Western Bay of Plenty aims for transformative growth
The Western Bay of Plenty, one of New Zealand’s fastest-growing areas, which is projected to reach 258,000 residents by 2050, is actively pursuing a regional deal with the government aimed at catalysing the development of 40,000 homes and creating 35,000 jobs.
This initiative is part of a broader government effort that pairs local authorities with central funding and resources to enhance regional infrastructure, housing supply, and economic growth.
Collaborative efforts for Western Bay’s regional enhancement
The proposal, set to be submitted this month, is a collaborative endeavour involving Tauranga City Council, Western Bay of Plenty District Council, Bay of Plenty Regional Council, tangata whenua, and the economic development agency Priority One, 1News reported.
The potential deal promises to sustain the western Bay of Plenty’s economic growth rate at 4.6% annually, reflecting significant strategic planning and community input.
Focus on priority development areas
Key development areas like Tauriko West and Te Kāinga, and Te Tumu in the east, are slated for extensive housing projects that could collectively yield up to 10,000 new homes.
Funding these projects poses a substantial challenge due to the nearing debt ceilings of the involved councils, highlighting the need for innovative financial strategies beyond traditional funding.
Funding challenges and strategic solutions
Tauranga Mayor Mahe Drysdale highlighted the importance of these deals for providing stability and growth in the Western Bay, citing past funding rejections that have stalled critical infrastructure projects.
“You’ve got it in your plan, but you can’t do it because you don’t have the money to do it,” Drysdale told 1News, stressing the necessity for cross-party support for the success of such regional deals.
Western Bay Mayor James Denyer outlined the broader goals of the regional deal, aiming to enhance export earnings and foster sustainable, resilient, and livable communities.
Denyer noted the negotiation process involves up to five major projects, marking a significant negotiation between local partners and central government.
Innovative financing approaches
Addressing the critical funding issue, Priority One CEO Nigel Tutt (pictured right) pointed out the importance of finding alternative financing methods to support growth.
The region has been pioneering with mechanisms like the Infrastructure Funding and Financing (IFF) Levy, which finances transport projects through a government loan paid over 30 years via targeted rates.
“That is the main issue that stands in the way of delivering housing,” Tutt told 1News, underscoring the need for governmental innovation in funding solutions.
Political and administrative support for regional deals
Labour MP Kieran McAnulty, while critical of the current government’s approach to regional deals, promised continuity and potential enhancement of the framework under a Labour government, particularly focusing on the inclusion of funding to make these deals effective.
Local Government Minister Simon Watts highlighted that central government contributions to these deals would involve a mix of funding and financing tools, planning mechanisms, and regulatory relief, ensuring a robust framework for long-term regional collaboration.
Deadline and expectations
Proposals for regional deals are due by February 28, with the anticipation of signing the first agreement by year’s end, marking a significant milestone in regional development for New Zealand, 1News reported.
