
Informal Workshop Paper
To:	Regional Council
	8 November 2023
From:	Kirsty Brown, Rivers and Drainage Assets Manager and Mark Townsend, Engineering Manager
	Chris Ingle, General Manager, Integrated Catchments

Draft Infrastructure Strategy & Asset Management Plans

1. Purpose

Asset management planning allows the Council to effectively manage its physical assets, monitor their performance, and control expenditures. The purpose of this paper is to outline our approach to asset management and seek feedback on the plans and strategies that supports this approach.

2. Guidance Sought from Councillors

To provide feedback on the:

· Approach of the asset management framework.

· Draft Infrastructure Strategy

· Draft Strategic (SAMP) and Asset Management Plans (AMPs) that support the asset management framework approach for the 2024-2034 Long Term Plan (LTP).

3. Discussion

3.1 Asset Management Framework

Council owns, operates and maintains assets on behalf of its ratepayers to a value of approximately $537 million under the following asset activity areas:

These assets provide services to our communities that are essential in ensuring community safety, economic productivity, and community well-being. They are vital in meeting our communities’ needs and ensure the delivery of services and levels of service, as set out in our LTP.

To manage these assets, Council has developed an Asset Management Framework which consists of documents and processes that address Council’s asset management responsibilities. The aim of this approach is to ensure that agreed levels of service are provided in the most cost-effective and sustainable manner.

The following diagram outlines Council’s AM framework:

3.1.1 Asset Management Plans and Strategies

Council must review and adopt its Asset Management Plans (AMPs) and Infrastructure Strategy every three years as part of the LTP process. This is to ensure they are relevant and accurate. Information from the Rivers and Drainage AMP feeds into the Infrastructure Strategy.

3.1.2 Infrastructure Strategy

The purpose of the Infrastructure Strategy is to identify significant issues Council is facing over the next 30 years regarding its flood protection and control assets. It includes options for addressing these issues and the associated expenditure needs.

The Local Government Act 2002 (LGA) requires the Strategy to include assets for flood protection and control works, and Council may at its discretion include other assets. This Infrastructure Strategy only includes the flood protection and control works. Refer to Attachment 1.

The key issues identified relating to the management of Council’s flood protection, drainage and lake assets include:

· Climate change

· Residual risk to community

· Affordability

· Events greater than design

· Levels of service

· Population growth/decline

· Geotechnical (condition assessment)

· Land use change

The Infrastructure Strategy (pg 7-9) identifies the possible responses to these issues and the implications of taking or not taking action.

Capital and Operating Expenditure

In the Infrastructure Strategy the capital and operational expenditure are forecast over the 30 years of the strategy.

The graph below illustrates the level of expenditure (both capital and operating). The first three years of the strategy has a significant capital investment. Refer to 3.1.4 below for commentary on the proposed capital expenditure programme.

River Schemes Forecast Expenditure over 30 years

3.1.3 Strategic Asset Management Plan

Council’s Strategic Asset Management Plan (SAMP) has been reviewed and updated to reflect Councils new (draft) Strategic Direction for the LTP 2024-2034. The main purpose of the SAMP is to formally set out the long-term approach Council will follow to manage those assets that contribute towards achieving its strategic direction. It ties together Council’s vision, mission, community outcomes, and community wellbeing. It also allows the AMPs to have a more tactical and operational focus.

The draft Strategic AMP is attached as a supporting document to this report.

3.1.4 Rivers and Drainage Asset Management Plan

The Rivers and Drainage activity works to protect river scheme people, property and livelihoods from river flooding and land drainage. This is achieved through the river and drainage schemes it manages and the assets within those schemes. This is Council’s highest value asset portfolio with an optimised replacement value of $445 million (as at 1 July 2022) with assets spread across the region.

The Rivers and Drainage Asset Management Plan (AMP) is a 50-year plan that provides information about the assets and how they are maintained and managed to provide agreed levels of service.

Proposed Operational Expenditure

The primary focus of the operational budget planning has been to balance affordability and effective risk management. Projected operational budgets for the rivers and drainage schemes have increased due to various factors, including the impact of inflation, and rising operational expenses like electricity, materials, and insurance premiums. Additional budget provision has been allowed to address identified asset condition defects and continued implementation of the Flood Protection and Drainage Bylaws 2020.

External pressures, such as increasing costs associated with climate change adaptation and the need to align with central government reforms, have also influenced the budget planning process.

The proposed operational expenditure throughout the LTP period encompasses all five major schemes. Starting from Year 1 of the LTP, there will be incremental increases in budget allocations for all schemes, primarily driven by the escalating maintenance and operational costs.

Proposed Capital Expenditure

Capital expenditure is primarily driven by two key projects: the Ngongotahā Stream Mitigation in Year 1 and the Whakatāne River Project Future Proof spanning Years 1 to 3. We have also recently completed capacity reviews, leading to necessary stopbank upgrades.

A deliverability review of the proposed capital program has been undertaken, taking various considerations into account. Community expectations and Central Government funding requirements are driving the prioritisation of these projects. However, there are challenges slowing project delivery, such as increased consultation demands, coordination with other stakeholder projects, extended consenting processes, a shortage of consultants and contractors, and more frequent natural hazard events.

Considering these factors, some projects have been rescheduled during the initial years of the LTP. Despite our efforts, certain elements such as landowner agreements and natural hazard events remain beyond our direct control, posing continued risks to the successful implementation of the capital programme.

Rivers Scheme Advisory Groups

LTP financial plans and proposed budgets were presented at the River Scheme Advisory Groups in September 2023. Advisory Group members provided comments and input into the proposed capital and operational budgets. Adjustments have been made following those meetings to reflect targeted ratepayer expenditure appetite.

Given that the September 2023 Advisory Group meetings occurred during the early stages of Council’s LTP budget planning process, the following financial aspects were not covered at the meetings: loan interest rates, corporate expenses (such as salaries, overheads, and building contributions), depreciation, flood damage reserve, and infrastructure insurance premiums. However, members were advised that full proposed scheme budgets, including rating implications, will be presented at their next river scheme meetings in March 2024.

The draft Rivers and Drainage AMP is attached as a supporting document to this report.

3.1.5 Rotorua Te Arawa Lakes Asset Management Plan

The Rotorua Lakes Catchment programme is a focused programme of works primarily aimed at addressing water quality issues for the Rotorua Te Arawa Lakes. The overall outcome of the programme is to improve and change land use practice to improve lake water quality. The programme also has in-lake and in-stream water quality interventions.

The assets that support the programme are managed and maintained under the Rotorua Te Arawa Lakes AMP. This AMP focuses on the in-lake and in-stream interventions to improve water health e.g. alum dosing plants and the Ohau Diversion Wall, as well as structures used to manage lake levels.

Proposed Operational and Capital Expenditure

Operational projects in the Rotorua Lakes Catchment programme are typically short to medium term projects designed to support water quality improvements. As a result, most of these assets do not require future capital renewal. However, the long-term assets like the Ohau Diversion Wall and alum dosing plants will require ongoing capital renewal and maintenance.

Maintenance follows a relatively fixed spending regime, with activities aimed at maintaining existing performance levels. This will continue until these short to medium term projects cease.

The draft Rotorua Te Arawa Lakes AMP is attached as a supporting document to this report.

3.1.6 Maritime Asset Management Plan

The Maritime operations activity works to keep the region’s waterways safe for everyone to enjoy. It is an important service provided to the community, as it supports recreational, navigational safety, and economic activity. The focus of the Maritime AMP is on ‘aids to navigation’ assets owned by Council which includes beacons, buoys, markers, and signs.

Proposed Operational and Capital Expenditure

The Maritime Operations activity follows a relatively fixed capital spending plan for its navigational aid assets. Over the next five years, several projects are scheduled to ensure compliance with service level obligations.

Regular maintenance is conducted on these navigational aid assets to guarantee their continuous operation. This maintenance program is also relatively fixed, and it helps maintain the existing performance levels.

The draft Maritime AMP is attached as a supporting document to this report.

3.1.7 Regional Parks and Coastal Catchments Asset Management Plan

The Council owns and operates two Regional Parks for the benefit of the community, along with several other assets within the region falling under the Coastal Catchments activity, which are focused primarily on environmental improvement.

Pāpāmoa Hills and Onekawa Te Mawhai Regional Parks offer recreational opportunities to the public while safeguarding natural and cultural heritage. These parks draw thousands of visitors each month.

The assets supporting these activities are managed and maintained in accordance with the Regional Parks and Coastal Catchments AMP.

The Regional Parks and Coastal Catchments activity also includes various assets related to the Kaituna Re-diversion, including the Papahikahawai Bridge, detainment bund, and Te Pā Ika wetland.

Proposed Operational and Capital Expenditure

The Regional Parks activity has made significant investments in upgrading visitor facilities at the entrance area at Pāpāmoa Hills, to accommodate the increasing number of visitors and enhance the overall experience. This upgraded facility is scheduled to be officially opened in November 2023. Additional capital and operational expenditure primarily revolves around new farm assets (e.g., new fencing), asset maintenance (e.g., trail upkeep), and landscape restoration (e.g., retiring land and replanting with native species).

Coastal Catchments is currently undertaking several capital projects with a focus on creating more wetlands. This includes projects like Te Pourepo o Kaituna, Pongakawa wetland, Maniatutu wetland, Cutwater Road wetland, and Sargent Drive wetland.

The draft Regional Parks and Coastal Catchments AMP is attached as a supporting document to this report.

3.1.8 Corporate Property Asset Management Plan

The Corporate Property AMP outlines the management of land and buildings that staff use to deliver the Council's core services. This long-term planning approach is necessary due to the substantial capital and operating expenditures, the extended lifespan of these assets, and the lead times required for planning upgrades when necessary.

Proposed Operational and Capital Expenditure

Refurbishment and remediation work across all sites has reached its final stages of completion. Ongoing maintenance schedules are in place to ensure that these assets continue to operate safely and effectively.

Future needs assessments are currently underway for the West Wing building in Whakatāne and Wallingford House in Tauranga to evaluate their long-term requirements and opportunities. Previously approved funding has been allocated for these projects.

