Te Waka, the Waikato's business-led economic development entity, failed in June this year, blaming underfunding. Photo / Supplied
Te Waka, the Waikato's business-led economic development entity, failed in June this year, blaming underfunding. Photo / Supplied
The next step in a fifth attempt by the Waikato region to create a sustainable economic development driver should become clearer by February next year.
Waikato regional councillors have voted to “progress” a business case and operating model for a regional leadership approach to the vexed challenge, buthaven’t ruled out a council-controlled entity doing the job in future. The work is due to be completed over the next four months.
It is anticipated Waikato Regional Council (WRC) would convene any leadership group that results, facilitate alignment of activities and investment and lead the development of a regional spatial plan, a council spokesperson said.
The decision by WRC councillors follows the failure mid-year of Te Waka, an independent, business-led economic growth entity.
Te Waka was the region’s fourth attempt at a dedicated entity to drive economic growth in New Zealand’s fastest-growing region. It was launched six years ago citing a determination not to fail as others had before it.
Observers variously blamed “protection politics” among the huge geographical region’s 11 local authorities, business apathy, splintered geographic interests and the economic crunch which forced councils to tighten spending. Others said it simply didn’t get enough money - including from its prime constituency, business. Some questioned Te Waka’s value for money.
Te Waka had three fulltime staff and had been running on an annual budget of around $1 million, $750,000 of which was from the regional council. Some other councils also contributed smaller amounts.
After a major canvas of the region’s stakeholders by WRC staff spurred by a commitment from the council to support economic development, councillors were presented with three options for progress on filling the void: the status quo with WRC continuing its existing financial support but with no increase in resourcing; an organisation operating with council funding as a council-controlled organisation; and a regional leadership approach, requiring additional WRC resource.
Its principles include: a leadership group comprising representatives from local and central government, iwi and the private sector and regional delivery, including data and analysis, advocacy and infrastructure.
A council statement said this approach supported the work of economic development entities already established by councils, iwi, tourism and local business.
Council chair Pamela Storey said the regional leadership approach was about drawing on the efforts and expertise of established organisations and networks in the region.
“In choosing an option for further development, it was important for us to find a balance between enabling the economic growth of our region and ensuring the affordability for our ratepayers, recognising many are already under financial pressure.”
Pamela Storey, Waikato Regional Council chair, says the council remains committed to supporting the geographically-diverse region's economic development. Photo / Supplied
Councillors also agreed to fund up to $100,000 from the previous year’s surplus to support regional development activities.
These would include the preparation of profiles of the region’s economic communities of interest alongside a decision framework to identify roles and responsibilities for identified areas, strategies and implementation.
Councillors heard that many government and non-government organisations had been working together since Te Waka’s closure and would be reconvening the Waikato Economic Development Forum from next month.
However, the WRC staff paper to councillors also noted: “...Even with the most effective network, the current problem is that there is no identifiable ‘go to’ body to consistently support cross-organisation collaboration or provide ‘the virtual front door’ for offshore or government investors expecting the region to engage as a collective”.
Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.
