Less ratepayer funding but more competition

Matt Cowley
Tauranga City Councillor

Some people say councils should be run more like businesses. But councils should be cautious if its services start to compete with local businesses.

Tauranga City Council has set up a subsidiary company, called Bay Venues Ltd. It manages nearly all of our community-owned venues, halls and swimming pools.

The 100 per cent community-owned company is charged with running the community's venues as efficiently as possible so they are easily accessible to the community. This means ratepayers help to subsidise the running costs.

On the surface, it would be great if BVL was able to earn profit to help reduce the $4.9 million ratepayer grant to it each year.

BVL is led by a commercially-savvy board made of some of NZ's brightest business leaders. They are asking their owners, the council, if BVL should earn more profit so they need less ratepayer funding to operate the venues.

For instance, the gym inside Baywave helps subsidise the running costs of the venue's pools. BVL's highly successful catering company also helps subsidise the running costs of ASB Stadium and ASB Arena.

But is it fair if local gym owners are forced to help fund their competition through rates paid to the council? Likewise, is it fair for local catering companies to compete with BVL?

On the other hand, should BVL be allowed to earn profit outside the region to help reduce the burden on local ratepayers? Should BVL's catering company be able to service other stadiums, such as in Waikato and Auckland?

You have probably seen ‘City Care' company vehicles around town looking after Tauranga's gardens and green space. This company is owned by Christchurch City Council and returns its profit to Christchurch ratepayers.

These are difficult questions the elected members are faced with. Feel free to send us your feedback by emailing electedmembers@tauranga.govt.nz

Feel free to email me your thoughts at matt.cowley@tauranga.govt.nz, call/text me on 0276989548, and follow me at www.facebook.com/a.younger.voice

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