This was a decision where the political arm was \u201cinfluencing what the investment arm can do\u201d, the mayor said.<\/p>\n
\u201cObviously, if you\u2019re set to deliver the maximum return, you\u2019ll make the decisions that you think are best around that.\u201d<\/p>\n
The city council\u2019s submission said it did not support a hybrid model.<\/p>\n
Drysdale said the investment arm should be \u201cmore separated and insulated\u201d to make investment decisions, while the political side focused on spending the generated income.<\/p>\n
While the current structure \u201cworks fairly well\u201d, it \u201ccould be made better if you took more of the political out\u201d.<\/p>\n
Tauranga mayor Mah\u00e9 Drysdale, pictured in 2025. Photo \/ David Hall<\/p>\n
The council\u2019s submission said legislative ring-fencing was \u201ccritical\u201d to long-term regional benefit.<\/p>\n
It said legislation could set clear obligations to maintain the real value of capital, require a super-majority before any capital could be reduced, and mandate independent investment governance over investment decisions.<\/p>\n
In contrast, councils holding investment funds without legislative safeguards remained exposed to short-term decisions to use capital for debt repayment, rates pressure or funding one-off projects.<\/p>\n
The submission said the New Plymouth Perpetual Investment Fund was protected by specific legislation and the Auckland Future Fund<\/a> was pursuing \u201csimilar\u201d protections.<\/p>\n Drysdale said changing the structure alone \u201cdoes not give you any further protection than there is today\u201d.<\/p>\n Legislative protection was \u201cthe next step if you truly want to protect it as a taonga for the region\u201d.<\/p>\n In a statement, regional council chairwoman Matemoana McDonald said the council could not comment on submissions because they were intended to inform its decision-making on the proposals.<\/p>\n This stage of the consultation process had not yet taken place. Consultation closed on April 2.<\/p>\n Tauranga City Council\u2019s feedback and other submissions would be considered through the consultation process, including hearings and deliberations, before final decisions were made and the documents were adopted in June, McDonald said.<\/p>\nBay of Plenty Regional Council chairwoman Matemoana McDonald.<\/p>\n