Tauranga City Council Mayor, Mahé Drysdale, has welcomed the release of the Auditor-General’s review of the Tauranga Marine Precinct sale, which concluded that no further inquiry is required.
The review follows significant public interest in the sale, including a judicial review and continued community discussion. In response to those concerns, Mayor Drysdale, on behalf of Council, invited the Auditor-General to undertake an independent review of the transaction.
The Office of the Auditor-General found that Council followed an agreed process, accurately accounted for the sale, and appropriately considered value for money when deciding to proceed with the transaction.
The review also concluded that the final sale price can be explained through the negotiations that took place and that the transaction was accounted for appropriately. However, it did not make a judgement on whether the final negotiated outcome represented a good or bad deal for ratepayers.
Mayor Drysdale said the findings provide important independent assurance on a matter that has attracted considerable public interest and debate.
“This transaction was completed before the current Council was elected, and it is fair to say this Council most likely would not have structured or approached the deal in the same way,” he said.
“However, the Auditor-General’s conclusion is important. The review found no impropriety in the process followed by the Government-appointed Commissioners and confirmed that consideration was given to value for money and the accounting treatment of the sale.
“The review does not seek to determine whether the final outcome represented a good or bad deal for ratepayers. Rather, it concludes that the final sale price can be explained through the negotiations that took place. It remains for those who made the decision to explain and justify it, and ultimately for the public to form its own view on whether that judgement was the right one.”
The review noted that the decision to retain or sell the Marine Precinct was ultimately a policy choice for the Commissioners. It also found the Council was able to explain the difference between the sale price and independent valuation figures that had attracted public attention.
The Auditor-General further addressed concerns regarding the transaction structure, confirming that Council did not lend money to the purchaser and that the Stage 2 land remains in Council ownership until agreed conditions are met.
Mayor Drysdale said the review provides both assurance and important lessons for the future.
“The Auditor-General recognised that some of the confusion and concern surrounding the transaction may have been reduced through clearer explanation of what was a complex commercial arrangement.”
“We accept those recommendations. More transparent communication and clearer explanations of complex transactions will help build public understanding and confidence in future decision-making, and we will take those lessons on board as part of our commitment to transparency, good governance and continuous improvement.”
He said that while the review provides assurance on the process followed, it does not change the fact that the current Council may well have reached a different commercial outcome.
“Speaking for myself, I don’t believe the majority of the current Council would necessarily have reached the same commercial position or agreed to the same terms. However, this was a decision made by the Commissioners.”
“The sale is complete. We have inherited the terms, and our focus now is ensuring the Marine Precinct delivers the greatest possible benefit for Tauranga, supports jobs and economic growth, and provides long-term value for our community.”
The Auditor-General also acknowledged the constraints Council faced in publicly discussing aspects of the transaction while commercial negotiations were underway and while judicial review proceedings were before the High Court.
The Office of the Auditor-General has concluded its review and does not intend to undertake any further inquiry into the Tauranga Marine Precinct sale.
Tauranga Mayor welcomes Auditor-General review of marine precinct sale
