July 2008

ARC confirms tourism role

The Auckland Regional Council has confirmed it is serious about an ongoing role in growing Auckland’s visitor economy with a decision to help fund tourism development and destination management in the region.

The inclusion of tourism funding in the Council’s Annual Plan process followed the release of Bringing the World to Auckland, which highlighted the opportunity for the region to secure an additional $12 billion of visitor expenditure (above projected natural growth) and a host of additional benefits with the right investments in tourism over the next decade.

Following public consultation, in which a clear majority of submitters supported the Council’s proposal to fund tourism, the ARC allocated $500,000 to be put forward into a regional funding pool.

AucklandPlus Chairman and ARC Deputy Chairman Michael Barnett says the Council is working with Tourism Auckland and its other principal funders (Auckland and Manukau city councils) on how best to utilise the funds.

"It’s about working with the pool of funds we have from around the region to deliver the best return on investment for Auckland’s visitor economy," he says.

"I see this as a significant step towards the fully funded regional agency that Auckland needs to integrate destination marketing, destination management, major events and conventions. That’s what will help transform Auckland into a world-class destination."

Making sense of tax credits

Investment in research and development is, and will continue to be, a key driver in transforming Auckland and New Zealand’s export and competitive success on the global stage.

A new 15 per cent R&D tax credit introduced from the 2008-2009 income year is a reflection on the importance of ongoing investment in R&D, particularly within private businesses. But how does the tax credit work and what qualifies as an eligible business and eligible R&D?

Over recent months AucklandPlus has been working with a range of organisations to shed some light on the issue.

A number of workshops have been held around the region providing local businesses with the detailed information about how the tax credits work.

More recently, AucklandPlus and the Ministry of Research, Science and Technology (MoRST) have produced a guide designed to help business owners, financial advisors and leaders in technology research understand how the new research and development tax credit works.

The guide, Making Innovation Pay: How the new R&D tax credit can work for you and your business includes general information about R&D, what the new tax credit is, what does and doesn't qualify, eligibility, avenues for assistance and advice including research providers, documentation required and how to make a claim.

To date, the guide has been very well received, with more than 3500 copies distributed. MoRST and the Foundation for Research, Science and Technology are both using it around New Zealand, and Inland Revenue, who provided input into the guide, are using it to assist staff. Some local economic development agencies in Auckland also have copies.

Helen Robinson, who is a member of the AucklandPlus advisory board, and chair of the Metro Innovation Project Leadership Group, says that R&D is a crucial ingredient for Auckland’s long-term economic growth.

"We hope that the guide will make it easier to understand how the new tax credit works, and how businesses can access it. More importantly though, we hope businesses will be encouraged to revisit and re-invest in innovation and R&D."

The guide is one of a number of initiatives planned to raise understanding and awareness of the importance of innovation and R&D in terms of business growth and economic transformation.

Get your copy of the guide Making Innovation Pay here.

Report calls for regional major events office

A regional major events office is a ‘must have’ if Auckland is to be positioned as a major events destination.

That’s the finding of Positioning Auckland as a Major Events Destination, a report developed by AucklandPlus with input from all Auckland councils, SPARC, Tourism Auckland, New Zealand Major Events and representatives from the events industry, as well as funding assistance from New Zealand Trade and Enterprise.

AucklandPlus Chairman Michael Barnett describes it as an appendix to Bringing the World to Auckland, the case for investment in Auckland’s visitor economy.

"If we want to maximise the opportunity to grow Auckland’s visitor economy, one of the things we need to be is a successful ‘host city’. Positioning Auckland as a Major Events Destination talks about how to deliver on this."

The report highlights the fact that while other regions have invested in major events and reaped the rewards, Auckland has been seen as losing ground - failing to secure some major events and losing others.

"We know we can do events brilliantly but we have suffered from an ad hoc, fragmented approach to bidding for and managing major events," Michael Barnett says.

Positioning Auckland as a Major Events Destination takes an honest look at the current situation, investigates what needs to be done to transform Auckland into a world-class events destination, and outlines the critical investments required to make this happen.

Not surprisingly, regional alignment and co-ordination, in the form of a regional major events office, is at the top of the list.

"The benefits of major events - increased global profile, attractiveness to visitors and investors, platforms for industry promotion - cannot be ignored. So we must work towards a regional agency that will provide us with a co-ordinated, strategic approach to building a portfolio of major events for Auckland and all the opportunities that will bring."

Michael Barnett says that while Rugby World Cup provides unprecedented opportunities for Auckland, the key will be to develop an ongoing calendar of events which will maximise the infrastructure put in place for 2011.

Positioning Auckland as a Major Events Destination was endorsed by the Auckland Regional Economic Development Forum in May.

Follow this link for a copy of Positioning Auckland as a Major Events Destination.

Film Auckland Election Forum

This year’s Film Auckland Summit will be an election year special with representatives from parliamentary political parties in the spotlight.

Judith Tizard (Labour), Chris Finlayson (National), Dail Jones (NZ First), and Jim Anderton (Progressive) will present and discuss their policies affecting film production in New Zealand, with a specific focus on Auckland.

