17 June  2014

The importance of the forestry sector to the Gisborne-East Coast economy has been highlighted by a government report that says the sector is primarily responsible for the district's rising GDP.

The 2014 Regional Economic Activity Report said the district's GDP rose by 27.7 percent above the national movement, between 2007 and 2013 "largely due to growth in the forestry industry". Employment in the forestry sector increased by 7.1 percent in the 10 years to 2013.

Regional development minister Steven Joyce, releasing the second annual report, said Gisborne's natural resources could improve living standards and economic opportunities across the district.

"Value-added manufacturing, leveraged off Gisborne's strong forestry sector, oil and gas development, tourism and Maori agri-business, could all contribute to economic growth," said Mr Joyce.

Increasing the skills of its young and Maori population would also be vital, he said.

The report said Gisborne had shown ''relatively strong growth in recent years" after a period where many economic indicators had performed below the national average for a long time.

The report listed socio-economic details long known about Gisborne, including having an unemployment rate consistently higher than the national average, low household income, slow population growth despite a high birth rate, high proportions of people leaving the district or country, low skills and qualifications, and difficulties in building or maintaining networks in transport, electricity and telecommunications.

Mr Joyce said the report supported the Government's business growth agenda, "which will deliver initiatives and reforms that will benefit Gisborne".

"Our business growth agenda plays an important part in growing Gisborne's economy.

"It includes improving State Highway 2 between Gisborne and Napier; boosting broadband infrastructure; and lifting skills and employment levels through programmes like Maori and Pasifika Trades Training and New Zealand Apprenticeships and the Apprenticeship Reboot; and leveraging the cultural and asset base of the Maori economy for growth.

"Nothing creates jobs and boosts incomes better than business growth and investment," said Mr Joyce.

Source: Gisborne Herald. To read the full article click here.