May 2021 - Bay of Plenty Business News

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6 BAY OF PLENTY BUSINESS NEWS May 2021 Commissioners front up to Tauranga challenge Trying to ensure New Zealand’s fastest-growing city starts to act like it after years of neglected investment is a basic but pointed objective for Tauranga’s city commissioners. By RICHARD RENNIE Lead commissioner Anne Tolley says the city’s “arteries are clogged”, and the commissioners intend to instil true governance to the city. She and three fellow commissioners have outlined the plans they have over what they say at this stage will be a short 18-month tenure (ie, until the next scheduled election to replace the ousted Tauranga City Council) to jumpstart neglected capital works and development plans for the city. Her declaration that she and fellow commissioners will never be seen disagreeing in public over decisions was welcome news to the Tauranga business community, frustrated by dealing with the publicly fractious councils of the past. Considering the region as a whole Tolley and fellow commissioners have vowed to lift the eyes of the city to consider the Western Bay region as a whole in any decision making, rather than the city in isolation. Stephen Selwood, commissioner, and infrastructure expert, acknowledged the city has difficult challenges ahead in catching up on neglected development, which included both community and infrastructural projects. He was speaking at a recent session at Trinity Wharf Hotel to introduce the commissioners to the business community. “The reality is if we do not invest in our city, we fail our businesses, we fail our families and we fail our communities. Because the city is the platform upon which we can enjoy life, we pay in other ways if we don’t invest.” He pointed specifically to community facilities, roading and public transport as key areas needing immediate attention. “It is time for a reset and a refresh.” Tauranga Chamber of Commerce New Tauranga City Council Commissioners Bill Wasley, Shad Rolleston, Anne Tolley (Chair) and Stephen Selwood. CEO Matt Cowley said business leaders were impressed with the level of honesty of commissioners’ responses to the concerns raised by the business community. Still some major frustrations to unpick “There are some genuine governance skills there that boost the confidence of businesses. There are, however, some major frustrations there that will not be able to be unpicked in only 18 months. Businesses have found it easier to work with other councils that have a ‘can do’ attitude, compared to Tauranga, which has been risk averse. The commissioners took that on board.” The commissioners’ first job has been to compile a long-term plan for the city’s development, with no small measure of catching up contained within its 10-year window. Tolley told business leaders that in 30 years of politics she did not think she had ever seen a community so poorly served as Tauranga. “There is some catchup built into this plan. We have to ensure the community buys into this plan before we go.” Easing the housing shortage Key components of the long-term plan include easing Tauranga’s housing shortage, and providing for more than 9000 jobs between the city centre and Tauriko. Improving transport and community facilities – including parks, pools and libraries – are also prioritised. Revitalising the moribund city centre and encouraging private investment there is also a priority. The plan is open to community consultation through May, and aims to be adopted by late July. Tolley says the city’s executive has acknowledged it lacked the capacity and knowledge to make the major capital upgrades that need to be made, and the commissioners were acutely aware of the tight 18-month time frame they had to operate under. She urged Tauranga business people to think hard about the type of council they wanted to have in place, on their departure. Cowley said the city is entering the most significant capital investment period it has ever witnessed. Key projects on the priority list include a $45 million revamp of Cameron Road, $20 million invested into water treatment, and several million into building greater climate change resilience into existing infrastructure. “Most businesspeople are looking at this as an investment, and that starts with confidence in the board, this showed there is confidence, but a lot of work is still to happen.” Business operators optimistic on commissioners’ appointment Tauranga businesses are welcoming the professionalism and impetus the appointment of commissioners to the city are bringing after years of inertia. By RICHARD RENNIE Priority One chief executive Nigel Tutt told Bay of Plenty Business News the ability of the commissioners to act without the influence of an electoral cycle should not be underestimated, coming after more than a decade of “low rates” electioneering that has crippled many aspects of the city’s development. “Their brief is very clear,” said Tutt. “They have formed a long-term plan and are aiming to get the financial side sorted. There are three clear areas to work