Tauranga, New Zealand – 15th November 2024

The local marine industry has been forced to withdraw its injunction against Tauranga City Council’s controversial Marine Precinct sale due to overwhelming financial risks. The sale, made unconditional before the public was informed, has left small businesses with few options to secure their future or prevent displacement.

Already facing significant legal expenses, stakeholders were warned that continuing, could result in more than $100,000 in additional costs. Worse, if the injunction failed, they risked being held liable for the new owner’s legal fees and damages, potentially amounting to millions. This stark reality exposes the severe disadvantage everyday Kiwis face in a system that allows deals like this to happen unchecked.

“We’ve poured time, resources, and money into trying to protect our livelihoods, the community’s best interests, and our industry,” said Sean Kelly, owner of Pacific 7. “But without access to critical documents like the purchase agreement and sale contract from the city council in a timely manner, the financial risk became too great to bear. I’m absolutely gutted.”

Despite this setback, pressure on the council continues to grow. Erika Harvey, Director of Public Affairs at Lobby for Good, first called for an investigation into the Marine Precinct deal during her speech on 23rd October. Her advocacy quickly gained the support of National MP Sam Uffindell, who has been working closely with Harvey and the affected businesses. Uffindell even hand-delivered Harvey’s letter and other key documents directly to the Auditor-General, strengthening the push for an investigation. ACT MP Cameron Luxton also met with the Auditor-General, adding his voice to the call for scrutiny. “Taking from the have-nots and giving it to the have-yachts,” Luxton remarked in a press release.

Now, Tauranga Mayor Mahé Drysdale has formally written to the Auditor-General, requesting an investigation into the sale. “This is a significant win,” said Harvey. “It’s encouraging to see the investigation moving forward, and we hope it will uncover deeper patterns of decision-making within the city council.”

A Reckless Deal Under Investigation

Harvey believes the investigation could expose how such a flawed deal was allowed to happen. “If I were the chief executive or chief financial officer, I’d be feeling concerned about what this investigation might uncover,” she said. “This isn’t just about the Marine Precinct, it’s about how public assets are being managed and whether ratepayers’ interests are truly being prioritised.”

The Marine Precinct, valued at upwards of $30 million, was sold behind closed doors for just $13 million—essentially a "Black Friday deal." Ratepayers are now liable for an additional $29 million in upgrades to the precinct, while the buyer benefits from payment terms that allow them to make significant profits with minimal upfront costs. “This deal isn’t just reckless; it raises serious questions about governance and accountability within the city council,” Harvey added.

A Call for Community Action

Harvey and Lobby for Good are urging Tauranga residents to stay engaged and demand better oversight. “This investigation is a step in the right direction, but it’s only the beginning,” she said. “The community must hold the council accountable, push for meaningful reforms, and ensure deals like this are never made again.”

The partnership between Harvey, Uffindell, Luxton, and the affected businesses highlights the power of communities and representatives working together. “This is what advocacy looks like, collaborating to ensure our voices are heard and driving the change we need,” said Harvey.

Lobby for Good remains committed in its mission to fight for transparency, fair practices, and a council that prioritises the people it serves.

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