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Top 10 Corporate Risks
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Attachment 1
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Risk
Issue 1
Water
Quality
Risk Statement
Water quality in some of the rivers
of Hawke’s Bay is declining and Hawke’s Bay Regional Council (HBRC) is not
quickly and effectively addressing this issue.
Risk Status
The potential for water quality in
the region’s water bodies to decline is real without ongoing proactive
management by HBRC. HBRC has a major focus on this issue with long term
mitigation programmes provided for in the LTP 2012/22.
Assessment
The public of Hawke’s Bay are
increasingly concerned at the quality of water in the region’s rivers, and that
there could be a decline in the quality of water in our key aquifers.
HBRC monitors water quality at a
network of sites throughout the region and reports annually on trends through
its State of the Environment report.
Risk Mitigation
Water quality continues to be a
focus of HBRC. Provision for the following projects was included in the
2012/22 LTP. These projects will in the long term result in improvements to
water quality in water bodies in HB.
· Hill Country
Afforestation project (note: this has subsequently been postponed).
· Ruataniwha Water Storage
Scheme (RWSS)
· Improved focus for the
Regional Landcare Scheme
· Catchment based Plan
changes
The
National Policy Statement for Freshwater Management came into effect on 1 July
2011. This requires regional councils to set water quality limits and
timeframe targets in regional plans. A Plan change for the Tukituki River is
progressing. Discussions with stakeholders continue for tackling water quality
issues arising in the Mohaka River (particularly the Taharua River) catchment
and the Greater Heretaunga/Ahuriri Catchment Area.
HBRC Regional Plans include a policy
and regulatory framework for the management of water quality in the region’s
water bodies.
The HBRC land management team
encourages land owners to fence stock out of waterways and improve farming
practice. This is supported by subsidies available through the regional
landcare scheme.
The Regional sector is progressing a
conversation with owners of “Overseer” regarding its use for regulating
nutrient budgeting through Regional Plan rules and policies.
Change since November
2012
· HBRC has focused on the
completion of the RWSS as a key element of this risk mitigation strategy.
· HBRC has adopted a programme of time-defined stages
required to fully implement the National Policy Statement for Freshwater
Management (i.e. the Progressive Implementation Programme).
· HBRC has publicly notified proposed Change 5 to the
Hawke's Bay Regional Resource Management Plan. Submissions were heard at a
hearing in mid April 2013. Decisions on submissions and further submissions
are expected to be received in May 2013.
· A proactive approach continues to be taken on Taharua
catchment to reduce farming impact on water quality.
· Construction work for Mahia Beach waste water project
has commenced. This project will irrigate waste water from the Mahia Beach
Community to the HBRC forest planted last winter.
· MTI Treaty of Waitangi negotiations are now well
advanced and provide for a fund to be established using money held by HBRC
being proceeds from the Tangoio Soil Conservation Reserve, which may be used
for “avoiding remedying or mitigation soil erosion and its effects on the
environment and maintaining the physical, chemical and biological qualities of
soil in the catchments”. The catchments are the Esk, Arapawanui, Waipatiki and
Te Ngarue.
Mitigation actions
completed in past 3 years
· HBRC has adopted its 2012/22 LTP which provides for the
resources for a programme of work to mitigate this risk.
· Two Water Symposiums held
and well attended.
· HBRC Strategic Plan and Hawke’s Bay Land and Water
Management Strategy completed and being implemented.
· Ruataniwha and Ngaruroro
water storage feasibility projects progressed.
· Science input appropriately targeted to sensitive
catchments and risk areas including a review of minimum river flows and
allocation limits for ground water and surface water on a targeted catchment
basis.
· HBRC led initiative to investigate water harvesting
opportunities, water metering and water use efficiency through rationing and
rostering.
· Water Initiatives Group
established within HBRC to focus on water issues.
· Programme of Regional
Plan changes initiated to meet HBRC obligations associated with NPSs initiated.
· Web portal established.
· More holistic approach to HBRC involvement with primary
sector being taken by HBRC with objective of reducing impact of sector on water
quality.
· Riparian fencing and planting continues to be
incentivised and regulated through HBRC’s Regional Landcare Scheme and
Fonterra’s Clean Streams Accord.
