Tauranga, New Zealand – The sale of Tauranga’s Marine Precinct has exposed a broken system, one where everyday New Zealanders are forced to battle their own councils using ratepayer funds to fight against the very people it is supposed to serve. The upcoming court hearing on Tuesday, 25th of February will hopefully shine a light on how the Marine Precinct deal was done, who it affects, and why elected officials who had the power to stop it, chose not to intervene.

A System Rigged Against the People

Despite small businesses and industry leaders warning against the sale, the Tauranga City Council proceeded with a deal that was not only undervalued but will also cost ratepayers millions in infrastructure upgrades. The $13.9 million sale, well below the precinct’s $33 million valuation. has left small businesses displaced, potentially forced into financial hardship, and fighting a legal battle that they can barely afford while the council spends freely from public funds.

“How is it that small businesses and everyday Kiwis have to fight their own council, an entity funded by their rates, while that same council uses public funds to fight against them?” asks Erika Harvey, a longtime advocate for transparency who has worked on this issue since 2016. “The current mayor and elected members previously said they wouldn’t have approved this deal. They had the power to stop it when the injunction was filed due to terms within the Sales and Purchase agreement, yet they chose to let it proceed. Instead of helping the small businesses being displaced, they have forced them to take this sale to court. It makes no sense, ratepayers will now be stuck covering legal costs on top of all the other expenses. It’s ridiculous.”

Serious Concerns Over Governance, Transparency, and Consultation

Adding to these concerns, Anne Tolley, Chairperson of the government-appointed commissioners and also the Chairperson of Transparency International, played a key role in negotiating and facilitating this deal. Despite her position advocating for transparency, this process has been anything but open, raising further serious questions about the integrity of this transaction and whether due process was truly followed. The lack of openness in this sale, led by individuals expected to uphold high standards of governance, is deeply troubling.

Adding to the controversy, it has been revealed that the current CEO, CFO, and the manager of the Marine Precinct were all involved in the advisory group established after the 2019 investigation into the council’s financial mismanagement.

Despite this, they ignored passing the potential sale through the committee, which was established to ensure transparent decision-making within the precinct. Now, concerns are being raised about who is really making decisions in Tauranga and what information is being provided to elected officials.

Public records show that this sale was rushed through as a quick way to funnel funds toward the new museum project, with little consideration for how it would impact local businesses and the marine industry. Raising further questions about the real motives behind these decisions and whether alternative buyers were even considered.

Tauranga’s Debt Crisis Looms Over Ratepayers

Tauranga ratepayers are already facing significant financial burdens. The city’s debt is projected to reach $3 billion, with ongoing infrastructure failures and mismanagement contributing to the crisis. Ratepayers are already paying some of the highest rates in New Zealand, and this decision only adds to the financial strain.

“This isn’t just about a bad deal; it’s about the ongoing trend of reckless financial decisions,” Harvey says. “We’re talking about a city where rates continue to rise, debt is skyrocketing, and yet the council refuses to make responsible, transparent decisions.”

Lack of Proper Consultation with Iwi and Marine Industry Stakeholders

Mark Ngata, General Manager of Moana New Zealand, the country’s largest iwi-owned seafood business, has also spoken out against the lack of proper consultation and the devastating impact on local iwi and commercial fishing operations in Tauranga City Council’s public forum.

“We have invested in this region for more than 30 years, alongside our fishers and iwi partners,” said Ngata. “It is unconscionable that we can put all this investment into this particular area, and then, with a stroke of a pen, we are gone.”

Ngata questioned why iwi were not properly consulted despite council policies that prioritise inclusivity and collaboration. “The fisheries settlement was meant to ensure iwi participation in this industry, yet this sale completely ignores that commitment,” he said. “Every year, Moana New Zealand contributes over $8 million to this region, while the fish that comes out of Tauranga generates around $21 million in global exports. This is the second biggest port we land fish into, and yet we weren’t even part of the conversation about the future of this space.”

Ngata urged councillors to uphold the values they promote on their own website, which emphasise inclusivity and doing the right thing. “If you say your values are about working together, then why weren’t we at the table? Why weren’t we engaged through the Precinct Working Committee?” he asked. “The council needs to take a breath, step back, and actually work with all stakeholders to find a solution.”

Landlords and Business Owners Also Affected

Local landlord Jim McManaway, who leases key marine precinct properties to the council, has also come forward with serious concerns. “The council sold the lease on my property without talking to me, the landlord,” McManaway explains. “There were multiple breaches of my contract, and when I pushed for answers, I was stonewalled by council lawyers.”

McManaway, who purchased land in the precinct in 2016, has also revealed that the council ignored legal clauses that should have granted him the same favourable terms as the new buyer. “They gave the new purchaser a far better deal than what I was offered, and when I questioned it, they shut me out. They are making decisions in secrecy, and elected officials don’t even seem to know what’s happening behind closed doors.”

A Call for Accountability – Join the Hearing

The court hearing on 25th of February is a crucial moment for Tauranga. The public, media, and elected officials are urged to attend and demand transparency.

“This is more than just one bad deal,” Harvey states. “It’s a pattern of decision-making that prioritises private interests over the people of Tauranga. The newly elected officials had the power to stop this deal and chose not to. Ratepayers, small businesses, iwi, and the marine industry are now paying the price.”

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