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Regional Council Shapes 2025–26 Annual Plan With Community Input
Regional Council Shapes 2025–26 Annual Plan With Community Input

Scoop

time28-05-2025

  • Business
  • Scoop

Regional Council Shapes 2025–26 Annual Plan With Community Input

The Hawke's Bay Regional Council has today made decisions on its draft Annual Plan 2025–26, following public consultation between 31 March and 2 May this year. Regional Council Chair Hinewai Ormsby acknowledges the contributions of the 99 people and groups who made formal submissions, as well as those who provided feedback via social media. 'Thank you to everyone who took the time to share their views through submissions. Your feedback reinforced that affordability is what matters most to our communities.' The Regional Council has made some tough decisions and trade-offs to reduce costs across some services, she says. 'We've cut the average rates increase to 9.9 percent — a significant reduction from the 18.3 percent originally forecast for 2025–26. (Please note - this excludes the new targeted rate for the Mangarau Stream for some Hastings district ratepayers). ' This plan is about more than the next year, says Chair Ormbsy, it's about building long-term resilience for our region. 'We're preparing for the bigger conversations around future investments needed to strengthen our flood defences, and water supply resilience and support erosion control. We will engage with our community on these key priorities, with a focus on building a stronger future for Hawke's Bay.' Key decisions from consultation topics: Mangarau Stream flood resilience Regional Council will collect a new targeted rate over three years for flood resilience work for Mangarau Stream in Havelock North, following Cyclone Gabrielle. This will impact about 27,000 ratepayers in the Hastings district. We are collecting this rate to secure Crown funding as part of a regional recovery package and will pass the money collected on to Hastings District Council (HDC). HDC is responsible for the management of streams in Havelock North and are undertaking the work. Passenger transport funding Following public feedback, Regional Council will adjust the way the passenger transport service is rated. Regional Council provides the bus service, goBay and the Total Mobility scheme which provides essential services for people with permanent disabilities. The new model better reflects who has access to these services and standardises a large proportion of the amount paid by households. Upper Tukituki flood control scheme To ensure a more equitable distribution of costs among those who benefit from the scheme's protection, Regional Council will introduce a revised rating method for the Upper Tukituki Flood Control Scheme. The Regional Council also undertook consultation on the Draft Regional Public Transport Plan 2025-2035. The Regional Transport Committee are meeting on 6 June 2025 to deliberate on proposed changes. The Regional Council will formally adopt the Annual Plan 2025–26 and Regional Public Transport Plan 2025-2035 at the Council meeting on 25 June 2025.

Community Feedback Sought As Flood Mitigation Makes Progress
Community Feedback Sought As Flood Mitigation Makes Progress

Scoop

time26-05-2025

  • Business
  • Scoop

Community Feedback Sought As Flood Mitigation Makes Progress

The community is being asked to provide feedback on a proposed legislative amendment that would enable a streamlined consenting process – established to speed up flood mitigation works – to be used to deliver much-needed flood mitigation to Wairoa. The Hawke's Bay Flood Protection Works Order 2024 covers eight locations across Hawke's Bay, including Wairoa, and sets out a streamlined resource consent process for flood mitigation works to help enable Councils to move Category 2C properties to Category 1. Whilst much of North Clyde is already covered under the existing Order, Hawke's Bay Regional Council has asked the Government to update the map and description for Wairoa to reflect the proposed Option 1C+. Hawke's Bay Regional Council Chair, Hinewai Ormsby, says the amendment will help to speed up the construction of the proposed flood mitigation solution. 'With the land access negotiations now well underway, it's important to look ahead to the next steps in the project. 'Provided land access can be secured, our request to the Government is important to get confirmed so we can start construction as planned in late 2025. It's also an important step for our Wairoa community who have been incredibly patient as we work through these matters.' Crown Manager, Lawrence Yule, says the project continues to make good progress in other areas following last month's confirmation of the Crown's $70 million of funding. 'With the Project Delivery Plan (PDP) approved and funding confirmed, the project's focus remains on securing the land access required to deliver flood mitigation for Wairoa. 'Negotiations have already been completed for one property, which is a fantastic outcome not just for the project but for the homeowners, who have finally been able to move forward with their lives more than two years after Cyclone Gabrielle. 'Property valuations are currently being completed on several other properties, and we continue to engage directly with impacted home and landowners to try and find a solution that enables them to move forward with certainty.' Mr Yule says additional cultural assessment activity is planned, to complement the Cultural Impact Assessment (CIA) previously completed in late January. 'We recognise mātauranga Māori exists in many places and forms and remain very open to receiving further cultural input. We appreciate the way mana whenua, including marae representatives, continue to engage with us and thank those who have provided valuable input into this process.' Note: Have your say The Ministry for the Environment will be accepting feedback on the proposed amendment until 5pm on Friday, 30 May 2025. More information is available online:

