The Wheel of Water : Agricultural expenditure flows from Selwyn and Waimakariri districts into Christchurch

Abstract

The overall purpose of the research initiated by this study is to develop and test a methodology for identifying and quantifying the socio-economic effects to specific urban area(s) of primary sector activities directly affected by water resource management decisions. There are arguments that little of the economic benefits from agricultural activity on the Canterbury Plains filters into Christchurch City itself. Quantifying expenditure flows between these areas was therefore chosen as the first test of the methodology developed in this study for determining the nature and degree of connections between rural and urban areas. The study contributes to the research project “The Wheel of Water” lead by Aqualinc Research Ltd. and funded by the Ministry of Business, Innovation and Employment (MBIE) under contract ALNC1102. In 2012, the AERU was commissioned by Aqualinc to examine the flows of expenditure into Christchurch city from farms and their households; as well as their secondary flows via their purchases from rural businesses. The areas used in this study were Selwyn and Waimakariri. The aim of this study was to assess how important the agricultural sector is to the city and the flows of activity that come into the city. This study was timely, given the impact of the earthquakes, the redevelopment of Christchurch and its economic development strategy. The benefits of the research were to gain insights into the spatial flows of rural farming/houshold expenditure. The study included two surveys, a farm survey and a rural business survey, which provided the information to calculate the flows of expenditure – including their direct, indirect and induced effects - from the agricultural sector in the Canterbury Plains into Christchurch. Both surveys concentrated on the Selwyn and Waimakariri districts. Whilst this may be an underestimate of flows into Christchurch, it was considered that both districts were the closest regions. However, this study does exclude districts such as Hurunui and Ashburton which are likely to have significant expenditure flows into Christchurch and even South Canterbury may as well although the alternative of Timaru will reduce that. The farm survey included two sections covering farm business and farm household expenditure and thus assessed the farm business and farm household expenditure flows by type into the city; while the rural business survey assessed the flows of rural business expenditure from farm purchases into Christchurch. Data was then aggregated up to the total population and monetarised with the use of secondary data to determine how much of Christchurch’s expenditure was due to farms and rural businesses in Selwyn and Waimakariri. In addition, the employment profile associated with farm (including their households) and business expenditure flows into Christchurch was assessed.