Wellington economic agency faces many challenges, one being its leadership

Wednesday, 1 July 2020

WellingtonNZ chief executive John Allen is the organisation's fourth boss in less than six years.

Four chief executives in less than six years, a chairman out the door, and criticism from its own governing body about a lack of direction - it's been far from smooth sailing for Wellington's economic development agency.

And now there's a new leader at the helm, John Allen, with his own somewhat controversial history in executive management.

Created in late 2014, WellingtonNZ - formerly known as the Wellington Regional Economic Development Agency, or Wreda - is charged with attracting people to Wellington, promoting events to domestic and global audiences, and boosting the regional economy.

The enterprise was an amalgamation of former separate entities Grow Wellington, Positively Wellington Tourism, and Positively Wellington Venues, and later Major Events.

**READ MORE:

Chris Whelan was the agency's first chief executive, but left after less than two years in the role. (File photo)

* John Allen named as new WellingtonNZ chief executive

* Cigna Insurance boss Lance Walker to take over as CEO at Wellington's economic agency

* Wellington economic agency boss Chris Whelan steps down, takes on advisory role

* Wellington economic agency boss could be asked to step down

Derek Fry was the agency's interim chief executive for about a year between 2017 and 2018. (File photo)

But critics in and around the organisation have long complained that what grew was often scandal and controversy, the negative sometimes outweighed the positive, and major events were too often overshadowed by major muck-ups.

Those began with its very first chief executive Chris Whelan, who was recruited from South Africa as the agency's inaugural chief executive.

He left after less than two years in the role, following claims he had been asked to consider his position amid concerns about the agency's direction and performance.

John Allen replaced former chief executive Lance Walker, who left earlier this year. (File photo)

Earlier, Wellington City councillors had publicly called for the agency to ramp up its efforts and give ratepayers more bang for their buck.

At the time, the agency received more than $15 million from city and regional ratepayers.

Later, it was revealed Whelan had racked up dinner bills costing thousands of dollars, and charged them to ratepayer-funded credit cards. There was no suggestion that this spending was not allowed, but more that it was increasingly seen as a bad look.

WellingtonNZ helps to promote and attract major events such as the annual Beervana festival. (File photo)

The spending was signed off by board chairman Peter Biggs, who himself resigned in 2018.

Former city council officer Derek Fry filled in for Whelan for about a year, until Lance Walker took over in April 2018.

Now, Walker is gone too, and Allen is the latest chief executive tasked with taking the agency forward.

And far from being a poisoned chalice, Allen said he viewed the role as a golden opportunity to preserve Wellington's appeal for future generations of migrants.

Allen was chief executive of the Racing Industry Transition Authority (Rita) for several years. (File photo)

He himself moved to Wellington from Waikato as an 18-year-old.

Allen acknowledged the agency had had a troubled history, but felt it was not alone.

'I think a lot of economic development agencies struggle because they’re not clear about where they’re going to add value.'

Porirua Mayor Anita Baker says she's confident the city will be better represented with Allen at the helm of WellingtonNZ. (File photo)

But in recent years, he said, WellingtonNZ had narrowed its focus to three distinct areas: attracting international visitors; promoting and attracting events; and supporting businesses.

Although the first two would need to be reframed post-Covid, the agency was well set up to do that, he said.

However, Allen’s track record in executive management could also be described as troubled.

When he left his previous role as chief executive of the Racing Industry Transition Authority (formerly the New Zealand Racing Board), the industry was in deep financial trouble..

A Deloitte report commissioned by New Zealand Thoroughbred Racing (NZTR) in 2017 was critical of the authority's financial management, and forecast a bleak future.

Among other things, it said the authority was 'not in a sustainable position'.

Shortly afterwards, Allen and his executive team oversaw the purchase of a new Fixed Odds Betting platform, which has been more expensive than budgeted for. The authority is now tens of millions of dollars in debt.

However, Allen said the racing industry still had huge potential, and the new betting platform would 'stand the organisation in good stead'.

He also had a controversial history as Ministry of Foreign Affairs and Trade (MFAT) chief executive.

The first non-diplomat to take up the job in 2009, Allen was forced to backtrack on plans to sack up to 300 staff following a backlash from diplomats.

He was also forced to apologise to then Foreign Affairs Minister Murray McCully for his handling of Malaysian diplomat Muhammad Rizalman, who was charged with attempted sexual assault and burglary offences but was allowed to return home after claiming diplomatic immunity.

Back to his role as WellingtonNZ chief executive, regional mayors are hopeful Allen will be able to turn things around.

Upper Hutt Mayor Wayne Guppy said the agency was crucial to the region, but needed to be allowed to get on with the job without 'interference' from local councils.

Porirua Mayor Anita Baker said she met with Allen recently, and was encouraged by what she heard.

'I didn't think Porirua was represented that well previously but, talking to John, I understand there will be a new direction.'

Guppy and Baker both said whatever was good for the region was good for their cities.

Lower Hutt Mayor Campbell Barry said he had also recently met with Allen, and was encouraged that he was 'taking an active interest in the Hutt Valley'.

WellingtonNZ is a Wellington City Council-controlled organisation. It contributes 80 per cent of the agency's funding, with the other 20 per cent funded by Greater Wellington Regional Council.