Agenda of Strategic Planning and Finance Committee

HAWKE’S BAY REGIONAL COUNCIL

Strategic Planning and Finance Committee

Wednesday 26 January 2011

SUBJECT: Napier Leasehold Land - Socio Economic Impact Assessment

REASON FOR REPORT:

1. The purpose of this paper is to receive a report covering the “Socio Economic Impact Assessment” in relation to lessees of Council’s Napier leasehold property and to consider the recommendations from this report with a view to providing solutions to the financial difficulties that some lessees are currently experiencing on the payment of their lease rentals.

COMMENT:

2. Council received a report on Wednesday 28 July 2010 which covered the background on Council’s leasehold land portfolio and also provided commentary on a number of the issues raised from the letters received from lessees who considered that they were experiencing financial hardship.

3. At that meeting Council resolved that an independent Social Impact Study addressing the financial circumstances of Regional Council leaseholders was to be undertaken, such study to include:

3.1. Assessing the financial circumstances of leaseholders as compared to others in the community that have freeholded properties with mortgage responsibilities.

3.2. Any assistance available from WINZ to leaseholders and in what circumstances such assistance would be available.

3.3. Assess the effectiveness of Council’s deferred payments scheme in addressing the financial hardship of Regional Council leasehold land to make recommendations on adjustment to that scheme in order to increase its effectiveness and equity for Council’s leaseholders.

3.4. A report on the structure and effectiveness of the current rates rebate scheme and to assess whether a similar scheme, the subsidies to be funded by this Council, could be implemented for Regional Council leaseholders. The report needs to address the social equity of such a scheme in relation to the financial impact it would have on ratepayers who would be required to make up any revenue shortfall.

4. This study has been carried out by Sean Bevin from Economic Solutions Ltd in Napier and a copy of his report is attached as Attachment 1 to this paper. Mr Bevin will be presenting his report to this Committee at this meeting.

5. Council also resolved at the July meeting that staff were to review the debtor list for leasehold land and assess cases of hardship and, in appropriate circumstances, recommend to the Chief Executive that such debts will not be referred to Council’s debt collectors. It was the intention of Council when making this resolution that this policy would be reviewed at the time of the presentation of the attached independent report.

6. Over the last few months the Chief Executive has approved that the arrears of some lessees who are considered to be exposed to financial hardship not be referred to the debt collectors for the interim. However it has been difficult to determine which outstanding lessees are subject to financial hardship in the payment of their leases.

7. Since the issue of financial affordability was raised by Council at its meeting on Wednesday 28 July 2010 there has been an increase in the number of lessees not paying their lease payments when due. At the end of June 2010, 60 lessees had debts outstanding over 90 days and these totalled $83,000. By the end of December 2010, 115 lessees had debts outstanding over 90 days and these totalled $165,000. This increase in outstanding debtors illustrates how important it is for Council to resolve strategies to address issues that a number of lessees have in the payment of their leases, as any delays may well impact further on the increasing total outstanding debt. The increasing number of lessees that are falling into arrears also illustrates the need for additional staff time to be devoted to leasehold land issues.

8. The recommendations set out in this paper reflect the recommendations in Mr Bevin’s paper.

9. It is requested that the Committee consider the resolutions in this paper as a way forward to provide a solution to the collection of lease payments from Council’s lessees where the collection of such amounts are difficult due to financial hardship currently being experienced.

DECISION MAKING PROCESS:

10. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

10.1. Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

10.2. Sections 83 and 84 covering special consultative procedure do not apply.

10.3. The decision does not fall within the definition of the Council’s policy on significance.

10.4. As this is a Council investment, all ratepayers are affected by the non-collection of lease payments and the impact that this non-collection has on funding levels required by Council to fund current for operations. It is in the interest of all ratepayers that the strategy be implemented to ensure that lease rentals are collected.

10.5. The options considered as set out in this paper and the attached study indicate that Council can adopt policies and procedures as recommended in the paper as the way forward to assist with the collection of outstanding lease rentals or allow the collection of outstanding debts to be referred to the debt collectors for their action.

10.6. Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

10.7. Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATIONS:

That the Strategic Planning and Finance Committee agree:

1. That the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. That Council implements a proactive approach in the future to assisting its residential lessees facing financial issues with regard to their rental payments, involving increased communication with lessees and the provision of financial support and assistance to lessees.

3. That with regard to increased communication with lessees, the Council establishes a dedicated ‘Lessee Service’ (including a total staff time allocation of 0.3 FTEs) within its organisation, providing the range of lessee services and activities indicated in Section 7.6 of Mr Bevin’s report (Attachment 1).

4. That the ‘Lessee Service’, amongst other things, works closely with lessees facing financial hardship in the payment of their rentals, initially in preparing an application to Work and Income New Zealand for receipt of the Government’s Accommodation Supplement.

5. That the Deferred Rental Scheme remains the primary Council mechanism for providing financial support to lessees facing difficulty in making their rental payments.

6. That the following changes be made to the Deferred Rental Scheme in terms of its future application:

6.1 A minimum annual rental payment of $3,650 to be paid by all lessees using the scheme.

6.2 Interest to be charged annually on the deferred rental portion at the prevailing 90 day bank investment rate of interest, with the option of interest cost being added to the deferred annual lease principal.

