Timaru council considered range of options for future of economic and tourism agency

Monday, 20 July 2026

The Staffor St office of the district’s economic and tourism agency, Venture Timaru.

Timaru’s council considered a range of options for the future of its business development and tourism promotions agency which has been under mounting pressure to perform.

Those options included bringing Venture Timaru’s service in-house, combining it with another of its organisations, Timaru District Holdings Ltd, or joining with Mackenzie and Waimate.

The Timaru District Council has revealed details of a public excluded workshop it held on December 17 where a report, undertaken by consultancy Morrison Low Advisory as part of the council’s Section 17A Review review of Venture Timaru, was tabled.

The report and minutes from the workshop, attended by councillors, council staff and two Morrison Low staff members, have been released in the agenda for Tuesday’s council meeting and showed the Australasian public sector advisory considered a range of options as part of its review.

A Section 17A review is a statutory requirement under the Local Government Act 2002 that requires councils to periodically review, at least every six years, the cost-effectiveness of infrastructure, public services and regulatory functions.

Venture Timaru chief executive Nigel Davenport. (File photo)

The review was undertaken from October 2025 to February 2026, and a report by Timaru District mayor Nigel Bowen to a meeting earlier this month said it “created uncertainty regarding future governance arrangements for Venture Timaru Ltd’’.

At the start of June, Venture Timaru chief executive Nigel Davenport confirmed the organisation was undergoing a restructure as part of a broader review to ensure it was “fit for purpose”.

The Timaru Herald has not been given an update on the process the since June 4, but has requested one.

The organisation had been under increased pressure to perform over the past two years.

In December 2024, then-chairperson Tony Brien said the agency had to “do better” in attracting new business in response to questions from councillor Stu Piddington who suggested there had been plenty of talk but no action.

At the time, Brien said “there is no excuse – we need to deliver more and I’m not shying away from that’’.

At a council meeting three months later, in March 2025, Davenport admitted the agency needed to do a better job of attracting new business.

In October, Venture Timaru shifted from its office at the top end of Stafford St to the former Union Bank of Australia building, moving in underneath Timaru District Holdings Limited. Helping in the move are Venture Timaru staff, from left, Tania Stoddart, Samantha Shields and Di Hay.

According to the minutes from the December 17 meeting, Morrison Low emphasised there was no universal model for economic development across New Zealand with councils adopting a variety of approaches.

Interviews were held with about 25 stakeholders and while there were a range of perspectives there were “no polarised views’’.

The review had three levels of focus, with Morrison Low presenting budget breakdowns and “options for efficiencies’’.

At the meeting, councillors discussed the uncertainty created by government reforms, particularly around future funding of regional tourism organisations and the role of councils in tourism.

Concerns were raised about the effects of rates capping and not reducing Venture Timaru’s cost, possible changes to funding mechanisms, and “the need to balance efficiency with service delivery’’.

“Governance arrangements were debated, including whether oversight should sit with committees or remain independent, with alignment and confidence identified as key issues,’’ the minutes said.

An aerial view of Timaru earlier this month.

Business attraction was highlighted as a challenge, with mixed feedback from the community and an acknowledgement of the national economic climate since Covid-19 making that difficult.

Tourism and events funding were also discussed, with Venture Timaru’s role administering event funding and analysing returns prompting questions around whether that responsibility should be returned to the council.

The relationship between Venture Timaru and the South Canterbury Chamber of Commerce was noted as “problematic’’, with duplication of functions and poor communication, the minutes said.

Infrastructure barriers such as water and energy were identified as constraints on growth, and councillors called for clearer identification of these issues.

Workforce development and youth retention were recognised as priorities.

Councillors requested clearer explanations of key performance indicators and return on investment from Venture Timaru and it was generally agreed that structural change alone would not resolve issues.

Instead, the focus should be placed on priorities and delivery, the minutes said.

“Options considered included maintaining an enhanced status quo with reprioritised focus areas, bringing functions in-house, continuing with Venture Timaru as a CCO, exploring regional collaboration with Mackenzie and Waimate, and a change in governance oversight arrangements while also keeping Venture Timaru a distinct entity.’’

Timaru District mayor Nigel Bowen. (File photo)

Financial modelling of those options was requested.

Other matters discussed included the arrangements for information centres, visitor support services, district promotion, and the role of the Chamber in workforce development.

The importance of communication between the council, Venture Timaru and the Chamber was emphasised, and Bowen acknowledged his role in bridging gaps with the business community.

Councillors agreed clear expectations and outcomes must be set out by the council.

Structure changes should be considered once reforms and funding arrangements were clarified.

The first option explored in the report questioned whether there was any benefit in Venture Timaru combining with Timaru District Holdings Ltd.

The report said each organisation was set up for different purposes, with Venture Timaru performing a service while TDHL invested to return a profit.

In combination, TDHL returns would diminish, there would be less transparency, and the council would have less discretion in where the organisation’s profits were spent.

There would also be an increased perception of the organisations competing with the private market, the report said.

When considering whether economic development and tourism should be delivered together or separately, the report said for a mid-sized district a combined agency could market it as a place to visit, live and invest, without overlap or duplication of effort.

A budget breakdown for 2025/26 shows the council spent $752,000 on economic development and overhead, $468,000 on tourism and $245,000 on events.

A cost breakdown, over the same period, included $606,000 spent on employee costs, $320,000 on delivery and operating, $60,000 on finance and IT support, and $48,000 on property.