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3. Background

Size

Southland district is one of the largest territorial authorities in New Zealand, covering 30,753 square kilometres. This represents 11.9% of the total land area of New Zealand. The usually resident population at the 1991 Census was 30,705 (0.9% of the New Zealand population). During the preceding ten-year period (1981-91) the district experienced a population loss of 8.4%.

The population is widely dispersed across the district and is predominantly rural. The largest centre within the district is Winton, with a 1991 population of 2,124. The district has a current Total Capital Value of $4.2 billion.

Demographics

Like many rural areas, Southland district has been experiencing a long-term outflow of population, particularly among the younger and more highly qualified sections of the community. This outflow has been driven by a combination of educational, employment and social conditions. The magnitude of the population loss can be seen graphically in the attached age-sex profiles for Southland district (Appendix One, Annex B). The profiles for the statistical areas of Fairfax in Western Southland and for Hokonui in Northern Southland show large-scale migration in the three age group categories from fifteen to twenty-nine years. Communities such as these have been hit hard by the withdrawal of central government services and the reduction in retailing and wholesaling activities. At the same time, real incomes in these communities have been falling, as a result of sustained, low commodity prices. The Statistics New Zealand projections (Appendix One, Annex A) for Southland show that without some form of economic stimulus, the district would continue to experience sustained population loss over the next twenty years.

Another important demographic trend, with service implications, has been the growing aged population, and the concentration of this population in the larger urban centres, such as Winton. Once the principal income earner of a household retires there is a tendency to move to a centre with a wider range of services. This trend is shown clearly in the age-sex profile of Winton. The profile shows that 25.41% of the Winton population is aged over sixty-five. This compares to a district average of only 9.78%.

The district's economic wellbeing rests largely upon the primary sector. Agricultural as well as forestry productions are the key contributors to the local economy, along with their associated processing activities. The dominance of these two sectors can be seen in the 1996 Employment Census statistics (Appendix Two). Agriculture and forestry directly employ 45% of the paid workforce in the Southland district. This rises to approximately 60% in areas such as Fairfax and Hokonui. The processing activities associated with agriculture and forestry are also major employers within the district. In terms of numbers they constitute the majority of Southland's manufacturing base. Together, the primary production and processing sectors employ well over 50% of the paid workforce. Both of these sectors went through prolonged periods of restructuring in the 1980s, as a result of low commodity prices, the removal of financial supports and structural reforms. This restructuring produced significant employment losses in Southland. Employment conditions continue to be difficult, with growth being concentrated in specific areas of primary production.

Land Use

The productive land area in Southland district totals 1,686,000 hectares, of which 94% is used for pastoral activities and 6% for plantation forestry (Appendix Three). Southland gains the majority of its pastoral income from lamb, wool, beef, deer and dairy products.

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Contact for Enquiries

Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND

Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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