Economic development should be key focus of Bay of Plenty Draft Long Term Plan

Property Council’s Bay of Plenty Branch strongly believes slashing infrastructure funding and not enough attention on economic development will seriously hinder the region’s much-needed growth.

The Branch has made a submission on the Bay of Plenty Regional Council’s Draft Long Term Plan (LTP) 2015-2025, which in its current form, has too much of a focus around water quality and environmental protection.

While the importance of clean water and environmental protections are recognised in its submission, the branch makes a case for the Council to focus its combined efforts on leadership, collaboration and especially economic development to strike the right balance.

The Council has committed 55% of its planned $107 million spending for 2015/16 to these, while only 44% of it has been allocated to resilience and safety (planning for natural hazards), regional collaboration and leadership and economic development.

The branch strongly opposes the LTP’s proposal to reduce SmartGrowth funding by $200,000 per year from Year 3 onwards, as it will render the Council incapable of meeting its joint commitment to implement the Smart Growth Strategy 2013.

SmartGrowth is paramount to encouraging business and development, and its spatial planning provides direction and collaborative focus for both public and private investment. The Council itself has recognised this in the LTP and slashing these funds will lead to impeding its own economic growth objectives.

Property Council is a strong supporter of the $200 million Regional Infrastructure Fund that Council and Quayside Holdings Limited co-established over the last few years, and the $40 million allocations for the tertiary campus and marine precinct in Tauranga, Scion Innovation Centre in Rotorua and Opotiki’s harbour transformation project.

It is understandable that the Council seeks to replenish this fund, following the above allocations.

The branch believes dividend income from Quayside Holdings Limited’s investment in Port of Tauranga provides a great opportunity to achieve this over a period of time without necessarily enforcing a “new funding hiatus” as currently proposed in the LTP.

It is vital to ensure appropriate investment is funnelled into infrastructure to secure greater longer-term gains for the region, such as increased investment, development and economic growth.

Property Council chief executive Connal Townsend says changing demographics such as an ageing population and a declining ratings base in some areas highlights the need to make sure the LTP sends the right signals.

“We need more investment in local communities to pitch the Bay of Plenty as a good place to live and do business in. It’s crucial for the LTP to focus on providing regional leadership on economic development and growth otherwise it faces the risk of missed opportunities.”

Property Council is actively engaged with Government officials and local councils on its 2015 Manifesto, which sets out a case for culture change, including having more people with development expertise within councils, alongside the planners, urban designers and heritage experts.

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