Consultation on establishing a new Council Controlled Organisation

Background

• Hawke’s Bay’s economy is powered by the agriculture and horticulture sectors.
• FoodEast is currently a proposal to create a food hub which will facilitate collaboration, innovation, and best-practice.
• A food innovation hub in Hawke’s Bay will support and accelerate regional growth and build on the region’s competitive advantage.
• Hawke’s Bay Regional Investment Company Limited is looking to invest in Food East, and is consulting the community on a proposal to establish two new Council Controlled Trading Organisations to operate FoodEast.
• Consultation is on the formation of the CCTOs which will own and operate the investment, not on the investment opportunity itself.
• The Council is required under section 56 of the Local Government Act 2002 (LGA) to undertake consultation before establishing a CCTO. 
• Establishing the CCTOs enables HBRIC to make a decision to invest in FoodEast. 

Key points to note on the investment:

• This $18 million project has attracted $12 million of government funding.
• $6 million is to come from regional investors. A Limited Partnership is proposed to be established which will have financial advantages for investors.
• The project has engaged with Local Government, iwi, Eastern Institute of Technology, Waikato University, Plant & Food Research. Ministry of Business, Innovation and Employment and the business community.

A significant amount of work has been undertaken by the FoodEast establishment board with investors identified to fulfil the $6m required of regional funding. This funding has been identified from three investors:

• Hawke’s Bay Regional Investment Company Limited - $4m
• Hastings District Council - $1m
• Progressive Meats - $1m

Make your submission here

Submissions are open from 25 March to 12 April and can be made online below. Once you have submitted on this proposal, you will have an opportunity to be heard by Council on 28 April 2021.