6.3 The full legal costs to lessees of joining the Scheme be met by the Hawke’s Bay Regional Council.

7. That lessees who wish to join the Council’s Deferred Rental Scheme initially be requested to provide a formal indication of their current participation in the local authority Rates Rebate Scheme.

8. That the normal debt recovery process be instituted by the Council in the case of those lessees in arrears with their rental payments and who do not wish to join the Council’s Deferred Rental Scheme.

Paul Drury

Group Manager Corporate Services

Andrew Newman

Chief Executive

Attachment/s

1 View

Leasehold Land Portfolio - Socio-Economic Impact Assessment Report

Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Strategic Planning and Finance Committee

Wednesday 26 January 2011

SUBJECT: Submission on Environmental Protection Authority Bill

REASON FOR REPORT:

1. The Government has released the Environmental Protection Authority Bill and has invited submissions on the Bill.

2. This paper presents an overview of the Bill’s key features and proposes a submission be lodged on the Bill before the closing deadline of 28 January 2011

Background

3. In 2009, as part of Phase One Reforms to the Resource Management Act, the new National-led Government set up a transitional Environmental Protection Authority (EPA) as a statutory office within the Ministry for the Environment. The roles, functions and powers of the EPA are currently exercised by the Secretary for the Environment. The role of the transitional EPA is to receive and process resource consents and plan change applications and notifies of requirements for proposals of national significance.

4. It was signalled by the Government in 2009 that it intended, in time, that the EPA would have a broader range of functions than receiving and processing applications for proposals of national significance. The EPA Bill is part of the Phase Two Reforms to the Resource Management Act and provides for the expansion of the EPA’s role.

Bill Content

5. In his Media Statement introducing the Bill the Minister for the Environment announced the rationale for the creation of a separate entity EPA as:

5.1. To provide stronger central government leadership on environmental issues especially greater efficiency and effectiveness by regulating some environmental issues nationally;

5.2. To give greater clarity to national environment functions

5.3. To ensure appropriate independence for regulatory functions from Ministers.

6. The key regulatory features of the EPA will be:

6.1. National consenting under the RMA (currently done by the EPA statutory office housed in MfE)

6.2. Regulation of pesticides, fireworks, explosives and other hazardous substances (currently ERMA)

6.3. Regulation of new and genetically modified organisms (currently ERMA)

6.4. Administrative functions of the Emissions Trading Scheme (currently Ministry of Economic Development)

6.5. Advice to the Minister of Foreign Affairs and Trade regarding environmental assessments for Antarctica NZ (currently MfE)

6.6. Advice and information on the development and implementation of National Environmental Standards (currently MfE)

7. The proposed EPA will be a stand-alone Crown agency under the control of a governance board.

Council Submission

8. In the paper seeking Cabinet Agreement, and presented to the Cabinet Economic Growth and Infrastructure Committee in April 2010, the Minister made a number of recommendations. The decisions from the Cabinet Committee were released on 3 June 2010. The majority of these decisions are included in the Bill and, as a general statement, have the support of the local government sector.

9. There are, however, several notable omissions from the Bill which could have consequences for local government in the future. These arise through the sections on the functions of the EPA:

9.1. Clause 11 describes the objective of the EPA is to undertake its functions in a way that:

9.1.1. Contributes to the efficient, effective, and transparent management of New Zealand’s environmental and natural and physical resources; and

9.1.2. Enables New Zealand to meet its international obligations.

9.2. Clause 12 then sets out the functions of the EPA and sub-clause c) requires the EPA to carry out any “additional functions” consistent with the objectives in Clause 11 that the Minister directs.

10. In the April 2010 Cabinet paper the principles against which activities proposed to be transferred to the EPA should be assessed were laid out. Cabinet agreed that the criteria for any EPA activity, including any future additional functions, is that it:

10.1. is best performed at the national level under the organisational form of the EPA;

10.2. is of a regulatory nature rather than of policy targeted at complex environmental problems;

10.3. is of a technical nature with low level of discretion to be applied to the EPA;

10.4. is able to maintain or enhance certainty of process for resource users and applicants;

10.5. is of a similar nature to existing functions to enable efficiency gains;

10.6. will result in greater concentration of technical and expert skills and not a duplication of skills and expertise;

10.7. is able to maintain or enhance the role of Maori in the regulation of NZ’s environmental and natural resources.

11. The Cabinet paper also sought a review of the effectiveness of the EPA after 3 years and the publication of that effectiveness report.

12. The Bill has included some of these principles, but generally at a higher level and, importantly, has not included 10.1 is best performed at the national level under the organisational form of the EPA. It is important that these criteria be explicitly stated in the legislation to help future-proof it against political changes and to provide certainty to the public. Of concern is the absence of any reference within the Bill to methods of input by other sectors, including local government, to decisions on the functions and programme of the EPA after its establishment and therefore it is important that the criteria for these are explicit within the legislation.

