Economic development 'key' as region's ageing population prompts concern
“There’s no point having economic development based on labour intensive industries, because we are not going to have the labour to satisfy it, and that’s the reality."
Invercargill’s Acting Mayor believes the region needs to focus on high-tech industries when eyeing economic development in the future.
Tom Campbell - who is filling in as Invercargill’s Mayor in the absence of Nobby Clark - said the region had labour challenges and that is why he has suggested attracting high-tech industry is best for the region.
“There’s no point having economic development based on labour intensive industries, because we are not going to have the labour to satisfy it, and that’s the reality.
“That really means when we do look at economic development, we really do want to be pushing that high-tech stuff that’s got high productivity but doesn’t necessarily need a whole lot of labour, because they are just not going to be there.”
Campbell’s comments followed concerns raised by Cr Grant Dermody at a community wellbeing committee meeting this week.
He pointed to the regional spaces and places strategy information which highlighted the ageing population of Southland.
He is worried about what that will mean for the council in trying to fund the required work.
The data says by 2048 the 40-64 age group in Southland is expected to increase by 3% and those aged 65 years and over by 72% or 12,050 people.
Younger age groups are projected to decline with a 16% decline projected in those aged 0-14 years and a 7% decline in the 15-39 year age group by 2048.
“The demographic breakdown gives me quite a bit of concern,” Dermody said.
“If you look at the trajectory where we are heading demographically, we are going to have a whole lot of older age people, who don’t have a lot of income, as we know - how is our community going to survive?”
Dermody said the council need to be strategic around economic development to help get the “30-somethings” coming to Invercargill and staying, so there are the houses that can generate rates income to help fund what the city requires.
“If you look at that demographic breakdown, we are going have a lot of old age pensioners tight for cash and living from the Government - in a lot of instances - that can’t afford all the stuff we are clocking up.”
Dermody believed the council needs to take that into account this year when it rolled out “all sorts of things”. Economic development needed to be a key part of whatever the council did, he said.
The council has been working through its long-term plan for 2024 to 2034 which will soon go out for public consultation.
Yet all our elected officials sit back and let other regions take advantage of the money we spend on investigating new industries like the Oat Milk proposal.
When Manapouri was built we attracted workers south. When Tiwai was opened the city quickly expanded to accommodate the large workforce and the city boomed. Our meat processing plants are bringing in staff because we dont understand how to move people from benefits to wages but they are coping.
If some of these people looked a bit further than their navels they would see where the wealth of the province is being created. And it is in manufacturing and processing of our primary produce.
But after spending millions why not give it all away to Canterbury.
Like Phil T im a little concerned and the council looking into things Tom says “That really means when we do look at economic development.... they are just not going to be there. We looked into the Oat Milk industry. That looking spent heaps of rate payer and tax payer funds looking. But it all came to next to nothing.
Tom and Grant are concerned about the aging population. Have they been honest about their concerns. I understand that our Maori, Pacific and Migrant population is a young population and has plenty of potential to support our regions aspirations. What is the Councils strategy to ensure that these populations are encouraged to be part in our future. I for one don't believe it is all doom and gloom we dont have to LOOK to far to see heaps of potential