What a great place we live in…

It is so easy to be critical, but let’s not forget that we live in the best city, in the best country in the world! Yes I know that our Green cousins criticise government agencies for promoting New Zealand as “100% Pure”, but that is exactly how we are viewed from abroad, and visitors to our country do not go away disappointed. Let’s celebrate what we have – yes it can still be improved, but we are a long way ahead of most places in the world. New Zealand is paradise, and Tauranga is a most special place within that paradise.

Again I should record my appreciation of what we are achieving in the Western Bay. I am looking for much more effectiveness and efficiency in our City, District and Regional Councils, but I do acknowledge the fact that the Bay of Plenty has the highest GDP growth of all regions in the past 12 months. The fact is that we currently still sit below the New Zealand average in GDP per Capita, and Tauranga (with its high retirement population) underperforms the rest of the Bay, so there is no room for complacency.

We have to be ambitious, and this takes vision. Our sub-regional development agency, Priority One appears to have that vision; and it seems to be catching. We have the biggest, and most efficient port in New Zealand; we finally have a signed MOU between Waikato University, BOP Regional Council, Tauranga City and TECT (Tauranga Energy Consumers Trust) to build a bricks and mortar downtown university – a game changer for us all. The Marine Precinct is slowly moving forward, but what we need now is to capitalise on the 2015 Budget initiative of $25m over three years to support the establishment of new privately led regional research institutes, by advocating to fund Chris Battershill’s fledgling Coastal Science Environmental Research Institute into a world’s best Marine Research Institute. The current work that Chris is doing needs funding to ensure that the Bay of Plenty becomes just that. The potential for marine based pharmaceutical discovery is huge, and Professor Battershill is extremely well placed to capitalise on this Budget initiative.

Come on Western Bay – let’s step up and accept the challenge. Good just isn’t enough, we have to always aspire to be the best. We have the climate and the environment, and now we need the vision and the passion to succeed.

If you have a view on these or any other local government issues, I invite you to email me at andrew@vond.co.nz , or visit www.vond.co.nz

Our Western Bay needs to do better

The Government Report “Toi Moana Bay of Plenty Growth Study”, released last week by Minister Joyce, is a bit of a wake-up call for the Western Bay. In my view this report missed the mark when it highlighted “Priorities for action”. It included the usual Regional local government strategies, but nowhere was there a mention of the wonderful work of Professor Chris Battershill, Chair of the Coastal Science Environmental Research Institute at Waikato University, and based at Sulphur Point, Tauranga.

I remember one of Chris’ presentations, when he advocated for marine pharmaceutical research, which offers Tauranga a game-changer with the potential to harvest marine based minerals that offer huge pharmaceutical potential. This offers our region high margin, exciting growth prospects, in contrast to (for example) unrealistic expectations for low commodity type mussel farming at Opotiki, with an estimated cost of $80m for the farm, hatchery and processing; and another $52m for the harbour development. There is no question as to where the best place from a New Zealand Inc perspective, is to put our investment.

The problem is that our local government politicians lack real vision, and just want to be seen to be fair and reasonable. Well let me tell you that this same “Growth Report” notes that GDP per Capita is higher in the Eastern Bay (and in Rotorua/Taupo) than it is in the Western Bay.

GDP per capita of BOP sub-region GDP per capita by Region, 2014

Source: Infometrics Regional Database

Western Bay and Tauranga City ratepayers continually subsidise Rotorua and the Eastern Bay, while the data clearly shows that the Eastern and Central Bay continually outperform us Westies in economic terms (on a per capita basis).

We need a Tauranga based University, but please ensure that it is clearly focused on improving economic development for our region. Tauranga University will be a wonderful asset to our city, so let’s make sure our politicians don’t pander to the PC by agreeing to study in unproductive “cultural” courses, but concentrate on real “add value” study. Integrating a substantive marine research institute into our proposed university will be a win-win for the whole of the Bay.

If you have a view on these or any other local government issues, I invite you to email me at andrew@vond.co.nz , or visit www.vond.co.nz

An accolade and a brickbat

Tauranga Energy Consumers Trust

Let me commend the Tauranga Energy Consumer Trust for divesting 6.4% of its holding in Trustpower. This $154.8m divestment makes compelling commercial sense, as this Trust is a cornerstone community fund that needs to be properly diversified. The investment in Trustpower (by TECT) has been a very rewarding one for TECT beneficiaries since it was established in 1993, but over the last five years Trustpower’s earnings have been at best flat, and therefore I commend our TECT Trustees for initiating this diversification. TECT Trustees challenge will be to invest this freed up $154.8m effectively. The track record of some other community trusts, like BayTrust (which was established upon the sale of Trustbank), has not been impressive. We will monitor TECT’s future performance with real interest, as this $800m plus community fund needs to be managed with care to ensure that Tauranga residents continue to strongly benefit in the future.

Bay of Plenty Regional Council

I’m sorry but I can’t be so generous with the Regional Council. While deliberating on the Regional Long Term Plan (LTP) our Regional Councillors were informed that Rotorua residents are paying $8m in rates, and yet are receiving $20m in benefits. The difference of $12m is effectively coming from the pockets of Tauranga and Western Bay ratepayers. As I have said before, I have no issue with unbalanced funding in any one (or two) years, but this has been happening for the last ten years, and the Regional Council’s LTP indicates that it is their intention to continue this practice for at least the next ten years. Tauranga City residents and ratepayers need to rise up in unison and stop this wrought. Our locally elected Regional Councillors need to be held to account. This is plain wrong….

If you have a view on these or any other local government issues, I invite you to email me at andrew@vond.co.nz