13. Staff recommend that a submission be lodged by Council covering the following points:

13.1. Support for the overall intent of the establishment of the EPA as a stand-alone Crown agency;

13.2. A request that greater certainty be provided around the functions of the EPA, including possible additional functions, through the inclusion of the criteria listed in para. 10 above as part of the Clause 12 of the Bill;

13.3. Inclusion of a requirement to regularly review the effectiveness of the EPA, including a requirement to seek feedback across a range of sectors.

14. A draft submission consistent with these points is attached. Due to the timing of the 28 January deadline for closing of submissions a Council decision is required at this meeting. Under the changes to the Terms of Reference for Committees in July 2009 a Committee may make a decision that is binding of Council if the matter is one of urgency and it is agreed to by the Committee unanimously. It is suggested that the Committee exercise this delegated power at this time.

DECISION MAKING PROCESS:

15. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

15.1. Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

15.2. Sections 83 and 84 covering special consultative procedure do not apply.

15.3. The decision does not fall within the definition of the Council’s policy on significance.

15.4. The persons affected by this decision are also entitled to make a submission on the Bill.

15.5. The options considered are to make a submission on the Bill, or to not make a submission.

15.6. Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

15.7. Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATIONS:

That the Strategic Planning and Finance Committee :

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Agrees to lodge the attached submission to the Local Government and Environment Select Committee on the Environmental Protection Authority Bill, subject to any further amendments arising at the meeting.

3. That the Committee decides to exercise its delegated powers to make a decision that will have the same effect as the local authority could itself have exercised or performed and that the decision deserves urgency and the decision is carried unanimously.

Liz Lambert

Group Manager External Relations

Andrew Newman

Chief Executive

Attachment/s

1 View

Draft Submission on Environmental Protection Authority Bill

Draft Submission on Environmental Protection Authority Bill

Attachment 1

26 January 2011

Our Ref :4/42/1

Clerk of the Committee

Local Government and Environment Select Committee

Parliament Buildings
WELLINGTON

environmental protection authority bill

SUBMITTER: HAWKE’S BAY REGIONAL COUNCIL

1. Introduction

The following submission by the Hawke’s Bay Regional Council has been prepared in response to the Environmental Protection Authority Bill (“the Bill”). Councillors formally considered the submission at a meeting on 26 January 2011.

In addition the Hawke’s Bay Regional Council is a member of Local Government New Zealand and supports the submission lodged by Local Government New Zealand.

Council is aware of, and has been involved in, providing feedback and input to government officials on both Phase one and now Phase two of the Resource Management Act reforms. We responded initially to an invitation from Minister for the Environment to input ideas for changes to the Resource Management Act in December 2008. At that time Council expressed certain views which are worthwhile noting to the Select Committee as they form the basis of the broad context within which our submission is made:

(a) Council is keen to work at a strategic level with central government to look for solutions that retain the integrity of the Resource Management Act, while acknowledging the issues facing the New Zealand economy.

(b) Council acknowledges the need for amendments to address a number of issues around the RMA but is mindful of the need for care in drafting of the legislation to ensure that unintended consequences of any changes are avoided.

The report prepared for the Cabinet Economic Growth and Infrastructure Committee (released 3 June 2010) set out Cabinet’s decisions on the establishment of the Environmental Protection Authority and our submission is based on the alignment of these decisions with the contents of the Bill.

2. submission

Form and Title

The Hawke’s Bay Regional Council supports the establishment of the Environmental Protection Authority as a stand-alone Crown agency. A separate entity is supported, for many of the reasons outlined in the Regulatory Impact Statement on the Bill. In particular we consider that a stand-alone Crown agency provides a clear and appropriate division of responsibility between the Ministry for the Environment (policy and direction-setting) and the new agency (implementation and technical advice) on environmental matters. It removes the perception of Ministerial involvement in the processing of matters of national significance

Although we first raised this matter in our submission on the Simplifying and Streamlining Amendments to the Resource Management Act it is perhaps worthwhile for the Committee to consider, once again, whether or not the term “Environmental Protection Authority” is the best descriptor for the agency. The word “Protection” has connotations about the pre-disposition of any decisions made by the Authority on major consents for example. Very clearly, the function of the entity is to regulate major environmental issues and while this may result in the protection of the environment it should not be assumed in the title. We suggest that the entity should be known as the Environmental Regulatory Authority - this clearly identifies central government’s role in providing greater national direction on the regulation of the environment, consolidating regulatory and technical skills, and achieving efficiency gains by bringing together similar environmental regulatory functions and powers.

Function

The second issue that Council wishes to raise relates to section 12 of the Bill which sets out the functions of the EPA. In Council’s view the Bill and accompanying Regulatory Impact Statement concentrate on the organisational form and function of the EPA. While this is, rightly, a priority for the Bill it is also prudent that the legislation sets the groundwork for any future changes in functions of the Authority.

