Economic Development

Palmerston North is enjoying a period of economic expansion and strong employment growth. Business confidence is strong and, all in all, things are looking pretty rosy in the city at present. However, we cannot forget that in the last year the city has lost both Click Clack and Sunbeam. Sunbeam started life here in the 1970’s as Ralta but was forced to close its last manufacturing plant and go offshore for cheaper labour costs. This is a salutary reminder that, in a country dependent on trade, national and international influences have a major impact on the local situation. Vision Manawatu is now working well for the city and its latest reports on KPI’s are encouraging. However, while this council has had an economic development focus, an incoming council may not.

Election year is a time of uncertainty for business. New councillors and the mayor must get to grips with budgeting, rates-setting and resource management regulations while, hopefully, understanding the needs of business and the impact of rates differentials (which see businesses rated differently, and usually higher, than residential properties). The incoming council has a steep learning curve in understanding the needs and wants of the city they serve and what the council does. Palmerston North City Council holds assets valued over $1 billion, and is big business, dealing with multiple millions of dollars every year. Councillors must balance social, economic, cultural and environmental development in the best interests of the city as a whole. While candidates will promote concern for the community, many focus on social engineering while overlooking the fact that connections to businesses and business leaders are critical.

All voters need to pay close attention to the calibre, causes and credentials of the candidates. Sustainable economic development is more than an election catch-phrase, it is something that provides the life-blood of the city.