Councils square off over port

The "cash-strapped" Dunedin City Council has been warned to keep its hands off Port Otago, as three city councillors eye up regional assets.

In an opinion piece in today’s Otago Daily Times, Dunedin city councillors Lee Vandervis, Andrew Simms and Russell Lund outline their preferred approach to local government amalgamation.

Their plan includes a Dunedin-Waitaki authority with control of the port. The trio argue a "proactive" approach is needed after Dunedin "lost its port and 400 harbour-side properties" to the Otago Regional Council in local government amalgamation in 1989.

"With urgency, Dunedin needs a plan ... that secures Port Otago and our harbour-side land for the people of Dunedin".

But regional council chairwoman Hilary Calvert and Cr Michael Laws both maintain the port is a regional asset.

"I would expect Otago people would fight hard to resist any ill-founded suggestion that whatever Dunedin City chooses to do they will be in a position to contra their rather large debts against more than their fair share of Port Otago," Cr Calvert said.

Dunedin Mayor Sophie Barker said she was "very interested in how Dunedin might be able to exert some control over the properties and also reap benefits of Port Otago's significant cash returns".

However, she was disappointed "some councillors are jumping the gun" by drawing up boundaries without full information.

Last week, the government announced it was giving councils three months to put forward proposals to simplify and strengthen local government in their regions.

Councils not ready by the deadline would have a structure, intended to create larger and more efficient unitary authorities, imposed on them by the government.

Regional councils would have no input to the government’s proposals.

Crs Vandervis, Simms and Lund said a "very strong community of interest", including geographic and cultural similarities, meant an amalgamation of Dunedin and Waitaki’s councils was a compelling option.

They envisaged an amalgamation of the Central Otago and Queenstown district councils and Clutha District Council included in a Southland-wide authority.

Cr Laws said it was premature to speculate on likely unitary authority boundaries, "but already a good deal of councillor self-interest is obvious".

He favoured local authorities deciding their preference by public referendums.

As for the Port of Otago: "it’s a regional asset, emphasis ‘regional’," Cr Laws said.

"I understand that an historically dysfunctional and cash-strapped council might want the asset for its own, but it’s an asset that belongs to regional ratepayers — not councils."

Ms Calvert said the port was transferred from the government to the regional council in 1989 in part because it exported goods from across Otago.

"Whatever the councils around Otago choose to do, Port Otago belongs to all of Otago."

Coastal Otago mayors said it was early stages yet and any proposal would be well discussed among the councils.

Ms Barker said she would strongly advocate for Dunedin to get its "fair share" after the city lost control of port assets.

"In 1989, it was worth $20 million, now it’s over $1 billion with profit last financial year of over $60m, and an $18m dividend to the ORC, which helps enable them to deliver a zero rate rise."

She backed a unitary council for the Dunedin area.

Waitaki District Mayor Mel Tavendale said the port was an important asset for Otago and the entire region should have a say in its future.

"I think discussions need to be had with the mayors across the Otago region before any potential amalgamations are proposed."

Clutha District Mayor Jock Scott did not specifically comment on the proposed ownership of the port, but said the topic of amalgamation was already front of mind for mayors and senior staff across Otago councils.

"What matters most is that we understand exactly what is being asked, keep emotions and egos out of it, and focus on the proposal in front of us so we can work toward a collaborative approach for the future."