Council Blighted by "Tight Five"

 A slightly edited version Published HBT 13 Oct 2015

The Hastings District Council decided recently by 10 votes to 3 that it would trial free parking in the CBD in the hope that it might lift the number of shoppers and boost retail spending. This, according to the Mayor, is a decision that will cost ratepayers $211 000 in lost revenue during the 4 month trial, and, depending on the extent of lost income from fines, could cost between $500 000 and $900 000 for a full year. The higher figure is nearly 2% of the Councils annual rates income. There was no research to support the claim of an increase in shoppers or retail turnover. In fact, one of the two other cities to have trialled free parking found it had made little difference. 

Now, whilst the parking issue was decided by 10 votes to 3 - and this is a significant majority, the votes in opposition were all urban ward councillors (including this writer) whilst of the 10 votes in favour, five were from the group I have nicknamed the “tight five” because of their unwavering support for Mayor Lawrence Yule. They include the Deputy Mayor and the Chairs of three of the four all powerful standing committees. Significantly, the Mayor has sole right to appoint these Chairmen and seems able to rely on their votes, perhaps because historically those who have taken an independent position have subsequently been demoted.  

A feature of this voting block is that, of the Mayor and 14 HDC councillors, five also have strong rural connections, either representing rural wards, living in or having close historical associations with the rural hinterland (i.e. retired farmers). Two of these are now starting their 3rd decade on council and one is approaching that milestone. Essentially the “tight five” and rural groups are the same people with just one addition or deletion. As a result of  their unwavering support the Mayor can normally count on six of the eight votes required for an outright decision and, on some occasions when councillors are absent, the decision has effectively already been made before any debate has occurred. In addition the Mayor has  a casting or additional half vote which allows him to force any issue in the event of a deadlock. 

Use of this block voting is a regular feature of HDC decision making. Recently the tight five  supported a resolution to use two million dollars of ratepayer’s money to fund the amalgamation of the RSA and National Service Club, without rigorous due diligence. Ratepayers were only saved from this expense because the National Service Club members rejected the proposal. 

In another example the same group has repeatedly supported the spending of $12.5 million upgrading Civic Square, the area surrounding the library and Art Gallery, plus a further $5 million supporting a CBD hotel, based on essentially emotive justification. For the moment, Civic Square is on hold because of the undefined but clearly substantial cost of strengthening the Opera House, However it has already cost ratepayers around a million dollars for design and consultation, and this amount looks likely to be written off. 

Yet again the rural/tight five group has without exception, supported the Mayors hard-line Animal Control policies that have resulted in many pets being euthanised and the reprehensible treatment of many owners. Rural folk seem to have a quite different view of animals to those living in urban areas. Of course all elected members do support the council position on menacing and dangerous dogs plus the registration of all dogs. 

Earlier this year the group also voted as a block to oppose the restoration of the 100Kph speed limits on Farndon and Brookfield Roads following widespread public objection when the lower limits were introduced a year earlier and despite the assessment by council roading engineers that the roads were suitable for the higher speeds. On this occasion the decision went against the wishes of the Mayor’s “tight five” by just one vote.

It must be remembered that most council spending and the vast majority of regulatory activities relate to urban activity which of course is where the majority of people live. Think of potable water, sewerage, storm water and rubbish collection, sports facilities and all the rest of council spending, then add all the regulatory issues such as parking wardens, liquor management, and animal control and its easy to see that councils are primarily involved in urban activity. In contrast, rural interest is mostly concentrated on roads and bridges, yet it is the councillors with rural loyalties who effectively are deciding the outcomes of many issues that are mainly urban, and often don’t affect rural communities at all.  

The repetitive block voting by the tight five/rural group means the Hastings District Council is making far too many poor decisions. Some are subsequently reversed, but often the outcome is higher costs and therefore higher rates and charges. Whilst most of this burden falls on urban ratepayers, rural ratepayers need to realise they are often required to contribute to these additional costs. 

