Taranaki Regional Council media release

28 June 2007

Port Study Vindicates Community Ownership, Says Chairman

A new economic report highlighting the economic importance of Port Taranaki underscores the importance of it remaining a community-owned asset, says Taranaki Regional Council Chairman David Walter.

The Taranaki Regional Council is 100% owner of the port company.

An economic impact study by Business and Economic Research Ltd (BERL) – commissioned by Venture Taranaki and Port Taranaki Ltd – shows that the port is involved with 43% of the wealth created in the region, and a third of the jobs.

Mr Walter says the BERL report shows the benefits of the Council’s commitment to retaining 100% ownership of the port. Its continued local ownership is an important factor in Taranaki’s strong economic performance, he says.

Council Deputy Chairman Roger Maxwell says its pleasing that the BERL figures substantiate the “intuition and gut feeling” that led the council to maintain ownership of the port.

The results of the BERL study were presented at a Taranaki Regional Council meeting on June 27. The conclusions include:

• Port Taranaki’s total economic impact is a contribution of $604 million to output, $290 million to gross domestic product (GDP) and the employment of the equivalent of 1485 full-time workers (FTEs) – the vast majority of this in impact from port-related activity rather than the port’s own operations.

• The port directly contributes 4.6% of regional GDP and 2% of regional employment within its own operation.

• Including indirect and induced effects, the contribution of the port increases to 6.6% of regional GDP and 3.3% of regional employment.

• Associated industries account for $5.37 billion in direct expenditure, generating GDP of $1.86 billion and employing close to 14,800 FTEs.

• Potential port projects would account for $904 million in output, generating $350 million in regional GDP and employing more than 4120 FTEs.

• Port Taranaki is therefore associated with industries that turn over almost $6.3 billion, generate $2.2 billion in value added, and employ close to 19,000 FTEs.

• To put this in a regional context, Port Taranaki is a key participant in industries and activities that account for 43% of Taranaki’s GDP and a third of its employment.

Venture Taranaki Chief Executive Officer Stuart Trundle says the port is the most important infrastructure asset owned by the community of Taranaki. “At the end of the day, Port Taranaki is priceless.”

ENDS

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