Risk
Issue 2
Water
Quantity
Risk Statement
HBRC is failing to appropriately manage
the allocation of water with a fair balance between protection of environmental
flows and adequate provision for irrigation leading to economic growth.
Risk Status
As for water quality, HBRC has
recognised the need for ongoing proactive management of water quantity issues.
HBRC has a major focus on this issue with long term mitigation programmes
provided for in the LTP 2012/22.
Assessment
The appropriate allocation of water
is a balance between the needs of the public and the regional economy, including
domestic users and irrigators, with environmental requirements. This requires
a robust understanding of environmental and agricultural needs.
The map below shows that the
Tukituki, Ngaruroro including the Karamu, Maraetotara and Pouhokio catchments
are currently either fully or over allocated. The RWSS has the potential to
enable this issue to be addressed in the Tukituki catchment.
In the longer term, HBRC needs to
have an effective framework for the management of water allocation for all of the
region’s catchments.
This
is recognised as a National risk. National Policy Statement for Freshwater
Management came into effect on 1 July 2011 to provide direction on the
management of the issue. This requires regional councils to set water quality limits/
timeframe targets and water allocation limits and minimum flows in regional
plans. It also provides for the involvement of tangata whenua in freshwater
planning and management.
Risk Mitigation
The following work has been
initiated to reduce this risk:
· HBRC’s Strategic Plan, the Hawke’s Bay Land and Water
Management Strategy and the 2012/22 Long Term Plan provides the framework and
resources for a programme of work to mitigation of this risk.
· RWSS
· Ngaruroro water storage
prefeasibility study
· Catchment based Plan
changes
Change since November
2012
· HBRC has focused on the completion of the RWSS as a key
element of this risk mitigation strategy in the Tukituki catchment.
· HBRC has adopted a programme of time-defined stages
required to fully implement the National Policy Statement for Freshwater
Management (i.e. the Progressive Implementation Programme).
· HBRC has publicly notified proposed Change 5 to the
Hawke's Bay Regional Resource Management Plan. Submissions were heard at a
hearing in mid April 2013. Decisions on submissions and further submissions
are expected to be received in May 2013.
· Collaborative engagement
has commenced for the Greater Heretaunga/Ahuriri Catchment Area.
Mitigation actions
completed in past 3 years
· HBRC has adopted its
2012/22 LTP which provides for the resources necessary to mitigate this risk.
· Two Water Symposiums held
and well attended.
· HBRC Strategic Plan and Hawke’s Bay Land and Water
Management Strategy completed and being implemented.
· Ruataniwha and Ngaruroro
water storage feasibility projects progressed.
· Science input appropriately targeted to sensitive
catchments and risk areas including a review of minimum river flows and
allocation limits for ground water and surface water on a targeted catchment
basis.
· HBRC led initiative to investigate water harvesting
opportunities, water metering and water use efficiency through rationing and
rostering.
· Water Initiatives Group established within HBRC to
focus on water issues. Community water user groups established to ensure
community representation and interaction on water issues.
· Programme of Regional
Plan changes initiated to meet HBRC obligations associated with NPSs initiated.
· Agreement reached with Twyford water users including
environmental enhancement initiative for Raupare Stream. The initiative is
coordinated by HBRC on behalf of the community.
Risk
Issue 3
The
productive capacity of soil
Risk Statement
HBRC
is not effectively managing the productive capacity of soil and its potential
to impact on water quality in the region’s rivers.
Risk Status
Improving
and sustaining the productive capacity of the region’s soils and managing the
potential impact of land use activities on the land, on water quality and
quantity, are recognised and their ongoing proactive management is provided for
in the LTP 2012/22.
Assessment
The
Regional Landcare Scheme has been utilised by farmers to retain their soils and
enhance their farm environments for over 15 years, however the benefit of this
initiative is spread widely across the region.
Intensive
land use, and particularly dairying, is widely blamed for adversely impacting
on water quality in rivers throughout New Zealand. There is evidence of this
in parts of Hawke’s Bay through HBRC state of the environment monitoring and
reporting. Regional councils have been blamed for failing to effectively
manage these impacts.