The parties have been invited to announce any new policies affecting film production at this summit.

The film production industry is looking for the parties’ views on matters such as the Large Budget Screen Production Grant, the rebate measures announced in the Budget, the role and function of the NZ Film Commission and the need for more studio space in Auckland.

Film Auckland Executive Manager Michael Brook says the need for more studio space in Auckland is critical if the screen production industry is to maximise its potential contribution to the region’s economy.

"The new Henderson Valley Studios sound stage has already contributed to an increase in feature films being shot here but more infrastructure is needed," he says.

"The lack of studio space appears to have all but ruled us out of contention for another recent big international production because we are now full. It is fantastic we have so much on, however, we could do with another three or four international sound stages. The Auckland screen production industry would certainly be capable of supporting the increased production more sound stages would attract"

Film Auckland is inviting the industry to submit questions to be put to the politicians by the moderator.

The forum will be held at the AUT Conference Centre, Wellesley St, on Wednesday 9 July at 6.30pm. Admission is free.

For more information visit www.filmauckland.com or contact Michael Brook Michael@filmauckland.com.

New group for Angel investors

A new industry body representing investors that provide much needed financial backing for some of New Zealand’s fastest growing and most successful companies, has been launched this month.

The Angel Association New Zealand will advocate for and promote best practice within the fast-growing Angel investment sector.

Inaugural chairperson, Andy Hamilton, CEO of business growth centre The ICEHOUSE, says that while angel investment is an emerging industry, angel investors play an important role in helping early stage entrepreneurs and their companies.

"Angel investing has the potential to be a key asset class and a very influential player in commercialising New Zealand innovation. Overseas, we have seen national angel bodies formed once the sector reaches a critical mass. Establishing a national body in New Zealand is a sign of the recent growth of angel investing in our local market.

"The Association will set a national vision for the sector and help to raise the capability and knowledge of angel groups, many of which are at relatively early stages in their maturity and mainly focused on their own issues and challenges. It will provide fresh impetus to the growth of angel investing in New Zealand," Andy Hamilton says.

Membership of the association is open to all seed or early stage investment organisations, and business angel groups, networks, syndicates or people who are interested in being associated with this industry. To date, 15 angel groups from around New Zealand have joined the association, which will be governed by a Council of member representatives.

AucklandPlus Group Manager Clyde Rogers, who is a member of the association’s establishment board, says that the association is a sign of the level of maturity the angel industry has reached, and it will be able to be a much needed advocate for initiatives to assist further growth and development.

"Angel investors have an important role in commercialising ideas. The Association will not only provide greater visibility and promotion of the sector as a whole, it will also make it easier for entrepreneurs with innovative ideas to find potential investors."

The Angel Association’s activities will include:

• Encouraging the exchange of best practice, experiences and ideas between members
• Promoting the growth of angel investment in New Zealand, including encouraging, informing and educating entrepreneurs, new angel investors and angel groups
• Increasing awareness of business angel networks and of the economic role played by business angels
• Conducting research, compiling statistics and publishing industry information to help demonstrate industry trends, economic impact and benefits of angel investment
• Engaging and representing the interests of all segments of the New Zealand angel investment industry in dialogues with governments, peers and industry
• Contributing to the development and implementation of local, regional and national programmes with the aim of stimulating the development of a positive environment for business angel activities
• Creating and promoting networks with other relevant national and international networks and investment associations.

For more information about the Angel Association New Zealand, contact Andy Hamilton, email a.hamilton@theicehouse.co.nz

ARC confirms views on airport to CBD link

The ARC has backed a plan for an airport rail loop, after receiving advice that projected growth would more than support a successful train service.

Recently completed research by the Auckland Regional Transport Authority (ARTA) looked at options using buses, light rail and heavy rail.

The research says the best long-term option is to integrate the airport into the suburban rail network, with a loop connecting Onehunga, the airport and Manukau city centre. The plan includes the construction of a rail line from Avondale to Onehunga.

The research showed that the number of people working near the airport is expected to grow from the current 13,000 to 30,000 in the next 30 years, while the number of plane passengers could reach 35 million per annum. This increase would be more than enough to support a successful rail service. Most people, 80 per cent, would be traveling to destinations north of the airport. Nearly 70 per cent would be heading to the CBD, North Shore or west Auckland.

A combination of new rail lines (a CBD loop tunnel, Avondale - Onehunga, and the airport loop) would increase access to Auckland CBD. In each morning travel peak, an additional 200,000 people would be within 30-minutes of the city centre, and their travel would be unaffected by road congestion.

"The benefits are of regional and national importance," ARC Transport and Urban Development Committee Chair Christine Rose says.

"Public transport has a role in making it easier to get to and from Auckland International Airport. The new, direct bus services to the airport from Auckland CBD and from Manukau city centre, which began on June 15 and 16, are a good start. We're starting to lift Auckland's game - both as a place to live and as a destination."

Cr Rose says improving links from the airport to the CBD will help the Auckland region achieve social, environmental and economic goals.