project is done. A City Rail Link spokesman said between 190,000sq m and 200,000sq m of gross floor area was possible, including offices and housing.
Regional Development Minister Shane Jones’ much-vaunted ‘Billion Dollar’ regional investment fund has kick-started with $61.7 million worth of grants in areas from rail in Napier to Totara forestry in Northland. The structure and first projects under the Provincial Growth Fund are being unveiled in Gisborne today by Jones, Prime Minister Jacinda Ardern and NZ First leader Winston Peters as well as a glut of other ministers. The first regions to benefit from it are Northland, East Coast, Hawke’s Bay, ManawatuWhanganui and the West Coast of the South Island. Jones has described his new fund as “a bloody big risk”.
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At Britomart, about17, 600sq m could be built, at the new Aotea station near Auckland Council 41,000sqm, at Karangahape 320sq m and at Mt Eden 5000sq m, he said. Eight parties have pre-qualified to bid to build the stations and tunnels, AT said. These businesses have been invited to proceed to the request for tender phase. They are Acciona Infrastructure New Zealand, Bam International Australia, China Machinery Engineering Corporation joint venture, CPB Contractors, Ferrovial Agroman (New Zealand), Salini Impregilo S.p.A, Fletcher Construction and Vinci Construction Grands Projects S.A.S (VCGP) joint venture. Two short-listed businesses will be named next month for the contracts. Source: Anne Gibson, NZ Herald
PM Jacinda Ardern and Shane Jones launch $3 billion fund for regions Ardern said at the Friday launch the regional development fund has the power to change towns and entire regions if it does what is intended. Ardern spoke of her own background growing up in Murupara, Matamata and Morrinsville, saying she had seen the effects on towns of over-reliance on one industry and of economic depression. She said one of the goals was to ensure people did not lose their children to overseas because there was no opportunity locally. Ardern also made sure to give credit to NZ First for the fund. She said there were areas in which NZ First and Labour agreed, including the need to address infrastructure deficits. “But ultimately this fund was the idea, was motivated by, and pushed for, by NZ First.” Ardern said the fund was designed to help generate prosperity and would help ensure the market alone did not decide which regions prospered and which fell to the wayside. She said it also dovetailed with the Government’s goal of becoming carbon neutral. “This programme, in one way or another, plays a fundamental role in every element of our economic strategy.” Ardern pointed to Jones’ programme to plant one billion trees over 10 years, saying she believed it was something the Government would look back on with pride. “It will be a legacy. It will be a tangible legacy.” She said that alone would help create jobs and achieve the carbon neutral target. Ministers for Labour, NZ First and the Greens were at the launch, as well as local National MPs
Lawrence Yule and Anne Tolley several mayors from around New Zealand including Northland Mayor John Carter and Whanganui Mayor Hamish McDouall. Jones said the $3 billion fund was a bold step and an initiative not tried since the days of Rogernomics. The initial focus on four regions for the first round of funding did not mean that other regions would be left out, although main metropolitan centres would not be covered. He said he intended to push bureaucracy along because the programme had to deliver results “at pace”. He said there was a criticism that there was too much red tape and decisions took too long. “I have told the bureaucracy I am on a 1000-day hikoi so I don’t want bureaucrats whose feet are riddled with treacle.” It was dedicated to turning around the fortunes of all the provinces. “We were brought into power on the momentum of change. A progressive government and progressive policy needs to have the courage to go to those areas where the government has said if the market can’t fix the problem, then the problem isn’t solvable. We don’t accept that.” Jones also addressed irrigation, saying the Government would not tolerate “the uber irrigation schemes” that the last government had tolerated, but would ensure farmers had enough water. Gisborne Mayor Meng Foon said it was the regions that made the cities work: “we have to feed them.” Foon said Jones was “the champion of the regions” and got
PM Jacinda Ardern and Shane Jones launch $3 billion fund for regions article continued from page 4 in a few pitches of his own, saying the roads needed upgrading “to make sure the strawberries are not bruised when they get to Auckland.” Jones said in response the next time he returned he would “chase the bureaucrats” and progress local roads and highway - “but you have to meet me halfway.” Projects getting the green light • Northland: $17 million including support for two cultural centres in Opononi and Whangarei, $450,000 for a Totara industry pilot to explore new forestry market, a new tourism hub in Kawakawa ($2.3 million) and $9 million to upgrade the Waipapa Intersection on SH 10 near Kerikeri. • Napier: $5 million to reopen the Wairoa-Napier line for logging trains, estimated to take 5700 trucks off the road. • Whanganui: $3 million to upgrade the Whanganui line for locomotives carrying exports and about $3 million for revitalisation of Whanganui Port. • Other Rail: $250,000 each for feasibility studies for rail in Kawerau, Southland and New Plymouth. • Gisborne and Hawke’s Bay: $9.2 million for tourism and forestry. Includes the reopening of rail for logging from Napier, $2.3 million toward the $3.5 million cost of redeveloping Gisborne Inner Harbour, planting manuka trees to filter water near Whakaki Lake and $1 million for a project to mark the first encounter of Maori and Europeans. $60,000 will go to tourism projects: the Mount Hikurangi experience, Chardonnay Express, and Waka Hourua Tairawhiti. • Northport and Ports of Auckland: Jones’ announced a working group on trucking and rail in the upper North Island would investigate the future of the Ports of Auckland and whether Northport was a possible replacement. • West Coast: $1 million toward further development of the “Great Rides” cycle trails - the West Coast Wilderness Trail and Old Ghost Rd Trail. Prime Minister Jacinda Ardern had promised to upgrade the cycle trails during the campaign. A further $100,000 for future planning for tourist spot Punakaiki and $350,000 towards a waste-to-energy plant in Buller. What is the Provincial Growth Fund? The $1 billion a year Provincial Growth Fund is the crowning glory of NZ First’s coalition agreement with Labour. It is aimed at boosting growth and creating jobs in the regions - and Jones has made it clear cities such as Auckland, Wellington and Christchurch need not bother applying for it. Jones said the fund of $3 billion over three years was now “open for business” and today’s announcements were just the beginning. “We are being bold and we are being ambitious because this Government is committed to ending the years of neglect. Nearly half of us live outside our main centres. If this country is to do well, then our provinces must thrive.”
