Message from the Mayor

Kia ora tatou A slow recovery from the global recession meant another tough year for Council and the district. Regional unemployment of 8.5% was slightly lower than in 2009/10 on the back of modest job growth, but remained the highest in New Zealand. The building industry - a reliable bellwether of the economy and source of revenue for the council - fared worse. Council issued only 163 building consents for new dwellings during the year, 67 fewer than in 2009/10. But there were plenty of reasons to be cheerful in 2010/11.

Two big Council projects got underway, providing much-needed employment in the Kaitaia and mid-north areas. Construction of the Te Ahu Centre in Kaitaia started late in 2010 after a major refurbishment of the Far North Community Centre, creating work for builders and trades people. 50 contractors had been employed on the project at the end of June 2011, with 33 of these based in Kaitaia or other Far North centres. Te Ahu Trust had paid contractors a total of $8.4 million at the end of June 2011. This represents a massive boost to the economy at a time when jobs are scarce. I am thrilled that my Council and Te Ahu Trust have got this exciting project to this stage and I look forward to seeing the Centre open and invigorate the Kaitaia community later this year.

It was also great to see the Pou Herenga Tai - Twin Coast Cycle Trail finally come off the drawing board, thanks to a $4 million grant allocated under the National Cycleway Project. Construction of the 72km Trail got underway in July 2010 and it was a real pleasure to cycle the 13km Okaihau-Kaikohe section of the trail with hundreds of others when it was finished last May. Riding the Cycle Trail offered local people an exciting glimpse of the recreational and job opportunities the Trail will offer when it is finished. The project has already created jobs for dozens of young, unemployed people under Work & Income's Community Max scheme.

For some of these people, being part of the Cycle Trail project could lead to a new career and prove to be a life-changing experience. Work & Income and Council have highlighted the long term job opportunities the Trail will offer. These include providing accommodation, food, coffee, cycle hire, transport and tour guide services to cyclists and trail walkers. Cyclists from across Northland are already using the trail and more will come from further afield when they are able to cycle from Horeke to Opua, according to Cycle Trail expert, Jonathan Kennett. The Trail also has the potential to become part of a network of cycle and walkways that encourage visitors to spend longer in the district, delivering economic benefits to communities across a bigger area. People using the Trail will have the option of doing a full circle Bay of Islands walk from Opua using ferries and public walkways between Okiato and Russell and Paihia and Opua. There is also talk of eventually extending the trail from Horeke to Rawene. This is exciting stuff!

Another project with potential to create huge wealth for the district is work the Northland Mineral Development Group is undertaking to assess the economic value of the region's mineral resources. An aeromagnetic survey commissioned by the group with $2 million of government funds began at the start of 2011 and was completed a few months ago. I hope the survey report, which will be available in February 2012, will confirm optimistic studies by GNS Science and the New Zealand Institute of Economic Research about Northland's mineral wealth. These estimate that mining the region's mineral deposits would increase the region's gross domestic product by about $280 million a year and create 2,700 full-time jobs. The data will also provide valuable geological and natural resource information that will assist the planning of infrastructure and improve land suitability assessments for agriculture, forestry and horticulture. I am especially pleased that the council has played a leading role in getting this survey off the ground and I look forward to making the most of this opportunity for the district.

In our last Annual Report, I mentioned that the district suffered the worst drought on record in 2009/10. Months of dry weather resulted in public water supplies falling to critically low levels, especially in Kaitaia where the Awanui River was reduced to a trickle. I am pleased to report that Council has negotiated an agreement with a landowner to pipe water from the Sweetwater aquifer and is awaiting the outcome of a resource consent application to the Regional Council.

Kaitaia residents could be drinking high quality water that requires little chemical treatment at no extra cost if the Regional Council approves the application.

Ratepayers will also be pleased to hear that Council is investigating ways of making our rating system more equitable. A working group of Councillors and staff have been meeting to consider how rating policies can be improved so that people contribute to the funding of services and infrastructure on a fairer basis. We look forward to publicising the group's proposals when we seek public feedback as part of consultation of next year's Long Term Plan. We also look forward to rolling out a new Council vision, which promotes the district as a top place for talent to live, work and invest. New values adopted by Council require staff to bring a can-do attitude to work and task them with developing innovative, low-cost, high-value approaches to problems.

I can't finish without mentioning the Rugby World Cup which may or may not be over when this report rolls off the printing presses. Our Council played a leading role during the last financial year in preparing the district to host teams from Canada, Japan and Tonga during pool play. It has also encouraged businesses and communities to make the most of this rare opportunity to showcase the best the district has to offer to a worldwide audience.

We hope this work pays dividends in years to come when friends and relatives of world cup spectators visit the Far North to see why so many of us choose to call this beautiful place home. This is all good stuff!

Mayor Wayne Brown