Section 12 c) of the Bill states that the functions of the EPA are... ”to carry out any additional function consistent with its objective section 11 that the Minister directs...”. The EGI Cabinet Committee paper set out the agreed purposes and principles against which any activities proposed to be transferred to the EPA should be assessed. These are that the activity:

· is best performed at the national level under the organisational form of the EPA;

· is of a regulatory nature rather than of policy targeted at complex environmental problems;

· is of a technical nature with low level of discretion to be applied to the EPA;

· is able to maintain or enhance certainty of process for resource users and applicants;

· is of a similar nature to existing functions to enable efficiency gains;

· will result in greater concentration of technical and expert skills and not a duplication of skills and expertise;

· is able to maintain or enhance the role of Maori in the regulation of NZ’s environmental and natural resources.

It is important that these criteria be explicitly stated in the legislation to help future-proof it against political changes and to provide certainty to the public. Of concern is the absence of any reference within the Bill to methods of input by other sectors, including local government, to decisions on the functions and programme of the EPA after its establishment. Provision must be made for this.

Review

Finally, the EGI Cabinet Committee paper agreed that the Ministry for the Environment be directed to initiate a review of the effectiveness of the EPA three years after it becomes operational and that a report be published on completion of the review. The Regulatory Impact Statement stated that it “is not proposed at this stage that the review period be set out in the legislation.” No reason is given for this omission and we submit that the requirement for an effectiveness review after three years of operation be included in the legislation, with provision also included for feedback to be sought form a wide range of stakeholders.

Summary

In summary the Hawke’s Bay Regional Council:

· Supports the establishment of a stand-alone Crown agency to oversee central government’s environmental regulation role and functions, but suggests that it be named the “Environmental Regulatory Authority”.

· Seeks the inclusion of the criteria approved in the Cabinet Committee paper for additional functions in the legislation

· Seeks the inclusion of an effectiveness review clause which includes stakeholder input.

3. Hearing of submission

Council does not wish to appear at the Select Committee meeting on this Bill.

Yours faithfully

Fenton Wilson

CHAIRMAN

Address for Service:

Private Bag 6006

NAPIER 4142

HAWKE’S BAY REGIONAL COUNCIL

Strategic Planning and Finance Committee

Wednesday 26 January 2011

SUBJECT: Regional Water Strategy Reference Group

1. The purpose of this item is to approve the terms of reference for an External Reference Group for the Water Strategy.

Background

2. At the recently held regional water symposium, Council sought nominations for an External Reference Group. Fifty-three people nominated a total of 90 individuals.

3. By calling for nominations, we were able to see who the community consider could make a valuable contribution to the development of a regional water strategy.

Terms of Reference

4. The Terms of Reference for the External Reference Group is provided in Attachment 1. The group will convene for a fixed term during the development of the Regional Water Strategy.

5. The external reference group will provide council staff with advice and recommendations on development and direction of the Hawke’s Bay Regional Water Strategy. The group will act as a sounding board for potential policy direction, impacts of policy changes on the community and advise on the water strategy action plan and further consultation process. In addition, the reference group may also help the council to disseminate information, provide ideas for increasing community participation in the strategy’s development and implementation.

Membership

6. Reference group members should reflect, if possible, the broad interests in water management from the different sectors, catchments, age, gender and culture. It is hoped that they will influence their social networks and can bring a cross-section of understanding and perspectives. Some of the attributes that we looked at when identifying proposed members included:

Ability to represent stakeholder interests

Community leadership and influence

Ability to see and accommodate other points of view

Relationships with a wide range of Hawke's Bay people and organisations

Business acumen and knowledge

Knowledge of social and cultural issues

Knowledge of the environment and interactions of water

Technical irrigation knowledge

7. Councillors have had an opportunity to comment on a proposed list and have made further suggestions. These have been taken on board and have been incorporated into the composition of the group.

8. To date, the following individuals have been invited to participate in the external Reference Group. All have indicated their willingness to participate in the Group and acknowledge the importance of the issue of water management in Hawke’s Bay. They have been given a copy of the draft terms of reference and an opportunity to comment on or clarify any matters contained in the terms of reference.

Stakeholder Group	Name
Iwi	Marei Apatu, Heretaunga o Te Taiwhenua, Community Development Unit
	Dale Moffatt, Heretaunga o Te Taiwhenua, Community Development Unit
	Dr Adele Whyte, Director of Fisheries, Ngati Kahungunu Iwi Incorporated

Primary Producers	Ru Collins, Horticulture NZ – horticultural sector, Twyford Water User Group, LAWF involvement
	Hugh Ritchie, Drumpeel Land Company – sheep/beef/cropping sector, Irrigation NZ Board (stand in for Kevin Mitchell Federated Farmers)
	Mike Glazebrook, Te Tua and Washpool Station, Chair Ngaruroro Water User Group
	Paul Franklin, Springhill Dairies, dairy sector, Dairy Liaison Group
	Brett Gilmore, Pan Pac, HB Forestry Owners – forestry sector
	Evert Nijzinc - viticultural sector

Industry / Business	Murray Douglas, Hawke’s Bay Chamber of Commerce
	Nikola Bass, Heinz Watties

Territorial Authorities	Mark Clews, Hastings District Council
	John Freeman, Central Hawke’s Bay District Council
	XX, Napier City Council
	Neil Cook, Wairoa District Council

Environmental	Jan Hania, Department of Conservation
	Peter McIntosh, Fish and Game HB
	Alastair Bramley, ECOED
	Lloyd Beech

Other	Dan Bloomer, Centre for Land and Water – irrigation expertise

Managing Expectations

9. It is acknowledged that many individuals, particularly those from statutory and iwi organisations, will not necessarily have the mandate to formally endorse the strategy and the timeframe does not provide time for individuals to necessarily report back to their organisations for that endorsement. However through the nomination process, their representation of the community is endorsed.

