New projects help claw 'bottomed out' Buller out of stagnant growth

Monday, 17 February 2020

Buller boasts amazing West Coast scenery but the towns have been struggling.

A West Coast district gripped by a nearly decade-long decline is celebrating a major economic turnaround.

New figures show Buller, which stretches 8574 square kilometres from Punakaiki to Karamea, and inland as far as Springs Junction, has gained 2.3 per cent economic growth in the year to March 2019.

Buller, which stretches 8574 square kilometres from Punakaiki to Karamea, and inland as far as Springs Junction, saw 2.3 per cent economic growth in the year to March 2019.

Three years ago, the economy shrunk 18.3 per cent with the closure of Westport's cement plant and the collapse of state-owned mining company Solid Energy. Overall, Buller's GDP had fallen 44 per cent with the loss of nearly 1500 jobs and 500 people since 2012.

Mayor Jamie Cleine labelled the growth a 'major turnaround'. He told Stuff in January the economy had 'bottomed out', but believed it was on the way back up.

New Buller mayor Jamie Cleine has labelled the growth a 'major turnaround'.

Buller has gone through an economic downturn with its population, house prices and employment rate all dropping since 2012. How can the community bounce back? (Video first published in January 2020)

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The loss of Holcim cement in 2016 was a big blow to the region, cutting 120 jobs.

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The West Coast was earmarked as a 'surge' region by Regional Economic Development Minister Shane Jones. Surge regions are given priority for a share of the $3bn Provincial Growth Fund to rejuvenate the economy.

Several big projects have been given funding, including a $15m loan for a gold mine near Reefton, $10m for the Kawatiri Coastal Trail from Westport to Charleston, and a $2m boost to the district's airport and port.

Cleine said he was pleased the figures, released by Development West Coast, showed Buller's economy was on the way back up.

'The figures show we have turned a corner and reflect the feeling on the street that is quite positive. Town is really busy and people are talking about the parking problems on Palmerston Street,' he said.

The figures show Buller's job productivity was $132,707 – higher than the national average of $117,134.

The district also had a huge growth in mean annual earnings of 8.7 per cent, compared to the national growth of 3.8 per cent. Its average earnings was $56,473, still lower but gaining on the national average of $62,774.

Buller's job market grew 0.6 per cent, or 24 new jobs, an upturn after losing 864, or 1.9 per cent of jobs, since 2009.

Development West Coast chief executive Heath Milne said this was the first net increase in jobs in Buller since 2012, which was a good indication the economy had 'finally turned a corner'.

'What has really driven the turnaround for Buller is the passionate and innovate people who live there,' he said.

The district had higher growth of business units than the national average. Buller's business units grew by 2.8 per cent last year, or 30 new businesses, compared to nationwide growth of 1.8 per cent.

'This is a real testament to the entrepreneurial spirit in Buller and the appeal of the district to business startups. The unmatched quality of life, lower cost of living and vibrant communities are real draw cards.'

It also has the most affordable homes on the West Coast, with the average house price only $193,027.

However, its unemployment rate of 6.3 per cent was higher than the national rate of 4.3 per cent.

Population is still falling with a dip of 0.4 per cent last year, compared to a national growth of 1.6 per cent.

Milne said the West Coast region had economic growth for the second year in a row.

'The Coast had been in a major economic downturn since 2012, due to the closures of the Holcim NZ Westport plant and Oceania Gold, and changes in the coal mining industry. Given this context, it is great to see many of our key economic indicators showing sustained growth,' he said.

Based on the latest data, the West Coast's gross domestic product grew by $30m and there was an increase in 227 jobs.

'It is important to note, the time period for this data doesn't include some major events that have had a serious impact on our economy, such as the Waiho Bridge washout, the Omoto slip and the closure of State Highway 6 south of Hari Hari during December,' Milne said.

'The impact of these extreme weather events will no doubt be reflected in next year's regional update. Nevertheless, it is pleasing to see our economy showing growth on many fronts.'