With the current rates discussion in South Wairarapa – and in the rest of the country – it’s useful to focus on the quality of council spending as well as the quantity.
There’s a school of thought that councils should only do basics, not “nice to haves.” But what is basic or nice depends entirely on viewpoint.
Councils in Wairarapa, including SWDC, spend mainly on infrastructure but also put dollars into a wide variety of activities. One of these is a broad basket that I’d call “economic development.”
A fundamentalist view is that no rates should go on this. Perhaps the real test should be asking the questions “is there a market failure – that is, a compelling public good that won’t be otherwise delivered?” One example is destination marketing – persuading people outside this area (including offshore) that South Wairarapa is a great place to visit and spend money.
Obviously, tourism operators do their own marketing – even a small B&B owner may pay to be in a list of accommodation providers. But the decision to visit the district depends on many factors and that’s where Destination Wairarapa fits in.
Tourism contributes significantly to our local economy and, as well as the destination marketing, requires attractive “products” for visitors.
This is pretty much up to individual businesses, which need to be efficient and profitable. There may also be gaps in the products on offer, or a lack of “packaging” because it’s not the responsibility of a single operator.
In Wairarapa multiple organisations and groups – big and small – work in the economic development space. But there’s no way of joining up to ensure the needs of different groups are met efficiently and that the wider region benefits.
In 2020, Wairarapa councils commissioned an independent review of these arrangements, aimed at creating efficiency and effective spending. The recommendation was a regional Economic Development Agency (EDA) but it wasn’t set up. Possibly COVID got in the way.
Multiple groups work in silos – not just tourism, but business development, events, skills, workforce planning, the business part of our amazing food and fibre sectors and attraction of inward investment. WellingtonNZ delivers some aspects through regional rates, councils directly fund some activities – and some with huge potential struggle.
An example of the latter is the Dark Sky Reserve – set up by a group of locals with the foresight to see its potential. In Tekapo – the first such reserve in NZ – they now have the issue of too many international visitors. What a great problem to have! Dark Sky attracts visitors who must stay at least one night (more if weather is changeable) and spend money on accommodation, retail, food and drink, and other attractions. It is a “hero” product and we are immensely lucky to have the internationally accredited reserve. But our Dark Sky Reserve limps along without the support it requires to deliver its economic potential.
It’s time for the Wairarapa EDA to become a reality.
The good news: there is an agreed regional economic development strategy – just no agreement on delivery. Recently Business Wairarapa (Chamber of Commerce) and Destination Wairarapa (tourism promotion) joined forces to promote a regional EDA, not totally funded by ratepayers but as a partnership with local business. Importantly, it would address the inter-dependencies that currently frustrate optimal delivery. SWDC has supported the concept, other councils are still thinking about it. Whether it’s working through the logistics of an inland port (Waingawa) or gaining a better handle on future workforce needs or working on processing infrastructure to transform primary products – or the critical attraction of inward investment and businesses (including using the “golden visa”), one partnership between the private sector and councils would be far more effective than present arrangements. Importantly, it would be a superior use of the small amount of money that councils spend on this particular public good.