Readers no doubt realise that five or six people do not total an absolute majority, but the reality on most issues is that this number is sufficient to decide the outcome. Interestingly, if Napier Mayor Bill Dalton is successful with his proposed boundary realignment, the rural power base that is deciding the outcome of many Hastings issues might be reduced. 

Amalgamation Postscript

 Published HBT 18/09/15

The votes are in and counted and the community has rejected a single council for Hawke’s Bay. Whilst many people agree change is necessary they were clearly not convinced amalgamation was the right way forward. It might have been a different result but for one official organisation, one group of people and one individual. 

The official organisation is, of course, the Local Government Commission which has made a complete hash of the whole process. It’s one standard plan for local government throughout the country was unimaginative, unrealistic and unjustified. The NO message was clear from the Far North, emphasised by Winston Peter’s bi-election win. It was also clear in Wellington where both the Wairarapa and the Hutt Valley were more than willing to combine into single councils, but the Commission’s determination to have just one council covering all of the lower North Island scuttled any chances of change. And now it has failed in Hawke’s Bay where the Commission was determined not to listen to the voices of concern and instead barged ahead. Stuart Nash’s election win was clear evidence of what was to follow. 

Including Wairoa, two hours driving from the Bay cities, was mad and shows  just how out of touch these people were. The LGC failed to provide the details necessary to help people make a decision. The promised cost savings kept shrinking and in any case were based on the Winder report for which neither the wider community nor most Councillors had any input, nor were they given any opportunity to question the author. In the case of the Hastings District Council those consulted were hand picked by the Mayor, clearly in the expectation they would kowtow to the official council position. Much was made of reducing in the number of councillors from the present 57 but the proposed plan had at least 56 and many of these were appointees and not elected. There was no democracy costing but independent estimates were the cost of democracy would increase by over $1 million a year. No management organisation was specified, no staff reductions detailed, and the likely salaries and other benefits for key staff in the new organisation were not mentioned.  

The  failure by the  LGC to release results of their telephone survey suggested they must have known it’s proposal was already dead in the water. Clearly by not reappointing Basil Morrison  and the other Commissioners, Government has signalled it’s lack of confidence in this failed team. 

The group that probably contributed most to the amalgamation defeat was, A Better Hawke’s Bay, and its successor Amalgamate Hawke’s Bay. If nothing else it’s campaign proved money is not everything. These people spent a huge but undisclosed sum pushing their agenda, but failed to appreciate the negative aspects of their campaign. The leaflets, hundreds of signs, excessive newspaper and radio advertising plus the audio assaulting mobile loud speakers left people asking just who was providing the funding, how much was being spent, and what did they hope to gain?  The slogans were seen as superficial, inappropriate, and meaningless. Even the claim that amalgamation would bring Jetstar to Hawke’s Bay had to be dropped when that outcome was achieved before the vote had even started. The claim of increased fish numbers was simply fanciful. Even the tone of much of their correspondence was a serious put off to many even though those of the opposite view used the same sort of language at times.  People expected better from those claiming to be the region’s elite.

A major mistake was the selection of speakers for the great amalgamation debate. While including Mayor Yule was predictable, Rick Barker seemed all bluster and no preparation, whilst Ngahiwi Tomoana apparently had nothing to say so he got out his guitar for a sing along. 

The last put off was Mayor Yule himself. Whilst clearly a favourite of the pro-group, whose support could be taken for granted anyway, it did not work with many undecided voters many of whom  felt it was an attempt to create a further extension to his 21 years in Local Government, plus a means to disown many of Hastings well known problems. Additionally rushing off to China in the middle of voting may not have been wise. 

One matter is clear. This was a Government initiative and since it has failed so miserably and predictably, perhaps the Crown should now compensate local councils for the costs and disruption caused by the whole sordid and unnecessary business. 

