Christchurch – a trading city
Mayor's Column
Christchurch may be better known as the Garden City but the reality that helps those flowers bloom is that we are very much a trading city. Trade pays the bills, trade opens the doors on our future and trade marks us out from other New Zealand cities.
I was in America recently, in part for the global Mayors for Peace movement, and I saw no problem at all in mixing in a lot of trade-related calls. One of the best ways to preserve peace is to increase prosperity and, for Christchurch, the proven way to do that is to build on our already strong, identity as a trading city.
Amongst the major New Zealand cities, it is a major point of difference. NZ’s biggest city, Auckland, has quite an inward-looking economy with much of its economic activity coming from selling goods and services to itself.
In recent National Bank regional data the annual regional growth rate for Canterbury on a March-to-March basis was 4.2 per cent. Auckland by comparison had 3.8% growth.
Christchurch has the great good fortune to straddle both the “old” economy, in areas like farming and some manufacturing, and the “new” economy in areas like software and electronics development and manufacture. This means that we are able to make the most of any opportunities that pop up in either of these areas.
In “new” economy areas like electronics and computer software, the American markets seem very much aware that we are here. One California expert said that in his opinion, Christchurch’s new technology industry was about where their famous Silicon Valley was 20 years ago. With just over half of all such industry in New Zealand based in Christchurch he may well be right.
There was also a surprisingly high level of awareness of Christchurch amongst some of the American trade people I met. They saw it as a city doing well in niche ventures and manufacturing. In part this is doubtless the result of the surprising number of Kiwi accents and faces to be found in positions of influence in the United States.
One of the experts there suggested that Christchurch could profit from refining its image amongst other trading cities by emphasising its “boutique” size and scale. Our “boutique” skill in developing ideas and making short manufacturing runs was one area where they could see major new trade ties developing.
I was also able to tell them Christchurch and Canterbury are like the key controls on the dashboard of the New Zealand economy. Because of our major trade exposure, we are often the first region to show any impacts and signs of either heating or cooling in the global economy.
I was also able to make the point that while I was in America, Christchurch was getting a historic first visit from one of the highest powered trade delegations ever to hit town. Not only was the Prime Minister of Vietnam, Phan Van Kai, visiting, so too were five Government Ministers, six Deputy Ministers, a smattering of Mayors and their support staffs.
It was a heavyweight delegation keen to forge trade ties that had chosen to make us their first port of call. They had come to talk about mutual opportunities in areas as diverse as information technology and agriculture, and tourism and local government reform.
Their visit highlighted another important role for Christchurch as a trading city. For the first time in our trading history we are on the right side of the world.
The new economic centre for activity in the world is the Asia Pacific region as nations such as China and India are quickly becoming the new economic centres of gravity for the global economy.
Even although China has roared up the ladder of major global economies to become the world’s third-largest trader, it is still in relatively early days in terms of economic muscle. In fact, every seven years the Chinese economy doubles in size.
New Zealand is at the absolute front of the international queue for preferential treatment from China. We have already begun the process of talks on a free trade agreement and the potential for trading cities like Christchurch is profound.
In a time of massive economic change we are for one of the first times in our history trading from a position of advantage. It is an exciting window of opportunity that quite a few savvy American firms were well aware Christchurch has in front of it.
As Mayor, I will continue to help front trade delegations where the Mayoral title seems to open doors that would otherwise stay closed. Trade and prosperity help increase the prospect of lasting peace for all of us.
Mayor of Christchurch
|