There are no new capital expenditure projects proposed in the 2024-34 LTP. However, previously approved funding has been retained to enable the freeholding of the harbour-lease land in Whakatāne, should such an opportunity arise.

The draft Corporate Property AMP is included in the appendices.

4. Next Steps

We welcome guidance and feedback from elected members and will incorporate it into the Asset Management framework, draft Infrastructure Strategy, draft Strategic Asset Management Plan as well as the individual asset activity AMPs.

These plans will be ready for adoption for Audit NZ review at the December 2023 workshop.

Attachments

Attachment 1 - Draft Infrastructure Strategy ⇩

Supporting Document 1 - Strategic AMP 2024 FINAL DRAFT ⇩

Supporting Document 2 - Rivers and Drainage Asset Management Plan 2024-2074 FINAL DRAFT ⇩

Supporting Document 3 - Regional Parks and Coastal Catchments AMP 2024-2074 FINAL DRAFT ⇩

Supporting Document 4 - Rotorua Te Arawa Lakes AMP 2024-2074 FINAL DRAFT ⇩

Supporting Document 5 - Maritime AMP 2024-2034 FINAL DRAFT ⇩

Supporting Document 6 - Property AMP 2024-2074 FINAL DRAFT ⇩


Informal Workshop Paper
To:	Regional Council
	8 November 2023
From:	Olive McVicker, Corporate Performance Team Lead; Graeme Howard, Corporate Planning Lead; Antoine Coffin, Manager, Spatial Planning; Herewini Simpson, Kaihautu (Te Amorangi Lead) and Namouta Poutasi, General Manager, Strategy and Science
	Mat Taylor, General Manager, Corporate

Activity Plans - Part 2

1. Purpose

This paper provides Councillors with the remaining activity plans for the 2024 – 2034 Long Term Plan (LTP).

Each activity plan identifies the draft level of service, performance measures and budget expenditure following the guidance received at LTP workshops on 19 and 26 September 2023. Additional information Council requested for these activities has been included in section 4 of this report.

2. Guidance Sought from Councillors

· Guidance on the levels of service and performance measures for each activity

3. Discussion

3.1 Activity Planning and Budgeting

1 At the Council workshops held on 19 and 26 September, Councillors provided guidance on the budget scenarios for all activities. Subsequently, a series of workshops were held with activity managers to focus on:

· Reviewing draft activity budgets based on the budget scenarios directed by Council

· Reviewing and updating the levels of service, performance measures and targets, based on the level of investment (budget scenario) indicated by Council

· Key projects or programmes of work planned to be delivered during the next LTP.

2 Attachment 1 contains the activity plans to be considered at this workshop.

3.1.1 Levels of Service and Performance Measures

Council’s levels of service (LOS) have been identified for new activities or reviewed for existing activities. To monitor achievement against the LOS, performance measures have been identified and targets set for the 10 years of the LTP. Attachment 2 provides a summary of the LOS and changes made, for all activities (i.e. those provided for 25 October workshop and those being considered in this report).

The LOS and performance measures for existing activities are mostly consistent with the current LTP, which enables continuity to monitor progress over time. Updates to LOS have occurred to reflect changes to the activity, or to enable monitoring against a new direction or requirements.

Monitoring of these performance measures is managed and reported during the year through Arotake, the online Insight tool and the Annual Report at year end.

3.1.2 Financial Information

The financial information included in the activity plans is version 2 of the LTP budget and operating expenditure figures reflect the scenario savings discussed in previous workshops.

The financial information reflects revenue and expenditure directly attributable to each activity only. Allocated costs and revenue components such as overhead charges and investment income will be applied to each activity as part of version 3 of the LTP budget which will be presented at workshops in late November.

4. Activities to be considered

At the September workshops Council identified those activities where further information was required. The activity plans for these activities are in Attachment 1 and further context for these activities is noted below.

4.1 Rotorua Catchments

The Rotorua Catchments Activity will largely fund the same projects as the previous LTP for this Long Term Plan, including those focused on delivering the Integrated Framework for Lake Rotorua: the Incentives Scheme and constructed wetlands (engineering solutions). Operational expenses are proposed to increase at various stages of the Long Term Plan, to support the objectives of the Te Arawa Lakes Programme.

In Year 2 $1.5 million of operational costs is budgeted to repair corrosion of the Ohau Wall, which will involve fitting moulded plastic on those parts of the sheet pile with corrosion. The method is currently being trialled and if successful can be rolled out in Year 2.

Other increases in operational costs arise, starting in Year 3, for maintenance and monitoring of the wetlands being constructed in the Lake Rotorua catchment. This is to remove nitrogen and reach the engineering solutions target of the Integrated Framework. Plans include installing telemetered, solar powered monitoring of these wetlands which will measure how successful each wetland is at removing nitrogen and other contaminants. Pest weed and animal control may be required and in urban wetlands litter removal will be required. A percentage of capital spend for wetland maintenance has been budgeted annually from Year 3 onwards, starting with 0.5% of capital spend and moving up to 3% from Year 9 onwards, which is when our larger wetlands are expected to be operating.

Finally, operational costs ($250k for two years) are budgeted to complete a property specific business case and due diligence in the first two years of the new Long Term Plan. This is to inform final decision making on the establishment of a Regional Park in Rotorua. A placeholder for capital costs will be incorporated into the LTP and will be subject to review following the business case and due diligence work. Further details on this Regional Park will be provided at the Council meeting on 14 December 2023.

4.2 Coastal Catchments

There is only one change to the LOS for this activity. The measure monitoring rivers and streams for swimmability has moved to the new Freshwater Programme activity.

4.3 Climate Change

The Activity Plan is included in Attachment 1. The Climate Change activity is the subject of separate paper in this agenda. If required, the Draft Activity Plan will be updated based on Council guidance on that paper.

4.4 Freshwater Management

This is a new activity, and it will be built on throughout the development of the LTP. Refer to Attachment 1 for the Freshwater Management Activity Plan.

Following notification of the Regional Natural Resources Plan freshwater plan change, attention will begin to turn to implementation^{^[1]}. The budget within the Freshwater Activity reflects this need.

Implementation will focus on the following:

· Bedding in new policy and modelling

· Implementing the National Policy Statement Freshwater Management (NPSFM) Kaupapa Māori elements (key priority)

· Environmental monitoring (including Mātauranga Māori)

· Effectiveness monitoring of the new plan

· Farm plan system implementation

· Preparation for key dates (for example, common expiry dates for consents)

· Action plan initiatives.

While some activity can be accommodated into existing or changed functions/budgets the NPSFM represents something of a step change in regulatory attention to the state and health of waterbodies. As indicated previously, further costs will likely be required and will be highlighted once Council’s position on policy direction is known.

Functional Areas contributing to the Freshwater Activity

The Freshwater Activity covers a wide range of functions that contribute to delivering on freshwater outcomes within the Bay of Plenty. Staff have considered the question of what potential actions could contribute to a package to implement the NPSFM under the Freshwater Activity. Table 1 indicates the functional areas that have a role in implementing the NPSFM:

Table 1 Functional Areas contributing to NPSFM implementation

Area	Functions
Resource Consenting	· New consenting frameworks · Transitions · Working with iwi/hapu
Compliance	· New compliance frameworks · Understanding of expected outcomes
Environmental Data Services	· Environmental monitoring - new parameters
Science	· Environmental monitoring · Plan effectiveness monitoring · Inclusion of Mātauranga Māori in science/monitoring framework
Te Amorangi	· Kaupapa Māori initiatives
Land Management	· Farm planning processes · Implementation of action plans

Note: Policy and Planning will initially be focussed on the hearings process and resolution for any challenges to the notified plan change.

4.5 Te Pae Tawhiti (Māori Capacity and Capability)

This is a new activity established in response to the new strategic outcome Te Ara Poutama and responsibilities outlined in Local Government Act 2002 section 81.

The purpose of this activity is to:

· support and enhance opportunities to foster Māori participation in Council operations and decisions making processes; and

· maintain and enhance key relationships

· strengthen internal responsiveness and capability

Context

In order to recognise and respect the delegated authority it has received from the Crown, Council has an obligation to foster and improve the development of Māori capacity through the promotion of meaningful relationships that contribute to its decision making processes.

Key provisions for Māori in the LGA include:

· Establishing and maintaining processes to provide opportunities for Māori to contribute to decision-making processes (section 81(1)(a));

· Considering ways in which it may foster the development of Māori capacity to contribute to the decision-making processes (section 81(1)(b); •

· Providing relevant information to Māori (section 81(1)(c));

· Taking into account the relationship of Māori and their culture and traditions with their ancestral land, water, sites, wāhi tapu, valued flora and fauna and other taonga (section 77(1)(c)); and

· Taking appropriate account of the principles of the Treaty of Waitangi and to maintain and improve opportunities for Māori to contribute to local government decision-making processes (section 4).

Te Pae Tawhiti aligns with and will contribute to the draft LTP Te Ara Poutama outcome, and will assist with the foundational work towards the implementation of its goals (current and longer term).

This activity will continue to build on the current Māori Partnerships Strategic Priority and implementation plan, particularly key actions around building Māori capacity/capability, shared-decision making and partnership opportunities.

Overview

Functionally, this activity seeks to improve visibility and enhance kauapapa Māori initiatives across the organisation, including implementation and measuring success, through dedicated monitoring and reporting requirements.

This builds on the acknowledgment that existing initiatives and current operations in many ways contribute already to the broader purpose of this activity, however, the collective oversight and visibility of that organisation-wide contribution is limited, largely as those matters are absorbed within their primary activity area.

With a view to the draft LTP Te Ara Poutama outcome, the ability to identify and capture a range of evidentiary data and other quantitative indicators to inform the development of later stage work programmes. In particular around the long term time goal horizons which will become imperative. This new activity provides a tool towards that.

The mechanics of how it will operate are still being worked through. We acknowledge this may impact decisions at the present point, on workstreams / projects from other areas that will be ‘captured’ within this activity and corresponding budget and reporting functions.

Activities

Year 1 (LTP 2024) is not expected to encompass a significant body of new work, focussing instead on existing initiatives and BAU that contribute to the overall purpose of the activity. (i.e. hapū/iwi management plans).

Correspondingly, establishing baseline data and an appropriate matrix to measure ongoing development, will be the focus of Year 1 performance monitoring.

