The council voted overwhelmingly to move the economic development agency in-house. Photo / Bevan Conley
Whanganui district councillors voted overwhelmingly in favour of bringing economic development agency Whanganui & Partners in-house.
The decision was made public last week, signalling the end of the agency as a council-controlled organisation.
Elected members - including Whanganui Mayor Andrew Tripe - were split 10-3 in favour at a closed door meeting last month.
Councillor Josh Chandulal-Mackay said he had been “a fair way off” convincing his colleagues to keep Whanganui & Partners independent.
“My contention is that we have a $100 million budget and $1 billion in assets and we are focused on all sorts of different areas and priorities,” he said.
“I don’t think we have the time in our schedules to deliver the type of economic development governance that could be delivered by an independent board.”
Staff members - including those working at Whanganui’s iSite - will be retained under the new model but the agency’s board will be disestablished.
Chandulal-Mackay said personnel changes within the council, both politically and operationally, might impact the agency’s delivery if it was in-house.
“If it’s kept at arm’s length, it can weather those changes with a bit more independence and maintain a long-term view and consistency.”
Councillor Rob Vinsen said he was happy for the agency to come in-house because there was no convincing evidence that delivery would be any different.
He said there was a highly skilled team at the agency and it was important to have a smooth transition.
“I was very insistent that their brand remained and they didn’t become another planning department at council.
“I think that has been achieved and I’m much more comfortable with it than I was originally.”
Councillor Charlotte Melser said she voted to bring the agency in-house “after serious and lengthy consideration”.
“The ideal situation, in my opinion, would be to find efficiencies within the current model but we are not in an ideal environment,” she said.
“We need to find and maximise savings and efficiencies, as well as increase our non-rates revenue to get through this period.”
The agency was launched in December 2014 and received $2.6m of council funding annually.
Councillor Charlie Anderson said Whanganui was facing a horrific rates increase and it was important to keep operations as lean as possible.
“We need to start saving money where we can,” he said.
“I think this will be great for Whanganui & Partners in the end, providing everyone can de-stress. That‘s the biggest thing. There would have been a lot of uncertainty for staff.”
Councillor Philippa Baker-Hogan said the agency had made a good difference to the district’s economic outcomes but she was in favour of bringing it in-house.
“There needs to be high scrutiny and I’m very confident that David [Langford, council chief executive] and his team will do even better - while continuing to reduce the ratepayer cost.”
Deputy Mayor Helen Craig was one of the three councillors who voted against the move.
She said keeping the agency independent meant it could be freer from political influence and freer to take advantage of opportunities.
“I think cost savings will take time to achieve and I think they will be limited,” Craig said.
Initial savings will be about $118,000 a year.
Tripe said that figure was significant “in this time of fiscal challenge”.
“We need to make the tough calls and many councils haven’t been doing that,” he said.
“The Whanganui & Partners decision is around efficiency savings. We are trying to do the right thing by our ratepayers by making that call.”
He said for the public, the agency would look no different under the new model.
“I spoke to a number of people in our community before this, just to sound them out. Some will be alarmed but the general consensus is that it’s the right thing to do - as long as things continue as usual.
“That’s what we are expecting.”
Councillor Glenda Brown said the region faced a high rates increase and a cost-of-living crisis and council needed to take responsibility and look at cost savings.
She was “comfortable with the decision”.
“We think this change, along with other decisions, will show the ratepayer that we are intentional with cost-saving initiatives that every other sector is also having to work through.”
There had been multiple discussions about making sure the agency could continue to make decisions without the added bureaucracy of being under council, Brown said.
“There is assurance that the structure they will operate under will not add to this and, for all the [agency’s] staff, it will be business as usual.
“I have confidence in our chief executive and council staff in assuring this transition will run as smoothly as possible.”
Councillor Michael Law said he voted to bring the agency in-house.
“Instead of a board of directors and a chief executive, you’ll most likely have a general manager reporting to David [Langford].
“It’s the same great people doing the same great job but [it’s] streamlined because you don’t have an additional bureaucratic process.”
Councillors Kate Joblin and Jenny Duncan did not wish to comment and councillors Peter Oskam and Ross Fallen could not be contacted.
Mike Tweed is an assistant news director and multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.