10. We hope that the outcome is a Regional Water Strategy which inspires consensus and ownership among stakeholders. The reference group will be a key building block in obtaining agreement on future water management direction in the wider Hawke’s Bay community.

What will happen after the Regional Water Strategy development process?

11. It is intended that a draft Regional Water Strategy will be endorsed by Council to take back to the symposium attendees and the wider community. Comments will be sought and these, along with an amended Regional Water Strategy will be presented to Council for adoption.

12. Then there are two work streams to be undertaken; one is to amend the Regional Policy Statement to include policy related to water quantity and allocation, the other is to progress the strategy specifically focusing on land use and water quality.

12.1. Changes to the Regional Policy Statement

12.1.1. The strategic direction as outlined in the Strategy will then form the basis of policy in the Regional Policy Statement. The process to incorporate this in the Regional Policy Statement is a statutory Resource Management Act process and all stakeholders will have a opportunity to make a submission on the proposed changes to the Regional Policy Statement.

12.1.2. It is hoped that the informal collaborative process of the development of the Regional Water Strategy with the external reference group will assist in reducing the areas of debate and therefore the costs for all parties, in the formal, legal process.

12.2. Land use and Water Quality

12.2.1. We have indicated already that we will hold a symposium in the middle of this year to cover Land Use and Water Quality to present the information and the issues associated with this. We note that some of these studies will not be completed by this time. While the Regional Water Strategy to be developed with the assistance of the Reference Group is unlikely to be silent on Land use and water quality and Biodiversity issues, there will still be much discussion to be had with stakeholders in a collaborative forum. The process for this will be brought to the Council for consideration as we prepare for the 2^nd symposium.

Decision Making Process

13. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

13.1. Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

13.2. Sections 83 and 84 covering special consultative procedure do not apply.

13.3. The decision does not fall within the definition of the Council’s policy on significance.

13.4. The persons affected by this decision are landowners, water users and the community at large.

13.5. The options considered are to not have a reference group, and/or consult with stakeholders separately. A multi-stakeholder reference group is considered the most efficient mechanism for collaboration.

13.6. Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

13.7. Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATIONS

That the Strategic Planning and Finance Committee recommend to Council that:

1. Agree that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Approve the Terms of Reference for the External Reference Group for the Regional Water Strategy Development (see attached)

3. Note the membership, to date, of the External Reference Group for the Regional Water Strategy Development as follows:

Stakeholder Group	Name
Iwi	Marei Apatu, Heretaunga o Te Taiwhenua, Community Development Unit
	Dale Moffatt, Heretaunga o Te Taiwhenua, Community Development Unit
	Dr Adele Whyte, Director of Fisheries, Ngati Kahungunu Iwi Incorporated

Primary Producers	Ru Collins, Horticulture NZ – horticultural sector, Twyford Water User Group, LAWF involvement
	Hugh Ritchie, Drumpeel Land Company – sheep/beef/cropping sector, Irrigation NZ Board (stand in for Kevin Mitchell Federated Farmers)
	Mike Glazebrook, Te Tua and Washpool Station, Chair Ngaruroro Water User Group
	Paul Franklin, Springhill Dairies, dairy sector, Dairy Liaison Group
	Brett Gilmore, Pan Pac, HB Forestry Owners – forestry sector
	Evert Nijzinc,- viticultural sector
Industry / Business	Murray Douglas, Hawke’s Bay Chamber of Commerce
	Nikola Bass, Heinz Watties

Territorial Authorities	Mark Clews, Hastings District Council
	John Freeman, Central Hawke’s Bay District Council
	Johan Ehlers, Napier City Council
	Neil Cook, Wairoa District Council

Environmental	Jan Hania, Department of Conservation
	Peter McIntosh, Fish and Game HB
	Alastair Bramley, ECOED
	Lloyd Beech

Other	Dan Bloomer, Centre for Land and Water – irrigation expertise

Helen Codlin

Group Manager Strategic Development

Andrew Newman

Chief Executive

Attachment/s

1 View

Draft Terms of Reference

Draft Terms of Reference

Attachment 1

Hawke’s Bay Water Strategy- External Reference Group Terms of Reference

· Contents

1. Purpose. 2

2. Introduction. 2

3. Purpose of the external reference group. 2

4. Membership. 3

5. Scope of project 3

6. Policy Development process. 3

7. Task and expectations. 3

8. Draft process and agenda of Reference Group and Council team working sessions. 3

Reference Group Session Agenda template. 3

1. Purpose

The purpose of this document is to:

· Set out the benefits of recruiting representatives from community, stakeholder and interest groups to work with the Council on the development and direction of the Hawke’s Bay Regional Water Strategy.

· Determine the role of the external reference group including the tasks they will undertake

· Determine the function of the external reference group working sessions and plan the meetings in order to maximize value in the process.