A key project for Year 1 is the development of a dedicated draft strategy to drive Te Ara Poutama. This will provide a road map towards the considered and phased delivery of Te Ara Poutama and its goals.

From Year 2 onwards we expect the Te Ara Poutama Strategy and implementation plan to guide work programmes.

Budget

As the workstreams / projects within this activity will be ‘captured’ from other activities, we expect Year 1 costs to be met through existing operating budgets.

4.6 Spatial Planning

Spatial planning is an emerging discipline in New Zealand. It is a broad and interdisciplinary field that deals with the spatial organisation and development of living, working, and environmental conditions at various scales. Spatial planning aims to achieve social, economic, environmental, and cultural outcomes that are consistent with the values and aspirations of the people who live in a region.

The Spatial Planning team was established following a comprehensive review in early 2023 and now has capability to effectively partner with local councils, tangata whenua and other stakeholders in sub-regional, district and local spatial and urban planning.

Current work programme

The current work programme and activity focus is on eight areas (in order of time/investment); SmartGrowth Strategy review and Implementation Plan, Eastern Bay Spatial Plan, Rotorua Future Development Strategy, Kainga Ora Tauriko Specified Development Project, Project Manawa, regional profiles, urban planning/spatial planning advice and iwi/hapū spatial plan outputs.

The Natural Built and Environment Act and Spatial Planning Acts were enacted in August 2023. A new system would not replace the RMA until the building blocks of the new system architecture at a regional level are in place. These include a new Regional Planning Committee, a new regional spatial strategy and a Natural Built & Environment Plan that brings all plans together. The process of developing the new system architecture would take at least seven years.

Current business as usual is focussed on regional urban growth responses. In the Western Bay, the SmartGrowth Strategy, in Rotorua the Future Development Strategy and in the east, the Eastern Bay Spatial Plan.

This is reflected in the Activity Plan (Attachment 1).

New System

The new system was anticipated to start in 2025 with establishment of the Regional Planning Committee, shortly followed by establishment of a secretariat and work on the regional spatial strategy over two years. Consequently, work on developing one plan for the region would be completed in four years.

We prepared three scenarios for consideration by Council at the September LTP workshop where Council decided to wait until after the election. The initial scenarios reviewed Council’s contribution to partner Spatial Planning projects.

Figure 1. Spatial Planning Scenarios

The three scenarios reflect:

1) Funding for Eastern Bay Spatial Plan and Implementation of the Rotorua Future Development Strategy, with a reduction in SmartGrowth funding, and savings in consultancy fees.

2) a 20% reduction across external cost centres, that is grants, contributions and consultancy with corresponding prioritisation and undertaking some tasks/activities inhouse.

3) austerity (100% reduction in external costs). Council makes drastic cuts in external spending across contributions and grants to SmartGrowth, Eastern Bay of Plenty and Rotorua, as well as consultants. This scenario has consequences for the future of SmartGrowth (particularly as we are 42% funding contributors) and the eastern Bay of Plenty.

Change of Government and Policy/Legislation

There is uncertainty in the system due to the recent change of government. Coalition party policy manifestos all point to a repeal of the Natural Built and Environment Act and Spatial Planning Act in the short term and have a range of potential changes ranging from significant changes to the RMA, new legislation emphasising policy priorities (economic growth, urban development, farming, natural environment protection), to importing UK versions of legislation.

During this period of uncertainty, the work programme is being tailored to prioritising work with partners in urban growth partnerships and spatial planning inputs and outputs. In the medium term a realignment will be required, however this will not be articulated with any certainty till at the earliest the 1st quarter of calendar 2024.

Scenario 1 is recommended - to continue to support partners in sub-regional spatial planning with reduced budgets. We note there will be further opportunity to revisit the financials in annual plan cycles.

4.7 Rivers and Drainage

The draft Activity Plan is attached. Councils Draft Infrastructure Strategy and Asset Management Plans are also being considered at this workshop. If required, the Draft Rivers and Drainage Activity Plan will be updated based on Council Guidance on that paper.

5. Next Steps

Based on the direction received staff will incorporate the financial direction in version 3 of the budget. The activity plan information will be included in the 2024 – 2034 Long Term Plan.

3 Attachments

Attachment 1 - LTP24-34 Activity Plans - Part 2 ⇩

Attachment 2 - LTP 24-34 measures ⇩


Informal Workshop Paper
To:	Regional Council
	8 November 2023
From:	Jane Palmer, Senior Planner Climate Change and Nic Newman, Climate Change Programme Manager
	Chris Ingle, General Manager, Integrated Catchments

Climate Change Activity and Action Plan

1. Purpose

To present the next iteration of the Climate Change Action Plan for Council to review, along with a series of possible climate change related consultation topics for Council to consider for inclusion in the draft Long Term Plan 2024-2034 consultation.

2. Guidance Sought from Councillors

Guidance sought from Council:

a. feedback on the draft Climate Change Action Plan 2024-2026

b. identification of the preferred climate change related consultation question/s for the Long Term Plan 2024-2034 Consultation Document

c. identification of Gross Emission Reduction Target for the organisation as a stepping stone to Net Zero.

3. Discussion

3.1 Climate Change Activity

The Climate Change activity is a new activity in the Long Term Plan 2024-2034. Through this activity we co-ordinate and deliver a climate change programme, based on the Council’s Climate Change Action Plan (CCAP), working both across the organisation and externally, that delivers to Council’s climate goals.

The Action Plan sets out the Council’s vision, objectives and goals in relation to our changing climate and the resulting challenges and issues. The Plan outlines the activity’s programme of work over three years and is updated through the Long Term Plan process.

The CCAP is a simple, proactive, action-focused plan.

3.2 Draft Climate Change Action Plan

A draft of the next iteration of the Climate Change Action Plan is included as an attachment. The Plan has been provided as a draft in Word for Council to review. Once any agreed feedback from Council has been incorporated, the Plan will undergo a graphic design process before being included as a supporting document to the draft LTP for consultation.

The draft Climate Change Action Plan 2024-26 builds upon on the substantial work and progress we have made in the climate change space. The updates reflect the following:

· Council’s new strategic direction

· The increasing maturity of the Council’s climate change mahi

· The changing legislative environment

· Feedback from the internal audit of the Climate Change Programme

We proposed to retain the four goals of the current Action Plan and have made minimal changes to the Climate Change Statement, as these were agreed by Council and are still appropriate and fit for purpose.

The Action Plan and its workstreams are covered within the existing activity budget envelope, while noting that some initiatives are funded from budgets under other council activities e.g., corporate emissions reduction.

3.2.1 What’s changed

The main changes proposed to the Plan are:

· Position Statement (page 4): we have consolidated the ‘Transformational shifts and ‘We will’ sections into a new ‘How we work’ section to reflect our approach for the next three years.

· Our goals (page 5): under Goal 1: BOPRC is net zero carbon by 2050, we propose inclusion of an interim gross emissions reduction target for the new LTP, to complement the 2050 Net Zero target. See section 5.

· Guiding Principles (page 6): this is a new section to inform and enable staff to incorporate consideration of climate change into our work across Council – both in terms of the impact climate change has on our work and the impact of our work on the climate.

· Join our journey (page 7): this section reflects on our journey so far and the progress we have made, highlighting key achievements over the last three years.

· Action Plan Workstreams (page 12): to reflect the breadth and extent of climate change related work across Council, we have incorporated work undertaken within various council teams as part of their ‘business as usual’, alongside the specific climate change projects which are delivered through the climate change programme.

3.2.2 Workstream overview

1. Corporate emissions reduction

This workstream is focused around Goal 1 of the Action Plan: BOPRC is net zero carbon by 2050. This includes ongoing work to monitor our corporate emissions and working to reduce them, alongside investigating options for carbon sequestration and insetting in conjunction with the Integrated Catchments and Corporate activities. We will continue to support low emissions travel by staff through the Staff Travel Plan and pilot a circular economy initiative across selected council teams.

2. Spatial planning and transport

We are working to ensure the integration of climate resilient development principles into spatial plans. This is development which has reduced exposure and vulnerability to climate hazards, embeds low carbon into design, and integrates biodiversity into development.

Public transport is the key lever for BOPRC to contribute to regional emissions reduction, primarily through our provision of the Public Transport Network, and also via pathways to decarbonise the bus fleet. Wider regional transport initiatives will be supported through the Transport Emissions Reduction Programme in collaboration with our territorial authorities.

3. Regional emissions transition

This workstream focuses on supporting wider emissions reduction for the region. This includes supporting sectors to undertake decarbonisation and circular economy initiatives through Bay of Connections. We will continue to provide grants to low-income households via a third provider, and possibly loans (see section 4.2), for households to install facilities that would improve their energy efficiency. We also play a role in providing baseline regional emissions information through the regional carbon footprint and modelling emissions pathways in collaboration with our territorial authorities.

4. Nature-based solutions

Nature-based solutions (NbS) are actions to protect, sustainably manage or restore natural and modified ecosystems which address climate change. NbS can increase the resilience of systems to a changing climate, address identified climate risks, and sequester carbon. This is a key lever for the Integrated Catchments activity through their work with landowners to achieve multiple outcomes. A key area of work is exploring the potential for coastal wetland rehabilitation, with the Science team establishing the basis for the blue carbon storage potential of these areas. A biodiversity credits system could support this work.

5. Facilitating regional adaptation actions

Building on the Regional Climate Change Risk Assessment completed earlier this year, we will continue to work with the territorial authorities as they progress their district risk assessments. Through Bay of Connections we will support sector based responses to the identified climate risks. The River Scheme Sustainability Project will continue to address the impacts of climate change for our flood protection schemes. We will collaborate with NIWA’s Future Coast Aotearoa project on their Lower Kaituna case study, which is investigating future coastal lowlands transformation.

6. Supporting local adaptation planning

We will continue to build on the success of the Community Led Adaptation Fund (CLAF) by providing further funding to enable flax roots climate change adaptation planning directly by communities, at their scale. This funding model has proved very successful over the last three years and has been replicated across a number of other councils, including some of our territorial authorities. Through our existing resources, we will be providing specific technical support around local Dynamic Adaptation Pathways Planning for those communities that are at that point in their adaptation journey.

