Amalgamation Supporters Admission of Own Failures

Published HBT 11 Aug 2015

Very soon the people of Hawke’s Bay will have to decide on the future shape of local government in this area. 

A major claim made by the Local Government Commission and echoed by others is that one council will provide Hawke’s Bay with a stronger voice especially when dealing with Central Government. The interesting thing is many of those making such such a claim are, or have been, our representatives already, yet their performance seems seriously wanting.  Perhaps their support for amalgamation is actually an admission of failure and they are simply trying to bury their past failures by creating a new council. After all it will take many years before the failures or success of amalgamation become apparent. 

Both the Mayor of Hastings and Deputy Mayor Cynthia Bowers are about to start their 3rd decade on council, nearly fifteen of those in their present very powerful positions. For eight of those years the Mayor has also been President of Local Government New Zealand a position that he tells us puts him in weekly contact with the Prime Minister. This surely is as a strong a voice as we are ever likely to have. Remember the Mayor reminds ad nauseam of just how badly we are doing compared with the rest of New Zealand. 

There are others who also seem to have failed us. Since 2005 we have been represented in Parliament by Craig Foss and Chris Tremain two enthusiastic amalgamation supporters. Both emblazoned their vehicles with the statement “Supporting the Bay” and both were Cabinet Ministers, surely an excellent position to have pushed Hawke’s Bay’s case. There is scant evidence of their making any great achievements benefiting Hawke’s Bay.

Another recent writer casting aspersions on non amalgamation supporters was former Tuki Tuki MP Rick Barker who spent from 1993 to 2005  representing us, and also occupying a Cabinet position in the Clark/ Cullen Labour Government. For the record  Deputy Prime Minister and Minister of Finance Michael Cullen also resided here during this time. Other than building a new Courthouse in Hastings there is little evidence Rick made any significant difference to our economic performance. Even when he and Russell Fairbrother lost their seats, prompting a panic visit by Prime Minister Clarke, supported by an entourage of ministers and MP’s, nothing actually changed. 

A couple of other regular writers are former Regional councillor Ewan Mc Gregor who just happens to be the husband of Hastings Deputy Mayor Cynthia Bowers, and John Harrison who was a very successful businessman but now seems to have had a serious falling out with Napier Mayor Bill Dalton. I cannot remember either Ewan or John pushing for amalgamation when they were councillors. 

Clearly the idea we will have a stronger voice with Government after amalgamation is utter rubbish. The problem is not the structure of local government, but the very people who have convinced us they are the right people to represent us.  

As already mentioned the Mayor and Deputy Mayor of Hastings are now starting their third decade, Rick Barker has reinvented as a Regional Councillor, whilst Craig Foss is now in his 4th term as local MP. Perhaps these people who have already had their opportunity to give us a stronger voice with Central Government, could now explain why they have failed?

It should be remembered that Mayor Yule has expressed interest in the top elected position if all five councils are merged. Unfortunately he has not given an undertaking he will not take on other roles at the same time as he has done previously. There are no statutory limitations to stop this happening. History suggests if indeed he does become Mayor of Hawke’s Bay there will be no improvement in our fortunes.

Whilst the Mayor points out the Hastings District Council is the only one to support amalgamation, the full story has not being disclosed. For a start fully one third of councillors are either totally opposed or have serious reservations about the whole proposal, whilst about half have at least some concerns. The support is actually driven by a small “tight five”, group  who almost always vote as a block to support Mayor Yule, be it animal control, speed limits, or amalgamation. 

Its unclear at this stage what the likely outcome will be, though there are clear indications it could fail. The Local Government Commission refused to release the results of their phone survey, but a privately commissioned survey showed significant opposition. This issue will dictate the future of Hawke’s Bay. It must not be decided by a minority who may not represent the true feelings of the majority. Unlike the Auckland merger we at least have a choice and every one of us must ensure we take advantage of this opportunity to make our wished known. Then once the outcome is known we must all accept the result and get on with making Hawke’s Bay a better place.

Jetstar will boost Hawke's Bay

Published HBT 1/08/15

The recent visit by Jetstar senior managers was very encouraging and we rolled out a great welcome mat that must surely have impressed upon them that we are serious. This is a once in a lifetime opportunity and It is absolutely essential that Hawke’s Bay is one of the four new destinations to be included in the airlines new regional services. Both the costs and risks are minimal yet the economic benefit could well be of the order of $50 million annually. Its a pity those who have committed so much energy and money promoting amalgamation that offers a measly $10 million annual benefit, have not shown a modicum of interest in this issue. 

With over 120 000 urban population we are surely near the top of the list. We are the 5th largest urban area in the country, and of the areas under consideration second only to Hamilton, and way ahead of Rotorua, Palmerston North, New Plymouth, Nelson and Invercargill. 

Our Auckland flights already carry more passengers than any of the other routes under consideration. In fact the numbers out of Hamilton, Tauranga and Rotorua appear so low, one wonders why Jetstar are considering them at all.  

We need to get real. Six hours by car from Auckland or eight hours in a bus, or four hours from Wellington by car, and five in a bus, and goodness knows how long for Christchurch, is a big disincentive to people thinking of visiting. Assuming of course the roads are open and not closed as both SH5 and the Manawatu George have been of late. We not only compete with places that are conveniently close to Auckland by road, but also places much further away but with significantly lower air fares. 

High airfares have been our achilles heel for years. Hawke’s Bay travellers are generally well aware of our horror prices.  Air New Zealand have even effectively admitted  their prices are high by suddenly advertising a range of attractive specials the very day Jetstar executives arrived in town, demonstrating clearly the brighter future ahead of us, if only we can get them to come here. 

Further evidence of our high prices is illustrated by distorted travel statistics. One survey found 50% of local flyers were on business, yet nationwide surveys show this group make up only 15-20% over all. The reason for this disparity has to be that the most price sensitive categories, visiting friends and family, or holiday makers, are clearly choosing not to fly here. Perhaps we should be asking ourselves if they choosing not to come here at all. 

Jetstar will bring airfares down just as they did on main trunk flights six years ago and Hawke’s Bay travellers could save a whopping  $25 million a year. People who now drive will find flying affordable. At the same time reduced airfares will stimulate demand from both visitors and locals.  BERL research estimates air travel has a price elasticity of -1.6%.  meaning a 25% reduction in airfares could result in nearly 200 000 more people travelling by air each year. If just half are visitors and each each spends only $250 during their stay, the local economy will be another $25 million richer.  

Some of the 100 new jobs Jetstar expects to create will be here in Hawke’s Bay but Air New Zealand employment is unlikely to be affected because demand overall will increase.    

Fortunately we have built a longer runway despite the opposing efforts of a negative and visionless minority. It may not be required for the Q300 Jetstar aircraft, but the longer runway may be decisive as it means both Jetstar and Air New Zealand will be able to bring their larger A320 pure jets into Hawke’s Bay for either a scheduled or non scheduled services. Do not be surprised if Air New Zealand suddenly start flying jets into Hawke’s Bay despite claiming they will not do so. They have used this tactic before to counter increased competition and may well do so again.