· Clearly show where Hawke’s Bay Regional Council is looking for solutions and influence, and where relevant, provide the parameters of the solutions.

2. Introduction

Leading thoughts and practice on policy development clearly demonstrates the benefits of involving a broad range of perspectives in the policy development process. Benefits include transparency to the process, increased buy-in, longer lasting solutions and greater participation in implementing solutions^{^[1]}. The Resource Management Act (RMA) defines processes for the development of regional plans and regional policy statements and the Local Government Act defines processes for the development of Long Term Council Community Plans. The Regional Water Strategy does not fall within the mandate of these two laws so the engagement of the community is entirely at the discretion of the council.

However HBRC understands that a wider range of perspectives can assist in the:

· Understanding of input received from the wider community,

· Development of robust policy options and wider community engagement processes

· Transparency and strength of the water strategy development process.

To this end, HBRC intends to convene an External Reference Group of 15 to 20 respected members of the wider HB community to assist with the development of the water strategy. This group will work together with a council team also adding input to the process.

3. Purpose of the external reference group

The external reference group will provide council staff with advice and recommendations on the development and direction of the Hawke’s Bay Regional Water Strategy. The group will act as a sounding board for policy direction, impacts of policy changes on the community and advise on the actions needed to implement the strategy. In addition, the reference group may also help the council to disseminate information, provide ideas for increasing participation in the strategy’s development and implementation. The lifetime of this group only extends to the development of the regional water strategy after which the purpose and effectiveness of the group will be reviewed.

The anticipated outcome is a Regional Water Strategy which inspires consensus and ownership among stakeholders. The reference group is a key building block in obtaining cross-sector agreement on future water management direction in the wider Hawke’s Bay community.

The purpose of having the external reference group in the process is to:

· Help interpret public input and help identify the implications of various policy options (including costs, benefits, environmental, social and cultural impacts

· Provide recommendations on policy options and the mitigation of impacts

· Improve the transparency and buy-in to the Hawke’s Bay Regional Water Strategy process by involving external and independent advice and expertise

· Seek a wide range of perspectives and interests to strengthen the policy outcomes

4. Membership

The reference group members should reflect the broad interests in water management from different sectors, catchments, age, gender and culture. When selecting members, it is hoped that they will influence their social network and can bring a cross-section of understanding and perspectives.

· Members will be reimbursed for travel and reasonable expenses incurred in meeting their duties but will not be paid.

· Members must be able to attend four half day sessions between Feb 2011 and June 2011 with some preparation required.

· Total time commitment is estimated to be 24 - 28 hours based on four meetings and two - three hours preparation time per meeting. (see draft schedule below)

· Members must be willing to sign a confidentiality agreement

· Members should be willing to participate cooperatively for the greater good of sustainable water resource management in the Hawke’s Bay

5. Scope of project

The Hawke’s Bay Regional Water Strategy will create a new vision and direction for future water management in the region. By developing a non statutory tool such as a water strategy it is hoped that the community can agree on the direction and policies with which to move forward, outside of what can be often adversarial RMA processes. The outcomes of the strategy are expected to have an impact on Council policies and decision making processes and interactions with other plans. It is also hoped that the strategy influences wider community and stakeholder actions and planning (e.g. partner councils, iwi and hapu, government, stakeholder groups and associations).

The water strategy hopes to achieve:

· an effective risk management framework for water management in the HB;

· measurable objectives and clear direction on water management outcomes,

· adequate direction for subsequent plan changes; and

· defined responsibilities and clear accountability for implementation (action plan).

6. Policy Development process

For the purposes of developing a regional water strategy the following policy development process will be used. This process is an adapted Structured Decision Making (SDM) process.

7. Task and expectations

The tasks and expectations of the reference group would include:

· Reviewing public/stakeholder input and background material on HB water issues

· Preparing for and participating in meetings and conveying comments on draft materials as requested.

· Reviewing the draft water strategy, its vision and objectives and associated action plans

· Review evaluation criteria for policies

· Discuss implications and consequences from economic, environmental, cultural and social perspectives

· Make recommendations on policy options and identify the best solutions to move forward.

· Consider the best approaches to engaging the wider HB community

8. Draft process and agenda of Reference Group and Council team working sessions

Reference Group sessions could be scheduled to fit members on the following weeks:

· Meeting 1 Week of Feb 27 2011

· Meeting 2 Week of March 202011

· Meeting 3 Week of April 10 2011

· Meeting 4 Week of May 15 2011

Council team workshops held:

· Workshop 1 Week of February 1

· Workshop 2 Week of March 202011

· workshop 3 Week of May 8 2011 (Additional as needed)

Draft Terms of Reference

Attachment 1

Ext Ref Group & Council Team Sessions

Team role (pre / post meeting)

Draft meeting agenda / process

Council team workshop #1

Sometime early Feb?