7. Climate change information and monitoring

Information provision is a core function of the Climate Change Programme, ensuring that we have up to date regional climate change projections and information, presented in an accessible way for our community and region. Along with keeping regional climate information up to date we propose exploring a climate dashboard based on existing monitoring data as well as exploring possible citizen science initiatives.

8. Community engagement and awareness

We will continue to support the Future Fit carbon footprint tool and work with our territorial authorities in encouraging uptake and climate action. Our Communications team will lead a specific climate change awareness campaign building over three years, along with the possible development of climate change educational resources in conjunction with Community Engagement (see section 4.3). These will be in a way that is apolitical, hopeful, science-based, and local. These activities contribute directly to Goal 4 – Our community is aware, engaged and resilient.

9. Programme co-ordination and networks

A key role of the Climate Change Programme is to oversee and co-ordinate climate change mahi across the council and build relationships and networks both within the region and nationally. Climate change touches on a broad range of different topics and sectors, so facilitating collaboration and partnerships is central to this kaupapa. Climate change policy continues to evolve and we aim to be a key connector in this space across council teams, local and central government. A key outcome of this role is to do more with our existing budgets, by working through others.

4. Potential new projects and LTP questions

4.1 New Regional Park

BOPRC currently owns and manages two Regional Parks: Pāpāmoa Hills Cultural Heritage Regional Park and Onekawa Te Mawhai Regional Park. These parks provide places we go to play, learn, care for and connect with nature and our heritage, and are explored and enjoyed by thousands of visitors each month.

Our parks also provide an opportunity to plant native trees to sequester carbon (as well as benefitting the local biodiversity). Although this is very limited due to cultural and archaeological values.

As a part of our goal to be net carbon by 2050, we will need to invest in carbon sequestration options in order to offset those greenhouse gas emissions that we are unable to reduce to zero. Figure 1 displays the quantum of sequestration and timing needed to reach our net zero goal.

Figure 1: 2022-2060 Net greenhouse gas emission projections including additional reforestation effort

We could look at acquiring land in order to establish a new Regional Park to support our sequestration efforts, as well as providing further amenities to the community.

The size, location, and tenure of this land will determine the quantum of new budget allocation required through the Integrated Catchments activity. A December Council paper will detail this.

Potential LTP Question

Guidance is sought, in principle, on whether we should develop a question for LTP consultation around the purchase and development of a new regional park for multiple benefits. As discussed, the budget for this park is dependent on a range of factors to be discussed with Council in December.

4.2 Loans for sustainable homes

As part of the LTP 2021-31, Council agreed to establish a Sustainable Homes Scheme, offering grants^{^[2]} and loans for insulation, efficient heating and solar power. Council previously agreed on objectives (Figure 2) and design parameters for the scheme. Apart from greenhouse gas emission reduction and energy efficiency benefits, the Scheme also results in air quality and health benefits.

Because of difficulty in our ability to comply with the Credit Contracts and Consumer Finance Act 2003 (CCCFA), on 3 May 2022 Council agreed to postpone the loan component of the scheme until there was an exemption from the CCCFA for local government. On 8 August 2023, central government announced that local government voluntary targeted rate schemes would be fully exempt from the CCCFA by the end of the year.

Staff wish to re-confirm the value proposition of this service with Councillors. Subsequently we could revisit/recheck the Scheme objectives or design parameters (e.g., whether we should still fund wood burners), separately from the LTP process.

Figure 2: Sustainable Homes Scheme objectives

Lower income households generally cannot afford the upfront cost of these facilities, in the absence of alternative sources of finance/funding. Recent changes to Central Government’s Warmer Kiwi Homes Programme have reduced the number of home owners being able to access heating grants. This particularly impacts seniors and multi-generational families who often own their own home but do not have a large income (i.e. the “asset rich but cash poor”).

Several banks offer home loan top ups on preferential terms for these types of facilities (Table 1), however these loans are only available to their existing home loan customers (who already have access to credit).

Table 1 Summary of sustainability loans offered by banks

Bank: Product	Facilities offered	Funding limit	Interest rate
ANZ: Good Energy Home Loan	- Transport: EVs, chargers, e-bikes - Energy: heat pumps, insulation, glazing, ventilation, water heating, solar power - Water storage	Min $3,000 up to $80,000	1% p.a. 3-year fixed
Kiwibank: Sustainable Energy Loan	- Energy: Solar power, small scale hydro, wind energy or geothermal resources.	Nil (but $2,000 rebate if loan is ≥$5,000)	Variable rate for 7-10 years
Westpac: Greater Choices Home Loan	- Transport: EVs, chargers - Energy: heat pumps, wood burners, insulation, double-glazing, ventilation, solar power - Water storage	Up to $50,000 for five years	0%
BNZ: Green Home Loan top-ups	- Transport: EVs - Energy: solar power, heat pumps, insulation, water heating, ventilation, glazing - Water storage	Up to $80,000	1% p.a. 3-year fixed
ASB: Better Homes Top Up	- Transport: EVs, chargers - Energy: insulation, glazing, heat pumps, wood burners, ventilation, moisture barriers, water heating, solar power	Up to $80,000	1% p.a. 3-year fixed

BOPRC staff regularly receive enquires from the public about whether we still offer loans, both from within and outside the Rotorua Airshed. Moreover, staff anticipate that under the new National Environmental Standards for Air Quality (NES-AQ), new airsheds may need to be established, which may put an increased emphasis on clean and efficient household heating across the region. The Rotorua Hot Swap loans were instrumental in the Rotorua Airshed meeting the current NES-AQ and reducing the impact of air quality regulation on households. Staff anticipate loans would continue to play a key role for both the Rotorua and any new airsheds under an updated NES-AQ.

Administration of loans would require dedicated resourcing. Staff estimate that to deliver Sustainable Homes loans as originally planned, a dedicated 0.5 FTE would be required. This would include managing loan applications, liaising with service providers, and managing loan contracts and repayments through rating. Funding for this was provided for in LTP 2021-2031, aligned to the current scheme design parameters. However, this resourcing may be insufficient if significant changes to design parameters are made or if demand for loans far exceeds expectations.

Potential LTP Question

Guidance is sought, in principle, on whether we should develop a question for LTP consultation on the provision of loans for sustainable homes across the region, and whether Council still supports this initiative. As discussed, administration of this initiative, as originally planned, is budgeted for. It is worth noting that this was already an LTP consultation question three years ago.^{^[3]} It is also worth keeping in mind that provision of loans would still be subject to the CCCFA exemption regulations being promulgated.

4.3 Climate change educational resources

A key group within an 'aware, engaged and resilient region' (CCAP Goal 4) is the next generation. A number of schools and teachers in the region have expressed interest in accessing climate education resources and expertise for use in school in the region. This interest has been both related to general climate science and specific information about climate change and our region. Nationally, there are a number of existing climate education resources sets available on-line, hands-on kits through some providers, and other providers who develop bespoke local resources.

BOPRC could play a role in facilitating the development of and access to resources for local teachers, without being involved in the classroom.

There are a number of ways Council could do this:

· Council could link existing national education resources to a ‘climate education hub’ on our website and potentially sponsor access to some existing paid resources, There are a number of existing nationally focused climate education resources available online such as Climate Ready Classrooms, and locally available hands-on kits such as House of Science Kits.

· Council could also work with education providers to develop some Bay of Plenty specific resources that we could host and promote to teachers. This could include regionally specific education resources such as virtual field trips.

By simply linking/sponsoring existing resources we could help with access to existing resources for small effort. By working with providers to develop regionally specific resources we could make locally relevant learning opportunities that link to the work that BOPRC is doing, giving us material that could be used to broaden the awareness and understanding of Council work along with school education resources.

The options described to facilitate development/access to climate education resources would come from the existing Climate Change activity budget envelope.

Potential LTP Question

Guidance is sought, in principle, on whether we should develop a question for LTP consultation on the provision of climate change education resources based on the options above. The provision of this service would come from within the Climate Change activity budget envelope.

5. Potential Gross Emission Reduction Target

Council has agreed to an organisational target of being net zero for carbon emissions by 2050. Progress to monitor and achieve this goal is reported through the Monitoring and Operations Committee. Along with actions to reduce emissions and to sequester carbon in our activities, there could be value in establishing a Gross Emission Reduction Target. This target would complement the net 2050 target with a ‘stepping stone’ target over the life of the LTP.

It would be important that this target was both realistic, achievable, and meaningful.

Considerations in setting a target:

· A target would cover our mandatory Scope 1 and 2 sources of direct emissions under our control. We will record some indirect Scope 3 emissions such as procurement and staff commuting, but these are not part of a gross emission or net zero target.

· The year 2022-23 is the final year we have complete emissions accounting for and the total emissions ending June 2023 are 1585.9 tonnes (Scope 1 and 2). This would be the reference year for a potential gross emission reduction target.

· For the target to be realistic, achievable and meaningful, the following assumptions are made: future energy demand will be similar to 2022-2023, Bell Road flood pump will be electrified, 18 vehicles will be retired, 6 ICE vehicles will be swapped for electric, 17 ICE vehicles will be swapped for hybrid, and suitable affordable electric 4WD utility vehicles will not be available in this period.

· We anticipate that from 2026-2027 that the technology for electric 4WD utility vehicles will have developed to a point that these vehicles will become suitable for use by our field teams resulting in a significant reduction in our future fleet emissions. The gross emissions target for the remainder of the LTP would be reviewed in 2026-27 to incorporate these vehicles coming online and other changes in the operating environment.

· Gross emission reduction activities, as described above, are currently budgeted for, and would achieve a 25% reduction in annual emissions, relative 2022-2023, by 2026-2027.

· Efforts to reduce emissions are partnered with our efforts to inset carbon into our organisational activities. Together, these actions set us on the path to net-zero.

· Progress towards a Gross Emission Target would be reported annually as a corporate KPI, and both our net and gross emissions will be reported through the Climate Change Programme.

Proposed Gross Emission Reduction Target

Guidance is sought on the inclusion in the Climate Change Action Plan (as part of Goal 1) of a Gross Emission Reduction Target, for the organisation, of a 25% reduction in gross emissions by 2026-27, relative to 2022-2023.

