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Projects to Stimulate The Local Economy Gaining Momentum

11/02/2011

The number of large organisations in the district using capital investment projects to stimulate the local economy by giving contracts to other local businesses looks to be gaining momentum. “This is highly commendable and such commonsense economics needs to be further encouraged,” says Chris Barber, CEO of regional economic development organisation, Nature Coast Enterprise.

The latest commitment is by Te Wananga o Raukawa which is leveraging its investment in the multi-million Institute of Maori Lifestyle Advancement to provide between $4m to $5m of work for local contractors and trades people.

“This good news follows a parallel commitment by major economic player, Sir Noel Robinson, who said every tender document for airport projects require construction partners to use local contractors,” said Mr Barber.

“I want to congratulate the Wananga for establishing a tender system requiring competing contractors to list their nominated suppliers and subcontractors. The Wananga wanted contractors and businesses from Te Ati Awa, Raukawa and Ngati Toa Rangatira to benefit from their investment,” said Mr Barber.

“The Wananga is leading the way in developing a new community-based economic model for infrastructure development. Wananga project manager, Arama Moore, said the Wananga had persisted in developing the model despite discouragement from some consultants that it could push up prices. This is highly commendable in a period of economic recession and slow growth,” said Mr Barber.

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“Other significant economic players in the district should look to be developing similar models. The lowest tender price is not necessarily the best solution in some economic conditions. Keeping external money coming into Kapiti circulating within the local economy has a multiplier effect where an initial spending leads to a greater increase in income and more local spending,” he added. Mr Moore said successful tenderer, Fletcher Construction, was the most committed in upholding the Wananga’s kaupapa.

Mr Moore said the project is expected to take 13 months with Fletchers employing subcontractors for electrical, excavation, site works and drainage, fire protection, precast concrete, paintwork, and specialist finishes. A crew of local carpenters will also be employed for 11 months.

“A significant player is NZTA and the Alliance. There is no reason why the Alliance cannot explore subcontracting expressway related work to local contractors,” said Mr Barber.

“In the case of the Kapiti Coast Airport Mr Robinson’s business plan requires between $300m to $400m of capital investment over 15 years. It anticipates new employment opportunities in excess of 3000 permanent jobs and at least a similar number of indirect jobs. This does not include part-time and temporary jobs,” said Mr Barber.

ENDS

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