Pre meeting inputs

· Synopsis of public engagement messages

· Programme Plan outline

· Draft vision and objectives for water strategy

· Draft project analysis

· Programme Plan outline/ Status

· Summary and discussion of public input,

· Discussion on draft visions and objectives

· All actions identified and grouped in project themes

· Policy direction and options discussed

Meeting 1 Week of Feb 27^th 2011

Pre meeting inputs/ role

Develop and circulate TOR to finalised RG people, agenda and schedule

Get logistics sorted, process for reimbursement, confidentiality, etc.

Water Symposium synopsis

· Vision and direction

· Options on action plan

· Introductions, meet, greet and get to know each other (lunch)

· Task, Logistics /rules of engagement, Role of group

· Programme Plan outline/ Status

· Summary and discussion of public input from symposium and current council thinking on policy direction

· Review and discuss water strategy vision and objectives

Council team workshop #2

Week of March 20th

Pre meeting inputs

· Finalised vision /direction/ objectives

· Draft policy direction and options

· Draft evaluation criteria

· Programme Update

· Discuss policy evaluation criteria

· Discuss policy options and consequences and impacts – Draft consequences table for each option

RG Meeting 2

Week of March 20th

Pre meeting inputs/ role

· Finalized vision and objectives

· Draft policy options evaluation criteria

· Programme Update

· Review and discuss evaluation criteria for policy options

· Discuss policy options and consequences and impacts

· Consider if there are unintended consequences or conflicts elsewhere in natural resource management.

RG Meeting 3

Week of April 10

Pre meeting inputs/ role

· Development of action plan under each policy option.

· Tim / Donna to hold discussions with council staff on actions

· Programme Update

· Review draft consequences table for options and action plan

· Consider how to integrate / Compare alternative options, discussion of consequences

· Integration of preferred options (through making tradeoffs between options)

· Testing of draft options against evaluation criteria

Council team workshop #3

Week of May 8

Pre meeting inputs

· Draft water strategy and action plan

· Finalised evaluation criteria

· Consequences table including any consequences flagged

· Programme Update

· Summary and discussion of Reference groups comments

· Discuss draft water strategy/ action plan

· Identify solutions to any unintended consequences / conflicts elsewhere.

RG Meeting 4

Week of May 15 2011

Pre meeting inputs/ role

· Draft strategy

· Programme Update

· Review and comment on draft strategy for endorsement by Regional Council and for presentation at a public meeting (symposium follow-up), review and comment on process and RG role further out.

RECOGNITION EVENT

Water Strategy Launch/ Council / Stakeholder Endorsement

HAWKE’S BAY REGIONAL COUNCIL

Strategic Planning and Finance Committee

Wednesday 26 January 2011

SUBJECT: Proposed Regional Tourism Organisation (RTO)

REASON FOR REPORT:

1. To inform the Committee of the operating budget and key performance indicators for the RTO operation for the six months ending 30 June 2011.

Comment

2. Council, at the meeting on 15 December 2010, when considering the future governance and management of Venture Hawke’s Bay, approved within the Hawke’s Bay Regional Council jurisdiction, the creation of a transitional/establishment Board to oversee the six months (January 2011 to June 2011) to cover the performance and expenditure of the Regional Tourism responsibilities, noting that Council’s financial commitment to the six months operation is funding consistent with the sums provided in the 2010/11 budget for tourism operations during that period.

3. During the discussions at that meeting, Council requested that the operating budget for the proposed RTO operations be presented to this meeting along with the key performance indicators for this period.

4. This paper therefore sets out for the Committee’s information the following attachments to this paper.

Attachment 1

An operating statement that shows the forecast cost of the Venture Hawke’s Bay operation to 31 December 2010 and the economic development agency and proposed RTO budgets for the six months to 30 June 2011,

It should be noted that the financial requirements of all those organisations during the 2010/11 year are forecast to be covered by the economic development rate of $1.2M.

Attachment 2

The economic development agency and proposed RTO budgets for the six months to 30 June 2011.

A detailed RTO operating budget which shows the income from not only the Regional Council (operating grant of $447,800, Rugby World Cup loan $130,000 and Rugby World Cup Grant $50,000) but also the revenue to be paid by private sponsors of $89,000 to be paid to Wine Country Tourism Association and available for RTO activities.

It should be noted that the proposed budget for the RTO shows a break even position for the six months. The Council’s Chief Executive has delegated authority to the Group Manager Corporate Services and the Corporate Accountant to approve all Council funded expenditure for the proposed RTO operation during that six month period.

Attachment 3

Performance/KPI deliverables for the six months of the RTO.

Attachment 4

Variances from Venture Hawke’s Bay Annual Plan 2010/11 to the proposed RTO budgets.

DECISION MAKING PROCESS:

5. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

5.1. Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

5.2. Sections 83 and 84 covering special consultative procedure do not apply.

5.3. The decision does not fall within the definition of the Council’s policy on significance.

5.4. The persons affected by this decision are the Committee members.

5.5. The options considered are to confirm a contribution to the budget or not approve a contribution.

5.6. Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

5.7. Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATIONS:

That the Strategic Planning and Finance Committee recommend to Council that:

1. The Committee receive the information set out in this paper and specifically approve HBRC’s contribution to the financial budget to 30 June 2011 for the proposed Regional Tourism Organisation.