6. Next Steps

Once Council has reviewed the draft Climate Change Action Plan 2024-26 and provided guidance on the inclusion of a climate-related consultation topic, the next steps are:

1. Update the draft Climate Change Action Plan with any feedback from Council and put through a graphic design process in preparation for the LTP 2024-2034 consultation.

2. Update the draft Climate Change Action Plan with a Gross Emission Reduction Target, if agreed.

3. Draft a full consultation question based on the selected topic, if any, for inclusion in the LTP 2024-2034 Consultation Document.

Attachments

Attachment 1 - CCAP 2024-26 draft ⇩


Informal Workshop Paper
To:	Regional Council
	8 November 2023
From:	Stephen Lamb, Environmental Strategy Manager and Namouta Poutasi, General Manager, Strategy and Science
	Namouta Poutasi, General Manager, Strategy and Science

Regional Development Activity - Bay of Connections Implications

1. Overview

The Regional Development activity is Council’s vehicle to enable a step change in the regional economy and support sustainable development that delivers improved economic outcomes. This activity has two components: Regional Infrastructure and Regional Economic Development, the latter delivered through Bay of Connections (BOC).

Entering the next LTP period, Council has an opportunity to consider its role in delivering economic wellbeing and outcomes through this activity.

Funding for the Regional Infrastructure component of this activity is fully committed (see Attachment 1). Figure 1 below shows the Bay of Plenty Regional Council’s regional economic contribution to the Region.

Budget scenarios for consideration under this activity are focused on Regional Economic Development/Bay of Connections:

· Scenario one: $60k reduction – little change to current operation of the activity

· Scenario two: $155k reduction – maximum efficiencies without fundamentally changing operation of the activity, retains the BOC Leadership Group

· Scenario three: $500k reduction – BOC is disestablished, little to no operational expenditure. This scenario represents a fundamental change to operation of the activity.

To provide context, the history of BOC, its role, value and work programme alignment with Council’s strategic direction are detailed in section 3, with examples of BOC’s activities listed in Attachment 2.

Councillors have asked staff to explore budget scenario three, the implications of which are outlined below in section 3.

Figure 1

2. Guidance Sought from Councillors

1. Notes information has been provided in response to the request to understand the implication of Regional Development Activity Scenario 3.

2. Provides direction on the preferred Scenario.

3. Discussion

3.1 Background

Bay of Connections (BOC) is Council’s longstanding structure for delivery of the Regional Economic Development activity and is a recognised brand across the region and New Zealand.

BOC was established in 2008 in response to the need for regional coordination to increase central government’s interest and investment for economic development opportunities. Prioritisation and cross-region buy-in was essential to access the limited funding available. BOC’s original focus was regional-level sector strategies and action plans, with BOC coordinating sector groups and initiatives.

From 2017, local entities were encouraged to engage directly with central government to unlock job creation opportunities, enabled through the Provincial Growth Fund (PGF). Priority was given to ‘surge regions’ - areas identified as most in need. Standalone local projects were favoured over a coordinated regional approach.

A review of BOC in 2018 led to a shift away from sector strategies to general focus areas: Workforce, Infrastructure, Māori Economy, and Low Carbon Circular economy. Since that reset, BOC has navigated the evolving economic development landscape and sought to add value by leading bespoke projects, playing a connecting role and providing support to entities and initiatives.

The onset of COVID-19 saw the PGF re-directed towards response and recovery efforts. In 2021, the $200 million Regional Strategic Partnership Fund (RSPF) was established to support projects that accelerate Māori economic aspirations and/or support sector transformations, with a focus on firm-level and localised commercial investments.

Today, BOC has evolved into an entity that promotes sustainable development at a regional level, with a focus on the urgent need to decarbonise the economy and respond to climate change, and seeks to enhance the economic, social, cultural, and environmental wellbeing of the Bay of Plenty region.

3.2 Bay of Connections Value

a) Strengths

Bay of Connections’ strengths are in its role as a connector, to foster collaboration on priority areas or gaps and opportunities, and enabler providing support to entities and initiatives.

The BOC Leadership Group (LG) provides strategic direction and thought leadership, and valuable connections into the local, regional and national economy through its members’ networks. BOC is attracting high-calibre candidates to the LG, leaders in climate change thinking. Members’ areas of expertise include strategy, climate change resilience, industry decarbonisation, economic drivers, accounting and finance, and Māori business dynamics, assets and investment base, and governance. The LG is apolitical, and not beholden to geographic or industry sector perspectives. The strength of the LG demonstrates the value of a semi-independent BOC.

In addition to engaging with a broad range of external stakeholders, the BOC operational team works closely with staff across Regional Council to ensure collaboration and avoid duplication, and provides data analysis and insights to other Council functions.

b) Benefits

Through its current work programme, BOC encourages voluntary behaviour change towards a low carbon and more circular economy. As an external-facing function that works with business and industry to support the transition to a low carbon economy, BOC provides advocacy and support for Regional Council’s objectives and helps to create alignment with Council’s strategic direction through the wider Bay of Plenty’s economic base.

BOC is the counterpoint to Council’s regulatory function and can help to make the compliance message more accepting. In this regard, Bay of Connections makes up a small but important spend within Council’s wider budget.

c) Leveraging Spend

BOC takes a collaborative approach to delivery and works in partnership to leverage our spend and contribute to joint community efforts. Recent examples of this are working with EECA to support the BOP Regional Energy Transition Accelerator programme, the BOPRC Climate Change team to deliver the XLabs Circular Economy workshop, and partnering with Tauranga City Council and Western Bay of Plenty District Council on the Western BOP Circular Economy Opportunities project. BOC also facilitates a shared Infometrics data subscription with the Whakatāne, Ōpōtiki and Kawerau district councils to deliver cost savings to all parties, the subscription is also utilised by several Regional Council teams.

BOC helped to establish the BOP Aquaculture Group, supporting its transition from the BOC-funded Regional Aquaculture Organisation, and has worked with Toi EDA and other partners to deliver the stocktake of aquaculture strategies and recent Aquaculture Summit. BOC’s involvement has progressed from initiator, enabler (sole funder) and connector for the original aquaculture strategies and action plans to a contributing partner. This has allowed Council to maintain its support for regional aquaculture development while reducing its annual funding commitment by 80%.

3.3 Future Outlook

As we look to the future there is an increasing focus on a decarbonised economy and the need for our economy to adapt to the challenges that this creates.

The region needs a clearly articulated framework for decarbonisation and improved resilience, prioritising equitable long-term outcomes over short-term local projects, that is supported by councils, industry, iwi, the community and government.

Regardless of a shift in central government priorities following the general election, growing expectations for sustainable products and supply chains among New Zealand’s export partners necessitate action to decarbonise processing operations and transport in our regional economy.

Key learnings from the recent BOC review support the need for a targeted regional approach to address these challenges:

1. Collaboration continues to be seen as critical to addressing the wider region’s challenges.

2. The list of local and sub-regional economic development priorities is vast and diverse, making it difficult for disparate entities to coordinate a collective response.

3. Changes in the economic development landscape have fostered a level of sub-regional competitiveness, at the expense of regional-level cooperation and generating network benefits.

During LTP pre-engagement many respondents considered Regional Economic Development in their top 5 most important Council services 77/377 (ahead of resource consents and Maritime Safety). Feedback on Regional Economic Development priorities included ‘environmental management that protects our future and supports business growth’. Further feedback sought economic development that focuses on circular economy, transition to low carbon economy, links to climate change, costal and marine operations, zero waste and regenerative agriculture. People wanted a growing, stable, resilient and future proofed regional economy. Others talked out the need for infrastructure and revitalising inner city areas, with consolidation rather than sprawl.

It is anticipated that the new government once formed will focus on economic development.

3.4 Meeting the Challenge

Bay of Connections has identified several opportunities to enable sustainable development, focusing its core activities on two key themes: Decarbonisation and Building Resilience.

Underpinning these two themes is consideration of the needs of affected communities and workers to deliver an equitable transformation, ensuring that the benefits of development are shared equitably across the community.

At an actionable level, this involves:

1. Working with our partners and stakeholders to build awareness of the decarbonisation and resilience challenges and risks facing our region.

2. Creation of a Decarbonisation Framework to outline the decarbonisation challenge for our region and guide the work of stakeholders to develop and/or enable solutions across three key areas: Transitioning transport; the supply of renewable energy and energy efficiency; and decarbonising the built environment (including waste minimisation).

The framework will focus on three spheres of activity:

• People: Skills and employment

• Practices: How businesses operate

• Policy: Planning, decision-making and investment at central and local government level.

3. Working with industry sectors on the relevant resilience challenges outlined in the Regional Climate Change Risk Assessment^{^[4]} to identify viable solutions, and supporting projects and initiatives that enhance the region’s resilience.

All BOC workstreams involve supporting events to engage stakeholders, research and data analysis to provide the appropriate evidence base, and bespoke projects in collaboration with, or led by, partners.

BOC’s work programme also features in Council’s draft Climate Change Action Plan 2024-26:

Workstream	Focus area
Regional greenhouse gas emissions	· Working with sectors on decarbonisation initiatives · Support and promote circular economy initiatives · Support renewable energy transition initiatives within the region
Facilitating regional adaptation actions	· Supporting sector-based responses to climate risks
Relationships and networks	· Facilitating regional collaboration and partnerships

BOC activities within the Climate Change Action Plan 2021-2023 were the Regional Cycle Network project, Decarbonising Industries forum, a regional waste stocktake and circular economy initiatives.

3.5 Alignment with Council’s Strategic Direction

Bay of Connections’ focus on sustainable development and current work programme aligns with the following goals of Council’s strategic framework for LTP 2024-2034:

• Goal 11: We support development and growth that takes into account the four Well-beings of people and communities, the need to maintain and enhance the quality of the environment, and the reasonably foreseeable needs of future generations.

• Goal 6: We will empower communities to make sustainable choices and transition towards a low carbon economy.

Additional goals supported through this activity include:

• Goal 12: Enable and advocate for climate resilient spatial plans that take a sustainable development approach.

• Goal 13: Regional infrastructure is resilient, efficient and integrated.

