Tauranga City commissioners front business community

Bill Wasley, Shadrach Rolleston, Stephen Selwood and Anne Tolley fronted Tauranga's business community this morning. Photo / George Novak

Tauranga city's new commissioners fronted the business community in their first public event this morning.

About 140 people in the business sector registered for the Tauranga Chamber of Commerce's Business @ Breakfast event at Trinity Wharf.

The event was timely as public submissions on the Long-Term Plan open in early May.

Chamber chief executive Matt Cowley facilitated the discussion in a question and answer format before opening questions up to the floor.

Commissioners Anne Tolley, Bill Wasley, Stephen Selwood and Shadrach Rolleston were appointed in February to head the city until at least October 2022, when the local body elections are expected to be held.

One of the big questions from the attendees included what happens after 18 months?

Chairwoman Tolley said Local Government Minister Nanaia Mahuta had made it clear the commissioners had to work towards restoring local democracy before the next election.

"There would be a backlash from the community, having got so far down the track.

"There's also an obligation to think about who is elected the next time around and having a good selection of people who understand.

"It does weigh heavily on our minds that we have a short amount of time to bring about some major changes. That's why we need everyone's help."

Tolley said councils were multi-billion-dollar complex businesses.

"Council should look like the people they represent. They need to have people elected that have the capability and understanding to make the big decisions at a strategic level for a city the size of Tauranga."

Tolley said the feedback from the business sector so far had been "only good".

"Businesses recognise we're bringing good governance skills," she said.

"We're having to deal with a legacy of underinvestment and they recognise we're making those big calls on future investment and they've got to contribute to that. They recognise they're a part of making this city great."

Wasley said people were keen to make that contribution.

"I think part of that role is continuing that voice and input during the time that we're in place."

About 120 people from the business sector attended the Chamber event. Photo / George Novak

Questions to the commission

Q. The commission is looking to make a pretty drastic correction to the commercial differential. What's the risk that puts off new businesses from setting up here?

A. Tolley: "I think Tauranga is in a unique situation. Businesses are coming here. We've got the biggest port in the country.

"Although it's a big change, one of the jobs we've been doing through developing the Long Term Plan is looking to make sure that the cost of the city, whether it's the existing city or the growth of the future, is shared among all the contributors.

"The commercial rate is tax neutral. They're able to claim their rates as a business expense, whereas the ordinary householder can't. That 1.6 is sort of the tax neutral sweet spot."

"There is a risk post-Covid many businesses are struggling. But in the end, everyone has to take some of the pain that we're having to inflict because of the lack of decision making over the past few years."

A. Rolleston: "In terms of the differential what we currently have is one of the lowest in New Zealand. So we don't even compare with other metros and cities across the city. We do need to lift it."

Q. The chamber of commerce says many businesses can accept paying higher rates if they see something in return for the money. What changes will happen if in the next few years if this long term plan is enacted?

A. Tolley: "All of them employ people. So there's a big investment in community facilities and that helps them attract and retain skilled staff. It all contributes to general roading, the infrastructure that goes into the city. So that part of the rates is about making the city a great place to live, work and play."

Q. The commission is looking at putting money into the CBD. How much and what will it be spent on? Why the CBD and not other business areas in Tauranga?

A. Tolley: "We haven't made a decision about investing a particular amount in the CBD. The decision we've made is to lease buildings for the staff in Devonport Rd. There are a whole lot of plans that have been done over the years, we want to see a dissolution of those, then we'll have a look at it and consult with the business sector in particular about what it is they want on the centre of the city."

Q. Are there any opportunities for releasing more commercial land?

A. Selwood: "The government has just announced its $3.8b to support housing. If we can accelerate the infrastructure investment - there's already a lot provided in the LTP - that will open up new land or infrastructure enabled land.

"This is where infrastructure investment is key and I think that's the key message we're getting from the business community.

"This is the story of investment for the future not cost management. We've got to change that conversation. It's looking at land provision across the region."

Q. Do you think Tauranga's traffic can be improved or is it just a matter of trying to stop it from getting worse? What's the reality here for businesses that have staff spending more time on the road?

A. Tolley: "Unfortunately, the plans that we have seen show it gets worse before it gets better. I'm not content with that and I'm pushing for some solutions. They won't be great solutions but I think we've got to work closely with our partners to see if we can make some small improvements certainly around public transport.

"We do need people moving on to public transport but we have to make sure it is fit for purpose. There are things we're going to address in the short term but unfortunately, the city is growing and the big investments that we're making in roading are going to take some time to put in place."