HBRC
is actively working with individual farmers and their industry groups to
improve the management of nutrients on the land and reducing their impact on
water quality in the region’s rivers.
In
addition HBRC has commenced a programme of Regional Plan changes that will
deliver a robust approach to reducing the impact of intensive land use
Risk Mitigation
The
following has been initiated to reduce this risk:
· Improve the focus of RLS to provide for initiatives to
reduce P and N entering waterways – key initial target areas are Taharua
catchment and Ruataniwha Plains.
· Taharua and Tukituki Catchment Plan changes are
progressing, with the long term plan to undertake further catchment based plan
changes.
· The pan-sector primary industry sector group has been
established to provide an effective focus group with which to discuss options
and approaches for mitigation, and to gain industry support in promoting those
approaches.
Change
since November 2012
· Two meetings held with
pan-sector primary sector group.
· One meeting held with
dairy liaison group.
· Work with Taharua and Huatokitoki communities
progressing with nutrient balance model being developed for Taharua. Proactive
approach continues to be taken on Taharua catchment with positive response from
the farming community.
· The mitigation of the impacts of land use
intensification continues to be thoroughly researched as part of the RWSS
feasibility study. A pilot project to test a mitigation approach was agreed by
HBRC in October 2012, and its implementation has commenced.
· HBRC supports, in principle, the Sustainable Dairying:
Water Accord and has become a ‘Friend’ of the Dairy Accord.
· Implementation Plan drafted to accompany and assist
implementation of proposed Plan Change 6 for the Tukituki Catchment.
Mitigation
actions completed in past 3 years
· The Land Management team and its programmes have been
refocussed to increase capability of influencing uptake on good practice
farming and reducing impact of land use on water quality.
· Strong relationship built with primary sector industry
groups and groups of farmers to encourage the use of best practice.
· Identification and prioritisation of sensitive
catchments completed and a programme of work established to address catchments
in order of priority.
· Regulation is being developed using an adaptive
management approach, with standards agreed with community.
· Science input is
appropriately targeted to sensitive catchments and risk areas
· The RWSS has been
progressed.
· The Regional Landcare scheme is supporting the HBRC
approach with significant investment made in Taharua.
· Better alignment of science programme to informing
Regional Plan change programme and land management programme to implement
Plans.
Risk
Issue 4
Co-
Governance of Natural Resources
Risk Statement
Effective working relationships are
not developed and maintained with Hawke’s Bay Treaty of Waitangi settlement
groups.
Risk Status
HBRC continues to develop robust
relationships with Māori groups and is working collaboratively towards
their increased influence in HBRC decision making. Failure to achieve and
maintain an effective working relationship could potentially lead to fragmentation
of governance of natural resources locally.
Assessment
Constructive and effective working
relationships with Treaty Settlement groups in particular and with Maori in
general will enable HBRC to more confidently progress its programmes of work
and will in the long term provide opportunities for Hawke’s Bay.
The draft legislation to permanently
establish the Regional Planning Committee is about to begin the formal part of
its passage through the House. This will provide the ongoing certainty sought by
the Treaty claimant for cultural redress through co-governance of natural
resources.
Risk Mitigation
The following has been initiated to
reduce this risk:
· The Regional Planning Committee has been formally
established and is meeting regularly.
· HBRC is proactively involved in
negotiations with Treaty claimant groups where this assists in progressing
their claims.
· Staff are engaging with a number of
hapu groups to improve their understanding of HBRC’s role and work, and to
increase their involvement in decision making on environmental enhancement
projects and operational activities on the region’s water ways (at this stage
focussed on the Heretaunga Plains).
· Staff have been involved in drafting
of a protocol for improving integrated local authority planning in Ngāi Tūhoe rohe (this has been
initiated, and led, by Bay of Plenty Regional Council staff).
· Strong working relationships are
maintained with Ngati Pahauwera and Maungaharuru-Tangitu Inc. who have achieved
Treaty settlements or are well advanced in the process.
Change since November
2012
· Development of Deed of Commitment to underpin the long
term relationship between HBRC and Treaty Claimant groups.
· Inaugural meeting of the
Regional Planning Committee in April 2012.
