Quayside managed the investment assets independently from the council and provided an annual dividend to the council.
In 2024/25, this dividend was $48m and it provided an average rates reduction of $400 per household.
In a Wednesday statement, council chairwoman Matemoana McDonald said the proposed amendment explored how it could optimise returns on behalf of the community, “while preserving and protecting assets for future generations”.
“These investments are intergenerational … Any changes must be made openly, carefully, and with the clear support of the people they belong to – the people of the Bay of Plenty.”
What are the restructure options?
The consultation document said Quayside had a 54.14% Port of Tauranga shareholding valued at $2.5b as of June 30.
Quayside also had “non-port assets” valued at $470m and special purpose assets, including the Rangiuru Business Park, valued at $161m.
The fund started out with a 55% share of the Port of Tauranga valued at $53m in 1991.
In 2024, the council agreed to a managed sell-down of its 54.14% shareholding in the port to a minimum of 28%.
Quayside said last year no decision had been made to sell any shares and there was no timeframe for the sale.
Quayside had a 54.14% Port of Tauranga shareholding valued at $2.5 billion as of June 30 last year, according to the council consultation document. Photo / Alex Cairns
In its consultation document, the council defined three actions to achieve what it wanted from its investments.
It proposed that the amount allocated for environmental work, other council functions and reduced rates be limited to $50m plus inflation each year.
It also proposed using any surplus investment returns above the $50m to support regionally beneficial infrastructure development.
The third was the ability to recycle capital. The council was using $200m of debt to finance the development of the Rangiuru Business Park. This debt would be repaid as the land was sold and developed.
To better achieve this, the council said it would need to change the way its investments were held.
“With Non-Port Assets approaching $500m (and potentially growing if the Port of Tauranga shares are divested) and a growing focus on funding infrastructure development, it is the right time to review the structure.”
The council’s preferred restructure option was a “hybrid model” and would involve separating the port and non-port assets from the special-purpose assets into two CCOs.
The other options included creating a CCO Trust to hold all investments held by Quayside or partner with an existing community trust.
The final option was to retain the status quo.
Council consults on rates increase
The council proposed a 4% increase to general rates for 2026/27 as part of its draft Annual Plan.
This was down from the 8.2% forecast for year three of the Long-term Plan 2024-2034.
In a statement, McDonald said the council knew affordability was “front of mind for many households”.
“That’s why we’ve taken a hard look at our budgets and found ways to minimise the rates impact while still protecting essential work.
“But we need our communities to tell us whether we’ve got the balance right. Your feedback really does influence the decisions we make.”
Bay of Plenty Regional Council has adopted its draft Annual Plan 2026/27 and is seeking community feedback. Photo / Laura Smith
The council was seeking feedback on whether it should establish a Regional Benefit Fund to support third parties (such as local councils or organisations) to deliver large-scale infrastructure projects.
It planned to use funding from the Regional Fund Reserve, and increased dividends from Quayside to do so.
The council was also seeking feedback on whether it should consider increasing its investment in protecting and maintaining the region’s indigenous biodiversity.
Fees and charges
The council has also proposed increases to some fees and charges which, if adopted, would come into effect on July 1.
This included an increase in port charges (harbour dues) from $19.27 excluding GST per 1000 gross tonnage to $19.81.
It also proposed adding a specific category for Plan Change 10 Lake Rotorua Nutrient Management Variation resource consent applications. This would cost $1000 including GST.
A calculator is available on the council’s website to see how the proposed changes to the Fees and Charges Policy may affect residents.
Consultation is open until April 2.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and Rotorua Daily Post. She has been a journalist since 2021.