4. LTP 2024 – 2034 Budget Scenario Three

Budget scenarios considered for the Regional Economic Development activity are:

• Scenario one: $60k reduction – little change to current operation of the activity

• Scenario two: $155k reduction – maximum efficiencies without fundamentally changing operation of the activity, retains the BOC Leadership Group

• Scenario three: $500k reduction – BOC is disestablished, little to no operational expenditure. This scenario represents a fundamental change to operation of the activity.

Budget scenarios one and two support the continuation of Bay of Connections, scenario three results in the adoption of a minimum service level.

Councillors have asked staff to explore the implications of adopting budget scenario three.

4.1 Implications of Disestablishing Bay of Connections

a) Overview

With a long history of supporting regional-level initiatives, BOC’s absence will be noticed and felt.

Council faces a reputational risk if BOC is disestablished without a credible model in its place. The absence of a clearly articulated position on how Council will deliver economic wellbeing and/or on the relevant goals in LTP 2024-2034 may signal that Council is deprioritising or moving away from delivering this outcome.

Council has a stated goal to empower communities to make sustainable choices and transition towards a low carbon economy. An important consideration for delivery of this goal is whether Regional Council (due to its compliance and enforcement role) can achieve the same level of industry engagement, cooperation and collaboration as a semi-independent BOC.

In addition, disestablishing the BOC Leadership Group will lead to a loss of networks and expertise that is not available internally or without great cost (externally).

Since its inception, BOC has been a catalyst for action and a valuable connector to facilitate a regional approach. An example of this was the Bay of Plenty Aquaculture Strategy – first produced in 2009 to set the strategic direction for aquaculture development in the region. By presenting a future vision and identifying priorities, the strategy played a part in subsequent decisions on the Ōpōtiki Harbour development and offshore aquaculture space allocation.

If BOC is disestablished, it is not clear which entity will take on the regional catalyst role.

The loss of a regional-level approach to sustainable development could bring sub-regional priorities and perspectives to the fore; these are not always aligned to Council’s objectives. While BOC is semi-independent, it does maintain a regionalised strategic direction consistent with that of Regional Council.

Disestablishing BOC may also signal to sub-regional agencies that Council will redirect funding towards external parties to deliver on its sustainable development objectives.

b) Transition risks

Bay of Connections is funded until June 2024 through the current LTP. Should Council decide to disestablish BOC, the transition to an alternative model for LTP 2024-2034 will need to be carefully planned and communicated to avoid negative community perceptions.

BOC’s current work programme and activities continue to raise visibility of its role and delivery, heightening the reputational risk of disestablishing BOC in mid-2024. BOC has improved the visibility of its role and delivery among external stakeholders, as evidenced in Council’s recent Residents Survey: “Supports and coordinates local business, economic and tourism development through Bay of Connections – 45%.” This result is up from 35% in 2020.

BOC has a clearly articulated work programme - focused on Decarbonisation, Building Resilience, and ensuring an equitable transformation - that meets LTP goals 6 and 12. Under scenario three, BOC’s work programme would cease.

BOC’s current projects are due for completion by December 2023. Projects being commenced now are intended to run beyond June 2024, compounding the reputational risk if ended mid-year.

Notwithstanding the LTP consultation process, early clarity on BOC’s future will help to de-risk the transition and allow for pragmatic decisions to be made, should Councillors decide to adopt budget scenario three.

4.2 Scenario 3 – Minimum service level

Adopting a minimum service level results in a fundamental change to the operation of this activity: a change in reporting structures with the removal of the BOC Leadership Group; no operating budget eliminates the ability to work in partnership and leverage spend to be effective in regional economic development.

Under budget Scenario 3 the Regional Economic Activity role would focus on activities such as:

• Regional economic development advice into other functional areas

• Supporting low carbon economy initiatives from within Council (other functional areas)

• Non-financial contributions to external projects/programmes

• Input into city/regional deals

• Infrastructure project economic development analysis.

Such an approach would be fundamentally different to the externally facing BOC – being internal in nature. If this approach is the preferred scenario, then further work would be needed to shape this new re-imagined activity. Timing will be important - BOC is resetting its work programme with key projects being completed by December 2023. So if this option was progressed then the natural break point would be 1 January 2024. Other projects would be wound down and we anticipate there would be subsequent savings this financial year as a result.

Delivery on this activity at a minimum service level will require leveraging other teams within Council, which has implications for those activities in terms of increased demands on staff and budgets.

With its current focus, the Regional Economic Development activity has natural linkages into the Climate Change programme, and workstreams of the Spatial Planning and Transport Planning teams, among others. The reimagined activity would increasingly draw on the Communications and Engagement teams, interaction with other supporting functions such as Commercial would see little to no change.

With no operational funding, the ability to support and/or enable projects and initiatives is severely limited, negatively impacting delivery. Meaningful delivery of this activity at a minimum service level requires some operational funding to facilitate leveraging the support of external stakeholders, and reduce reliance on other internal budget holders.

Through its Data and Insights function, BOC is the budget holder and relationship manager of Regional Council’s data subscriptions, enabling efficient access to a consistent data source for multiple Council teams: Spatial Planning, Transport Planning, Corporate Performance and Environmental Strategy. Regional Council is also the foundation partner of the shared Infometrics subscription with the Whakatāne, Ōpōtiki and Kawerau district councils. At a minimum service level, data subscription costs would need to be picked up by another Council function to avoid possible cost increases for the three eastern Bay district councils that result from Regional Council withdrawing from the agreement.

At a minimum service level the Regional Economic Development activity could become more transactional than strategic, impacting Council’s ability to generate support for its objectives and coordinate a regional-level approach to sustainable development.

5. Conclusion

The scale of the climate change and decarbonisation challenge requires a region-wide approach and coordination of effort. More work is needed across the wider Bay of Plenty to mobilise a greater number of people and communities onto the sustainable development journey and to decarbonise our regional economy.

There is an expectation from stakeholders that Regional Council will continue to play a role in supporting sustainable economic development, Council’s goals for LTP 2024-2034 indicate that support will remain.

Bay of Connections’ role as a thought leader, connector and enabler make it uniquely placed to meet these challenges and bring together parties from across our region to work towards a common goal.

• Under Budget Scenario 1 and 2 (or a variation on these) the Regional Economic Development/BOC function could continue

• Under Budget Scenario 3, the activity would:

o have limited capacity to facilitate transformational change

o become more internal/transactional than strategic

o lack the ability to partner and leverage spend, reducing its effectiveness in delivering Council’s strategic goal.

Fundamental change in the operation of the Regional Economic Development activity comes with a transition risk, and a reimagined activity must be clearly communicated to stakeholders and communities to avoid the perception Council has deprioritised this strategic outcome.

6. Next Steps

Based on the direction received staff will incorporate final decisions in version 3 of the budget and the LTP document.

4 Attachments

Attachment 1 - Regional Infrastructure Investment ⇩

Attachment 2 - Bay of Connections Activities ⇩


Informal Workshop Paper
To:	Regional Council
	8 November 2023
From:	Graeme Howard, Corporate Planning Lead; Alicia Burningham, Corporate Planner and Olive McVicker, Corporate Performance Team Lead
	Reuben Fraser, General Manager, Regulatory Services

Bay of Plenty Civil Defence Emergency Management

1. Purpose

To consider the activity plan and budget adjustments for the Emergency Management activity. The Bay of Plenty Civil Defence Emergency Management Group Joint Committee (CDEM-JC) meeting was held on 29 September 2023 where resolutions were made for Council consideration.

2. Guidance Sought from Councillors

· Provide feedback on the activity plan for the Emergency Management activity (refer Attachment 1).

· Note that the Bay of Plenty Civil Defence Emergency Management Group Joint Committee (CDEM-JC), at its meeting on 29 September 2023, approved additional resourcing with a budgeted annual cost of $356,752 (uninflated) to meet increasing demand to deliver Emergency Management responsibilities.

· Confirm an additional $356,752 is included in the draft Long Term Plan 2024-2034 budget for 2024/25 (cost inflated in out years), funded by an increase to the CDEM Targeted rate. This is to fund the additional Emergency Management resourcing approved by CDEM-JC.

· Provide guidance whether to increase Regional Safety and Rescue Service (RSRS) funding by $80,000 to $480,000 in year one of the draft LTP 2024-2034 (due to not increasing with inflation over past three years), then increase funding in line with inflation in future years. As endorsed by CDEM-JC at its meeting on 29 September 2023. Note: RSRS is currently funded by a Targeted Rate.

3. Activity Plan

A draft activity plan (refer Attachment 1) has been prepared for the CDEM Group for inclusion in the Councils 2024 – 2034 Long Term Plan. This plan provides details of the activity and the proposed levels of service.

The budget reflects version 2 and Council guidance at the September workshop to make no changes when considering the three scenarios. This does not include the budget implications of the recommendations from CDEMG-JC from the 29 September outlined below.

4. BOP Civil Defence Emergency Management Group recommendations

The CDEM Group met on 29 September 2023 and made recommendations regarding Emergency Management Bay of Plenty Workforce Planning and the Regional Safety and Rescue Services Fund.

4.1 Emergency Management Bay of Plenty Workforce Planning

CDEM-JC considered a report at their meeting on 29 September in relation to workforce planning to ensure that resources are appropriate to meet the increasing demands and to deliver on the roles and responsibilities of the Bay of Plenty CDEM Group as outlined in the Bay of Plenty CDEM Partnership Agreement 2019 and in accordance with the Bay of Plenty CDEM Group Plan 2018-2023.

The report identified gaps in the current staffing in terms of skills, expertise, and workloads. In some cases, short term solutions had been applied which now require permanent capacity and capability.

Through its meeting on the 29 September (minutes refer Attachment 2), the BOP CDEMG-JC resolutions included:

1. That three new roles be established with an additional annual budgeted cost of $356,752 (uninflated).

o Principal Advisor Emergency Management, Cultural Engagement. To provide for the strategic advice, coordination and support integrating Māori/Iwi and other cultural communities into the emergency management system in the Bay of Plenty.

o Advisor, Communications - to enhance the emergency communications capacity and capability across the Bay of Plenty CDEM Group.

o Advisor, Operations - to provide for the coordination and management of New Zealand Response Teams across the Bay of Plenty and Waikato CDEM Groups in accordance with the recently developed GAP analysis and business case for NZRT’. This role will be funded 50:50 with Waikato Regional Council.

