The contract held by Leisure Co NZ Ltd to operate council's aquatic network was terminated last Monday by Tauranga City Aquatics Ltd (TCAL); the council company that oversees Baywave, Mount Hot Pools and the city's other swimming pools.
Officially this happened ‘for commercial reasons'.
Elected members have yet to be given a detailed briefing but this sort of generic reason usually means money is involved. TCAL is onto it and more bad news is not anticipated. All the network operates as usual and most staff have been retained by TCAL to operate the pools.
One of the many advantages of using commercial arms to run these sorts of operations is they can act swiftly in a businesslike manner with no political or media influence. In my opinion TCAL runs these pools very well. The $400,000-plus operating surplus this year is something pool operators would never have dreamed of when they were council operated.
From previous experience, a ratepayer-funded loss of millions might have been expected, had council continued operating the pools. That's not necessarily a criticism. It's just that councils are not well equipped to operate in a commercial environment. Imagine, say, Fletcher operating with the media sitting in on directors' board meetings and you get my drift. The around $1.5 million ratepayer subsidy relates to the loans to build Baywave. The Mount Hot Pools are the income-producing jewel in an otherwise financially tarnished crown of swimming pools.
Wellness centre palls
TCAL, having proved their talents, are proposing an upgrade of the Mount Hot Pools in three parts. Part one is a refurbishment of the existing set up. Admission fees will only be increased in line with the CPI movement.
Part two is an appallingly named wellness centre. This is an upmarket massage, spa, and beauty addition; similar to Hamner Springs.
According to the TCAL business plan this will return a surplus if just 30 per cent of capacity is used. This seems reasonable and will cover the loan repayments of about $7.7 million.
The third part is a cultural centre that will be 100 per cent funded externally. Rumour has it, by iwi. It will not proceed unless council has the money in the bank. Provided the parking issue is addressed and valet parking to a leased park has been investigated, a one way system around Adams Ave allowing angle parking which accommodates many more vehicles, and a tow away system already operating all seem to be positive initiatives.
The pundits say it may become another stone around ratepayers' necks. This seems unlikely, going by TCAL's track record.
Another viewpoint is the whole aquatic network pays for itself with no ratepayer subsidy and TCAL has an objective of free swimming lessons for children. Most agree that rating is unsustainable so this course of action is a positive option. To further placate naysayers there is NO ratepayer funding for Mount Hot Pools in the 10 year plan. Nor for Baypark nor any additional museum funding.
To put funding in requires community consultation and that's likely to be unacceptable and therefore unlikely to happen. Council companies are required to stand on their own feet, make money and act in a commercial and businesslike manner. That's what TCAL did this week.
Park up
Painfully slow progress at getting access for users into the TECT All Terrain Park at the top of Pyes Pa Road is hopefully being sped up.
This is a joint venture between Western Bay District Council and the city council. Shooters and motor sports have been involved for the longest and, needing a home urgently, are getting priority but there's room for everyone.
Provided there are realistic expectations, everyone will be catered for. The committee will draw up a list of priorities this year. Those who help themselves will obviously feature here. The plan is to provide land and space for activities, which provide their own facilities. Shooters, for example, will provide their own shooting range.
Native planting
I attended a planting of native plants by Greenpark School on Tuesday up at the park. Its hub development, rangers' house and workshop are well underway. The $1 million underpass under the main road is complete.
This park will cater for all those outdoor activities we used to enjoy in Tauranga, until population pressure forced them out. I went to the first motor race meeting at Baypark Raceway in 1965 (I think). Jim Richards in his big Mustang and a traffic jam back up the Kaimais (almost). Now that's all subdivided and a lot of you live on that track.
So we've got 1700 ha's approx to play on that won't get pressured out in time. It's a great asset to Rotorua too – its two km closer than downtown Tauranga – and we're in discussion with their district council for operational funding help.
Airport antics
At the airport committee we learnt of a dose of common sense from Transport Minister Stephen Joyce. After that nutty woman down south attacked the pilots there was a review by the previous government of airport security, which could have required fencing the airport (a lot that would achieve), baggage screening and millions of dollars.
It's absolute nonsense. Stephen Joyce's solution is to strengthen existing cockpit doors and investigate the installation of cockpit doors in smaller aircraft - just like taxis. It's not rocket science, it's not complicated and it's not expensive. It's just common sense.
Posted: 12:00am Fri 03 Jul, 2009