on- transport, housing and the CBD. They have recognised what the issues are very well and have got moving on decisions that have been lingering for years.” In a March meeting with Tauranga businesses, commissioner Anne Tolley described Tauranga’s arteries as “clogged”. She also said in 30 years of politics she did not think she had ever seen a community so poorly served by its council as Tauranga. Housing shortage bottleneck Nigel Tutt says the business community regard housing as an utmost priority, given the bottleneck its shortage creates for businesses wanting to draw new staff to the region. “They simply do not have anywhere those staff can be housed.” Utilising the central government’s housing acceleration fund and having the government on board to provide transport infrastructure means zoned areas in Papamoa East and Tauriko West can now get moving on development. He is also confident there will be Nigel Tutt significant strides over the coming seven to eight years on CBD re-development, thanks to the commissioners undertaking to ensure the city council will underwrite activity happening there. “Plans are afoot, and redevelopment there is not rocket science. It is about telling the right story to investors, assuring them this is a zone that is on the way up, and helping take some of the risk out of that investment, which has not been the case before.” He said it was hard to know if the commissioners will be staying beyond the initial 18-month period they were employed for. “But most people I talk to in business would be in favour of seeing that extended. Eighteen-20 months is a very short space of time to make these changes.” A decade too late? He agreed that in some respects the appointment of commissioners was a decade too late. “A lot of the hard work to be done now is because the hard decisions have not been made earlier. That 2-3% increase on rates every year not put through does not go away, it just banks up while the stuff they need to be spent on just gets more expensive.” On January 14, Tauranga City Council’s credit rating was lowered by S&P Global Ratings, with concerns raised over its political and governance issues. S&P raised concerns over Tauranga’s lower than previously budgeted rate increases leading to very large deficits and rising debt levels. The report’s authors cited concerns over Tauranga’s capital account deficits over coming years averaging 25% of total revenue per year, weaker than most domestic peers. Tauranga was however expected to benefit from the $15 million in Three Waters reform, $45 million from the Te Papa “shovel ready” project and $24 million from the sale of elder housing. Tutt says past councils pushed to keep rates down, but were not clear enough to constituents about what would be forgone as a result. Expectations are Tauranga ratepayers will face at least a 20% rates increase to try and claw back income and improve the city’s ability to lift borrowings and remain within lending parameters. “I have not run into any businesses who do not believe a rates increase is necessary.”
May 2021 BAY OF PLENTY BUSINESS NEWS 7 Commissioners get straight down to business Tauranga City Council’s fourperson Commission has wasted no time in getting the organisation’s governance functions back on-track. CITY GOVERNANCE BY ROSS BOREHAM Led by former Cabinet Minister Anne Tolley, the commission’s remaining members are Bill Wasley (the former independent chair of the Western Bay SmartGrowth partnerhip); Stephen Selwood (the founding chief executive of Infrastructure NZ); and Shadrach Rolleston (a consultant planner with strong iwi affiliations). Their combined strengths and experience in governance, planning, strategy and policy development and infrastructure planning add considerable weight to the Council’s decision-making capacity – a critical factor which has been welcomed by the Council’s executive team. Three months into their 20-month tenure (the commission has been tasked facilitating a transition back to democratic leadership for the 2022 local government elections) the Commissioners have gone through an intensive series of briefings on the council’s business; guided the completion of the draft 2021-31 long-term plan (which is now going through formal community consultation) and made a raft of key decisions along the way. They’ve also maintained a hectic community engagement schedule, meeting with a wide range of organisations and individuals to expand their awareness of local issues and priorities. Chair Anne Tolley says they have had a steep learning curve, but are relishing the challenges of their role and enjoying hearing the community’s views. “It’s fair to say there is wide Roading and infrastructure must be a high priority. We need your help to make some very important decisions for Tauranga, so please take the time to read the long-term plan consultation document (available online) and make a submission.” – Anne Tolley recognition that investment in community facilities and infrastructure has not kept pace with the needs of a growing city. That means we have to play catch-up and start working on the