Whanganui Innovation Quarter, home to Whanganui & Partners.
Whanganui Innovation Quarter, home to Whanganui & Partners.
Whanganui’s economic development will be brought under district council control.
It follows a review of Whanganui District Council’s council-controlled organisations (CCOs) last year and a decision made at a February 21 extraordinary council meeting behind closed doors.
Whanganui & Partners - one of those CCOsoperating independently - will now become a department of the council rather than a separate company with its own board.
Whanganui mayor Andrew Tripe said the change was part of a review of all council expenditure.
“Compliance costs will be significantly reduced because there won’t be a need for things like separate audits and accounts for Whanganui & Partners,” Tripe said.
“There will also be savings made with efficiencies in some of the back-office systems.”
He says the initial cost saving is about $118,000.
“With the high rates environment all councils across the country are facing, this is one of many difficult decisions we will need to make to deliver savings and efficiencies.”
A council statement said the Whanganui & Partners board was disappointed with the council’s decision.
The directors believe Whanganui & Partners has been integral to the district’s positive economic development. It hopes the district’s economic development will continue on a pathway of growth and success.
Tripe said there would be no reduction in services.
“From the outside, Whanganui’s economic development agency will look no different. The team will carry on doing a brilliant job of supporting our local economy to grow.”
Whanganui mayor Andrew Tripe.
The council will also bring Whanganui’s iSite, currently managed by Whanganui & Partners, in-house.
Tripe said the council was looking forward to a new era with Whanganui & Partners.
“I recognise this has been a time of uncertainty for all concerned and we are pleased to now be in a position to share this information with the community,” he said.
“We are looking forward to a smooth transition that should now happen relatively quickly.
The transition is expected to be complete by June 30.
“I commend Whanganui & Partners chief executive Jonathan Sykes and his highly professional and capable team on their very evident passion for Whanganui and its economic future.
“I would also like to acknowledge Gaelle Deighton and the board of Whanganui & Partners for their commitment and governance expertise. They have overseen a strong legacy of achievement by the agency.
“I’m sure we will see this work continue and go from strength-to-strength on the basis of this foundation.”
Whanganui and Partners was launched in December 2014 and received $2.6 million of council fundingannually.
