Queenstown Lakes District Council will consider investing in economic development to enable more diversification and innovation, in line with the district’s Economic Development Strategy.

On Thursday the Council will consider a recommendation to provide funding to the Queenstown Chamber of Commerce to enable business development in line with the Wanaka Chamber. It will also consider a grant to be made to Study Queenstown and the creation of a new economic development role based at QLDC.

For the next six months, these initiatives would be funded from the money set aside for economic development in the 2016/17 Annual Plan, with funding for coming years included in future budgets. As well, the Council will be asked to support a proposal to develop a contestable economic development fund, which will be the subject of consultation in the 2017/18 Annual Plan.

Mayor Jim Boult said that the business community had already sent the Council a clear signal that it needed to take action and invest in economic development, innovation and diversification. “We have a clear strategy, set objectives and committed funds that enable us to just get on with some clear runs on the board,” Mayor Boult said.

The recommendations are the culmination of a process that began in 2012 with an “Economic Future” forum run by Shaping Our Future, and an Economic Development Study that led to the adoption of an Economic Development Strategy in 2015.

The ultimate goal is to create the conditions for a higher value and more diverse economy in the Queenstown Lakes District.

After submissions to the 2015/16 Annual Plan, the Council agreed to fund several economic development initiatives, including the Wanaka Chamber of Commerce’s initiative ‘The Cube’, the Film Office and Downtown QT.

The Council had received submissions amounting to an additional $630,000 in economic development initiatives and decided to set aside $200,000 for economic development while also acknowledging that further work was required to determine a plan around any future funding.

This took the form of a workshop with community representatives facilitated by Seath Consulting and looking at economic development opportunities. The workshop reinforced the objectives of the strategy, in particular the need for business diversification and the desire to protect and enhance the district’s unique environment.

Participants also agreed that QLDC was “the one” organisation to lead the economic development work.

Mayor Boult said the traditional local government approach of allocating funding for economic development projects through the annual plan submissions process each year was not the right forum to assess the merits or otherwise of business innovation and diversification.

“The driving principle behind the strategy is to improve the ability of organisations and people either in our district or considering relocating or establishing business here to respond to opportunities more effectively and productively.”

The Council needed to respond to the business community and give some future clarity and direction.

“Rather than continuing with what I understand has been a frustrating and difficult process for the business community and elected members at Annual Plan time, we propose to create a well-publicised contestable sum of money with well understood criteria so there is a clear and well understood process,” Mayor Boult said.

A new position would be established at QLDC to contribute to the development of the future development and form of economic growth in the Queenstown Lakes District. The role would also drive creation of the parameters for an economic development fund and its allocation process. It would liaise with business bodies and ensure the Council achieved the objectives in the economic development strategy, which identifies education, health and culture as important areas for future growth.

“Assuming the Council agrees, this will give us the opportunity to apply dedicated resource to work on solutions with the business community,” Mayor Boult said.

A broader role for education has already been highlighted through both the strategy and workshops as a major industry opportunity, and on Thursday the Council will consider a recommendation to provide a $50,000 grant to Study Queenstown.

Study Queenstown is a joint initiative to promote Queenstown as a premium education destination for both international and domestic students, utilising both local and international education providers.

“Given the clear support and existing mandate for this sector and the opportunity to grow the international and executive education market and effectively boost the local economy by many millions by supporting an established initiative lends itself to simply get on and support this initiative,” Mr Boult said.

ENDS

The full report and recommendations are available here