Late Agenda of Regional Council Meeting

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 October 2018

Subject: Chairman's October 2018 Report

The Chairman’s report is provided following.

1. This group of councillors has now been in for two years. The election was focused on a raft of issues but two stood out:

1.1. The Ruataniwha dam and

1.2. the state of our environment.

2. The new council elected a new chair, new chairs to most of the committees and within a few months we appointed a new CE.

3. There was a determination to transform the priorities and in some ways the culture at HBRC. The pace has been hectic, sometimes manic but we have collectively achieved much over the last two years. Some of these are:

Ruataniwha dam

4. Following the Forest & Bird successful High Court action which took the disputed DOC land off the table, we withdrew our financial support for the project as is was presented. A year later we sold the related IP to a consortium of Central Hawke’s Bay farmers and wish them well in their endeavours.

Capital Review Committee

5. We established a Capital Review Committee to review of the council’s capital and potential projects using expertise from our community. This group was ably chaired by Chris Tremain and resulted in a report which we now refer to.

HBRIC

6. The council wanted a smaller group of HBRIC directors post Ruataniwha and this has been achieved with a change in leadership aligning the company with the Council’s new priorities.

7. The environment is our core function and this council is committed to making fundamental improvements. As a first step we established six hotspots that we intended for targeted attention. We went back to the public with a substantial rates rise to fund these projects and these are now under way with noticeable positive effect.

8. The HBRC riparian planting days were well supported by the public and have already made a difference.

Future Riparian plantings

9. We have committed $30m over ten years to riparian planting and are seeking the government to match this with a further $30m.

Tangata Whenua partnership

10. The council has been very focused on improving its relationship with Tangata Whenua but this has not been without its challenges.

10.1. We failed to get the majority required to have two Maori wards on the HBRC and I view this as a personal failure.

10.2. The RPC as a structure is thwart with challenges and in my view is unworkable in its current form and is a serious handbrake to improving race relations and economic and social development in Hawke’s Bay.

10.3. We have now appointed Pieri Munro as our senior manager for Maori partnerships and this is a big step in the right direction.

Global warming and sea level rise

11. This council recognises that global warming resulting in sea level rise and destructive storms is upon us and we need to react now. We are pursuing carbon neutral status for Hawke’s Bay and have enacted several related positions.

11.1. Coastal Hazards Committee: Coast erosion and sea level rise is affecting our coastal communities and assets. We established a committee which was ably chaired by Peter Beaven who bought the TLAs, Tangata Whenua and the community together to act in the common interest. The process and final report is nationally recognised not only for its results but also as an outstanding community collaboration.

11.2. Oil and Gas exploitation: We were the first region in NZ to declare (before the government) that we didn’t want drilling for oil and gas in or near our water ways.

11.3. Stock banks and drainage infrastructure: The council recognises that we need to maintain and invest in these structures that underpin much of our economic activity.

12. Future Farming: This council is very aware that many of our farming practises are unsustainable and the industry is especially vulnerable to the many disruptive influences facing our communities

12.1. Changing weather patterns, higher compliance and operational costs, especially internalising pollutions costs and a more discerning and demanding marketplace are just some of the challenges facing our farmers.

12.2. We have launched a new farmer-led Future Farming Initiative that will set in motion an approach to improving on-farm environmental mitigation that will be rolled out across the region.

12.3. The bottom line for council is that we need to have dynamic and responsive agricultural and horticultural industries that don’t pollute our environment.

12.4. We now have Farm Environmental Management Plans from over 1000 property owners in the Tukituki catchment.

13. Re-forestation: We are developing a major afforestation programme for Hawke’s Bay which will greatly assist with erosion control, biodiversity. There will also be financial benefits to the region if full rollout (up to $100m) is endorsed in the public consultation process.

13.1. This has begun with an in-depth investigation and report into ensuring that we plant the “right tree in the right place”. This initiative also includes partnering with Ngati Kahungunu Inc, who initiated the Kahutia accord. They have already successfully completed two medium sized planting programs and have a raft of targets for next year. We are very keen to talk to other parties who wish to partner with us who have similar objectives.

TANK

14. By year's end, our TANK process will nearing the point of public notification, setting the course for managing all surface and aquifer waters in the Heretaunga Plains for optimum quality and security of supply. This has been a very comprehensive community process that it is now with the RPC for consideration. As a result of its findings we have put a hold on any new consents from the Heretaunga aquifer.

Regional Parks

15. We have done extensive work finishing off the planting at Waitangi Park. The celebration of traditional Māori navigation science at the celestial compass in this park is proving to be a huge success with locals and tourists. We have also concluded negotiations with local hapū and Marae to develop a historical park at Pakowhai to be called Hawea Park. Planting has already begun at this site.

16. Rail: After very convoluted negotiations with Kiwi Rail and others we have finally have agreement to open the Napier to Gisborne rail operation. This will assist getting the log freight to our port and have a very big impact on the traffic on that road.

17. HB tourism: We’ve maintained substantial funding for HB Tourism, while committing to a more diversified, visitor/industry-supported funding model in the near future.

18. Civil Defence: We agreed to centralise the funding for all civil defence in Hawke’s Bay through the HBRC rating system. This was an important “post amalgamation” statement which caused our rates to go up 5% and whilst it was the right thing to do, I am still not sure whether it is appreciated or understood by some.

19. Sustainable Homes programme: This has been a very successful program of leveraging the HBRC balance sheet, but at no cost to ratepayers that has encouraged homeowners to invest in improved home fireplaces. We want to expand this to solar systems, residential water storage, and modern septic systems.

20. Biosecurity: We’ve issued a new 20-year biosecurity plan that extends our commitment to protecting farming productivity – and our biodiversity – from plant and animal pests, including for the first time feral cats and goats. We’ve seed-funded our Biodiversity Trust and initiated a $4.86m plan (including Predator Free NZ) to make Mahia predator free.

21. Napier Port: The Napier Port needs a new wharf. Two weeks ago, after two years of intense homework, we launched a public consultation on the options to finance the capital required for this development. This project has taken up a lot of our time over the last few months and will intensify over the next month. We all understand how important this decision is for our region and look forward to hearing the community’s view.

My personal agenda for the next 12 months

22. A successful commercial resolution of the Napier Port’s new capital raise.

23. To continue on our journey of dealing with our region’s environmental issues and challenges.

24. To achieve a moratorium of commercial fishing for tuna in our rohe (all of Hawke’s Bay).

25. A ban on industrial burn-offs of green wood by fruitgrowers.

26. An agreement with fruitgrowers on a timeframe to ban Airblast sprayers.

27. To establish an internationally acceptable standard for feedlots.

28. To see a resolution of the TANK plan change.

29. To complete Hawea Park.

30. To establish the template for a regional park in Wairoa.

31. To finalise our partnership in the Kahutia Accord.

32. To find some common ground at the RPC.

Decision Making Process

33. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendation

That Council receives and notes the Chairman’s October 2018 Report.

Authored by:

Rex Graham

Chairman