New Plan For Wairoa River Mouth Will Improve Resilience For The Wairoa Community
New Plan For Wairoa River Mouth Will Improve Resilience For The Wairoa Community

Scoop

time22-05-2025

  • General
  • Scoop

New Plan For Wairoa River Mouth Will Improve Resilience For The Wairoa Community

A new plan for managing the Wairoa River Bar is set to improve resilience for the Wairoa community in flood events. The Intermediate Management Plan for the Wairoa Bar, led by Hawke's Bay Regional Council in collaboration with Wairoa District Council and Tātau Tātau o Te Wairoa, outlines a proactive approach to managing flood risks. The top priority remains to keep a healthy open mouth in its optimal location, and where there are opportunities to relocate the mouth from a poor to ideal location – this will be progressed. Also, as conditions allow, it has been agreed to carefully lower a section of the beach crest between Rangi-houa (Pilot Hill) and the old pier. This will be maintained, and monitored, and allow water to safely exit during a flood, reducing the need for emergency bar openings and helping to manage risk more effectively. Hawke's Bay Regional Council Chair Hinewai Ormsby says the plan is a more resilient way of managing the Wairoa River mouth. 'We're grateful for the partnership with Wairoa District Council and Tātau Tātau o Te Wairoa in delivering this important piece of work.' The plan is a 'living document' that will be reviewed and updated as needed, she says. Wairoa Mayor Craig Little welcomed Regional Council's approach to river mouth management. 'Anything that can be done to mitigate flooding risks is imperative. As we near the first anniversary of the June 2024 flooding, I am mindful that we still have many people who have not recovered from the floods, and we will support anything we can to help protect our community." Crown Manager Lawrence Yule has emphasised the importance of a holistic floodplain management approach for Wairoa, including both short-term and long-term strategies for the river bar. 'This plan marks an important step toward a safer and more consistent approach to managing the Wairoa River mouth. It's also just one piece of the puzzle, and further work to develop a permanent, long-term solution to the bar is ongoing,' Mr Yule says. The Regional Council says leading up to proposed work starting, an ecological survey of the Wairoa Bar was carried out. The community can expect to see gravel surveying starting in the coming days and diggers working on the bar in the coming weeks.

Capital Markets: Why councils should embrace asset recycling for growth
Capital Markets: Why councils should embrace asset recycling for growth