2. That the Bay of Plenty Regional Council, as the administering authority for the Bay of Plenty CDEM Group, provide for an increase to the CDEM Regional Targeted rate in the Bay of Plenty Regional Council Long Term Plan 2024-2034 to provide for the additional workforce requirements as approved by CDEM-JC.

4.2 Regional Safety and Rescue Services Fund

The Regional Safety and Rescue Services (RSRS) provides a centralised approach to fund and support organisations that provide vital safety and rescue services to both local people in our community and visitors to our region.

This centralised funding approach enables organisations to apply for funding for operating costs through one central process endorsed by Councils in the BOP region. This enables councils across the region to come together and collectively use their knowledge and capability to better support key safety and rescue services from a regional view.

Note: Separate to RSRS funding, Tauranga City Council (TCC) currently provide funding of over $300,000 per annum for Surf Lifesaving Services at Tauranga beaches.

4.2.1 RSRS Funding 2021/22 – 2023/24

The 2021 – 2031 Long Term Plan budgeted for $400,000 per annum for RSRS grants.

In 2021/22 the funding was not fully allocated as the fund had not been fully established. The unallocated funding of $108,000 was transferred to a reserve. As a result an average of $454,000 was available for allocation in 2022/23 and 2023/24.

For 2022/23 and 2023/24, all available funding was allocated including the reserve carried over from year 1 (see table below).

Table 1: RSRS Funding allocation 2021/22 – 2023/24

4.2.2 RSRS review 2023

A review of the RSRS fund was completed and key findings presented to the BOP CDEM Group in September 2023. A key part of the review was the level of funding provided.

The 2021 – 2031 Long Term Plan budgeted for $400,000 per annum for RSRS grants. This level of funding was based on the support of Councils to RSRS type services when the fund was consulted on prior to the LTP 2021.

Funding is obtained via a targeted rate across the region. The current funding is not adjusted for inflation, however for many RSRS organisations inflation does create financial pressures. Table 2 shows the impact on the current funding if it was inflation adjusted.

Table 2: Impact of inflation on base funding

2021/22

2022/23

2023/24

2024/25

Plus inflation (7.1%)

Plus inflation (6.7%)

Plus forecast inflation* (5.0%)

RSRS

Budget

$400,000

$428,000

$457,000

$480,000

In consideration of the BOP CDEM Group endorsed that the budget increase to $480,000 in 2024/25 (due to not increasing with inflation over past three years), then increase in line with inflation in future years.

5. Next Steps

The Emergency Management Activity Plan and budget will be updated to reflect the direction received from Council for the 2024 – 2034 LTP.

Attachments

Attachment 1 - LTP24-34 Activity Plan - Emergency Management ⇩

Attachment 2 - Minutes - CDEMG-JC - 29 September 2023 - excerpt ⇩


Informal Workshop Paper
To:	Regional Council
	8 November 2023
From:	Gillian Payne, Principal Advisor; Jo Pellew, Rates Manager; Charlie Roddick, Rates Engagement Team Leader (Whenua Maori - Engagement and Relations) and Merehine Waiari, Senior Advisor
	Mat Taylor, General Manager, Corporate

Rates Remission Policy Review - Maori Freehold Land

1. Purpose

The purpose of this report is to seek further guidance on aspects of the draft Rates Remission and Postponement Policy (RRP Policy) that relate to Māori Freehold Land (MFL).

Council undertook a period of engagement with landowners, trustees, and administrators of MFL which closed on 30 September 2023.

Initial direction on these matters was provided by Komiti Māori on 10 October 2023, and the work presented in this report records and builds on that direction.

Guidance provided at this workshop will inform the draft RRP Policy for public consultation in March-May 2024.

2. Guidance Sought from Councillors

Staff seek guidance on:

· Inclusion of an additional type of Māori owned land in the policy definition of MFL (General Land owned by Māori)

· Whether to develop a separate policy for remissions on MFL or keep the current approach which combines all rates remissions provisions into one document

· Objectives, options for criteria for remissions for Economic Development on MFL

· Progress on draft wording of other aspects of the RRP Policy relating to MFL, based on direction from Komiti Māori in October.

3. Discussion

3.1 Background

In April 2021, the Local Government (Rating of Whenua Māori) Amendment Act was enacted to support the use and development of Māori land and better align the rating legislation with the principles of Te Tiriti o Waitangi. The changes introduced a rates remission process for Māori land under development and form part of a wider Government initiative to support Māori owners in using their land where the impediment of rates have been a barrier. The purpose of the Local Government (Rating) Act 2002 (LGRA) was also amended and now provides that the administration of rates must be facilitated in a manner that supports the principles as set out in the Preamble to Te Ture Whenua Māori Act 1993 (TTWMA).

Understanding the intrinsic connection Māori have with land is important if Council wants to incorporate a te ao Māori understanding of land as a taonga tuku iho (treasure handed down) in the Rates Remission Policy. Legislative terminology used for Māori land is often in conflict with how Māori value and interact with the whenua. Under traditional Māori land tenure, land was collectively held and provided a place for belonging for whānau, hapū and iwi. Through whakapapa, or genealogy, the land connects Māori to the spiritual world and confirms an individual’s membership within the collective. This imposes an obligation on Māori as tangata whenua and kaitiaki to maintain and protect the land for future generations.

Through early legislation, land confiscation and the establishment of the Native Land Court in 1865, the traditional Māori land tenure system changed drastically. What remained of Māori land, was reclassified, surveyed, and divided into shares allocated to owners. As descendants have succeeded to shares, the shares have become increasingly fragmented making the administration of Māori land difficult. MFL comprises around 1.4 million hectares, or five percent of land in Aotearoa and has an average of 85 owners per title. The large number of owners requires collective decision making on how to use or develop the land which can be difficult if there is no formal administrator of a multiple-owned land block.

There are also other categories of Māori land or Māori owned land that fall within the ambit of TTWMA which are not often afforded the protections that MFL are given in legislation and policies. The different types of Māori land status and ownership are complex, which impacts the administration of rates on whenua Māori.

In spite of the changes to traditional land tenure, the spiritual relationship Māori have with the land has endured and continues to play a vital role in enabling Māori to demonstrate their obligations as kaitiaki in accordance with tikanga Māori. How Māori view land directly influences how they value land as kaitiaki. Likewise, how rating legislation describes Māori land directly influences the policies it produces. Describing unoccupied or undeveloped Māori land as ‘unused’ Māori land in rating legislation, for example, recognises neither the depth of the relationship Māori has with land nor the unique barriers Māori landowners face regarding development. It may also wrongly infer that the land isn’t valued by its owners.

In applying a te ao Māori lens to the rates remission policy, an interpretation of ‘unused land’ would acknowledge that undeveloped or unoccupied land may be a conscious choice for Māori landowners where there are unique features such as important tribal landmarks or traditional sources of cultural and spiritual needs that make development or continuous occupation undesirable. Incorporating te ao Māori into the rates remission policy requires acknowledgement of this unique relationship and the different ways that Māori may use their land.

3.2 Legislative context

Non-rateable land

Several classes of land owned by Māori are non-rateable in terms of the LGRA Schedule 1. They include:

· Māori customary land

· Land used as a Māori burial ground

· Land set apart as a Māori reservation under section 338 of the TTWMA excluding any land used—

(a) primarily for commercial or agricultural activity; or

(b) as residential accommodation.

· Land that is used for the purposes of a marae, excluding any land used—

(a) primarily for commercial or agricultural activity; or

(b) as residential accommodation.

· Land that is set apart under section 338 of the TTWMA or any corresponding former provision of that Act and used for the purposes of a meeting place, excluding any land used—

(a) primarily for commercial or agricultural activity; or

(b) as residential accommodation.

· Māori freehold land on which a meeting house is erected, excluding any land used—

(a) primarily for commercial or agricultural activity; or

(b) as residential accommodation.

· Land that is a Māori reservation held for the common use and benefit of the people of New Zealand under section 340 of the TTWMA.

· Māori freehold land that is, for the time being, non-rateable by virtue of an Order in Council … to the extent specified in the order.

· An unused rating unit of Māori freehold land.

It should be noted that a RRP Policy cannot provide for remission where land is non-rateable, because there are no rates to remit. However, it will be helpful for the RRP Policy to note that these classes of land are non-rateable, for clarity.

Status of land

The TTWMA defines the statuses of land:

129 All land to have particular status for purposes of Act

(1) For the purposes of this Act, all land in New Zealand shall have one of the following statuses:

(a) Māori customary land:

(b) Māori freehold land:

(c) General land owned by Māori:

(d) General land:

(e) Crown land:

(f) Crown land reserved for Māori.

(2) For the purposes of this Act,—

(a) land that is held by Māori in accordance with tikanga Māori shall have the status of Māori customary land:

(b) land, the beneficial ownership of which has been determined by the Māori Land Court by freehold order, shall have the status of Māori freehold land:

(c) land (other than Māori freehold land) that has been alienated from the Crown for a subsisting estate in fee simple shall, while that estate is beneficially owned by a Māori or by a group of persons of whom a majority are Māori, have the status of General land owned by Māori:

(d) land (other than Māori freehold land and General land owned by Māori) that has been alienated from the Crown for a subsisting estate in fee simple shall have the status of General land:

(e) land (other than Māori customary land and Crown land reserved for Māori) that has not been alienated from the Crown for a subsisting estate in fee simple shall have the status of Crown land:

(f) land (other than Māori customary land) that has not been alienated from the Crown for a subsisting estate in fee simple but is set aside or reserved for the use or benefit of Māori shall have the status of Crown land reserved for Māori.

3.3 Policy development work to date

3.3.1 Engagement undertaken to understand issues

During August and September, Council’s Participate website ran an engagement survey focussing on whenua Māori, rating, and administration of rates. The engagement sought feedback, stories, and experiences of the owners, trustees, and occupiers of Whenua Māori to help identify barriers, and ongoing issues that hinder development or fair rating on the whenua. It also sought feedback on other considerations regarding potential remissions for whenua Māori.