facilities which will make Tauranga a great place to live, work, learn and play,” she says. “That covers everything from community centres to cultural facilities (including a new central library) and swimming pools. At the same time, we have to upgrade our infrastructure – roads and water, wastewater and stormwater systems – to keep up with our current needs and put in the new infrastructure required to manage future growth.” Of course, all of those investments have to be paid for, which is where “the going gets tough”. Past decisions to minimise rates increases and use debt-funding as much as possible mean the council is close to its debt-to-revenue limit, with little headroom to take on extra borrowing. The draft 2021-31 Longterm Plan therefore has a strong focus on revenue and debt repayment, to ensure that the city can afford capital expenditure totalling around $4.5 billion over the next decade. “None of that is frivolous spending and it prioritises our most urgent needs,” says Tolley. “We want the widest possible feedback on the draft plan – on the work programme it sets out and on the way we propose to pay for it. “Unfortunately, rates increases are unavoidable, and we are asking the business sector to pay a fairer share of the costs through an increased commercial differential rate, bringing them more into line with other centres. “We’re also working with regional and central government to access infrastructure funding and developers will be asked to play their part through higher development contributions. “If we want to live in a city we can be proud of, it’s time to stop passing the buck. “We need your help to make some very important decisions for Tauranga, so please take the time to read the long-term plan consultation document (available online) and make a submission.” • Ross Boreham is Communications and Engagement Consultant at Tauranga City Council NEWSBRIEF Envico Technologies joins Airspace Integration Trials Programme A memorandum of understanding has been signed between the Ministry of Business, Innovation & Employment (MBIE) and Tauranga-based Envico Technologies, in preparation for a trial which will field test the use of predator-control drones for conservation. MBIE General Manager of Science, Innovation and International, Dr Peter Crabtree, says Envico is the third industry partner to join the Government’s Airspace Integration Trials Programme, which supports world-leading aerospace companies to carry out the development, testing and market validation of advanced drones in New Zealand. “One of the Programme’s goals is to accelerate the integration of drones into New Zealand airspace, in order to unlock the economic and social benefits on offer. Industry partners like Envico will also help to inform policy and regulatory development by sharing data and learnings obtained from the testing of their innovative platforms. “The partnership with Envico adds to the work being undertaken by other industry partners in the Airspace Integration Trials Programme in the areas of passenger transport and high-altitude imaging, demonstrating the depth and breadth of New Zealand’s growing drone sector,” says Peter Crabtree. Envico have a strong track record in predator control using drones, including the eradication of rodents on two islands in the Galapagos in 2019. In 2020, they were the recipients of a Department of Conservation grant, enabling them to begin a series of field trials using drones for dispersal of non-toxic cereal baits. In order to scale up operations for these trials, Envico is developing a new, larger aerial baiting drone, converting a small helicopter to enable remotely piloted operations. “We’re excited for the opportunities that come with being part of the Airspace Integration Trials Programme as we continue our development, says Envico Co-Founder Cameron Baker. “This partnership will enable us to work closely with other industry partners in the programme, sharing our experiences and insights to further advance the aerospace industry in New Zealand.” “I’m eager to see Envico’s progress as they continue development of their predator control drones in New Zealand, especially with a project that will help protect Aotearoa’s flora and fauna from invasive species,” says Peter Crabtree. If you can’t see the Redwood for the trees, our new partner can. Congratulations to Holland Beckett Law’s newest partner, James McDougall, who leads the Rotorua office. If you’ve gone off-track, legally speaking, you’ll need an invested local who knows their way round the trails to get you out. James is just the man. He is an experienced litigator in Court and tribunals and advises clients on a broad range of contentious issues. He’s also a trustee of the Rotorua Bike Festival. Congratulations on your promotion, James. We look forward to seeing you in Whakarewarewa Forest very soon. James McDougall Partner DDI 07 349 5566 Mobile 027 418 4315 james.mcdougall@hobec.co.nz hobec.co.nz HOB26203_BOP_BN
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May 2021 - Bay of Plenty Business News

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