The restructure followed a failed attempt to redirect $2m in Crown restoration funding to Te Arawa-led projects – a proposal voted down by the regional council.
Senior trust representatives presented their case to regional councillors on Thursday.
Trust chairman Wally Haumaha told them the request was not for an ongoing subsidy, but an investment in new capability and systems.
“The question today is how we reset and strengthen the partnership, so it’s fit for the next 20 years,” he said.
Haumaha said the trust had already “taken a knife” to the organisation as part of its efforts to reduce costs and secure its future.
“We’re now going to operate with a leaner, meaner team,” he said.
Te Arawa Lakes Trust chairman Wallace Haumaha. Photo / Andrew Warner
Haumaha told councillors the proposal was about ensuring Te Arawa retained the ability to respond to biosecurity threats, environmental incidents and long-term lake health challenges.
“The lakes are us,” he said.
“They are our identity. They are us. They’ll be there a long time after us.”
General manager Tame Malcolm said the restructuring process was now largely done, and the trust was focused on building a more financially sustainable model.
Malcolm said the trust would continue with its reset, regardless of the regional council’s decision, but warned that without the funding it would take “a lot longer” to achieve.
Councillor Stuart Crosby said there was a risk that years of investment in Rotorua’s lakes could be undermined if the trust was not supported through its reset.
“Not to assist in a restructure would have the bigger risk of all that investment going backwards, not forwards,” he said.
Bay of Plenty regional councillor Stuart Crosby. Photo / Alex Cairns
Councillor Kat McMillan said the trust’s new “strategic direction” was “really exciting” but sought reassurance it could successfully rebuild after shedding staff.
While supportive of exploring the proposal, councillor Raj Kumar questioned how the trust would demonstrate value for money to ratepayers.
“We have a responsibility,” he said. “We will have to tell our ratepayers why we are giving this $2m.”
Councillor Glenn Dougal supported the motion for staff to do “more due diligence” to decide if the trust can “become sustainable”.
Councillor Tim Maltby said councillors still needed a clearer understanding of exactly what ratepayer money would be spent on.
“This is public money, so we can’t just spend $2m on a nice, fluffy idea,” he said.
Councillor Ken Shirley said councillors needed to consider wider implications of a support package, noting the regional council worked with numerous iwi and hapū groups across the region.
Ken Shirley, Bay of Plenty Regional councillor. Photo / Alex Cairns
“You can see the challenge that we have in terms of that precedent,” he said.
Shirley also questioned whether local government risked taking on responsibilities that should sit with the Crown.
“Where does that end?” he asked.
Responding, Haumaha told councillors the trust ultimately wanted to “break the chains” of dependence on government funding.
He cited future revenue opportunities including geothermal development, property holdings and other under-utilised assets.
Councillors ultimately agreed to support the proposal in principle but directed staff to do further due diligence into the trust’s finances, transition plans and long-term sustainability.
Staff will also investigate possible funding options, including loans, grants and other mechanisms, before bringing the matter back to council for a final decision.
Mathew Nash is a Local Democracy Reporting journalist based at the Rotorua Daily Post. He has previously written for SunLive, been a regular contributor to RNZ and was a football reporter in Britain for eight years.
– LDR is local body journalism co-funded by RNZ and NZ On Air.