Mayor's Message: Challenges for 2024

My first year as Mayor was dominated by the recovery work from the August 2022 storm. We had to get our critical roading and water infrastructure fixed and find a pragmatic solution for the homes damaged or at risk from landslides. We got a reversal of the Government’s initial refusal to provide additional financial support. To fund the remaining cost to Council of nearly $60 million, we’ve proposed a $330 annual levy. Other jobs done include fixing Elma Turner Library and launching the new eBuses.

The biggest challenges for Nelson this year are going to be economic issues. The highest inflation and interest rates in more than 30 years have been tough on households and businesses, reflected by a slowdown in house building despite an acute housing shortage. These problems are compounded for Councils and the Government by sharply rising costs and large deficits.

One of the Government’s big economic problems – where the Nelson region has a competitive advantage – is in the export and tourism sectors. The issue is that New Zealand has a $31 billion Balance of Payments deficit, meaning we are importing more than we export and spending more on services abroad than we are earning. It is the worst ever and equates to 7.6% of Gross Domestic Product (GDP) or $16,200 per household.

We have to grow Nelson’s key export industries such as horticulture, forestry, fishing and aquaculture. We need to rebuild service industries such as tourism and international education and develop new sectors such as technology to help us pay our way in the world.

Council has a small but important role to play in economic development. We need to ensure we get a fair share of the Government’s new $1.2 billion Regional Infrastructure Fund.

We have an important conversation to lead in revitalising our city centre. The key is making Nelson an attractive place for private-sector investment in retail, hospitality, professional services and inner-city living. We also have work to do ensuring major infrastructure projects such as the Nelson Hospital redevelopment and the Hope Bypass are progressed.

Challenges we face this year include the delivery of our Long Term Plan, hosting a successful city revitalisation summit in March, finding a balanced solution to the intensification debate around Plan Change 29 and solving the contaminated wood waste problem at Tāhunanui Beach. We are well positioned as a city and Council for the challenges of 2024.