· RMA and Meeting procedures training sessions held for
Treaty claimant representatives on the Committee.
· Regional Planning Committee meetings being held
regularly and currently focussing upon a change to the Regional Plan Change and
Regional Policy Statement in the area of freshwater management.
· Negotiations with Maungaharuru Tangitu Inc. over
Tangoio Soil Conservation Reserve and Tutira progressed.
· HBRC has ‘received’ a hapu management plan from Ngati
Hori (titled “Ngati Hori Freshwater Resources Management Plan - Operation
Patiki 2009/2012”).
· MTI Treaty of Waitangi negotiations are now well
advanced and provide for a fund to be established using money held by HBRC,
being proceeds from the Tangoio Soil Conservation Reserve, which may be used
for “avoiding remedying or mitigation soil erosion and its effects on the
environment and maintaining the physical, chemical and biological qualities of
soil in the catchments”. The catchments are the Esk, Arapawanui, Waipatiki and
Te Ngarue.
· Tamatea & Heretaunga
Taiwhenuas involved in Plan Change and RWSS.
Mitigation actions completed in past 3 years
· Regional Planning Committee established to undertake
HBRC’s statutory resource management functions, with equal representation of
Councillors & Treaty Claimant representatives.
· HBRC has received central government funding to work on
an agreed programme with Ngati Pahauwera around the management of the rivers in
their rohe.
· National
Policy Statement for Freshwater Management came into effect on 1 July 2011.
This requires regional councils to set water quality limits/ timeframe targets
and water allocation limits and minimum flows in regional plans. It provides
for the involvement of tangata whenua in freshwater planning and management and
this will be undertaken primarily, but not solely, through the Regional
Planning Committee.
· Negotiations
with Maungaharuru Tangitu Inc. have assisted them in meeting their Treaty
settlement aspirations.
Risk
Issue 5
Investment
Portfolio
Risk Statement
HBRC’s investment
portfolio is not effectively managed to maximise both long term financial
returns and economic development in the Hawke’s Bay Region.
Risk Status
With the establishment of
the Hawke’s Bay Regional Investment Company (HBRIC Ltd), this risk has an
effective governance and management framework for its mitigation.
Assessment
HBRC holds a portfolio of
approx. $265m of investment assets. These include leasehold land in Napier and
Wellington, cash reserves, and HBRIC Ltd [which holds the shares in Port of
Napier Limited (PONL)]. HBRC’s strategy is to invest in regional scale infrastructure
and assets to deliver sustainable regional growth.
HBRC is reliant on income
from investments to meet operational costs. There will be a period of several
years while HBRC transfers from traditional investments to new investments
aligned to its investment strategy of increased investment returns in those
areas that will be of direct benefit to growing the Hawke’s Bay GDP.
During this period there
needs to be careful management of investment returns and cash flows.
The 2012/22 Long Term
Plan makes provision for investment into the Ruataniwha and Ngaruroro water
storage projects and Rail/Road Hub. It is essential that investment into these
initiatives is effectively managed.
Through the LTP
consultation process, HBRC sought public feedback on its proposed financial
strategy.
There is a risk for HBRC
that financial returns on major investments (PONL and RWSS) are now under the
governance of HBRIC Ltd.
Risk Mitigation
HBRC has resolved to
better utilise the investment portfolio to encourage economic growth in Hawke’s
Bay and use the return on these investments as the primary funding sources for
new investments.
During 2011/12 HBRC set
up an investment company structure including related subsidiaries. This
vehicle is being used to improve the diversification of investments and the
return on HBRC investments.
Change since November
2012
· RWSS Feasibility Study – completed and presented to
HBRC on 26 September 2012. A further report was made to HBRC on 31 October
2012 where it was resolved to transfer responsibility for the RWSS to HBRIC
Ltd.
· HBRC has progressed realising value from the Napier
leasehold land portfolio by providing discounts to the lessees of this
property.
· The sale of residual cash flows from the Napier
leasehold portfolio is to be considered by HBRC at its May 2013 meeting.
· HBRC has resolved to put on hold the first year of the
regional afforestation project (i.e., planting for the 2013 winter), and
requires a further review prior to agreement on a second year. The decision to
defer this project is due to the current low price of carbon.
