Operative Waikato Regional Policy Statement (October 2000)

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3  Significant Resource Management Issues, Objectives, Policies and Methods

3.2  An Introduction to the Waikato Region

3.2.3 Regional Economy

The Waikato Region is vitally dependent on agriculture, forestry, mining, energy and construction¹. The tourism sector is also showing considerable growth. Each of these sectors significantly contributes to the ability of people and communities to provide for their social and economic well being.

In 1990, approximately half of the business units in the Waikato Region were farms, and just over 40 percent of these were dairy farms.

Waikato workers are twice as likely as New Zealand workers to be employed in the primary sector. Approximately one fifth of the Waikato workforce were in this category.

Although farming makes up half of the Waikato's businesses, it employs less than one-fifth of the Region's workforce.

Estimated values of agriculture output for the Waikato Region increased by 48 percent between 1987 and 1990 - well above the percentage increase for New Zealand as a whole (32 percent ).

The growing, tending and harvesting of planted forests, and the transportation and processing of forest products make forestry one of the most important industries in the Region. Plantation forests cover approximately 11 percent of the Region's area and this represents just under a quarter of the nation's total plantation forestry. Once established and prior to harvesting, plantation forestry can contribute positive environmental effects such as reduced peak flows, reduced sedimentation and soil erosion, and the lowering of instream temperatures. Associated with harvesting there may be a temporary acceleration of soil erosion.

Woodflow predictions for the Central North Island undertaken by the Ministry of Forestry suggest that volumes will remain around 8.4 million cubic metres per year until around 2000 then increase to a sustainable level of around 10.5 million cubic metres per year. These assume a rotation length of 30 years for radiata pine with restocking of planted areas but no new planting. The maintenance of present levels of new planting will result in an increase in the sustainable yield.

Substantial deposits of coal, peat, precious metals, limestone, rock and sand, and iron sand are found in the Region. Other mineral resources include base metals, clays, sulphur, pumice, petroleum, perlite, ilmenite and serpentinite.

Minerals are used for a variety of purposes and are vital to the economic and social well being of the Region.

Although there are only a small number of mining and quarrying business units in the Waikato, the contribution that mining makes to the regional economy is almost three times as great as its contribution to the national economy as a whole. Approximately 10.5 million tonnes of minerals were mined in the Waikato Region in 1993, with a total value of about 280 million dollars.

The Waikato Region is rich in natural resources and contains recreational areas that are recognised world-wide including: Tongariro National Park which is a World Heritage Site, recognising its outstanding cultural and natural landscapes; Lake Taupo which is an important tourist attraction as an international trout fishery and water sport location; and the Coromandel Peninsula which is recognised for its coastal landscapes and recreational resources.

These areas, together with other areas throughout the Region, are particularly suitable for a wide range of activities including tourism, recreation, temporary military training and search and rescue exercises.

The Coromandel Peninsula is one of New Zealand’s fastest growing tourist destinations and over one million people visited the Peninsula for holidays during the 1993-1994 holiday season. The Peninsula’s tourist attractions include its beaches, the extensive tracts of land administered by the Department of Conservation and its heritage values.

Mining in the Coromandel, including the heritage values associated with historical mines, as well as present day operations, has also been identified as an area of significant potential for tourism².

National and regionally recognised natural and physical resources within the Region contribute significantly to the growth of tourism in the Waikato Region. For example Waitomo Caves, other recreational areas, beaches, significant indigenous flora and fauna and dive locations are making an important contribution to the adventure tourism industry.

Energy is a key factor of the regional and national economy. The Region’s community requires a continuous supply of energy for their well-being, health and safety. The Region’s economy is based on the production of primary products, which (by nature of their industrial plants) require large quantities of energy.

The Waikato Region is energy rich, possessing significant energy resources. The most utilised of these are hydro-electricity, coal and geothermal (for both heat and electricity). These resources do not fulfil the diversity of energy required within the Region and energy is imported in the form of oil and gas. Along with the previously mentioned energy sources there exists significant potential to develop other alternative and renewable resources such as wind, solar and biomass. By diversifying the energy sources within the Region the vulnerability to fluctuation in supply is reduced.

The Waikato Region is a significant contributor to New Zealand's electricity generation and distribution infrastructure. The demand for electricity is forecasted to increase for the foreseeable future. To fulfil this there will need to be an increase in generation capacity. This increase can be slowed by making more efficient use of presently available energy.

A feature of the regional economy is its vulnerability to overseas trends and the changing conditions in international markets.

The Region’s economic prosperity is clearly linked to natural resources. This highlights the importance of sustainable resource management for the maintenance of economic well-being, as well as the need for Environment Waikato to work closely with resource users in developing resource management policy.

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Footnotes

1. Electricity and construction are discussed under the sections on Energy (3.12), and Settlements and Structures (3.13).
2. Pacific Asia Travel Association, The Coromandel Experience: A Pata Task Force Study, 1991.