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The first round of projects - totalling $61.7 million - would create more than 700 direct jobs and 60 indirect jobs, he said. Once private sector investment was included, it should equate to more than $344 million of investment. The fund will be managed by a new Regional Economic Development Unit in the Ministry of Business, Innovation and Employment with input from an independent advisory panel. That panel would be chaired by Rodger Finlay. There will be three tiers of investment - more oversight and scrutiny will apply to larger investments. Regional and government officials will oversee smaller-scale projects of less than $1 million, while Cabinet approval will be needed for major infrastructure projects and any worth more than $20 million. The structure and criteria for the fund were hammered out by Jones and Economic Development Minister David Parker. It has already been described as a “slush fund” for NZ First and scrutiny of it will be intense. There was also be a close watch for any signs of favouritism given Jones and Peters’ focus on Northland. One of the first projects Jones has revealed for funding was a roundabout near Waipapa in Kerikeri close to Jones’ home. The criteria for funding will include an assessment on whether a project boost productivity, adds jobs, uses Maori or other assets week, and mitigates climate change. It will also have to add value, rather than duplicate work already happening and must have support from local groups. There must also be evidence of good governance and the ability to survive once the fund was exhausted. As well as any local projects that get the green light, it will be used for other items in NZ First’s agreement, such as Jones’ much-vaunted plan to plant a billion trees over 10 years. There were more details of that programme released today, including an agreement with Landcorp to plant one million trees this winter and a further one million next year, using 2000ha of land. Landcorp has also been asked to review its landholdings to identity further suitable land. Half of the billion trees are expected to be planted by commercial forestry operators and Jones said the remainder would come from the Fund, other private operators and partnerships with community groups and iwi. The planting would scale up over time from 55 million trees this year to 70 million in 2019 and 90 million in 2020. After that the aim was 110 million a year. Jones said the slow start was because of the need to find land, grow seedlings and develop infrastructure. He has also opened applications for grants of $1300 per hectare for new forests on land of between 5 and 300ha. Others include investigating the viability of a rail link to Northport in Whangarei and significant investment in rail. However, it will also be used for roading projects and other infrastructure. There is also likely to be a closer investigation of a commuter rail link between Tauranga, Hamilton and Auckland - the so-called Golden Triangle. Source: Claire Trevett, NZ Herald
Second runway critical to Auckland says airport boss as profit soars Auckland Airport chief Adrian Littlewood says a second runway is critical to the future of the company and to the city. The airport yesterday announced a 17 per cent increase in first profit to $165.9 million and has just publicly notified revised plans for another runway to the north of the existing one. Littlewood said the new runway had long been part of plans for more aircraft and had just embarked on another step in the process that has been running for the last 20 years.
‘’Fundamentally if Auckland wants to be an international grade city you’ve got to have that connectivity,’’ he said. ‘’It’s really important that we as custodians of this asset for the future do the right thing for over 30 to 40 years.’’ The number of passengers through the airport is forecast to grow from around 19 million to 40 million a year by 2044. Concerns have been raised about more noise but Littlewood said the modified plans had the same operating hours (7am to 10pm) that had been consented several years ago. Newgeneration aircraft were quieter than the ones they replaced, he said. Littlewood said the company had budgeted $200 million for design, engineering and planning work for the runway that could be up to 2983m. The cost of building the new runway had not been released and is separate to the $1.8 billion spend on infrastructure in the five years to 2022 as part of its Airport of the Future project. In the six months to December 31 revenue climbed 6.9 per cent to $332m, which the company said reflected a 2.7 per cent increase in aeronautical revenue to $59 million that was “driven by passenger growth and increasing runway movements”. Passenger services charges — paid by departing travellers through their airline tickets — were up 3.7 per cent to $89.1m. Retail income was up 10.2 per cent to $88.9m, car park income up $8.7 per cent to $31.4m
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and investment property rental income up 16.3 per cent to $37.8m. Littlewood said the slower rate of growth of new airlines flying here in the past year was expected but there were other potential new carriers on the horizon and existing services were being expanded. The halting of transtasman flights by Emirates’ A380 superjumbos in March would be felt in the current halfyear but he was hopeful that airline would expand its direct flying between Auckland and Dubai. Developing markets including India and Korea were expanding quickly and the Chinese market was growing following a pause around the middle of the year when travellers deferred travel prior to visa rule changes that now makes travel here easier. Auckland Airport’s share of underlying profit from associates rose 47 per cent to $11.2 million, with strong growth from Queenstown Airport, its share of the Novotel hotel and contribution from North Queensland Airports, which it is in the process of exiting. The company said full-year underlying profit would be in a range of $250m to $257m, narrower than the $248m to $257m estimate it gave at the time of its 2017 results. The company will pay a fully imputed interim dividend of 10.75 cents a share, up 7.5 per cent from the same time last year. Source: Grant Bradley, NZ Herald
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