Tauranga's legacy – shiny new infrastructure and big debt

Tauranga's council has trimmed over-optimistic population growth forecasts in the face of slowing development.

Last week, National Business Review print edition detailed how companies from around New Zealand and overseas are considering moving to the Bay of Plenty city, attracted by proximity to the port on relatively cheap industrial land.

In the second part of our series, NBR shows in this week's paper how Tauranga City Council's investment in infrastructure over the last decade has sparked a huge rise in debt.

At the very time Tauranga needs a growing ratepayer base to pay for its infrastructure work the city has suffered a severe decline in building activity.

Auckland is expected to soak up 60% of the country's population growth over the next 18 years, but is that the best thing for our biggest city or the country as a whole – especially considering Tauranga is just 2.5 hours down the road?

dwilliams@nbr.co.nz


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7324 0.0027 0.37%
AUD 0.9189 -0.0015 -0.16%
EUR 0.6120 0.0009 0.15%
GBP 0.5394 0.0020 0.37%
HKD 5.7182 0.0231 0.41%
JPY 82.0270 -0.0240 -0.03%

Commods

Commodity Price Change Time
Gold Index 1290.6 -9.820 2017-09-21T00:
Oil Brent 56.1 0.160 2017-09-21T00:
Oil Nymex 50.5 -0.130 2017-09-21T00:
Silver Index 16.9 -0.316 2017-09-21T00:

Indices

Symbol Open High Last %
NZX 50 7795.4 7814.8 7795.4 0.25%
NASDAQ 6448.6 6448.6 6456.0 -0.52%
DAX 12569.7 12646.6 12600.0 -0.04%
DJI 22414.0 22419.5 22412.6 -0.24%
FTSE 7263.9 7288.2 7263.9 0.09%
HKSE 27949.8 27960.9 28110.3 -0.82%
NI225 20413.6 20417.1 20347.5 -0.25%
ASX 5655.4 5688.2 5655.4 0.47%