Ōpōtiki's new harbour training walls received $20 million in funding from Bay of Plenty Regional Council. Photo / Whakatāne Beacon
The future of Bay of Plenty Regional Council’s more than $3 billion investment portfolio has drawn mixed opinion from submitters.
The regional council has consulted on a range of proposals for its Annual Plan 2026/27 and Long-term Plan Amendment, receiving 227 responses from individuals and organisations.
The uncertain environment because of regional and local government reforms has led the council to look at alternative ways the portfolio, most of which is made up of a 54.14% shareholding in Port of Tauranga, could be held.
Several options put out for consultation included sticking to the status quo, with wholly regional council-owned limited liability company, Quayside, continuing to hold and manage all investments.
Option 2 was to transfer the investment assets into a trust with a council-controlled corporate entity as trustee to hold the assets on behalf of the beneficiaries. The beneficiaries would be whatever organisation took over the responsibilities of regional councils if new local government legislation is passed.
Option 3, the regional council’s current preferred “hybrid model”, involved splitting the assets into separate entities for port assets, non-port assets and special purpose assets, to allow for tailored management approaches for each type of asset.
Option 4 was to create a partnership with an existing community trust that has a proven track record of operating an intergenerational fund for community benefit.
Ōpōtiki District Council supported option 2, while Whakatāne Council supported option 3, with some modifications.
The submission said a trust-based Council-Controlled Organisation was the most effective and future-focused structure for managing the regional council’s significant investment assets.
Transferring Quayside’s portfolio to a trust-based CCO provided greater long-term legal certainty.
“[The council] supports the need to restructure BOPRC’s investment portfolio, particularly considering increasing uncertainty arising from ongoing local government reform and the potential restructuring or disestablishment of regional councils,” its submission said.
“These system-wide changes create a real risk to the long-term stability of regional investment arrangements. To remain resilient in this environment, a modernised and durable investment framework is essential.”
The council acknowledged the regional council’s $20m contribution to Ōpōtiki’s harbour development and the 2024/25 dividend of $48m from the portfolio, which accounted for about 23% of the regional council’s income.
It did not support the hybrid model, suggesting it introduced unnecessary complexity without improving alignment with regional priorities.
“It risks diluting accountability and complicating governance at a time when clarity and resilience are essential.”
Whakatāne District Council supported the hybrid model with some modifications.
“Decisions on the distribution of returns for regional and community outcomes should be separated from investment decisions.”
The regional council also sought submissions on whether it should establish a Regional Benefit Fund of up to $20m in its annual plan to support councils or other organisations to deliver large-scale infrastructure projects of regional benefit.
Ōpōtiki and Whakatāne councils were in favour of such a fund, but Ōpōtiki advocated for an allocation of $50m a year to ensure it could support projects of true regional and national significance.
Developer Chris Peterson, on behalf of Ōpōtiki Marina and Industrial Park, was also in favour of the fund.
“The Eastern Bay is recognised as an area in desperate need of economic growth. A Regional Benefit Fund can kick-start this development.”
Peterson felt the maximum amount of $20m a year would be “a sustainable figure but also enough to be of real benefit”.
The regional council also asked for feedback on whether it should increase or decrease the amount of funding it invested in protecting and maintaining the region’s indigenous biodiversity.
Ōpōtiki’s council strongly supported increasing investment in indigenous biodiversity, recognising that continued success relied on stable long-term resourcing.
Kawerau District Council did not make a submission.
Former regional council chairman and Eastern Bay constituency representative Doug Leeder advocated for continuing with the status quo for investment assets until legislative protection was no longer forthcoming, in which case, option 2, creating a trust, would be his choice.
He was not in favour of a regional benefit fund, saying the regional council should only invest where there is market failure.
“Council borrowing and encumbering ratepayers to pick winners or satisfy the whims of local authorities is not your role,” he said.
Leeder was in favour of the regional council continuing its “long history of investing in indigenous biodiversity”.
Hearings will be held in Whakatāne, Tauranga and Rotorua next week for submitters intending to speak on their submissions.
The Whakatāne hearing will be held at the regional council’s Whakatāne chambers in Quay St on Wednesday from 10.30am and livestreamed via the council’s website and YouTube channel.
– LDR is local body journalism co-funded by RNZ and NZ On Air.