The TVNZ/Kantar poll last week found 65% of NZers think we are on the wrong economic track compared to just 15% who think we are on the right track.
This comes as no surprise when households are facing increased costs for everything including groceries, fuel, rents or mortgage. Businesses are also feeling the pain with costs going up and retail spend going down.
Central government, regardless of the election outcome, is not going to have room for big spending. Their annual deficit has hit $10 billion. Nett debt has increased from $5 billion in 2019, to now $71 billion and is projected to hit $104 billion by 2026.
Council, with Government so constrained, will need to take a lead on building the recovery. NZ’s problem is not just the Government deficit, but our balance of payments record deficit $34 billion in our trade with the world. There must be a renewed focus on international earnings on which Nelson as a export focused region has an advantage.
There are big opportunities in the seafood sector. The acquisition by Sealord of Christchurch based Independent Fisheries is good for Nelson. King Salmon reported last week its best half year results in years. Other marine companies like SnapIT and MacLab have great growth potential.
Council needs to support the rebuild of our tourism and international education sectors. Nelson will benefit from the growth in horticulture enabled by the Waimea Dam. Our Nelson Council needs to make our central city more attractive for shoppers and visitors and retail, hospitality and residential investment.
Council will need to be very focused in our spending and investment to keep rates affordable. We too face real budgetary pressure with $50 million of nett costs from last year’s storm and our costs also rising sharply. We will need to invest in infrastructure and civic facilities but our most important role will be in encouraging private investment in our city.
We are better placed than most regions to weather the economic storm. Nelson and Tasman need to work together with whoever is elected Government, to revitalise the region’s economy.