Staff held three hui, one at each Council office, where invited owners, occupiers, and trustees shared their experiences and provided valuable insights on the existing challenges associated with the rating of MFL.

The survey results and information shared at the three hui are summarised in Attachment 1.

3.4 Direction from Komiti Māori

At a meeting of Komiti Māori on 10 October 2023, Councillors noted the provisions of the existing policy, together with the early engagement feedback, and gave guidance for changes to the following aspects of the RRP Policy:

Table 1
	Topic	Komiti Māori guidance
1	Land eligible for MFL remissions	(a) Land includes that which is legally recognised as MFL, AND (b) At Council’s discretion, former Māori freehold land whose status was changed to General Land under the Māori Affairs Amendment Act 1967 as well as land compulsorily made General title; AND (c) Any land, regardless of its status, returned to a Māori trust, iwi, hapū or other entity, by the Crown or Local Government body, as redress or compensation for a historic wrongdoing or breach of the Treaty of Waitangi. Rationale A broad definition of Māori land will ensure that a wider category of land owned by Māori can access the rates remission policy. This is particularly important in the Bay of Plenty region where there are many Māori land trusts and Māori land parcels that have various types of land status and land ownership structures. Land compulsorily made General title The Māori Affairs Amendment Act 1967 introduced compulsory conversion of MFL with four or fewer owners into general land thereby removing the protections of this land from alienation. The permission of the owners was not required so many of the arbitrary land conversions occurred without the knowledge of the owners. The inclusion of this land in the definition of Māori land would be consistent with the principles in the preamble of TTWMA. There are also different categories of Māori land and general land owned by Māori that are in multiple ownership and/or held in accordance with tikanga. Previous rating legislation and rating policies have not adequately recognised the different types of Māori land ownership in TTWMA and have narrowly focused on land that has the legal status of MFL. This disadvantages Māori landowners who use and maintain their land in the same manner as owners of MFL. Treaty settlement land and other land returned to mana whenua Land returned to a Māori trust, iwi, hapū or other entity, by the Crown or Local Government body, as redress or compensation for a historic wrongdoing or breach of the Treaty of Waitangi is generally returned with the status of general land. Despite the land status, the land is used and maintained in accordance with tikanga Māori once ownership has reverted back to tangata whenua. Given the large number of Treaty Settlements within the Bay of Plenty region, it is desirable that this land is also treated as Māori land under the Rates Remission Policy. Proposal for inclusion of land with the status “General Land Owned by Māori” In addition to the above direction provided by Komiti Māori on 10 October, staff propose to include additional whenua Maori ,as explained in section 3.5.1 of this report.
2	MFL under development for Papakāinga	Maintain the current policy’s indication of five years but allow for the possibility of an extension. Occupation should be the trigger for rates to be levied.
3	MFL under development for economic purposes	TBC - more work required to: · Ensure the policy focuses relief on marginal MFL blocks where the imposition of rates during the development phase are a barrier to economic development, rather than big business developments. · Develop tighter criteria, and clearer guidance on considerations. · Test applicability on a range of scenarios including where the nature of a commercial venture has a long period without income but is ultimately profitable. Councillors acknowledged that for most business ventures, a period without income is expected and should be planned for.
4	Temporary dwellings, caravans, and camping	The policy should not be overly definitive because there could be unintended consequences as a result. In practice it may be difficult to identify occupiers especially where people are using MFL as temporary emergency accommodation and often without the permission of the owners. Council should expect there to be a high proportion of rates written off as a result.
5	Developed land where there is an impediment to occupation	Remission should be designed for either an emergency provision (short term) or an enduring situation e.g., landslip that cannot be remediated. Current policy is considered adequate.

3.5 Policy choices for further consideration

Staff seek direction on aspects of the policy that still require direction.

3.5.1 Additional land proposed to be included in definition of Māori Freehold Land for this policy

Staff propose that in addition to the types of land included in 1(a)-(c) in Table 1 above, the follows also be included:

(d) Land that is classified as “General and owned by Māori” (as defined in Te Ture Whenua Māori Act 1993);

Rationale for inclusion

The majority of Māori land that has been converted into General land is held collectively by members of a whānau or hapū. The beneficial owners of the Māori land then become the beneficial owners of the fee simple estate in that General land following the change in status. Consequently, the administrative and financial issues associated with multiple ownership and traditional connection to the land remain in relation to General land owned by Māori. This includes the difficulties with land succession and the fragmentation of shares in a land block. The jurisdiction and primary objective of the Māori Land Court is therefore to promote and assist the retention of Māori Land and General Land Owned by Māori in the hands of the owners.

There is a large amount of land that is owned by Māori which is not classified as MFL. The history associated with traditional Māori land tenure and land that has been returned through Treaty settlements and other means have resulted in various categories of land in Māori ownership. This is reflected in the preamble of TTWMA which refers to “land as a taonga tuku iho”, focusing on the significance of land to Māori instead of the land classification.

For the purposes of TTWMA all land has one of six statuses: Māori customary land, Māori freehold land, General land owned by Māori, General land, Crown land, and Crown land reserved for Māori. “General land owned by Māori” is defined as “General land that is owned for a beneficial estate in fee simple by a Māori or by a group of persons of whom a majority are Māori”.

Section 129(2)(c) further provides that land (other than MFL) that has been alienated from the Crown for a subsisting estate in fee simple, shall, while that estate is beneficially owned by a Māori or by a group of persons of whom a majority are Māori, have the status of General land owned by Māori. The qualifying criteria is that the land is beneficially owned by a Māori or a group of persons of whom majority are Māori, which reflects traditional Māori land ownership. This is a pre-requisite for general land or general land owned by Māori before it can be converted to MFL by a status order from the Māori Land Court.

The Māori Land Court has the jurisdiction to determine the status of any parcel of land under section 131(1) of the Act. Land that is classified as General land owned by Māori is identified as having this land status on the record of title. A trust can also be constituted in respect of any General land owned by Māori in the same manner as Māori land. Where a trust has been constituted for General land owned by Māori, the trust has the same special obligations as a trust constituted for Māori land to look after the land on behalf of and for the benefit of the beneficiaries. The supervisory jurisdiction of the Māori Land Court in relation to the administration of the trust also applies.

General land owned by Māori is distinguished from “General land” in the Act which is defined as being “land (other than Māori freehold land and General land owned by Māori) that has been alienated from the Crown for a subsisting estate in fee simple”. TTWMA makes it clear that land with General land status and no individual beneficiary or group of beneficiaries who identify as Māori do not fall within the ambit of TWMA. Only General land that is beneficially owned by Māori will be treated in the same manner as MFL.

For these reasons, it is recommended that Council include “General land owned by Māori” in the definition of MFL for the purposes of the rates remission policy.

3.5.2 Should a separate policy for Rates Remission and Postponement on Māori Freehold Land be developed?

Several councils have separate policies for MFL. Council could adopt this approach and have a policy dedicated to MFL and another for all types of land, whether General or MFL.

Advantages of this approach include:

· Addressing the complexities of Māori land and the different categories of Māori land as distinct from general land, would be more appropriate in a separate document.

· The direction from Komiti Māori to incorporate Te Ao Māori concepts into the preamble would sit more easily in a separate document and is consistent with enhancing delivery for Māori under Council’s Partnerships with Māori strategic priority.

· It’s easier for people to find information about remissions they may be eligible for without searching through policies that don’t relate to their land type. This would mainly help owners of General Land because MFL is also eligible for the “all types of land” policies.

Disadvantages, and their potential mitigations, include:

· Potential risk that readers of the MFL policy may overlook the provisions that apply to all types of land. This could be mitigated using the interactive decision-tree tool that is currently being developed to help navigate MFL rating queries. Clear cross references in each of the policy documents would also be inserted.

Staff recommend that a separate policy be developed, including cross references in each of the policy documents.

3.5.3 MFL under development for economic purposes

The existing RRP Policy acknowledges the statutory remission that may be applied for under LGRA section 114A and provides up to 100% of rates on a pro-rata basis for the portion of land intended for development.

Considering Komiti Māori guidance on this topic (refer Table 1, item 3), staff reviewed the policies of other councils in this regard. While remissions are preferred by most councils, some also provide for postponements and staff suggest that adding this tool could address the issue of short-term lack of cash flow, despite there being a longer-term ability to pay rates. Regional councils that use postponements include Otago, Waikato, West Coast and Northland (for Whangarei).

Approach for the new policy

The remission policy should be designed to enable and incentivise economic development through the remission of rates if Council is satisfied the development is likely to have any or all of the following benefits:

(a) Benefits to the district by creating new employment opportunities.

(b) Benefits to Māori in the district by providing support for marae in the district

Staff recommend that postponements be an optional tool to be used in conjunction with remissions, to address situations where

· cash flow limits the ability of rates to be paid in the short term, but not in the long term,

· rates can be afforded in the long term

· finance (to overcome the short term cash flow challenges) is harder to access because of the land tenure and multiple ownership.

3.5.4 First draft of policy provisions

A first draft of Rates Remission and Postponement Policy for Whenua Māori has been created and is included in Attachment 2.

Staff seek guidance on any aspect of this draft, in particular the matters raised in sections 3.5.1 through 3.5.3 of this paper.

3.5.5 Way forward for policy development

Based on Councillors’ feedback on Table 1, and any other matters, a draft policy for consultation will be developed for further feedback and eventual adoption in early 2024.

4. Next Steps

Staff will take Council direction from this workshop and continue drafting policy for approval for public consultation.

Public consultation on a draft policy would take place in February/March 2024, alongside the Long Term Plan consultation.

Attachments

Attachment 1 - Summary of Rates Remission engagement feedback - whenua Maori Aug/Sept 2023 ⇩

Attachment 2 - Draft policy - track changes - Rates Remission and Postponement for Maori Freehold Land ⇩

[1] Noting the submission/hearings process and commissioner decision-making is time and resource consuming.

[2] To date, $120,000 in grants have been delivered, helping nearly 200 low-income households across the region to adopt clean and efficient heating methods.

[3] During consultation on the LTP 2021-31, 260 of 320 submitters addressed the question on the then proposed Sustainable Homes Scheme. More than 80% of these supported the Scheme, with the majority supporting a combination of loans and grants, as eventually adopted.