23 November 2011

Council-Controlled Organisation to be established to deliver on Economic Growth Strategy

Rotorua District Council has adopted a Council-Controlled Organisation (CCO) as its preferred structure to drive the implementation of the recently adopted Rotorua Sustainable Economic Growth Strategy (RSEGS).

The primary purpose of the council’s new RSEGS is to ensure Rotorua’s economy grows faster than it otherwise would, and to align existing economic development strategies by setting a clear, communicable economic development direction for Rotorua.

RDC group manager Economic & Regulatory Services Mark Rawson said there is a focus on implementation through various stakeholders performing their roles in the areas where they can best influence outcomes.

“The CCO will operate at arms’ length of council and was one of two options investigated through an extensive business planning process resulting from the economic growth strategy process. The CCO was the Project Reference Group’s first preferred option. “

The four main rational for the CCO structure decision were:

1. It provided the strongest accountability for delivery to the council and the community.
2. Has clarity of role and manages against risk of role duplication.
3. Will be able to assemble a small focussed team that will act strategically and unencumbered to affect the best economic outcomes for Rotorua.
4. Develops a healthy tension between the council and the CCO to keep both focussed on sustainable economic developed outcomes.

Mr Rawson said the role of the CCO was clearly defined in the business plan documents and focussed implementation of a number of areas of the economic growth strategy.

“Council however still has a critical role, especially in the areas of marketing the destination as a place to visit, live, work and invest; driving the implementation of the CBD revitalisation project; delivery of some cycle related projects; and most importantly focussing on positioning RDC as a go-ahead-council with a business friendly can-do attitude.”

He said sustainable economic development is not something that is a dedicated special project or department of council but something that is integrated across all areas of the RDC day to day business.

Economic & Regulatory Services Committee chairperson and member of the Project Reference Group Cr Mike McVicker says having a small, dedicated team focussed on acting strategically and creatively will ensure the best economic outcomes for the city.

“This is a step in the right direction and an investment in our future. The next steps are vitally important around the establishment of a statement of intent and recruitment of the board and appointing a CEO because at the end of the day the people associated with this are the key to making it successful.”

Resources required for the Rotorua Sustainable Economic Growth Strategy will be included in the council’s 2012-22 Long Term Plan.

ENDS

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