Skills and Labour for the Canterbury Rebuild and Recovery

1. Skills and Labour for the Canterbury Rebuild and Recovery A Presentation to the Built Environment Skills Strategy (BESS)

2. Setting the Scene • More than 10,000 earthquakes have occurred since the first 7.1 magnitude earthquake struck Christchurch on 4 September 2010 • 22 February 2011 earthquake resulted in 185 fatalities and caused widespread damage • Recovering from a natural disaster on this scale in New Zealand is uncharted territory for individuals, communities, businesses, councils and government • Successful recovery requires leadership and partnership between central government, local government, TeRununga o NgaiTahu, NGO’s, communities and business

4. 26 Dec 2010 4.35 am 4 Sept 2010 2.20 pm 13 June 2011 12.51 pm 22 Feb 2011

5. Consequences of the Earthquake • More than 70% of CBD buildings severely damaged • 124 kms of water mains and 300km of sewer pipes damaged • 500,000 tonnes of liquefaction silt removed • 600 kms of roads seriously damaged • 50,000 road surface defects • 55% of secondary students sharing with other schools • 13 out of 36 hotels operating • $25b - $30b estimated cost • 185 lives tragically lost • 459,000 EQC claims (104,000 closed; 355,000 open)

6. Progress So Far • 600 11kV power cable faults - now repaired • 600+ people in the CBD red zone every day • 1,320 buildings demolished, out of 1,609 • 180,000 homes in green zone • 7,779 residential red zone properties • 6,491 red zone owners have purchase offers • 5,834 homeowners have signed S&P Agreements • 37 zoning decisions remaining • 1,500workers fixing roads and the three waters • 100% of the city has normal reticulated water access • 100% of the city has normal kerbside waste services • 100% of the city has access to functioning sewerage, chemical toilet or portaloo • 92% of parks open • 11km of large diameter pressure mains replaced • $3.33b paid and 23% EQC claims closed

7. Understanding the Need • A futures model has been developed that considers the work generated by the rebuild and also the on-going activity of the regional economy • It is important to remember…… The model shows the consequences of a defined scenario – it DOES NOT predict the future!

8. Model History • Originally developed to understand the implications of workforce growth / decline as a result of economic changes. • Adapted following the September 2010 earthquake to understand the implications of the earthquake on the local labour market. • Now informing our understanding of the dynamics of the rebuild and when labour may constrain the pace of rebuild.

9. Developing the Intelligence • Insurers • Project Management Offices • Construction Sector • Government • Developers • Community

13. Central City Blueprint

14. Scale of Demand • The total cost of the rebuild, based on current estimates is around $30bn • Approximately this equates to • Residential – 40% • Infrastructure – 10% • Government – 10% • Capital Assets – 10% • Commercial – 30%

15. Operating in a dynamic environment with little certainty • There is still a large degree of uncertainty in the marketplace • When will the rebuild really get underway? • How big will it get? • Will insurance continue to cause delays? • Can we really find all the workers we need? • The outputs of the model are de risked by applying a range of scenarios that give the most likely consequence of future demand.

16. Business As Usual • The earthquakes have had an effect on the normal activity in the region. • Normally the workforce undertakes this BAU activity However • Things have changed • Normal activity is not what it was prior to the earthquakes • There is lots of new activity as a direct or indirect effect of the earthquake

17. Consensus Scenario

18. Construction Labour Requirements for Rebuild Activity

19. Delayed Rebuild Scenario

20. Construction Labour Requirements for Rebuild Activity

21. Labour Supply

23. Additional Workforce for Rebuild - Unconstrained and Constrained by Accommodation Availability(6,000 annual)

24. Additional Workforce for Rebuild - Unconstrained and Constrained by Accommodation Availability(4,000 annual)

25. Additional Workforce for Rebuild - Unconstrained and Constrained by Accommodation Availability(3,000 annual)

26. Labour Market Recovery Programme • A joined up approach between government, iwi, business and the community to overcoming systems issues in the Greater Christchurch labour market. • A plan that puts the aspirations of business at the core of what we are trying to achieve. • A once in a lifetime chance to do something a little different – to apply acceleration to usual market forces.

