Kawerau District Council has voted to pull funding from Eastern Bay of Plenty economic development agency ToiEDA.

The council had budgeted $25,000 for the agency, in its current annual plan of which it has already paid $6250. The remaining funding would be redirected to the council’s in-house economic development budget.

Council-controlled trust formed by Kawerau, Ōpōtiki and Whakatāne district councils, Bay of Plenty Regional Council, and Te Rūnanga o Ngāti Awa in 2005.

The council delivered written notice to the Toi-EDA board on August 15 that it intended to withdraw funding to the agency and return its economic development function in-house.

It cited several reasons for doing so, including the board’s failure to formalise tangata whenua representation for Ngāti Tūwharetoa despite a request from the council to do so in November 2022.

Difficulty in justifying continuing investment during the cost-of-living crisis ratepayers were experiencing and declining service levels and an uncertain strategy were other reasons given.

Mayor Faylene Tunui reiterated assurances that were sought about spending by submitters to its recent annual plan consultation. One submitter had asked, “is it necessary? Is it necessary now? What does that return give for Kawerau?”

“Those were the major points that came out of the annual plan submissions. From the discussion that we’ve had with the governance of ToiEDA and other colleague councils, it was difficult to articulate what the benefits were.”

Mrs Tunui pointed to a report from the Mayors Taskforce For Jobs received previously in the meeting, which showed 84 employment placements had been made in the past year saying it was much easier to see what the benefits were.

Mr Godfery said feedback he received during a meeting with the board of industry advocacy organisation Industrial Symbiosis Kawerau was a desire that local economic development relationships be held locally.

Chief executive Morgan Godfery said the council would remain a settlor to the trust deed, which would preserve the option for the council to redirect funding back to the agency in the future.

The council would still participate in the consultation and development of the Eastern Bay of Plenty Economic Development Strategy, “on the principle that the ratepayers of Kawerau have already paid for that strategy”.

He said Ōpōtiki District Council had also indicated in its Long-term Plan 2024-2034 that it would not be funding the trust.

LDR is local body journalism co-funded by RNZ and NZ On Air.