Thursday, 19 September 2019

Championing Economic Development

Professional economic development practitioners know that if economic development is ‘done well’, a community and the wellbeing of its people can be greatly enhanced. There are many potential stakeholders and champions of economic development and it is complex, sensitive work. It is a profession that is often undervalued yet is key to regional and national success.

The International Economic Development Council identified five priorities to guide practitioners in their work and respond to challenges:

1. Do good work. This work is the foundation on which organisational and professional integrity are built. It means diligently executing your role as an economic development professional; planning the EDO’s actions with the guidance of its governing body, executing the plan, measuring the results and reporting them.

2. Listen. Engage. Adapt. Economic developers must be willing to listen and evaluate criticism and….they must be prepared to engage and respond accordingly.

3. Make transparency a core tenant of your work. Transparency fosters trust, which is the foundation on which economic development is built. Those that act transparently (eg. in regard to the strategic plan…) foster trust in their community relationships.

4. Communicate and connect. Constant communication is a core function of the job. The audiences are….nearly everyone.

5. Build and enlist allies. All successes in economic development are born of partnerships working in varying combinations. These partners are also an EDO’s greatest allies. Being flexible and creative in finding win-win solutions is key.

In 2019, the professional association for economic development practitioners, Economic Development New Zealand (EDNZ), launched a new suite of learning opportunities and qualifications with the help of funding from the Provincial Growth Fund. Elected members are particularly encouraged to do the bite sized one day workshops. The annual EDNZ conference in October is the key opportunity for economic development practitioners, local and central government to come together, share best practice and discuss regional projects and approaches.

Economic development in Kāpiti
Since 2012, the Kāpiti Coast District Council has been responsible for the governance and delivery of economic development – with mixed results. It could be argued that the non-delivery of the 2015-2018 Kapiti Economic Development Strategy, inadequate funding and investment, lack of evaluation and reporting, lack of transparency and meaningful engagement with stakeholders and community, absence of a governance board to provide strategic oversight, and high turnover of Council economic development staff has cumulatively been detrimental to the region’s success. Unsurprisingly, many stakeholders have lost faith and will need to see results in order to be re-engaged. They see the pattern of missed opportunities and delayed project implementation and are only too aware that this co-incides with a time of great change for the region with the opening of the Kāpiti Expressway and in a few months, the opening of Transmission Gully.

The current refresh of the Kāpiti Economic Development Strategy, led by Council, began in October 2018 with Wellington based consultants, Allen & Clarke being contracted to redraft the strategy. Following two closed invitation stakeholder workshops, a working group was established from January to March 2019, governed by Terms of Reference to advise Allen & Clarke with the drafting of the strategy. This was comprised of Councillor Angela Buswell, Heather Hutchings, Co-Chairperson of the Kāpiti Chamber of Commerce, and Jenna-Lea Philpott, independent economic development practitioner representing KEDA. The working group agreed to volunteer two hours per week for three months although in practice, it was many more hours each week. Engagement with the community was due to begin mid-March, but was halted by Council senior management, partly in response to the working group’s governance and delivery model recommendation (outlined later in this document). The lack of engagement resulted in a draft strategy that lacked the necessary stakeholder input and it was parked until new economic development staff were employed in June. The contract with Allen & Clarke ended 30 March.

On 2 May, the working group presented a summary of its work and recommendations to Councillors in accordance with the Terms of Reference. It was agreed to continue working on the detail of the proposed transitional governance and delivery model in partnership with the new staff, stakeholders and community and bring it back to Councillors for consideration.

The working group was resurrected in June with Councillor Buswell, Heather Hutchings, Co-Chairperson of the Kāpiti Chamber of Commerce, Jenna-Lea Philpott as an independent community representative and Liz Koh, Chairperson of KEDA joining the group. A new plan and timeframe was agreed for the refreshed Kāpiti Economic Development Strategy to be finished and adopted by Council in February, taking into account the October election.

Success in 2020 – new beginnings
The new year will begin with a newly elected Council and if there is no further deviation from the project plan, a newly refreshed Kāpiti Economic Development Strategy. Some believe the governance and implementation discussion (that is, HOW we make the strategy come to life) should be delayed until after the Strategy is finalised. The risk with this approach is potentially less ‘ownership’ and involvement from stakeholders in delivering actions. It is usual for economic development strategies to outline the governance and implementation model, ensuring stakeholders see a role for themselves and have early ‘buy in.’ Rather than delay this discussion with stakeholders, it should instead be progressed alongside the development of the strategy itself. This is especially important given the recent history, and would address the stakeholders concerns outlined in the initial workshops in 2018.

