Government supports Hobsonville marine precinct

9 August 2007
Source: www.beehive.govt.nz

The Labour-led government will provide $2 million to the Auckland region to help develop the Hobsonville Marine Precinct, a unique facility to be used for the construction of superyachts, Economic Development Minister Trevor Mallard announced today.

"New Zealand has an excellent reputation in the superyacht industry across the spectrum of design, construction, fit-outs and marine technology. This profile was boosted at this year’s America’s Cup through the impressive efforts of Team New Zealand and via the government's leveraging programme in Valencia.

"While this means New Zealand is well placed to benefit from international growth in the superyacht sector, the marine industry can only capitalise on this if it continues to develop resources and infrastructure that allow it to compete with offshore builders.

"The new superyacht construction and launching facility at Hobsonville will help to preserve the Auckland region’s reputation as a premiere international location for commissioning, refitting, repairing and building luxury vessels," Trevor Mallard said.

The project has been developed by Waitakere City Council (WCC). Key partners in the region include the Marine Industry Association and the Auckland Regional Council’s economic development agency AucklandPlus. AucklandPlus will hold the contract with government economic development agency New Zealand Trade and Enterprise (NZTE) to deliver the project. The development will be delivered by WCC’s property development company (Waitakere Properties Ltd.).

The government is providing $2 million to help purchase equipment that will allow large boats to be transported into the water. The funding is subject to some conditions, including that planning consents, leases, and financial contributions from the marine industry are finalised.

"The marine industry currently exports $535 million worth of goods annually and is determined to increase that figure. The Hobsonville Marine Precinct will help with this by complementing marine activities at other sites around Auckland and the country.

"The project represents a unique opportunity to establish a competitive marine cluster that will ensure the continued growth of New Zealand’s marine industry, a worthy goal considering our focus on creating more internationally competitive firms. It also fits in with our commitment to ensure Auckland develops into an internationally competitive city," Trevor Mallard said.

"The America's Cup leveraging programme included marine sector events and business hosting - linking up our industry with key offshore business contacts. The programme, run by New Zealand Trade and Enterprise, has had very positive feedback from participants and guests and we expect it will yield some great business developments for the sector. So this Hobsonville development is timely," Trevor Mallard said.

New Zealand’s share of the worldwide superyacht market is about four per cent - it ranks sixth in the world for superyacht production and is highly regarded internationally. Meanwhile, the country’s marine industry accounts for about two per cent of total industry sales worldwide. This project aims to improve both these aspects of the industry’s performance.

"A successful marine industry has benefits for other industries such as the tourism, retail and automotive sectors and, as such, this project has real potential to help contribute to New Zealand’s economic transformation," Trevor Mallard said.

Hobsonville Marine Precinct background information:

About the Marine Industry Association:
The Marine Industry Association (MIA) represents more than 500 of New Zealand's leading designers, builders, importers and marine sales and service companies. Through its New Zealand Boating Industry Training Organisation, the MIA is also responsible for the training of boatbuilders and related marine trades and professional people. The MIA’s aim is to encourage development of the New Zealand marine industry and help its members build successful businesses.

About AucklandPlus:
AucklandPlus is a business unit of the Auckland Regional Council. Its role is to implement key elements of the Auckland Regional Economic Development Strategy. This includes regional promotion to attract national and international business to the Auckland region and facilitating regional economic development projects. AucklandPlus will hold the contract with NZTE to deliver the Hobsonville project.

About New Zealand Trade and Enterprise:
New Zealand Trade and Enterprise (NZTE) is the government’s national economic development agency. It works to stimulate economic growth by helping to boost export earnings, strengthen regional economies, and deliver economic development assistance to industries and individual businesses.

Up until June 30, 2007 NZTE ran a Regional Partnerships Programme which included regional funding of Major Regional Initiatives (MRIs). The Hobsonville Marine Precinct is one of the last projects to be funded through the MRI programme. Through this programme, the government previously provided $54,706 to develop the business case for the project and draw the industry together. This funding was matched by the region.

NZTE now runs a Regional Strategy Fund to help 14 regions develop and implement regional economic development strategies and the projects that flow out of them. Regions can also apply for funding for large projects through the contestable Enterprising Partnerships Fund, which is administered by the Ministry of Economic Development.