Annie Dundas

Interim General Manager Regional Tourism Organisation

Paul Drury

Group Manager Corporate Services

Andrew Newman

Chief Executive

Attachment/s

1 View	Operating Statements for Financial year 2010/11
2 View	Detailed RTO operating budget for 6 months to 30 June 2011
3 View	Performance/KPI deliverables for 6 months to 30 June 2011
4 View	Budget and KPI variances from Annual Plan 2010/11

Performance/KPI deliverables for 6 months to 30 June 2011

Attachment 3

Attachment 3 - Performance Deliverables/KPI’s to June 30 2011	Date completed by
· Host up to ten international and domestic media in the region. The outcome will be international and domestic media coverage in targeted publications. All coverage will be about promoting aspects of the Hawke’s Bay region and therefore encouraging visitation.	January – June
· Three year strategic plan delivered with a costed budget for the following financial year	10 February
· Work with key stakeholders to determine individual promotional budgets and therefore align activities with the RTO.	February
· First stage of development of new/reinvigorated brand for the region. An umbrella brand for the region will be established and alongside this, positioning statements will be developed for various cities and experiences.	17 February
· Events promotion to become a core function of the RTO and included in the promotional plan for the region.	February
· Conduct at least two tourism industry meetings to update key stakeholders on progress.	30 March/15June
· Draft JV developed for Hawke’s Bay Tourism between HBRC and HBWCTA	30 March
· Web content plan established and started. Content will be directed at existing website, other key sites i.e. newzealand.com and channels utilising social media.	30 April
· Analysis of the events programme to be undertaken to ensure they are being collectively marketed and facilities fully utilised	30 April
· Attendance at 2 consumer shows (Food Shows x 2) and 4 trade shows (Explore x 2, Meetings, Kiwi Link). The desired outcome will be to raise Hawke’s Bay profile amongst key traveling and food loving consumers in Wellington and Auckland. Trade show outcomes will be to educate travel sellers on the value of the Hawke’s Bay tourism experience, new products and establish Hawke’s Bay as a region to be profiled within travel sellers brochures and tour programmes both internationally and domestically	April-June
· Advertising activity completed end April – targeted to reach Wellington and Auckland consumers for travel April May. Desired outcome is to raise Hawke’s Bay profile as well as achieve bookings. Partners to be Air New Zealand and AA.	March - April
· Visitor research completed, analysed and results delivered to industry	April - May
· New premises found and moved into (June)	April -June
· Attendance at TRENZ (NZ’s biggest international tourism showcase event) in May with at least five HB operators in attendance. Outcome to reach 40+ international travel sellers to ensure Hawke’s Bay is profiled in the international market place and subsequently sold by key agents.	22-26 May
· A promotional plan for the 2011/2012 year signed off by the end of June 2011	15 June
· Rugby World Cup – deliver a balanced budget and all planned activity to be on track so that the Tournament is delivered to the required high standard.	30 June
· Rugby World Cup - To identify and capitalise on the regional promotional and publicity opportunities that become available through RWC2011, and to take best advantage of the benefits offered by the festival, sustainability, economic development and volunteer programmes developed around RWC. The desired outcome is to raise Hawke’s Bay’s profile internationally to encourage repeat visitation.	30 June
· JV signed officially establishing Hawke’s Bay Tourism	30 June
· Budget for the remainder of the financial year balanced	30 June

HAWKE’S BAY REGIONAL COUNCIL

Strategic Planning and Finance Committee

Wednesday 26 January 2011

SUBJECT: Council Meeting Timetable

1. In December 2010 Council adopted a draft meeting planner to hold Committee meeting dates during 2011. It is now proposed to confirm meeting dates for Council’s Committees until the end of June 2011 only to allow time to consider any changes to the Committee structure during this triennium. Therefore the following committee dates are proposed:

9 February Environmental Management Committee

9 March Asset Management and Biosecurity Committee

23 March Strategic Planning and Finance Committee

13 April Environmental Management Committee

11 May Asset Management and Biosecurity Committee

18 May Strategic Planning and Finance Committee

15 June Environmental Management Committee

2. A meeting planner outlining the above is shown as Attachment 1 to this paper. If the Committee, and subsequently Council, agree to these dates meeting planners will be issued to Councillors on request.

Decision Making Process

3. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

3.1 Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

3.2 Sections 83 and 84 covering special consultative procedure do not apply.

3.3 The decision does not fall within the definition of the Council’s policy on significance.

3.4 The persons affected by this decision are Councillors and the Community at large.

3.5 The options considered are to confirm meeting dates until June or defer this decision.

3.6 Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

3.7 Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATION:

That the Strategic Planning and Finance Committee recommend to Council that:

1. The proposed Committee dates, until June 2011 be confirmed.

Fenton Wilson

Chairman

Attachment/s

1 View

Meeting Planner

[1] See for example, Lenihan, D. 2009 Rethinking the Public Policy Process. Prepared for Public Policy Forum

Time	Item	Lead	Objective / Comments

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Port of Napier Limited - Statement of Corporate Intent (Dividend Provisions)	7(2)(h) Enable the local authority holding the information to carry out, without prejudice or disadvantage, commercial activities	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Item	Topic	Councillor / Staff
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.