Northland economy sunny, with jobs up despite Covid-19, drought and floods

Friday, 7 August 2020

Northland businesses have had a triple whammy of drought, the coronavirus lockdown and intense flooding but the region is bathing in economic sunshine, for now.

Latest unemployment figures show the region has an historically low unemployment rate of just 3 per cent – second only in the country to the Tasman, Nelson, Marlborough, and West Coast area.

Domestic visitors and Provincial Growth Fund projects are believed to have helped Northland to its lowest unemployment rate since December 2007.

Tane Mahuta, Northland’s ancient kauri tree, is a popular tourist attraction.

In Kaitaia, domestic visitors have helped prop up shops and eateries over what is usually the quiet winter months, business association chairwoman Andrea Panther said.

Andrea Panther from Kaitaia Business Association says businesses are considering if they should employ more staff.

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While she had expected some shops in Kaitaia would not re-open after lockdown, all of them have and a new cafe has even opened in the town.

Paihia, in the Bay of Islands, has traditionally catered to international tourists but still appeals to Aucklanders.

But Panther said many businesses are uncertain about the future and what might happen when the wage subsidy scheme ends in September.

“It’s mixed feelings. Some people are not sure if they should employ more people because [they are busy now] but it could only be short-term.”

While the lack of international visitors has had a real impact in the Bay of Islands, Paihia Dive is still advertising for a skipper/dive instructor.

Jereon Jongejans of Dive! Tutukaka says times are tough and staff may get fewer hours than they would like.

Owner Craig Johnson said the new role will allow him to have a more strategic role in the business.

He admitted business is tough without international tourists – who made up about 80 per cent of his clients before coronavirus hit – but the business is changing to better cater to Aucklanders on holiday.

“The whole tourism industry is in a battle for survival,” Johnson said.

Ian Broadhurst, general manager of Mapua Avocados, says Far North businesses share local workers so they get enough hours.

Many businesses are cutting the number of hours that staff work, he said. This is reflected in the employment figures from Stats NZ, which showed the number of hours worked fell a record 10.3 per cent.

Further south, Dive! Tutukaka is also struggling, not only due to the lack of international visitors but also due to poor weather on the weekends which meant sailings could not happen.

Owner Jereon Jongejans said while the domestic market is supporting Northland, it is difficult to give staff full hours, with busy times – such as weekends and holidays – followed by quiet weeks.

Regional Development Minister Shane Jones has announced numerous projects for Northland.

“It’s tricky to retain staff and manage staff demand,” he said.

Jongejans is changing his business to offer things like dive training and is hopeful he, and other Northland businesses, will be able to ride out the impact of Covid-19.

In the very north of the country, businesses are working together so local staff can have enough hours.

Kaitaia is traditionally quiet in winter but has had a boost from domestic tourists and PGF funding.

Mapua Avocados is employing 50 people on its three orchards in Aupōuri for seasonal avocado picking.

General manager Ian Broadhurst said he is working with a local initiative to share workers so they can have continuity of employment.

However, he is worried he will not have enough pickers in following years as the orchards are still growing and will need an increasing number of pickers.

“Our goal is to try to employ as many locals as we can,” he said.

PROVINCIAL GROWTH FUND HELPS EMPLOY WORKERS

As well as a boost in domestic tourists, Northland has benefited from Provincial Growth Fund projects and the Government’s Covid Response and Recovery Fund for shovel-ready projects, Panther said.

“We’re super lucky to get this funding allocated – we’re excited about that creating new jobs,” she said.

Northland is getting about $150 million from the Covid-19 infrastructure spend-up, including a new $7m cycleway near Kaitaia, a $6m sports park in Kaikohe, $9m for Kerikeri projects and $20m for rejuvenation of Whangārei.

Regional Economic Development Minister Shane Jones, who is a Northlander, said on Tuesday that 1316 people are currently working on Provincial Growth Fund projects in Northland and a further 3200 jobs are expected.

While the job figures are disputed, Jongejans said the fund was also about investing in much-needed infrastructure.

“Northland has benefited greatly from the Provincial Growth Fund and the confidence that comes with that.”

SEEK HELP EARLY, FINANCIAL ADVISORS SAY

While Northland businesses are bracing for what may come when the wage subsidies end, financial advisors urge people to seek help sooner rather than later.

Whangārei Budgeting Services co-ordinator Dianne Clarke is also expecting more redundancies to come when the wage subsidies end.

She urges anyone in financial difficulty to not wait until the last minute to get free, independent advice.

With mortgage holidays about to end, now is a good time to set up a repayment plan to avoid having to sell, she said.