Support Jetstar

Published HBT 2 Sept 2015

Jetstar’s imminent arrival with cheaper airfares is a fantastic Christmas present. Air New Zealand are already dropping their prices in response, despite claiming for years we were not being overcharged. Some may remember Group GM Louise Struthers (HBT Feb 10 & 23) denying Air New Zealand fares were excessive. 

Of course to retain Jetstar we must support them. Diehard Air New Zealand supporters should remember cheaper airfares have only arrived because of the new kid on the block, whilst those who suddenly find air travel is affordable, should remember last time they went by bus because the airfares were so high. 

Lower fares will grow the market for both airlines and whilst the national carrier might earn a bit less, they recently announced a $330m record profit. Air New Zealand is a ruthless organisation that has buried many competitors including Origin Pacific and Trans Air. They have also unceremoniously dumped unwanted destinations such as Westport and Whakatane, and would do so to us if it suited them. We owe them nothing and need to understand their only loyalty is to themselves.  

CBD in decline

Published HBT 31/08/15

The Hastings CBD has all the hallmarks of serious decline and a Mayoral symposium has been organised to explore future options.  However history suggests various Hastings Councils have in fact been major contributors to the CBD’s decline. One wonders if things will be any different this time. Recently the 300 Heretaunga West block has had up to 14 empty shops, and whilst there as been some recovery this improvement may not be permanent. Of course city centres elsewhere are facing similar difficulties. 

Almost 40 years ago, in 1976, the old Hastings City Council implemented the infamous CBD ring road traffic system which was supposed to solve both congestion and parking problems, but Instead proved highly confusing, especially for visitors. Gary McCormack once joked on TV that food parcels were being sent in to sustain motorists who were unable to escape the system. A decade and a half later, council wisely abandoned the ring road and replaced it with one way streets plus a pedestrian mall in the 100 East block. This simply replaced one unsatisfactory system with another, so finally in 1999 Council was forced to reinstate the two way streets, and open up the East Mall to traffic. 

In recent times there have been other proposals for reinvigorating the CBD such as shifting the railway station into the centre of town, though this was abandoned when an astute local pointed out the intended passenger train was significantly longer than the space available, meaning passengers would be alighting straight into the water feature. Another idea was to remove the water feature and replace it with a through road to connect the East and West sides of Heretaunga Street, effectively returning to the same layout as had existed 40 years earlier. Council street upgrades, whilst generally supported by retailers, have undoubtably been very damaging to their businesses. Its doubtful any extra shoppers have been attracted to the CBD  as a result of the approximately two million dollars spent. 

Without doubt the most significant council inspired changes have been the development of two new large retail zones, the K-Mart Plaza, and Nelson Park. There is nothing intrinsically wrong with providing for big box retailing because it is clear that is what many shoppers want. Actually, Hastings has been successful in attracting big names including K-Mart, Harvey Norman and Spotlight, but such a significant expansion of retailing was clearly going to impact on the fortunes of the original CBD shopping zone. Population growth in Hawke’s Bay is not great, and incomes are increasing quite slowly, so there is no obvious source of new money to replace that being syphoned off by the new bulk retailers. 

Obviously, online shopping is also putting pressures on traditional CBD retailing but again this should have been anticipated because Amazon and eBay have been around since 1995, and even Trademe started business in 1999. The new 5 star Havelock North Hotel will also incorporate more retail space.

A near complete collapse of the CBD may have been prevented only by Farmers relocating to Heretaunga St and the Wallace Development Company upgrades of the former Power Board building and Woolworth’s site. The new Civic Assist staff have also helped re-establish a more congenial environment  for shoppers after behavioural issues drove many elsewhere. . 

As most large retailers offer free parking, the CBD is disadvantaged by parking fees and fines. The 60 minute limit on meters is simply not enough for many shoppers. Of course messing up parking is a Hastings Council speciality. Many people will remember that the present Mayor and Deputy acting on the advice of external experts, supported selling  off council parking land in Havelock North, then tried to introduce meters because of the resulting shortage of parking.

