An alternative idea has emerged for fostering economic development in Dunedin — tweaking an existing council company.
Adjusting the purpose of Dunedin Venues Management Ltd (DVML) and integrating functions of Enterprise Dunedin within it could be more cost-effective than establishing a new council-controlled organisation, the city council suggested.
Such an approach is not, at this stage, a formal option being considered by the Dunedin City Council.
It was floated within a report that formally assessed two options — keep Enterprise Dunedin as an internal unit of the council with a few adjustments, or set up an entity to take it over.
Enterprise Dunedin, the council’s economic development and destination marketing agency, has been under review.
Consultancy MyGovernance last year strongly recommended a council-controlled organisation (CCO) be set up to run it.
It would be governed by an independent board and advised by a stakeholder group.
"The CCO model offers a bold change that could re-energise economic development efforts and unlock new resources and partnerships," a council report before a meeting next week said.
Perceived advantages included faster decision-making, enhanced partnership potential and fundraising ability, and an apparent improvement in credibility.
However, it would likely take at least 12 months to get a CCO operating, the report said.
It could become a subject for public consultation in the council’s 2027-37 long-term plan.
Among the advantages listed for sticking with an in-house model was "lower cost".
"Ratepayers are not paying for a separate board or duplicate corporate services under this model."
There would be some internal reorganisation to deal with perceived shortcomings.
Risks included that there might be continuing frustration for people sceptical about the merits of council involvement, and Enterprise Dunedin could "lose touch with its key client base".
The council said the idea of incorporating Enterprise Dunedin functions within an existing council company emerged within a constrained fiscal environment and in response to the likelihood of a rates cap imposed by central government.
DVML is described by the council as being about securing events for venues under its management, planning and hosting events and facilitating community access to its venues.
Leveraging off it could "support selected functions with strong alignment to destination management and visitor attraction, particularly major events and aspects of destination management delivery", the report said.
"Any future consideration of this approach would require further analysis to assess strategic fit, functional alignment, governance implications and impacts on accountability, capability and outcomes."
