Tracey Roxburgh was there when he spoke to Queenstown Business Chamber of Commerce members this week, noting the proposed plan outlines $2.4billion of capital spend over the next decade — $1.5b of that is in Three Waters alone, of which $940million’s tagged for the Whakatipu.
It sees a 15.6% rate rise for the next financial year, "and, unfortunately, there will not be a rate rise less than 10%" over the next three years.
On population predictions:
The numbers are "pretty confronting", Lewers says.
Present predictions are by 2054 the district’s resident population will be about 150,000, with a peak day population of up to 220,000 and a visitor population to Queenstown’s CBD alone of 70,000.
"We have to set ourselves up to cater for that peak load," he says.
"You can have conversations about how we can turn the growth tap off — I’m of the view we can’t.
"People want to come here ... we’ve used strategies of trying to manage growth, control growth, but I think from my point of view we just have to face up to the fact it’s coming and we have to plan for it."
On the visitor levy:
Lewers says there’s the beginning of a groundswell of support for a levy, noting the country’s hotels’ association and TIA are promoting versions, while Auckland mayor Wayne Brown’s also a fan.
"When you’ve got one-third of the population now pushing for it, I think it’s a better chance than not at this point in time," Lewers says.
He believes the change of mind from the commercial accommodation sector is due to a Supreme Court ruling last September, which found in favour of Auckland City’s targeted rate for hotels.
That means there’s "nothing stopping councils now" targeting the commercial accommodation sector instead of continuing to lobby for a visitor levy.
"If you think a visitor levy’s a blunt tool, a targeted rate in that area’s like an anvil for them ... it’ll hurt a lot more than a visitor levy."
However, Queenstown’s council’s not keen on pursuing such a targeted rate because it won’t capture the short-term visitor accommodation market, such as Airbnb, Lewers says.
On alternative funding streams:
City and regional deals may be the front-runner, Lewers says.
Noting negotiations haven’t started, and there’ll be competition to get one, Lewers says if we’re successful it’ll be a "pathway to get investment" into the district.
The long-term agreements — often between 10 and 20 years — hinge on agreed regional outcomes that enable central and local government to make joint funding commitments, and provide a basis for local authorities to have greater autonomy, powers and responsibilities to deliver a range of urban and regional initiatives.
"There will be certain obligations on us, as well as the wider community to actually just invest in this town, but it also means the Crown will invest in the roading, health sector, education sector ... it’ll probably be meat and potatoes at the beginning ... and then it progresses where powers of decision-making have devolved from central down into local government."
On a proposal for the wider Queenstown CBD to cover the bulk of the arterial road costs:
"The common refrain I hear is that most locals don’t come into town," Lewers says.
Stage 1 of the controversial arterials project — which has blown out to $128m — was the start of making it easier for locals to come to town, Lewers says, by freeing up Stanley St for public transport.
He notes it’s one of three stages, and says, fundamentally, it’s a question of "where do you want to see Queenstown in 30 years?"
"Do you still want to see it as the hub and the tourism jewel ... or do we hollow it out and make it a pretty poor experience?"
Lewers believes the transport corridor, on completion, will have external benefits to Queenstown’s CBD and open up opportunities for further investment in the town centre.
"It’s just stage 1 [of the arterials project] ... we can’t just look at each project in isolation.
"The arterial is one piece of the puzzle; you’ve got to do all the other bits to actually drive the outcome we want.
"If we’re going to nickle and dime every project, we’re not going to get anywhere."
On options to cut internal cloth:
The proposed rates will collect just under $150m, of which $50m is attributed to council staff salaries/wages.
But Lewers points to a workforce review in 2021/22, a recent planning review and an infrastructure review, currently under way.
"Every review comes back saying we’re understaffed."
At present, council has 440 full-time equivalent employees and the LTP assumes, over the life of the plan, another 40 positions will be added — less than 1% per annum.
He notes it’s already the third busiest council in the country based just on resource and building consents, and the district’s growing at an average of 5.2% per annum.
"Some of the activity we do, we’re compelled to do it by law — we can’t cut back on it.
"I can pretty much say now if we cut any further, we’ll be cutting the tourism industry back, and I know that’s [the government’s] main driver to get NZ out of an economic hole."
