A proposed $200 million development for Whangārei looks to be in serious trouble after the withdrawal of Government funding for a centrepiece events centre.

Finance Minister Grant Robertson has confirmed to Local Democracy Reporting Northland that $59 million earmarked to cover the bulk of a $64m Ōruku conference and event centre was now no longer available.

Robertson said the Government ministers involved in deciding on the application did not have confidence that the wider Ōruku Landing project was financially sustainable.

“We know this will be disappointing for those in the Northland community who have worked on developing Ōruku Landing,” Robertson said.

“The Government is doing its bit to support regions while responsibly managing its finances and restrain spending, and Ministers are facing tough choices in a deteriorating global economy.

“The Ōruku Landing project has been complex, which has affected progress on it.

“The local council [Whangārei District Council] reconsidered their position on supporting the project and it has been challenging to make the project economically viable. There have been a number of changes to the proposal to get it over the line, but ministers did not have the confidence that the project was sustainable financially and in a challenging economic environment they have decided to decline the application for the project.”

The Government not coming through with the money has angered the Northland Development Corporation (NDC), developers of the wider $200m Ōruku Landing for which the publicly-funded conference centre is the catalyst.

NDC director Barry Trass said the Government centre funding halt had put the wider development, with its hotel and upmarket apartments on the same site, in jeopardy.

Trass said he would be seeking an urgent meeting with Robertson. Whangārei Mayor Vince Cocurullo had also offered to attend, along with local iwi.

Trass took issue with Robertson’s representation that Ōruku Landing was not financially sustainable and that a hotel company and investor were waiting in the wings.

“We have done everything the Government asked us to do,” he said.

Back in November 2022, then Deputy Prime Minister Robertson wrote to the Whangārei District Council (WDC) saying a last-chance offer was on the table to fund the conference and event centre after the October 2022 local elections brought a new mayor and council line-up.

The council was given six months to confirm its project support and on March 23 this year, councillors voted to put up to $11.4m towards the centre.

The WDC’s March decision was decided by a one-person voting majority.

Mayor Cocurullo, Deputy Mayor Phil Halse and councillors Gavin Benney, Ken Couper, Deb Harding, Scott McKenzie and Carol Peters were in favour. Councillors Nicholas Connop, Jayne Golightly, Patrick Holmes, Marie Olsen, Simon Reid and Paul Yovich were opposed. Councillor Phoenix Ruka abstained.

■ Local Democracy Reporting is Public Interest Journalism funded through NZ On Air.