Candidates running for Council seem to agree that the region needs an economic development strategy but the question remains – how do they see the strategy being governed and implemented and does this reflect stakeholders views? And more broadly, how do candidates see economic development being led in the region in the long term? What is their understanding of how the Kāpiti Coast contributes to the national economy? And of how economic development cuts across whole of Council business?

The leadership opportunity for KāpitiOur region is transitioning and we need a different model to manage this process. There are various economic development governance models in New Zealand and those that are more independent perform better at the annual national economic development awards.

1. Independent economic development agencies e.g. Whanganui & Partners, CEDA, Northland Inc, Aoraki Development Trust, Venture Taranaki, Great South, Te Waka, Enterprise Great Lake Taupo, Enterprise North Canterbury, Priority One,

2. COO’s (Council Owned Operations) e.g. Nelson Regional Development Agency, ATEED (Auckland Tourism, Events, & Economic Development)

3. Local government controlling economic development ‘in house.’ E.g. Dunedin City Council, Kapiti Coast District Council, Ashburton District Council.

In 2018, Horowhenua chose the independent pathway and established the Horowhenua NZ Trust. That means, the majority of our neighbours to the north in the regions of Whanganui, Horowhenua, Manawatu, Lake Taupo are governed by independent EDA’s.

Here in Kāpiti, the status quo needs to change if we are to achieve greater regional success. Good governance is fundamental to pro-actively achieving sustainable economic development goals. Kāpiti stakeholders now need to align, build trust and faith in each other, and be united in their vision to help deliver the actions outlined in the refreshed Kāpiti Economic Development Strategy. All stakeholders need to be flexible in sharing the lead on some actions, whilst playing a supportive role with others. Our community and the wellbeing of our people depend on it. There is no time to lose with other regions having received significant funding from central government.

Transitional governance model recommended by the Working Group:



The Kāpiti Chamber of Commerce constitution has a range of economic development objectives:

1. Promote economic development strategies for the Kāpiti region;
2. Work alongside KCDC, and any other Councils and organisations where applicable to foster local economic growth;
3. Be the main focus, outside the District Council, for the co-ordination of and lobbying on local issues that support integrated economic development and jobs growth in the Kāpiti region.

KEDA’s constitution also has two key economic development objectives:
1. Engage in activities which promote community-led economic growth;
2. Actively address Kāpiti’s economic issues and leverage our district’s assets and opportunities.

The business and community representatives might rotate yearly whilst the other roles are fixed for three years. The independent Chair cannot be an elected Council member. Te Whakaminenga might need to be replaced with three roles reserved for local iwi. WREDA, now WellingtonNZ.com, might prefer to support the board rather than be on the board. Greater Wellington Regional Council also needs consideration.





Unlike the previous EDLG (Economic Development Leadership Group) it is recognised that for this board to function successfully, it needs to be empowered, and have the mandate to deliver, not merely an advisory role. This means project funding and receiving direct reports from a staff member responsible for the strategy’s delivery. This role would be known as the ED Programme Delivery Manager and would 100% be focused on the delivery of actions in the strategy. This role would work in partnership with Council ED staff, with other stakeholders, liaise and broker partnerships with action/project teams who might include community boards, industry cluster groups such as (Manaaki, the Kāpiti Arts & Creative Industries group), and others. If successful over the next three years, this governance and delivery model could become the early stage of an independent EDA. If not successful, the ED functionality still sits within Council. This is why it is known as a transitional model.


Strategy Operational Delivery Model

Economic development practice is a constant balance between reactionary and pro-active functions. This is particularly true in our region where primarily, the capacity and time of Council’s economic development staff has largely been focused on reactionary tasks, which resulted in non-delivery of the 2015-2018 Kāpiti Economic Development Strategy, and non-delivery of the 2015-2020 Kāpiti Visitor Attraction Strategy. To safeguard against this happening again, the creation of a role 100% dedicated to delivering the actions in the Kāpiti Economic Development Strategy is recommended – and that this role reports directly to the governance board but works in partnership with Council and other stakeholders. This role is tasked with pro-actively delivering the actions in the strategy, chasing and creating opportunities, supporting the project/action teams created in due course. Where necessary, they will escalate issues outside the scope of the strategy to the relevant staff at Council and other stakeholders. Importantly, the community will have an assurance that there is no reason for future non-delivery of the Kāpiti Economic Development Strategy.

Get involved 

Let’s make 2020 our best yet. The year we forge a new path with a new economic development strategy, new governance board, new delivery model, a newly elected Council and with new economic development champions. It is going to take our combined efforts to achieve regional economic development success, especially as we respond to the changes Transmission Gully brings. Join us!

Jenna-Lea Philpott
Voluntary Independent Community Representative
Kāpiti Economic Development Strategy Working Group.
022 615 3669 and Jenna-lea.philpott@tangocc.co.nz


Championing Economic Development Professional economic development practitioners know that if economic development is ‘done well’...