However, it will be up to the next council to bring it about.
Dunedin city councillors were accepting yesterday of a consultancy’s frankness about what was perceived to be hindering Enterprise Dunedin’s effectiveness — such as an unclear direction and a disconnect between the Dunedin City Council agency and business interests in the city.
The consultancy, MyGovernance, strongly recommended Enterprise Dunedin be taken out of council operations and that the agency be run instead by a new council-controlled organisation (CCO), supported by a board and stakeholders’ advisory group.
That option will be compared with an enhanced version of the status quo in a report to come before the council after October’s election and before Christmas.
The council agreed unanimously on the path ahead, including engaging with the Grow Dunedin Partnership grouping regarding a business case.
A new model for Enterprise Dunedin could operate from July next year.
Enterprise Dunedin was set up in 2014, bringing together the council’s previous economic development unit, visitor information centre and previous functions of Tourism Dunedin.
The MyGovernance report was clear key elements of the business sector became disenchanted with the economic development and destination marketing agency, particularly about the council’s input.
Several councillors yesterday called for change to be implemented as quickly as possible while being careful to avoid causing unintended consequences and unnecessary angst for staff.
Dunedin Mayor Jules Radich said it was clearly time to move economic development outside of council operations and into a CCO.
"Economic development is the greatest challenge facing Dunedin," he said.
Cr Bill Acklin said economic progress was "a huge requirement for Dunedin going forward".
Economic development committee chairman Cr Andrew Whiley, who had called for the consultancy’s review, said Enterprise Dunedin had "outgrown the model" it was operating within and there was more that could be done.
He expected key parties outside the council would be able to contribute time and resources to a CCO.
The consultants said disappointed stakeholders had not spoken of trust being broken, but they were unequivocal a change of model was needed.
A few functions might not end up in the CCO, MyGovernance director Kevin McCaffrey said.
Respect for staff was another theme of the report.
Cr Christine Garey said she voted last November against starting the review because of its timing.
She also said a vacuum had been created at the agency through loss of leadership.
Cr Lee Vandervis was pleased the council had received a clear steer from its consultants.
There was some puzzlement about what had happened to Grow Dunedin Partnership, which was at one point described as being "in the carpark" and poised to re-engage meaningfully.
Cr Sophie Barker said the evidence showed Enterprise Dunedin was not performing inside the council and change was needed.
