The seven employees currently working for BHB, as well as a number of contractors, will be affected by the closure. Photo / Supplied
The seven employees currently working for BHB, as well as a number of contractors, will be affected by the closure. Photo / Supplied
Business Hawke's Bay is threatening to close its doors after the region's councils rejected its plea for additional funding.
The organisation, which receives annual funding of $330,000 from the five councils, has requested an extra $300,000 for this year and $600,000 for the 2021/22 financial year.
Napier City Council, HastingsDistrict Council, Hawke's Bay Regional Council, Wairoa District Council and Central Hawke's Bay District Council said the request was "not realistic" and "a significant increase in ratepayer funding".
Business Hawke's Bay chairman Stu McLauchlan said continuing the status quo for the organisation is not an option based on the current funding model.
"This could leave Hawke's Bay as an outlier, without an established, credible organisation to engage in funding opportunities," McLauchlan said.
In a joint statement, the councils said they are considering forming a new Regional Economic Development Agency (EDA) to lead (non-tourism) economic development activities, following a recent review on Hawke's Bay's current approach to economic development.
The review, a legal obligation to periodically evaluate the cost-effectiveness and performance of local government-funded initiatives, aims to "ensure the ratepayers of Hawke's Bay receive value for money".
Business Hawke's Bay has threatened to close after the region's councils rejected a plea for additional funding. Photo / Supplied
The seven employees working for BHB, as well as a number of contractors, will be affected by the closure.
McLauchlan said having a positive impact on local businesses "relies on mandate, mana and money".
"We have consistently sought additional funding from councils, however, funding has been stagnant for many years now," he said.
"Without the ability to build our capacity to deliver more impact, especially at this time, the board has taken the difficult decision to consider winding BHB up. That is the only responsible and prudent course of action we're left with."
The seven employees currently working for BHB, as well as a number of contractors, will be affected by the closure. Photo / Supplied
HBRC chair Rex Graham said all councils will work positively with BHB to help them through their transition.
Hastings mayor Sandra Hazlehurst said the review will give local businesses the confidence and backing to "ensure continued investment and growth for Hawke's Bay's future".
"We have so many examples of the power of iwi, business and council collective leadership and we know that we are stronger when we work together," she said.
Craig Little, mayor of Wairoa, said the coming months are "critical" to consider the weight of the review.
Little said the recommendations point strongly towards the creation of a new agency that has the mana, mandate and resources to once and for all champion economic development for Hawke's Bay.
