Recession? What recession?

Several leading banks say that the number of new building consents are one of the earliest signs of a recovering construction sector, and suggest optimism for corporate and consumer spending.

Could we be at the turning point for the economy in the Stratford District?

“There has been a noticeable increase in building consents since Easter,” says Mike Avery, Planning and Regulatory Manager at the Stratford District Council. “We normally receive around 5 consents a week,” Mike says, “but in the two days after Easter we had 18 applications. That’s quite a spike.”

The National Bank suggests that as New Zealand’s economy starts to rebound, building consents will play catch-up to pent up demand.

The idea that the global economic recession will not truly be felt in Taranaki until early 2010 may be overly pessimistic based on this trend.

Building consents nationally hit a record low in December 2008, but in Stratford the total number to March 2009 was virtually the same as last year, with the value even higher. “This financial year we have received 251 building consent applications compared to 253 at the same time last year. But the total value is $400,000 higher overall,” Mike says. “The most interesting category is ‘Farm buildings’ which are up 16% from last year.”

Could this mean the rural sector is leading the way Taranaki out of the recession? Was there really a recession in Taranaki at all?

“This is just one indicator of economic performance in the Stratford District,” Mike says, “and we will need to wait and see whether it’s an accurate one.”

In the meantime, the Stratford District Council has become the first council to have their Quality Management System approved by IANZ (International Accreditation New Zealand) on the first assessment without any corrections required. “This is a rare event for any organisation,” Mike points out, “and means those applying for building consents can rest assured the processing of their application meets the rigorous IANZ criteria.”