WHANGANUI needs more tourists, new businesses, new jobs and more residents ... as does every other small town in New Zealand.
We attempt to boost local economic development through council-controlled organisations like Whanganui and Partners, Whanganui District Council Holdings and even through central government via Horizons Regional Council and its Accelerate25 programme.
As we peel the onion skin back even further, we find more layers like the Chamber of Commerce, an organisation whose stated role is to "influence and inspire business and deliver success".
There are many more similar groups, but one very important institution in most communities is a retailers' association.
In Whanganui, we have a different type of retailers' association called Mainstreet Whanganui, which is run as an incorporated society that contracts to the district council.
Mainstreet Whanganui was an idea brought back to Whanganui by local businessman Bill Main, the father of former mayor Annette Main, who had seen the concept of concentrating on a core retail street in a town while overseas as a cycling administrator.
It was set up some 30 years ago when Victoria Ave needed an upgrade.
People from outside Whanganui often comment to me how attractive and clean our central business district is, with those beautiful hanging baskets and the lovely fountain.
None of this happens by itself, and this is what Mainstreet Whanganui does -- it even tries to fill all those empty shops with start-up businesses and/or artworks.
It doesn't happen by itself: Mainstreet Whanganui staffer Geoff Follett and the iconic Watt Fountain, a prominent feature of Whanganui's well-kept central business district. Photo/file
It also creates and promotes events such as the Mainstreet Business Awards, Halloween night, Vintage Weekend and the Christmas Parade, and it hosts the annual Festival of Cultures and other activities.
Mainstreet Whanganui is an integral part of economic development in Whanganui and these events draw in visitors from all over New Zealand.
Although Mainstreet is an incorporated society, it is effectively what some might call a quango (quasi-autonomous non-governmental organisation) as it is funded by the district council through a contract to clean, maintain and promote the CBD.
The council, under the Local Government (Rating) Act 2002, funds this by collecting targeted rates from CBD businesses (and general ratepayers), while businesses in the central city area also pay a promotions levy, collected as part of their rates.
Mainstreet's original goal was to create a thriving and energetic CBD, and they do a wonderful job with a small number of paid staff and a dedicated, but unpaid, board of directors.
There was a bit of controversy at their last annual meeting when the Mainstreet board was confronted by retail members unhappy with restructuring plans and a lack of communication.
The board is now working with members to make changes to the constitution and has worked at improving communication with members. It has also decided on a review of the strategic direction of the organisation and this review will be undertaken by Russell Bell, an independent contractor.
One of the downsides of an organisation like Mainstreet Whanganui is that its members, mostly retailers, are forced to fund its activities via a council levy.
Some retailers often feel they are not getting value for money, or that their ideas are being ignored.
Nothing unusual there -- no one likes having to pay taxes -- but organisations like Mainstreet can no doubt improve relationships with the people they represent, which usually means sitting down with various parties and talking issues through.
Retailers' associations around New Zealand are interesting beasts and have had their issues.
The Timaru retailers' association folded in 2004 due to a lack of membership, and last year the Havelock North Business Association president, Sam Jackman, stood down after becoming frustrated by a lack of support from some members of the association.
The good news here in Whanganui is that frugal management means Mainstreet has amassed a war chest of more than half a million dollars, built up over the years.
This raises the question: is the council paying Mainstreet too much to do what it does for the council?
Well, the answer is no, according to Leighton Toy, council general manager of property.
Mr Toy said: "Prior to entering into the new contract, council undertook a review of the services provided by Mainstreet, inclusive of considering an alternative service delivery method.
"The outcome provided council with confidence that the services provided by Mainstreet offer the ratepayer good value for money."
The next question is: what will it do with the half-million dollars it has stashed away?
Looking through the constitution (which is under review), it can use that money for just about anything it wants.
I did hear rumours they might put some of it into purchasing a heritage building, but acting chairman and local businessman Peter Robinson said: "Mainstreet is a service organisation, not a property investor, and should stay that way."
Mainstreet has spent money restoring the Watt Fountain and painting bollards in the CBD.
While the board advised in a recent newsletter that it would hold a good part of the funds as working capital and for financial security, I suggest -- after analysing its annual accounts (available through the Companies Office) -- that it does not invest nearly enough on advertising to promote the various events it runs.
Mainstreet is missing a golden opportunity to help members benefit from increased foot traffic and improve economic development in Whanganui.
Underspending on advertising is common for many organisations. They often see it as a waste of money rather than the good investment it can be.
While Whanganui has a wonderful experience to offer visitors and tourists, if we do not get that message out to them, they will not come and spend their money.
What better way for Mainstreet to invest its war chest?
Steve Baron is a Wanganui-based political commentator, author and founder of Better Democracy NZ. He holds degrees in economics and political science.
