Business leaders are frustrated a request for $50,000 towards boosting the local economy was shelved by Hawke's Bay Regional Council at a meeting last week.
At the same time, $850,000 from a targeted rate for economic development was earmarked for tourism.
The $50,000 funding would have gone towards a new economic development agency,backed by Hawke's Bay Chamber of Commerce and private sector funding, but committee members asked for more details before making a decision.
President Stuart McLaughlin said he was disappointed the council declined the funding. The chamber had been in talks with council staff for six months and asked for $100,000, which would come from the $1.2 million raised annually from the targeted economic development rate. The rate funded Venture Hawke's Bay, with half intended for tourism and half for economic development.
"We do not begrudge tourism its funding as it is an important function. However, tourism is not the only economic driver in Hawke's Bay," Mr McLauchlan said.
Business Hawke's Bay had $300,000 in support from the private sector, compared with $160,000 from the tourism industry for Hawke's Bay Tourism. "The chamber was only seeking a fairly modest $100,000 from the special rate," Mr McLauchlan said. "All indications from the council had been that they supported our proposal."
He hoped the council would become involved, but the venture would go ahead with private sector funding and a "clear indication of support" from Hastings District Council and Napier City Council.
Council CEO Andrew Newman said the difference in funding to Hawke's Bay Tourism and to economic development was based on work being done within the council. "I don't think the tourism case and the economic development case are directly comparable. In essence the regional council is substantially involved in economic development activities."
An economic development strategy was being completed which would make Business Hawke's Bay's role clearer.
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