They have backed setting up a standalone entity to operate Enterprise Dunedin as their preferred option to pitch to the public.
The proposal would result in functions of the Dunedin City Council’s economic development and destination marketing agency being stripped out of council operations and run instead by a distinct council-controlled organisation (CCO).
Details — such as proposed establishment timelines and which activities might remain in-house at the council — have yet to be worked through.
The council voted 11-3 yesterday to opt for a CCO as its preferred option, and to ask staff for a report to establish a transition steering group to consider matters such as consultation timing and how much resourcing might be required.
Mayor Sophie Barker said it was plain people wanted change.
The council had to move forward and consultation was necessary.
‘‘We need to make sure we make a good long-term decision for our city,’’ Ms Barker said.
Deputy mayor Cherry Lucas said the council needed to take a bold step.
‘‘We’re making a clear statement to the community about where we would like Enterprise Dunedin to go to.’’
It also followed pleas from a Dunedin business leader, Business South chief executive Mike Collins, to ‘‘make a decision and get on with it’’.
A report by MyGovernance last year showed parts of the business sector had lost faith in Enterprise Dunedin, particularly relating to council involvement in it.
Cr Andrew Simms said there had been recognition economic development had not been doing well enough, and he noted the consultants strongly recommended moving to a CCO model.
Cr Brent Weatherall said CCOs had shown they were better able to access external funding.
‘‘The business world is changing and I believe economic development is in crisis,’’ he said.
However, Cr Mickey Treadwell said an economic development strategy had not yet been written and he was worried about additional costs for ratepayers.
Cr Steve Walker voted for the resolution in order to press ahead with consultation, but said moving to a CCO could be ‘‘rightly or wrongly expensive’’.
Some tension emerged between re-elected and new councillors.
Cr Christine Garey said questions from new councillors indicated they could be unaware of all that Enterprise Dunedin did, while Cr Russell Lund pointed to industry feedback about perceived councillor interference.
‘‘Returning councillors might want to reflect on that.’’
