Friday 18 November 2016

Applying learnings from disaster

The Christchurch business sector has learned much from the 2010/2011 earthquakes relating to how to respond and maintain economic activity in a community.

Never did we think that the lessons we learned in Christchurch would have to be applied to a community so close to home in such a short timeframe. The devastation in Hurunui and Kaikoura is still becoming apparent. The reality is that there are businesses who are stranded, who have disrupted supply chains and broken premises. Further they lack the essential services such as water, power, wastewater and communications to carry on their businesses. On top of all that in many cases their markets have simply dried up. When you have a tourist dependent business and the tourists are not coming you are in trouble. There is no doubt that many of the communities in the Hurunui and Kaikoura districts, including Kaikoura itself, are in dire straits.

One of the critical factors in Christchurch was the importance of providing cashflow to businesses to maintain the fabric of the business until it could get up and running again. Post 2010 I described it as business as usual when there is no business. The lessons we have learned in Christchurch put us in a very good space to help communities to the north. I have often used Kaikoura as a classic example of the interdependency between sustainable profitable business and community wellbeing. With the rapid growth of eco-tourism, corner-stoned by the whale watch activities, Kaikoura has changed from a small railway town to a bustling and vibrant community. Its proposition evolving around eco-tourism is the epitome of sound sustainable business activity. However, if the business activity in Kaikoura is not supported immediately it will be severely compromised and it will take a very long time for the Kaikoura community to recover.

Here are some examples of what I think should be applied to the Kaikoura business community and beyond to ensure that affected businesses can be maintained until markets are restored:
  • One of the most critical issues in Christchurch was the introduction by the Government of the Earthquake Support Subsidy that provided cashflow for businesses until they could get themselves into recovery mode. It was based on a number of dollars per employee per week. It was delivered on a high trust basis and it was a very significant component in business survival in Christchurch. It is very good to see that mechanism being immediately introduced into Kaikoura, Cheviot, Waiau, Rotherham, Mt Lyford and Ward. This will make a significant and positive difference to affected businesses.
  • We would expect, as was the case in Christchurch, that banks will adopt a very supportive and lenient stance for their customers. Offering additional working capital, delaying loan repayments and being generally supportive of the businesses who are effected by the earthquake directly or indirectly.
  • The Inland Revenue Department effectively provided cashflow support to businesses in Christchurch by delaying payments of GST and provisional tax. We would expect the same thing to happen in this instance.
  • Insurance companies in Christchurch did make fast provisional payments on business interruption insurance and property damage to enable cashflow to be supported.
  • The Government, through its various other agencies, provided support for workers and employees where their companies had indeed collapsed and provided support for recovery operations both in the rural sector and urban precincts.
  • The Canterbury Employers’ Chamber of Commerce provided a safe pair of hands for business providing internet based support, a call centre and business recovery coordinators that were put out into the community to assist businesses through the challenging times.
  • Businesses helped each other out within and across regions.

We know from the Christchurch experience that these mechanisms combined resulted in minimal business attrition and in fact ensured that through business survival the greater Christchurch community was in good shape to embrace a full-on recovery programme.

The numbers of businesses effected in Hurunui and Kaikoura are much smaller than those impacted in Christchurch but it is just as important that they are supported as they underpin the rural and regional communities in that area. Of course, it is also important that we reinstate appropriate connectivity into the areas within the Hurunui and Kaikoura districts and that involves immediate air and sea support as is already being evidenced. It also involves careful planning to ensure that State Highway 1 and the rail link are options that are considered urgently and strategically. Alternative road access into all the areas will be essential in the short term and it is pleasing to see the emphasis being put on the inland Kaikoura route and the obvious dependency that heavy transport will have on the Lewis Pass in the foreseeable future.

As Hurunui and Kaikoura regenerate themselves their businesses and their infrastructure in the post-earthquake environment they will do so in a way that points to the future as we have done in Christchurch.

The immediate international response to the 14 November earthquake was that once again Christchurch and the South Island had been devastated by a seismic event. Of course, this is blatantly incorrect and we all need to do what we can to ensure that the rest of the world understands what has happened and what it really means for our community. The regeneration of this city has been done in a way to accommodate seismic events and that has proven to be the case with almost no damage in our city as a consequence of the 7.5 seismic event in our region. Tourism will continue to be important for the whole of the South Island and particularly important for the earthquake effected area with both Hanmer Springs and Kaikoura heavily dependent on tourism activity. We need to show the world that although this event has knocked those districts back a little they are getting up and getting going and will still offer some of the most spectacular tourism offerings in the world. We must not let perception get in the way of reality and recovery. 

Friday 4 November 2016

International education in Canterbury - contribution and opportunities

International students are welcome in Christchurch. Recent news items have discussed the challenges around visas for international students in other parts of New Zealand. It is timely therefore, to reinforce and recognise the contributions they make to our city and our region.

In 2015 we had 11,542 students come to Christchurch to study. They were in primary and secondary schools and universities, The Ara institute and private training establishments. They contributed $311m to our local economy. The Canterbury International Education Leadership Accord, that includes the institutions that provide international education services to students, is working to grow our student visitors to 25,580 by 2025.  The contribution they will make to our city and region will be $937m. As valued visitors to Canterbury, they will spend on average $37,300 each on hospitality, activities and accommodation.

The Government, through Education NZ, supports the work of the Accord and recognises that these students and their families who visit Canterbury, return to their countries as ambassadors for us, and encourage many others to visit, study, work and play in our beautiful city.

As Christchurch expands and changes after the 2011 earthquakes, we know that we need to attract and retain skilled workers in our technology, business, and agricultural sectors to contribute to economic growth. Almost half of our new residents, who decide to stay in Canterbury and make it their home, first visited Christchurch on a student visa. We want these talented and energetic visitors to stay in Christchurch and make it their home.

Many agencies, including the Canterbury Employers’ Chamber of Commerce, The Canterbury Development Corporation, Christchurch & Canterbury Tourism, Christchurch International Airport and our City Council, know that these visitors support economic growth and make our city a cosmopolitan and exciting place to live and work. Our city, on the whole, welcomes these students.

However, we need to ensure we offer a consistent quality of service and experience that matches the level of commitment our visitors have made in choosing to come to Christchurch. They have made a courageous decision to come to our country and city, and from time-to-time they may feel isolated and homesick. How we welcome them and look after them is an important way for us to say thank you, but also to demonstrate to them that they are a valued part of our community.

If we look at the likely 25,580 students who will be living and studying in Christchurch by 2025, there are some other less obvious opportunities for us to consider. Our students can be one of the catalysts for reinvigorating our central city with new places to stay and play – they will need somewhere live and recreate. The opportunity for carefully planned and exciting approaches to new urban development, and hospitality and activities in central Christchurch are perhaps one of the most significant opportunities. Imagine 25,000 new residents living in town and the stimulus they will provide for businesses and developers to create a new vibrant centre for Christchurch.

All of us who are charged with the stewardship of our city and call it home, can make a contribution to be even more welcoming and supportive of our student visitors and their families. As employers we have the opportunity to access new talent, new ideas and new investment that is stimulated by international students and we all have an opportunity to make Christchurch an even better place to live study work and play.

International Students are an important ingredient in making our city special, now and into the future. We should recognise and support them for that.