Economic Development Committee

Late Item
























Adrian Broad (Chairperson)

Leonie Hapeta (Deputy Chairperson)

Grant Smith (The Mayor)

Brent Barrett

Lew Findlay QSM

Rachel Bowen

Duncan McCann

Gabrielle Bundy-Cooke

Aleisha Rutherford

Vaughan Dennison

Tangi Utikere
















Economic Development Committee MEETING


13 May 2019






11.       Request for support - Ruapehu District Council LGNZ remit                             Page 5

Memorandum, dated 10 May 2019 presented by the Strategy & Policy Manager, Julie Macdonald.    








TO:                                Economic Development Committee

MEETING DATE:           13 May 2019

TITLE:                            Request for support - Ruapehu District Council LGNZ remit

DATE:                            10 May 2019

Presented By:            Julie Macdonald, Strategy & Policy Manager, Strategy and Planning

APPROVED BY:             Sheryl Bryant, General Manager - Strategy & Planning




1.   That the Council decides whether to support the following remit at the LGNZ AGM in July 2019: That LGNZ actively support the Tourism Industry Aotearoa Local Government Funding Model to Support Regional Tourism Growth.”




1.         ISSUE

Local Government New Zealand’s Remit Policy offers the opportunity for councils to propose remits to the LGNZ AGM for members’ consideration. However, remits must first be supported by at least one zone or sector group meeting, or five councils.

Ruapehu District Council asks Palmerston North City Council to formally support its proposed remit:

That LGNZ actively support the Tourism Industry Aotearoa Local Government Funding Model to Support Regional Tourism Growth.”

This memorandum and its attachments are to inform a Council decision on whether to support the proposal.

2.         BACKGROUND

Tourism Industry Aotearoa (TIA) has developed a proposed model for supporting the cost of tourism growth for councils. The work responds to the growth of tourism as a source of funding pressure for local authorities. TIA recommends that:

“Central government annually sets aside 20% of the GST collection from international visitors and redistributes this to local government in accordance with the tourism burden borne by each TLA.”

The full TIA proposal is attached to this memorandum.

Under the model councils would have to spend the funding in line with their own Regional Destination Plan but otherwise would be unrestricted. This recognises that each faces its own local issues and supports the decentralisation of decision-making in line with LGNZ’s Localism Project. This decentralisation sets the model apart from central government-controlled funding streams such as the Tourism Infrastructure Fund.

Palmerston North City Council has identified tourism and visitor activity as one of six priority sectors that will help determine the city’s future economic wellbeing. Council’s aim is to support these sectors and help them grow. Under the proposed model Council would receive $3.5 million annually (using 2018 guest night data) towards this goal. However, this allocation might change if a different measure is utilised, as Palmerston North benefits from people visiting the wider region.

The TIA model is intended to influence the Productivity Commission’s final report on local government funding and financing, due in November 2019. The inquiry examines cost pressures on local government and options for future funding and financing tools.

3.         NEXT STEPS

1.   If Council and at least four other local authorities support the proposed remit, it will be forwarded to LGNZ.


2.   LGNZ will assess the remit against the Local Government New Zealand Remit Policy.

3.   If the remit meets the policy criteria, it will be considered by the LGNZ membership at the AGM on 7 July 2019.

4.   Compliance and administration

Does the Committee have delegated authority to decide?

If Yes quote relevant clause(s) from Delegations Manual <Enter clause>


Are the decisions significant?


If they are significant do they affect land or a body of water?


Can this decision only be made through a 10 Year Plan?


Does this decision require consultation through the Special Consultative procedure?


Is there funding in the current Annual Plan for these actions?


Are the recommendations inconsistent with any of Council’s policies or plans?


The recommendations contribute to Goal 1: An Innovative and Growing City


The recommendations contribute to the outcomes of the Economic Development Strategy


The recommendations contribute to the achievement of action/actions in the Economic Development Plan

The action is:

Reduce barriers to business investment and development, particularly in priority sectors.Provide promotion and information services to visitors.

Contribution to strategic direction

Tourism and visitor activity is one of the priority sectors identified in the Economic Development Strategy. Sustaining and growing this sector requires investment in infrastructure and services.






Tourism Industry Aotearoa – Proposed Funding Model to Support Regional Tourism Growth



Ruapehu District Council – Remit proposal



PDF Creator


PDF Creator


PDF Creator


PDF Creator


PDF Creator

PDF Creator


PDF Creator


PDF Creator