Tauranga ratepayers on the hook for questionable $30 million deal – public meeting on Wednesday

TAURANGA, New Zealand – Concerned Taurangans are sounding the alarm over a controversial deal that will leave taxpayers responsible for more than $30 million in upgrades to an offshore site that will benefit the private owner who purchased the asset for just $14 million. The public is invited to join an open forum at Tauranga City Council meeting on Wednesday at 2pm (2.30pm start) to demand answers and transparency.

This isn’t the first time Tauranga residents have been left scratching their heads over municipal agreements that just don’t work out. The offshore site has been demoted from strategic asset status so it can be sold privately with minimal public scrutiny, leaving Tauranga taxpayers to pay more than $30 million in infrastructure upgrades. Essentially, taxpayers are paying a private buyer millions to take a public asset out of the city’s hands.

It just doesn’t add up,” said Erica Harvey, a local advocate for transparency and fair governance. “Tauranga ratepayers are being forced to pay $30 million for the upgrade, while a private buyer is walking away with the Marine Precinct for far less than it is worth. The public deserves to know how this happened and we need answers.”

Not the only questionable deal

Unfortunately, the Sea District deal is just the latest in a long line of questionable decisions that have left residents and taxpayers wondering where their money is going and who is really benefiting.

• The Harington Street transit hub, originally planned to cost $27 million, ended up costing taxpayers $19 million when the project was scrapped due to seismic design flaws. The unfinished site was later sold back to the original construction company for just $1, leaving the community with a huge loss.
• The sale of the Mount Maunganui waterfront, which many said put private developers ahead of the public interest, has raised concerns about how public assets are being used and who benefits.
• The controversy surrounding Sulfur Point further increased public discontent. In 2022, the Council reclassified parts of the Marine Park at Sulfur Point to house a marine research center led by the University of Waikato. Many residents felt the decision was made without proper consultation, raising concerns about the loss of public green space to commercial interests.

This followed earlier attempts in 2018 to strip the park of its nature reserve status, which were blocked by the then conservation minister.

“It’s not just about the offshore section,” Harvey continued. “This is about how our city is run. We deserve to know why these deals continue to be done behind closed doors and why the public interest does not seem to be a priority. The fact that taxpayers must pay more than $30 million for an upgrade to a private buyer who profits from it should concern every person in this city.”

A larger pattern of mismanagement

Tauranga City Council has had elected members, commissioners and staff come and go over the past decade or more, but the same troubling pattern of decisions continues to emerge. From the sale of government assets to failed infrastructure projects, each new leadership team appears to be following a path that puts developers and private interests above the public good.

The question is, who makes these decisions and why?

“Despite changes in recent years, we continue to see the same pattern of poor financial management and lack of transparency,” Erica Harvey said. “This isn’t just about one bad deal, it’s about the management culture that allowed these deals to happen. again and again, exposing the community to significant financial risk.”

Call for an independent investigation

Given Tauranga City Council’s ongoing financial difficulties, the public must demand more than just answers. It is time for a full independent investigation into the Council’s decision-making structure. It is important to note that this investigation should be driven by the public, focusing on why these deals continue to be made despite different leadership teams.

“It’s not just about the offshore section,” Harvey continued. “We are talking about the structure within our council that allows us to make such decisions. We need to ask who is really in charge, who benefits from these deals and how we can ensure that future decisions are made in the public interest. An independent investigation on a public scale is the only way to get to the bottom of this.”

Community members are invited to attend the meeting at the current Tauranga City Council building, located at 306 Cameron Road, to support Ms Harvey in her demand for transparency, ask questions and call for an investigation to be launched.

Public meeting details:
Date: Wednesday, October 23, 2024
Time: 14:00 (starts at 14:30)
Location: Tauranga City Council, 306 Cameron Road.

About Eric Harvey

Erica Harvey is a local advocate for transparency, fairness and community-focused governance in Tauranga. With over a decade of experience championing local business and community accountability, Erica is committed to ensuring decisions made by local leaders reflect the interests of the people of Tauranga.

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