Rotorua growth plan green-lit

The new Economic Growth Strategy has been accepted by Rotorua District Council at committee level. Now the big question is how it will be implemented.

Work is under way to create business plans for setting up a "council controlled organisation" (CCO) to implement the strategy either immediately or following a transition period involving a hybrid agency.

The strategy, prepared by a group led by Waiariki Institute of Technology chief executive Pim Borren, aims to stimulate economic growth in the district.

Following presentations by Borren and APR Consultants' Deryck Shaw, councillors at yesterday's Economic and Regulatory Services Committee meeting voted unanimously to adopt the strategy.

Business cases for the two implementation structures will be presented to the committee to make a decision at its October meeting.

The project group's first choice is an organisation operating at "arm's length" from, but accountable to, the council, called a council controlled organisation (CCO). The second option is to start with a hybrid agency under closer council supervision. This would be reviewed in 2014, with a view to creating the "arm's length" structure in 2015.

"This will be determined by the business cases, because there is a cost involved."

According to the report, a council controlled organisation would have lower direct costs, but would rely principally on Rotorua District Council for funding and have higher overall costs. It is seen as the strongest structure in terms of accountability, developing a "healthy tension" between it and the council to keep the focus on economic development.

The transition hybrid model would be cheaper in the short term and reduce the risk of duplicating roles and, while greater influence on council operations was seen as an advantage, the lack of accountability outside the council was listed as a disadvantage.

Councillors expressed some concerns about the possible duplication of roles within the council's economic and regulatory services group, the Rotorua Tourism Committee and a new council controlled organisation, but were assured the respective roles of these organisations would be clarified in the business plans next month.

There was a general feeling that going straight into the CCO model would translate into faster implementation of the strategy.

Rotorua Mayor Kevin Winters pointed to the success in setting up the hybrid structure of the Tourism Committee as an example of how quickly such things could be done. "I'm looking at 2015 and thinking that's four years away. Surely we can work faster than that? If the business case [for the COO structure] stacks up, I think we should go straight into it. Let's do it."

Councillor Julie Calnan said the most important requirement of whatever model was chosen was its ability to deliver the strategy outcomes and committee chairman Mike McVicar suggested cost should not be the determining factor.

"I do not think that should be critical. We have to make the right decision and we will not have another chance to get it right."

The business cases for the two implementation options will be presented to the committee on October 26, then a more detailed budget for the preferred structure will be prepared for the council's 2012-2022 Long Term Plan.