Elected members - including Whanganui Mayor Andrew Tripe - were split 10-3 in favour at a closed door meeting last month.
Councillor Josh Chandulal-Mackay said he had been “a fair way off” convincing his colleagues to keep Whanganui & Partners independent.
“My contention is that we have a $100 million budget and $1 billion in assets and we are focused on all sorts of different areas and priorities,” he said.
“I don’t think we have the time in our schedules to deliver the type of economic development governance that could be delivered by an independent board.”
Staff members - including those working at Whanganui’s iSite - will be retained under the new model but the agency’s board will be disestablished.
Chandulal-Mackay said personnel changes within the council, both politically and operationally, might impact the agency’s delivery if it was in-house.
“We need to start saving money where we can,” he said.
“I think this will be great for Whanganui & Partners in the end, providing everyone can de-stress. That‘s the biggest thing. There would have been a lot of uncertainty for staff.”
Councillor Philippa Baker-Hogan said the agency had made a good difference to the district’s economic outcomes but she was in favour of bringing it in-house.
“There needs to be high scrutiny and I’m very confident that David [Langford, council chief executive] and his team will do even better - while continuing to reduce the ratepayer cost.”
Deputy Mayor Helen Craig was one of the three councillors who voted against the move.
She said keeping the agency independent meant it could be freer from political influence and freer to take advantage of opportunities.
“I spoke to a number of people in our community before this, just to sound them out. Some will be alarmed but the general consensus is that it’s the right thing to do - as long as things continue as usual.
“That’s what we are expecting.”
Councillor Glenda Brown said the region faced a high rates increase and a cost-of-living crisis and council needed to take responsibility and look at cost savings.
She was “comfortable with the decision”.
“We think this change, along with other decisions, will show the ratepayer that we are intentional with cost-saving initiatives that every other sector is also having to work through.”
There had been multiple discussions about making sure the agency could continue to make decisions without the added bureaucracy of being under council, Brown said.
Mike Tweed is an assistant news director and multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.