27. Why Do We Need One? • Labour market fragmentation • Government agencies were previously uncoordinated • At a local level provision is heading in multiple directions • No one was looking at the big picture • Some macro conditions are not helpful • Population loss • Wage inflation • Marginalisation of disadvantaged groups • Some sectors will not respond effectively to market needs

28. What Will Be Achieved As A Result Of The Programme? • A consolidated and coordinated plan • A vision that provides direction • Leadership • Clear integration between business need and central government policy • Efficiency gains in funding interventions • Appropriateness of response

29. The Strategic Response Priorities: • Attracting and retaining skilled and talented people in Greater Christchurch • Developing skills and capabilities • Engaging disadvantaged and unconnected groups into work • Enabling better linkages between schools, tertiary providers and businesses • Assisting businesses to achieve improved skills utilisation and labour productivity gains

30. Priority Sectors • Agribusiness • Knowledge Intensive Manufacturing • ICT • Professional Services • Health • Construction

31. Construction Sector Workforce Plan • Flows out of the Recovery Strategy and the Labour Market Recovery Programme • Industry-led, and about what industry can do • Sector leaders group met twice to discuss issues and options (MBIE as scribe)

32. The Burning Issues • Considerable uncertainty about when the rebuild will accelerate • A lack of collaboration and coordination resulting in inefficiencies, which raise costs and compound uncertainties

33. Key Themes • Clarifying the scale of the additional labour demand • Principles of Cooperation • Better Information • Establish a Good employer Scheme with a Training Commitment • Skill shortages • Social issues • Health and Safety • Accommodation • Quality of workforce • The Licensed building practitioner scheme

34. How Can You Engage With the Plan? • Very keen to hear ideas of industry led initiatives that will make a difference • Plan will be posted on the Canterbury Employment and Skills Board website at the end of next week – www.cesb.org.nz • Feedback directed to Nick Montague at the Ministry of Business Innovation and Employment – by 1st February 2013

35. The Canterbury Skills and Employment Hub • An employer-friendly and efficient service to: • give New Zealander the first option for jobs in the rebuild • check the local labour market on behalf of employers • fast-track visa applications where no New Zealander can be found • Free online job matching tool for employers and job seekers. • Skills Brokers engage directly with employers about their needs

36. Skills Hub Website • The website is clear, straightforward and easy to use. • There is lots of useful information for employers and prospective workers • The site will be regularly updated with the latest labour market information that businesses and people can use to make informed choices

37. Contacting the Hub • Hub now open for business • A number of ways to contact the Hub: • 0800 Canhub • Email: Canty_skillshub@msd.govt.nz • www.opportunitycanterbury.org.nz • Visit by a Skills Broker • To be evaluated for applicability to rest of New Zealand

38. Sourcing Labour – An Immigration Response to the Canterbury Rebuild

40. Approvals In Principle • Used where: • you have not yet located a candidate, and/or • you have more than one position vacant • Employer applies for ‘approval in principle’ to recruit workers from offshore. • When approved, employer has confidence that can bring in the people needed for the job. • Immigration NZ are now referring interested employers to the Canterbury Skills and Employment Hub to check if there are any suitable New Zealanders available.

41. The Canterbury Skills Shortage List (CSSL) • Revised early November 2012, live on Show Day • Thirteen occupations added: • Note that these are skilled jobs at ANZSCO 3, with qualifications and/or experience

42. Offshore Marketing and Recruitment • Immigration NZ can provide you with support offshore • The London-based marketing team is responsible for putting skilled UK/Irish/Dutch migrants in touch with NZ employers and recruiters. We do this in three ways: • Attending events in UK and Europe • Supporting NZ employers and their recruitment agents when they are in the UK • Providing a web-based forum for NZ employers to meet skilled UK migrants. • The London branch can be contacted by e-mail at: ian.riddle@dol.govt.nz