Waikato regional economic profile - Waikato Regional Council

6 Natural resources6.1 SummaryThe Waikato region is endowed with extensive natural resources which provide thefoundations for the regional economy. Understanding the current state of theseresources, potential constraints and values is important for understanding how theeconomy could grow in the future. For example, according to the theory of comparativeadvantage, a region’s endowment of land can have important implications for itspotential growth performance and industrial structure. 306 The industrial structure in theWaikato region reflects its endowment of land and it appears that there is plentifulsupply of available industrial land in many territorial authority areas. This could providean opportunity to meet constraints in other parts of the upper North Island.The region includes a wide variety of landscapes from alpine to swampy lowlands, withlarge tracts of highly productive farm and forestry land. Water resources include LakeTaupō, the Waikato River (New Zealand’s longest) and several other major riversystems, and significant wetlands. Hydro, geothermal and other emerging energyresources make Waikato critical to New Zealand’s energy production – particularlygiven its location adjacent to Auckland (discussed in detail in chapter 4.3.1).Only 28 per cent of the region remains in native vegetation and this is fragmented intothousands of patches, mostly in the hill country. Indigenous forests, scrub and wetlandson the extensive lowlands have been almost completely removed or drained over time,leaving few intact coast-to-mountain habitat sequences within the region. 307Waikato contains some of New Zealand’s most important ecosystems, including 70 percent of New Zealand’s geothermal vegetation by area and the largest extent of karst(limestone) in the country. Three of New Zealand’s six internationally significantwetlands (recognised under the Ramsar convention) are in the region. 308These ecosystems provide many goods and services which underpin the region’seconomy. These include food, wood, water, medicines and services including floodcontrol, pest control, nutrient recycling, regulation of climate, and experiences thatmight include recreation, aesthetic pleasures, other amenity and spiritual values.Cole and Patterson estimated that ecosystem services for Waikato were almostequivalent to the annual GDP for the region in 1999. The highest valued ecosystemservices in their study were nutrient cycling, regulation of water, and the provision offood, water and raw materials. 3096.2 ClimateThe Waikato region, centred around 38 degrees south, is exposed to prevailing westand southwest winds from the Tasman Sea. These bring mild, humid conditions.Although no location is more than 80 kilometres from the sea, sheltered and elevatedinland places experience extremes of hot and cold. 310 Maximum daily temperaturesrange from 21 to 26°C in summer and 10 to 14°C in winter. 311The region tends to have warm, humid summers and mild winters. It experiences anaverage annual rainfall of 1250 mm, as illustrated in figure 100, which is generallyconsidered adequate for agricultural production.306New Zealand Institute of Economic Research (2004, p. 27).307Waikato Regional Council (2010, p. 68).308Waikato Regional Council (2010, p. 68).309Patterson and Cole (1998, p. ii).310Waikato Regional Council (2010, p. 14).311Nancy Swarbrick (2011) 'Waikato region - Landscape and climate' Te Ara - the Encyclopedia of New Zealand.Doc # 2069885 Page 89