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Home / New Zealand

A Capital Letter: WellingtonNZ struggling to justify its existence

Georgina Campbell
By Georgina Campbell
Senior Multimedia Journalist·NZ Herald·
13 Sep, 2022 05:00 PM5 mins to read

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Tākina commercial development general manager David Perks standing on site at the city's new convention and exhibition centre. Photo / Mark Mitchell

Tākina commercial development general manager David Perks standing on site at the city's new convention and exhibition centre. Photo / Mark Mitchell

Georgina Campbell
Opinion by Georgina Campbell
Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.
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OPINION:

A former chief executive spending up large on lavish dinners and flash wines still haunts Wellington's regional economic development agency.

In 2017 it was revealed Chris Whelan's expenses included a $1100 bill at a high-end restaurant, and several bills of more than $400 each at others. He purchased 36 oysters in one sitting at Shed 5 costing $216.

There's a long list of problems that come with that kind of spending, including its extravagance and the fact WellingtonNZ is primarily funded by ratepayers.

The worst is that it epitomises what some Wellingtonians have already decided about the organisation - that it's just one big talk fest and a waste of their money.

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Fast-forward to today and that sort of spending is not tolerated.

WellingtonNZ's current chief executive, John Allen, for example, does not have an expense credit card.

If Allen goes out for lunch, he pays for it.

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But it hasn't changed the lingering scepticism of many who remain unconvinced the organisation is doing anything other than making our rates bills more expensive.

The Wellington City Council owns 80 per cent of WellingtonNZ and the Greater Wellington Regional Council owns the remaining 20 per cent.

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Last year the regional council shelled out $4.2 million for WellingtonNZ, equating to about 2 per cent of rates.

Wellington Harbour and central business district. Photo / Mark Mitchell
Wellington Harbour and central business district. Photo / Mark Mitchell

The city council handed over $13.1m, equating to 3.35 per cent of rates.

About 30 per cent of WellingtonNZ's overall funding comes from other sources including the central Government, partners and commercial funders.

It's a council-controlled organisation, which gives it a degree of independence to seek external funding.

This year WellingtonNZ was behind the city's cringeworthy new giant sculptural sign on the waterfront, which essentially looks like a giant spelling mistake (although I accept it is popular on social media).

The organisation also came up with the idea to install small bronze pigeons around the city to celebrate the places where business ideas were formed.

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I am more in favour of the pigeons than I am of the sign, but both are uninspiring additions to a city in need of a serious rethink.

Frustration with WellingtonNZ boiled over when the city's chamber of commerce published its pre-election report recently.

It said the council should clarify the organisation's "complex and cumbersome" mandate.

On this point I agree, I honestly find it difficult to clearly articulate exactly what WellingtonNZ is meant to do.

The St James Theatre on Courtenay Place has reopened after earthquake strengthening. Photo / Mark Mitchell
The St James Theatre on Courtenay Place has reopened after earthquake strengthening. Photo / Mark Mitchell

The issue of a broad mandate is something which most economic development agencies struggle to grapple with, especially small ones.

WellingtonNZ has drilled down into key areas of focus including attracting and retaining talent, technology, events, delivering the regional economic plan, and Māori and Pasifika.

This hardly makes for a laser-sharp focus.

The chamber report also recommended introducing key performance indicators based on economic growth and business success.

This criticism is perhaps a little unfair because it implies there are currently no KPIs for economic growth, which isn't true.

The organisation's 2021-2024 statement of intent includes KPIs like the dollar value economic impact of WellingtonNZ's activities and interventions.

Whether by sheer coincidence or otherwise, WellingtonNZ released a report just a week after the chamber's swipe.

It was a new regional economic development plan on how to create 100,000 decent jobs to support population growth.

It detailed sectors likely to see growth over the next few years – namely the visitor economy, Stem (science, technology, engineering, and mathematics), creative and digital and fibre primary industries.

Projects like an engineering summer camp and an adventure park in Porirua are already under way.

I don't think WellingtonNZ is as bad as it looks, but it needs to get better at telling its story.

Ironically, the city's controversial new convention and exhibition centre, Tākina, might just present the chance to do this.

The $179m project across the road from Te Papa is set to create a new precinct in the capital.

As of June, there were more than 70 conferences on the books, 44 of which will take place in the building's first year of operation.

These numbers are pleasantly surprising and indicate the "white elephant" could actually be a success.

Events are WellingtonNZ's strongest selling point with the public. The last thing I can think of that I really liked was the stunning display of Vincent van Gogh's masterpieces, which were projected on to shipping containers along the waterfront.

The reopening of St James Theatre, a venue managed by WellingtonNZ, is sure to delight.

I'm not willing to write off our regional economic development agency just yet, especially now the borders have reopened and international tourists will once again set foot in our city.

Now is the chance for the organisation to prove itself, but it should also consider itself to be on notice.

Finally, I do have one plea- more vision and fewer pigeons, please.

• Senior Wellington journalist Georgina Campbell's fortnightly column looks closely at issues in the capital.

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