Mitigation
actions completed in past 3 years
· Financial strategy adopted as part
of LTP 2012/22 process.
· An Investment Company has
been established to support HBRC’s proposed investments in natural
infrastructure which will assist with the drive to increase economic
development in the region.
· Sell down of Napier investment
properties speeded up.
· RWSS prefeasibility and feasibility
now completed.
· Ngaruroro water storage
prefeasibility completed.
· Regional afforestation project
approved in principle as part of LTP 2012/22 process.
· The policy on the evaluation of
investment opportunities completed and is being implemented.
Risk
Issue 6a
Ruataniwha
Water Storage Scheme as a Council investment
Risk Statement
The RWSS does not deliver positive
economic and environmental benefits to Hawke’s Bay.
Risk Status
Financial risks associated with this
project are mitigated through its governance under HBRIC Ltd.
Ongoing risks include;
· Risk of resource consent not being granted, or is
granted but with untenable conditions.
· The project is unaffordable resulting in a failure to
attract adequate uptake of water
· Investors are not attracted to fund the project.
The project is being assessed for
resource consents through the EPA process. This process is considered to be
transparent and provide certainty through a clear end date.
If this project does not proceed,
HBRC will need to consider writing off the expenditure incurred on feasibility
studies etc. At 31 March 2013 this amount was $5.35 million.
Assessment
A decision to proceed with applying
to the EPA for a resource consent on the RWSS was made by HBRC on 31 October
2012. Whatever the decision there are risks to HBRC.
The rate of uptake of irrigation
water, the management of the transfer of existing water take consent holders
and management of project infrastructure costs are key risks.
Should the EPA not grant resource
consent the ongoing issue of water allocation within the catchment and water
quality within the Tukituki River remain issues to be addressed.
The feasibility study has provided
significant value through a greater understanding of the importance of water to
Hawke’s Bay and strategies to manage potential impact of intensive land use on
water quality in the region’s rivers.
Risk Mitigation
· It is proposed that the consent, final design and
construction phase be managed and funded through independent governance and
organisation, through which HBRC will be involved together with a number of
other investors.
· Communication plan to manage dissemination of decisions
made regarding future of project, and ensure public feedback is taken into
account.
· All potential impacts of the project, (including
damming of the Makaroro River and intensification of land use as a result of
irrigation) identified and addressed through robustness of the feasibility
study work and reports.
· Involvement of HBRIC Ltd independent board members in
assessing feasibility and risk management issues.
· Financial advice to
assess commercial feasibility in detail has formed part of feasibility study.
· Public comment has been
obtained through the Tukituki Choices document.
Change since November 2012
· Feasibility study report
completed and presented to HBRC on 26 September 2012.
· Tukituki Choices document
prepared and public consultation completed.
Mitigation Actions completed in last 3 years
· Prefeasibility study
completed.
· Feasibility study
initiated and completed.
· Tukituki Catchment Plan change process initiated and
being developed concurrently with Storage Project feasibility.
Risk
Issue 6b
Leasehold
Land Portfolio
Risk Statement
HBRC leasehold land
portfolio is not aligned to the strategic objective for HBRC investments.
Risk Status
The risk associated with
this portfolio is mitigated by the current action to realise the investment
from this portfolio and redirect the proceeds to investments providing higher
long term returns and to promote regional economic development.
Assessment
· HBRC receives relatively low returns on Napier
Leasehold Land investment. There is some restriction on the use of Napier
leasehold income through Hawke’s Bay Endowment Land Act.
· Some lessees find it difficult to meet the cost of
leases, particularly at the transition from old to new lease periods. This
requires HBRC to consider reducing social impacts of leases.
· The leasehold land as an investment
does not contribute to economic development of the region.
Risk Mitigation
· HBRC has agreed to divest itself of lease properties
both in Wellington and Napier. In order to achieve this HBRC approved a range
of discounts available to Lessees of Napier Leasehold property, this action
being taken to encourage additional free holding by lessees. These discounts
applied to all freeholding leasehold transactions being initiated prior to 30
June 2012.