NZ Herald

time13-05-2025

  • Business
  • NZ Herald

Capital Markets: Why councils should embrace asset recycling for growth

Late last year Infrastructure New Zealand, in partnership with Aurecon, released a report that should be essential reading for those intending to stand for council at this year's local body elections that open for voting in September. Titled Unlocking Value: Recycling Our Infrastructure Assets To Grow New Zealand, the paper explores the topic of asset recycling; partnering with the private sector on existing public assets and 'recycling' cash back into infrastructure communities need. It explains that existing assets are monetised to release capital and recycled to better use infrastructure. New or upgraded infrastructure delivers on public outcomes needed without raising debt. Asset recycling differs from privatisation as it 'recycles' capital back into higher performing infrastructure. The New Zealand public markets can help with this by offering councils options that do not burden ratepayers in needing to pay for increased levels of debt. Napier Port – a funding success Utilising New Zealand's public markets provides another tool in a council's toolkit alongside rate hikes, increased levels of debt, selling ground leases, development contributions and user-pays. Our markets cater for a range of funding options to raise capital whether it be an equity listing or raising debt. In 2024, $15.8 billion of capital was listed or raised on the NZX. This highlights the value of being NZX-listed in a capital-constrained environment. Each council may have different requirements for why it needs to access capital. For Napier Port, which was fully owned by the Hawke's Bay Regional Council (HBRC), it was about how it could expand its physical operation, diversify its risk and increase profitability – all without increasing the amount ratepayers would have to pay. HBRC and Napier Port Holdings explored multiple options, including private investment, leasing to an international operator, and an Initial Public Offering (IPO). However, retaining majority public ownership was a key priority, making the IPO the preferred strategy. They consulted extensively with local stakeholders – including politicians, businesses, employees, local iwi, ratepayers, community groups, shareholders and media. In December 2019, Napier Port Holdings listed 45% of Napier Port on the NZX. The IPO unlocked $234 million of capital, enabling Napier Port to expand its berth capacity. Importantly, the Napier Port IPO has delivered substantial benefits, enabling critical infrastructure expansion, financial diversification for the Hawke's Bay Regional Council, and economic growth for the community. Dividends paid to shareholders are higher than before listing. The Napier Port example shows that asset recycling is not about selling down the family silver, it is actually about growing the family silver, freeing up capital that can be better used elsewhere, and all to the community's benefit. This was community leadership in action, creating a positive legacy where regional councillors should be applauded for their strong governance. In the past couple of years Auckland Council has demonstrated similar pragmatism with the sell down of its 9.71% stake in Auckland International Airport into a professionally run, council-controlled organisation (CCO), the Auckland Future Fund. That fund is expected to provide additional funding to Auckland Council of around $40m of cash returns per year – all without raising rates or increasing debt. Where else could asset recycling help? There are many councils throughout New Zealand that would benefit from asset recycling. The Bay of Plenty Regional Council is looking to reduce its 54.1% shareholding in the Port of Tauranga to ensure it better diversifies its investments through its commercial arm, Quayside Holdings. Christchurch last explored this in 2023 but councillors decided not to take the next step. The question for that city is: does the council through its investment subsidiary really need to own 100% of Lyttelton Port, 75% of Christchurch International Airport (the Crown owns the other 25%) and 89.3% of Orion Group (Selwyn Council owns 10.7%)? What direct benefits are the city and its residents gaining from this level of ownership at a time when the city will need additional capital for infrastructure to support 32,000 extra people in the next decade? Likewise, does Dunedin City Council need to keep 100% ownership of Aurora Energy? The sale proposal on the council table last year was aimed at reducing debt and creating an investment fund that could produce millions of dollars each year. That ultimately was not supported. The lines company has reported forecast debt level of $581m by the middle of this year. It is an asset that requires significant capital investment – money that may have to come directly from Dunedin ratepayers. A partial float could facilitate the growth capital Aurora requires without burdening ratepayers and, at the same time, retaining majority control for those who see it as a 'strategic asset'. Then there is Wellington International Airport. In October last year Wellington City Council was looking to sell its 34% stake in the airport to establish a new perpetual investment fund. That money ($492 million) was earmarked to help the city recover following a future natural disaster, address the council's insurance risk and reduce reliance on future borrowing. That too, narrowly failed to get the green light from councillors and now Wellington has a significant challenge on how to pay to improve its infrastructure. Without a solution, this financial burden could fall on ratepayers. The Wellington, Christchurch and Dunedin examples are in many ways a community communications and engagement challenge. Councils keen on exploring asset recycling need to ensure they achieve community stakeholder buy-in and goodwill. And that includes engaging with local stakeholders and media and being open with them on what the process is and the outcome that is being sought. It is all about context and councils should not be afraid of debate if they have done their homework. That is where HBRC succeeded in Napier: it specified exactly where – and how much – of the recycled capital would go into specific infrastructure. If councils do this, it then becomes a discussion of gaining something new from something existing. It needs to be that granular to ensure ratepayers and stakeholders understand what the outcome of the proposal will be. Just saying the money gained from partially listing an asset will go into a consolidated council fund is unlikely to pass the sniff test with ratepayers. Transparency and outlining the funding alternatives for paying for community infrastructure – either more debt or significantly higher rates – are key. Otherwise, the long-term effect will be intergenerational inequity – the grandchildren of ratepayers will be saddled with debt paying for facilities granny and grandad directly benefited from. Using public markets to raise capital to fund growth, or to recycle capital back into high priority infrastructure is a win-win. Also, once listed, councils have the option to allow these businesses to raise secondary capital through the market to fund further growth and opportunities. Councils are more than just rubbish, roads and rates. Arguably they play a more important role in our daily lives than central government. The water you use in the shower, the local roads or trains you use to get to work, the parks, pools, playgrounds and halls where families play and exercise – they are all the responsibility of a council. And that infrastructure has to be paid for. It is simply unaffordable and disingenuous to say that ratepayers should solely foot the bill. Councils also have a key role to ensure they create a town or city where people want to live and businesses want to invest, grow, hire more people and, in turn, create wealth and value for their community. There is no magic money tree to pay for all of this. Utilising public markets to raise and recycle capital provides practical options for council funding. It is transparent, democratic and, as we have seen with Napier Port, hugely successful for all.

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