Of course amalgamation will be an unmitigated disaster for Hastings. If $10 million a year is to be saved, at least 100 and as many as 150 council jobs will have go. With the new super council being based in Napier many jobs may be lost from Hastings. Together with relocations Hastings could lose perhaps 300 jobs, plus tens of millions of dollars in spending. Hasting retailers would be wise to have exit plans for their businesses in the event amalgamation goes ahead. 

Hastings was once the retail capital of Hawke’s Bay and back in the 1960’s trainloads of people would arrive from Napier to do their Christmas shopping. Its unlikely such days will ever return so we need to make absolutely sure shoppers can be enticed back to the CBD before any commitment is made to spend ratepayers money. Advisors are all very well, but they are not accountable and they have not always served council well in the past. 

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.  

Increased Funding for Tourism

The Hastings District Council recently voted seven votes to six in favour of supporting a Hawke’s Bay Regional Council proposal to substantially increase funding for tourism promotion. This was part of the HDC submission to the Regional Councils draft Long Term Plan (LTP). The proposal will result in $900 000 of increased expenditure after 3 years of which about half or $450 000 annually could be charged to Hastings ratepayers. This is equivalent to about a 0.75 % average increase in Hastings rates, though the billing will come from the HBRC not the HDC.

That 6 councillors voted against shows real concern about the idea. Had just one councillor voted otherwise the outcome would have been different and this could have put pressure on the Regional Council and Hawke’s Bay Tourism for greater disclosure and more meaningful dialogue, though it would not necessarily have prevented the increase because that decision will be made by the Regional Council.

HDC has a duty of care to ensure ratepayers money is spent wisely. Clearly six councillors were not convinced this had happened. The concern was about insufficient consultation, lack of supporting information, and also failure to have a meaningful in-house discussion between Hastings councillors and staff. Whilst Hawke’s Bay Tourism did make a presentation some weeks ago, there had been no warning, no agenda, and no details. It must be remembered that this is not like purchases from the supermarket where there is a choice to buy or not to buy. When councils decide to do something ratepayers must pay whether they agree or not. 

The lack of meaningful discussion by HDC councillors is a real concern because suddenly we were told the submission had already been made without councillors having been involved. The choice was to withdraw it, make clear it was a staff not councillor submission, or accept the submission without a closer examination. Effectively Councillors were being asked to support something they had had no input into. The decision to uphold the submission was made by a majority of just one. Its probably worth mentioning that of the seven councillors supporting the proposal most were those representing or with close connections to the rural wards, whereas those who opposed were mainly from the urban wards, where of course most of the funding burden will fall.

The importance of tourism to the local economy was not being questioned, however any proposal to double funding to the tune of nearly a million dollars a year needs close examination. The increased funding presumably means advertising though there have been no details, no in depth examination of the proposals by either HDC staff or councillors, no specifics on how the money is to be used, nor has there been any opportunity to examine the past claims and the resulting performance of Hawke’s Bay Tourism. Effectively the decision was made on the basis of spurious, unsubstantiated, generalised claims.  

We were told there had not been time to consult meaningfully with councillors but I had been asking repeatedly when were were going to examine the request and was assured each time that it was “in hand”. To suddenly have the matter sprung on councillors “as done” is simply not acceptable. 

I personally have concerns about the Regional Council ability to manage this activity. Historically the track record of tourism under Regional Council control has not been satisfactory. The Regional Council has no skin in the game as all publicly provided tourism facilities including the airport are owned by the Napier or Hastings councils. Nor do It see any relevant experience or expertise within Regional Councillors or Regional Council staff. It is not part of their core environmental responsibilities, but is the result of a historical inability of the Hastings and Napier Mayors and others to resolve priorities. As a result responsibility for governance and funding of tourism was handed over to the HBRC in a sort of cop-out. 

I have recently written other “Talking Points” highlighting poor decision making by the Hastings District Council and I believe this is a further failure by the Council to act in the best interests of their ratepayers.