· Decision by HBRC as part of the Long Term Plan 2012/22
finalisation that the Napier Leasehold land cash flows remaining at 30 June
2012 should be sold by the target date of 31 December 2012.
· The target date for the sell down of Wellington
Leasehold properties has been set in the Long Term Plan as 30 June 2013.
Change since November May
2012
· 245 properties sold during period of
discounting up to 30 September 2012 ($23m realised).
· A further 37 properties ($3.8m) to
be accepted and processed under the discounting offer.
· After all processed under
discounting offer, 440 properties left in the portfolio.
· 2012/22 Long Term Plan adopted by
HBRC.
· Sell down of residual cash flows of
Napier leasehold land is now timed for 30 June 2013.
Mitigation actions
completed in last 3 years
· Sell down of Napier leasehold
properties sped up.
Risk
Issue 6c
Regional
Forestry Investments
Risk Statement
The lack of resilience in pastoral
farms on steep erodible hill country has a potential negative long term impact
the Hawke’s Bay economy.
Risk Status
The significant reduction in the
carbon price over the past 18 months has adversely impacted on the forecast
returns from this investment. A decision to delay the commencement of the
Regional Afforestation project limits HBRC’s potential exposure to this.
Assessment
Approximately 150,000ha of steep
erodible land is currently under pasture. This land is likely to be of low
productivity and poses a risk to more productive lands and waterways during
heavy rain events because of the likelihood of erosion. The economic health of
the primary productive sector is important for the economic health of Hawke’s
Bay.
HBRC wish to increase their
influence in encouraging sustainable land management in Hawke’s Bay. Forestry,
if integrated into pastoral farming systems, can reduce erosion of the steepest
land and provide opportunities for farmers to focus on their more productive
land, thereby improving resilience and sustainability.
HBRC approved in-principle as part
of their LTP 2012/22 a long term project for the afforestation of steep
erodible hill country integrated into farming systems. However due to low
carbon price the commencement of this project has been delayed. No planting in
the 2013 or 2014 winters is now anticipated.
Risk Mitigation
While the project is targeted at
improving the resilience of the primary productive sector in Hawke’s Bay, this
is being funded through HBRC investment portfolio. HBRC requires a return on
investment for the money invested in the project. The management of financial
risks forms part of the overall strategy.
Change since November
2012
· Project now on hold as a result of low carbon prices.
Other funding possibilities now being investigated. A block of high WMF Manuka
is being planted at Tutira Country Park to determine its feasibility as an
alternative approach to grazing.
Mitigation actions
completed in last 3 years
· Project concept developed and included in LTP 2012/22.
Submissions on proposal generally supportive of initiative.
· Land purchased and
forests planted on a number of blocks throughout the region.
· Manuka trial initiated at
Tutira Country Park.
Risk Issue 7
Natural Hazards
Risk Statement
A
major natural hazard event will have a significant impact on the Hawke’s Bay
region and HBRC activities
Risk Status
HBRC
is limited in its ability to influence an improvement in resilience of the
Hawke’s Bay community to natural hazards. Land use planning decisions are made
by the region’s territorial local authorities. HBRC staff continue to work at a
national level to seek ways to encourage better interpretation of hazard
information and risk mitigation approaches through holistic planning.
Assessment
HBRC
is the administering authority for Hawke’s Bay CDEM Group, HBRC are proactive in
seeking to improve resourcing of CDEM in HB.
The
Hawke’s Bay region is at risk from flooding, earthquake, tsunami, coastal
erosion and inundation and volcanic ash fall. The Heretaunga and Ruataniwha
Plains are protected from flooding from the major rivers running through them
by stopbanks with a 1% annual exceedance probability (100year return period)
design standard.
HBRC
has an ongoing programme of hazard identification research with new information
communicated to the region’s territorial local authorities and emergency
response organisations.
Major
events, severe flooding and earthquake have impacted on the region in the past
and will again in the future.
Resource
Management reform proposals released in early 2013 are likely to be introduced
in a Bill (release circa late 2013) amending the Resource Management Act. The
proposal is likely to elevate, and make more explicit, the need for local
authorities to consider the risks associated with natural hazards.
Risk Mitigation
The
following has been initiated to mitigate this risk:
· HBRC maintains an incident response structure and
procedures which activates with the threat from any significant natural hazard
event.
