Te Waka had been unable to convince nine of the region's 11 councils to increase their support. File photo. Photo: RNZ / Kim Baker Wilson
Waikato regional economic development agency Te Waka will cease operating because of a lack of funding and support.
The agency, which began in 2018 to drive economic performance in the fourth-largest region in the country, is the smallest and lowest-funded agency in New Zealand.
The agency did not have the collective commitment and funding to deliver the investment and business opportunities it was tasked with developing, chairperson Hamish Bell said when making the announcement on Thursday.
"The decision to cease operating was not taken lightly given the significance of the Waikato region to the New Zealand economy, and the importance of collaboration within and across regions, particularly in the current economic climate," Bell said.
Te Waka had been unable to convince nine of the region's 11 councils to increase their support, with Waikato Regional and Hamilton City councils remaining the only two major funders.
"The brutal reality is that as the smallest economic development agency in New Zealand, we no longer have the collective mandate nor the resource to continue to operate independently and to deliver in the impactful way we believe the region needs and deserves.
"It is a great shame that the region cannot emulate the collective mandate and resource delivered by other regions in New Zealand to support a regional economic development strategy, and that Te Waka is unable to build off the solid foundation created over the last six years."
He said during the last long-term planning cycle of councils, Te Waka presented a plan to the region's 11 mayors to modestly scale up its activities.
"That proposal was rejected, so Te Waka has operated on a limited basis for the last three years. Despite this, Te Waka has delivered against key elements of its focused strategy and has met the key accountability criteria set by council funders."
Waikato Regional Council chair Pamela Storey said it was crucial that Waikato cemented a unified voice.
"The coalition government has clearly signalled it wants to work with regions that are well co-ordinated and know what they need from the government," Storey said.
"A collective approach will ensure our region's unique needs and opportunities are not only represented but are addressed to ensure we drive the economic prosperity of the Waikato."
She thanked Te Waka for its mahi during the past six years.
"They have worked to champion and lead the region's collective voice for economic and business needs, and I have long expressed my view that the fourth largest region in New Zealand needs a strong, collective voice on regional economic development opportunities and implementation.
"Through the mayoral forum, I am already working to rekindle regional collaboration and co-ordination focused on opportunities to create jobs, fund infrastructure, lift educational attainment, and so on."
Storey said Waikato was a dynamic region, with ever-changing pressures on its growth, economy and resources.
"It is important we have a shared vision and voice on the priority regional and sub-regional opportunities that contribute to improved quality of life in our region," she said.
"We will continue to work with iwi, business, local and central government, and community organisations to advocate for the mighty Waikato region."