Golden Bay Weekly - 11 September 2020

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Friday 11 September 2020

Port Tarakohe gets $20m boost

The Government’s offer of a $20m loan to Tasman District Council could kick-start the upgrade of Port Tarakohe. Photo: Jo Richards. JO RICHARDS

Major stakeholders have welcomed the Government’s recent funding announcement for the redevelopment of Port Tarakohe, saying it will be good for business, recreation, and community resilience. But the $20m sum is in the form of a loan, rather than the Provincial Growth Fund (PGF) grant Tasman District Council was hoping for. Others are sceptical about the benefits to Golden Bay’s wider community, questioning whether ratepayers should be funding what is predominantly commercial infrastructure. Deputy Prime Minister Winston Peters broke the news of the loan at Tasman District Council Offices in Richmond last Thursday. Mayor Tim King was quick to acknowledge the importance of the move for both commercial and recreational users of the port. “Redevelopment will enable Port Tarakohe to take its place as a strategic contributor within the region’s and country’s ocean economy providing not only local employment but also the catalyst for further investment with the surety of the appropriate infrastructure. The funding also recognises the port’s amenity value enabling development to benefit

recreation users through the relocation and expansion of private berths.” West Coast-Tasman MP Damien O’Connor echoed the mayor’s sentiments. “The upgrade of Port Tarakohe will improve the wellbeing of the region – economically in terms of jobs and wealth creation; socially – through improved recreational and visitor services and infrastructure; environmentally – through improved port facilities and on water practices, and culturally by provision of income for local iwi.” The current configuration of Port Tarakohe is viewed as a major hurdle to the expansion of the Bay’s mussel farms as it does not provide sufficient capacity, infrastructure, or the appropriate food safety capability. In August 2019, TDC attempted to address this situation with its report Upgrade of Port Tarakohe Business Case which sets out a proposal for the redevelopment, along with economic and financial analysis. The proposed redevelopment includes the separation of the commercial and recreational areas with an increase in commercial marine berths and wharf space, plus a new recreational marina and harbourmaster building.

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A total project cost of $28.3m was agreed, to be financed by a combination of a PGF grant $22.07m), capital co-funding from TDC and industry ($6.2m), plus further capital funding from TDC ($2.6m). According to the report (p49), the PGF grant was a crucial component of the funding mix: “Council do not have the ability to take on any further debt as it would likely cause a breach of the net debt borrowing limit for TDC... As such, grant funding of $22.07m is the only option to meet the upfront capital expenditure.”This was further underlined on p57: “…. If funding from PGF was an interest bearing loan, this would jeopardise the solvency of Port Tarakohe.” The loan and council debt The Government’s rejection of the grant application means that the loan is now the only option on the table. Although the terms and conditions of the package have yet to be negotiated, it will be classed as a concessionary loan, meaning concessions on timing, interest rate and priority of repayments could be granted by the lender, explains TDC’s corporate and Government services manager Mike Drummond. Continued on page 2

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JO RICHARDS

The Local Government Commission’s hearing on the option for a local board for Golden Bay got underway at Onetahua Marae on Tuesday morning and continued until early evening. More than 40 people advanced wellinformed and, in some cases, passionate arguments for or against a local board, but some significant common ground emerged. Although the focus of the hearing was on the governance structure, it became increasingly clear, from all sides of the debate, that it was the relationship between community and council that was the overriding factor determining the quality of local decision-making. Another important theme that arose during the Commission’s probing questioning was Tasman District Council’s lack of a strategic approach to local decision-making. The day began at around 9am, with representatives from the Marae welcoming the commission’s team, plus around a dozen submitters, with a powhiri. Following an early morning tea, commission chair Brendan Duffy opened the formal proceedings with a clear explanation of the purpose of the hearing. “We have read all the submissions. We do not get into debate. We ask questions.” Representing Manawhenua ki Mohua, the first speaker Barney Thomas was unhappy with both the status quo and the proposal. “There is no opportunity for us to be represented. We should be included by way of right, not by vote.” Commissioner Janie Annear explained that, while sympathetic, the LGC could not legally make such a change. Members of the Golden Bay Local Board Working Group (GBLBWG) were up next with spokesman Tony Lawton summarising the group’s position. “We support local boards for all wards in Tasman...It’s about local people working with council staff to make better decisions.” He argued that a local board should have greater responsibility than a community board, including governance of all the Bay’s commercial assets as well as taking on some regulatory functions. Fellow group member Roland Toder talked about the costs of running a local board, supporting the commission’s estimate, and questioning TDC’s projection of 4.5 full-time equivalent personnel being required to service a board. “If we do establish a local board…we should not accept a cost proposal for a local board .... Continued on page 2

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In celebration of all the new cycleways in Golden Bay We are giving away an E-Bike

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Inside: GB’s new All Black Oak Trees Movie review Maori Language Week THE GB WEEKLY, FRIDAY 11 SEPTEMBER 2020

Local board hearing

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ISSN (PRINT) 2538-0923 ISSN (ONLINE) 2538-0931

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