· HB Group CDEM team
resource has been increased and now includes a dedicated group controller.
· The HB CDEM Group Plan is currently being reviewed with
the work overseen by the Coordinating Executive Group and CDEM Joint Committee.
· Joint Regional Land Use Planning and Natural Hazard
Strategy completed, along with a programme to implement the Strategy.
· Insurance to assist in
meeting repair costs of infrastructure assets is in place.
Change since November 2012
· Implementation Programme completed to outline projects
and priorities to implement the Joint Land Use Planning and Natural Hazard
Strategy.
· Change the Regional Policy Statement proposed in the
Long Term Plan 2012-22 to improve policy direction on managing the effects of
natural hazards on land use.
· The CDEM Group Plan is
currently under review.
· A review of HBRC
arrangements for insurance of its infrastructure assets is underway.
· Development of a regional GIS Portal as a tool for
addressing improved management of Hazard Information endorsed by HB CDEM
Coordinating Executive Group.
· HBRC staff involved in a proposal to develop a Natural
Hazards Strategy for Local Government in conjunction with Local Government NZ,
the Regional Chief Executive forum, and the Natural Hazards Research Platform.
This proposal has now been endorsed by the National Council of Local Government
and EQC.
Mitigation actions completed in past 3 years
· Ongoing natural hazards and coastal hazard research and
is recognised nationally as proactive in these areas.
· HBRC staff are involved in a number of national and
local initiatives associated with natural hazards readiness, reduction and
response planning.
· Staff facilitates regular meetings with the HB planning
group (including TLA and RC planners) to ensure common and thorough
understanding of hazards and a common approach for risk reduction through
planning mechanisms.
· HBRC has a business Continuance Plan setting out how it
will continue to do its business if staff are unable to access the office. The
plan is regularly updated.
· HBRC has consulted on proposal to increase the level of
protection provided by the Heretaunga Plains Scheme – Rivers to the Heretaunga
Plains from the current 1% Annual Exceedance probability (AEP) standard to a
0.2% AEP standard, and committed in its LTP to that project commencing in
2015/16.
Risk
Issue 8
Regional
Council functions
Risk Statement
Local government reform results in
significantly reduced commitment to Regional Council functions.
Risk Status
There is potential for reform of
local government in Hawke’s Bay.
The value to the region of an
organisation such as HBRC focussing on long term sustainable management of the
region’s resources is not well understood by the public. The risk of the loss
of this focus and commitment through local government amalgamation is real.
Assessment
Local government reform is currently
being considered by the Local Government Commission.
The current focus of HBRC is on
· Natural resource knowledge and management
· Natural hazard assessment and management
· Regional strategic planning
· Regional scale infrastructure and services
This focus may not be as strong
under a structure which may result from possible reforms in HB.
Some LG reform could be beneficial
to achieving some outcomes in a more collaborative way.
Risk Mitigation
HBRC will continue to advocate for a
focus to remain on functions currently undertaken by regional councils and
particularly HBRC.
HBRC will continue to advocate that
any local government reform should not impact on RWSS.
Change since November
2012
· Council Chair and Chief Executive continue to be active
in working with Central Government agencies and politicians to communicate the
regional council value proposition in national resource management and economic
development, including environmental, cultural, economic and social aspects.
· HBRC continues to maintain very good profile –
Government Ministers, Local central government politicians, Government
Department CEs, (MPI, MfE, and DoC etc.) The relevance of regional councils
continues to be demonstrated and promoted. There is now a much greater
awareness of the value of regional councils by central government.
· HBRC has lodged an alternative proposal to local
government reform in Hawke’s Bay by the required deadline of 3 May 2013. This
alternative is in response to the Local Government Commission’s request for
alternative proposals in accordance with their legislative requirements
following their receipt of the ‘Better Hawke’s Bay’ proposal.
Mitigation actions
completed in past 3 years
· Regional Planning Committee with equal representation
of Treaty Claimant Groups reinforcing the resource management role of HBRC has
been established and has a regular forward meeting timetable.
· The option of joining a shared services company with
the region’s territorial authorities was consulted upon through the Draft
2012/22 Long-Term Plan. Recommendations from this were presented to HBRC in
September 2012.
· Submission made to the Local Government and Environment
Select Committee on the proposed local government law reforms (Phase 1).
· A shared hazard information web-based portal as
endorsed by CDEM Joint Committee has been developed and has the potential for
future content covering other local government activities.
· Submission made on
“Better Local Government” discussion document.
· Stage 1 of Prosperity Study completed noting that any
consideration of local government reform must avoid undermining or compromising
the delivery of the RWSS.
· Substantial improvement
across regional council sector in collaboration and coordination.
· Establishment of “Nature Central” with central
government and other regional councils focussing on the sharing of services and
expertise in the areas of natural resource management, community engagement,
open spaces and biosecurity.
Risk
Issue 9
HBRC
planning framework and its flexibility to adapt to new technology
Risk Statement
The impacts of new technologies with
the potential to be used in Hawke’s Bay are unable to be effectively managed as
they were not foreseen in the development of Regional Plans and/or policies.
Risk Status
New technologies will continue to be
developed that challenge established resource management approaches.
Uncertainty around allocation of
responsibilities for regulatory management
HBRC Plans may not be sufficiently
flexible to enable effective response to environmental, economic, social and
cultural risks arising from new technologies
Assessment
The effective management of new
technologies may not be effectively covered by Regional Plans. These include
hydraulic fracturing and genetically modified organisms
· A report is being prepared by the Parliamentary
Commissioner for the Environment on hydraulic fracturing.
· Potential environmental
risks from hydraulic fracturing have been investigated through:
o Working
closely with other regional councils.
o Investigating
approaches taken to regulate the activity internationally.
· Potential environmental and economic risks from
genetically modified organisms are addressed under Environmental Risk Management
Agency legislation. The potential advantage to the Hawke’s Bay economy of
remaining GE free was raised in submissions on HBRC draft LTP 2012/22.
Risk Mitigation Approach
· Maintain an awareness and watching brief on new
technologies that could be used in Hawke’s Bay, including out to the 12
nautical mile limit offshore which is within the HBRC area of jurisdiction.
· Support central
government’s proposals for legislative amendments that:
o further simplify and streamline preparation and
amendments of regional plans and policy statements under the RMA.
o consolidate regulatory intervention via national
planning instruments (such as Regulations and/or National Environmental
Standards) for effects of activities (including emerging activities) where appropriate
Change since November
2012
There
has been no change since November 2012
Mitigation actions
completed in past 3 years
· Reference to both of these risks has been included in
HBRC LTP 2012/22.
· The outcome of a report being prepared by the Parliamentary
Commissioner for the Environment on hydraulic fracturing is awaited before HBRC
considers what action if any should be taken.
· HBRC joined with Hastings District Council to host a
public forum in October 2012 covering a proposition that Hawke's Bay be ‘GE
Free’.
Risk
Issue 10
Operational
Risks
Risk statement
Financial, health and safety,
contractual, and other operational risks are not effectively managed and
controlled.
Risk Status
Operational risks are managed
through established protocols, procedures and processes. These must be
reviewed, and where appropriate improved, to ensure operational risks continue
to be effectively mitigated.
Assessment
HBRC is exposed to numerous
financial, health and safety, contractual and other operational risks
associated with the delivery of its functions.
Risk Mitigation Approach
HBRC has numerous controls and
systems for management of operational risks. These include:
· Established corporate structure with clear
responsibilities, established levels of expertise and experience, and
performance expectations, including for emergency response situations.
· Financial – levels of financial delegation, regular and
transparent financial management reporting, and annual audits.
· Health and Safety – Codes of practice for activities
commonly undertaken by staff, the provision and use of appropriate personal
safety gear, an active Health and safety committee.
· Adequate budget provision to enable an appropriate
expertise, review and peer review for projects and activities.
Change since November
2012
· Appropriate personnel
appointed to positions where existing staff have left.
Mitigation actions
completed in past 3 years
· Tertiary level of WSMP
maintained throughout last 3 years.
· 2012/22 LTP completed,
consulted on and audited
· 2011/12 Annual report
completed and audited and reported to HBRC.
