Agenda 08 October 2020

RDC-1062537 1 Strategy, Policy & Finance Committee Agenda 08 October 2020

01-15-227\02

AGENDA

NOTICE OF AN ORDINARY MEETING OF THE STRATEGY, POLICY & FINANCE COMMITTEE

Date: Thursday 8 October 2020

Time: 9.30am

Venue: Council Chamber

MEMBERSHIP

Chairperson Cr Raukawa-Tait

Deputy Chairperson Cr Kai Fong Members Mayor Chadwick Cr Bentley Cr Donaldson Cr Kumar Cr Macpherson Cr Maxwell Cr Tapsell Cr Wang Cr Yates Mr Thomass (Lakes Community Board member) Mrs Trumper (Rural Community Board member) Ms Marks (Te Tatau o Te Arawa Board member) Mr Berryman-Kamp (Te Tatau o Te Arawa Board member)

Quorum 8

RDC-1062537 2 Strategy, Policy & Finance Committee Agenda 08 October 2020 STRATEGY, POLICY AND FINANCE COMMITTEE DELEGATIONS

Type of Committee Committee

Subordinate to Council

Subordinate Committees n/a Legislative Basis Schedule 7, clause 30 (1) (a), Local Government Act 2002.

Purpose The purpose of the Strategy, Policy and Finance Committee is to have oversight and make recommendations to the Council on the adoption and development of all Council’s strategic, policy, planning and regulatory frameworks.

Reference 01-15-227 Membership Councillor Raukawa-Tait (Chair) Councillor Kai Fong(Deputy Chair)

The Mayor and all councillors 2 Te Tatau o Te Arawa members 1 Lakes Community Board member 1 Rural Community Board member

Full voting rights for all members Quorum 8

Meeting frequency Monthly

Delegations The Committee’s function is recommendatory only.1 It is authorised to take actions precedent to the exercise by the Council of its statutory responsibilities, duties and powers, by:  Receiving, considering, hearing submissions and making recommendations on draft plans (except the District Plan), strategies and policies (such as the Long-term Plan, Annual Plan; funding and financial policies; reserves management plans and asset management plans);  Considering and making recommendations on the development of the Council’s rating policy; financial strategy and budgets;  Considering and making recommendations on the development of Council bylaws, including hearing submissions in relation to making, amending and revoking bylaws;  Considering and making recommendations on Council’s strategic direction to ensure efficient and effective delivery of Council’s objectives and District Vision;  Receiving and considering reports from working/strategy groups;  Considering and making recommendations on the development of guidelines for decision making to assist Council in achieving its strategic outcomes;

 Considering and making recommendations on the establishment of levels of service across Council services to ensure alignment with strategic goals and priorities;  Considering and making recommendations on the development of Treasury and funding functions;  Considering and making recommendations on proposals for the establishment of Council controlled organisations (including the appointment and remuneration of Directors, formation of constitutions and shareholder agreements);

1 Council is authorised to delegate anything precedent to the exercise of Council’s powers, duties and functions - Schedule 7, clause 32, Local Government Act 2002

RDC-1062537 3 Strategy, Policy & Finance Committee Agenda 08 October 2020

 Considering and making recommendations on proposals for the sale and purchase of land;  Considering and making recommendations on issues relating to Council leases;  Considering and making recommendations on draft Council submissions/responses in relation to: o Central government policies, plans and proposed legislative reform; o Proposals by other organisations/authorities (Local and Regional).  Performing such other functions as the Council may direct from time to time.2

Relevant Statutes All the duties and responsibilities listed above must be carried out in accordance with the relevant legislation..

Limits to Delegations The Committee does not have the delegated authority to make decisions for and on behalf of the Council. All matters requiring a decision of Council must be referred, by way of recommendation, to the Council for final consideration and determination.

In the event that the Council resolves not to approve or adopt a Committee recommendation, the item shall be returned to the Committee via the Chief Executive for review and subsequent referral to the Council for further consideration and determination.

2 A committee is subject in all things to the control of the local authority, and must carry out all general and special directions of the Council given in relation to the committee - see Schedule 7, clause 30(3), Local Government Act 2002.

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Order of Business

1 Opening karakia - Karakia whakapuaki ...... 5

2 Apologies - Ngā whakapaaha ...... 5

3 Declarations of interest - Whakapuakitanga whaipānga ...... 5

4 Urgent items not on the agenda - Ngā take whawhati tata kāore i te rārangi take .... 5

5 Confirmation of Minutes – Te whakaū i ngā meneti ...... 6 5.1 Strategy, Policy & Finance Committee Meeting Minutes 10 September 2020 ...... 6

6 Staff Reports – Pūrongo Kaimahi ...... 11 6.1 Review of the Class IV Gambling and Board Venue Policy 2017 ...... 11 6.2 Adoption of Draft Open Space Level of Service Policy for Public Consultation.....42

7 Resolution To Go Into Public Excluded - Ka Matatapu Te Whakataunga I Te Tūmatanga (to consider and adopt confidential items) ...... 60

RDC-1062537 5 Strategy, Policy & Finance Committee Agenda 08 October 2020 1 Opening karakia - Karakia whakapuaki

2 Apologies - Ngā whakapaaha The Chairperson invites notice from members of: 1. Leave of absence for future meetings of the Rotorua Lakes Council; or 2. Apologies, including apologies for lateness and early departure from the meeting, where leave of absence has not previously been granted.

3 Declarations of interest - Whakapuakitanga whaipānga Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

4 Urgent items not on the agenda - Ngā take whawhati tata kāore i te rārangi take The Chairperson will give notice of items not on the agenda as follows: Matters Requiring Urgent Attention as Determined by Resolution of Rotorua Lakes Council

The Chairperson shall state to the meeting. 1. The reason why the item is not on the agenda; and 2. The reason why discussion of the item cannot be delayed until a subsequent meeting.

The item may be allowed onto the agenda by resolution of the Rotorua Lakes Council. Minor Matters relating to the General Business of the Rotorua Lakes Council. The Chairperson shall state to the meeting that the item will be discussed, but no resolution, decision, or recommendation may be made in respect of the item except to refer it to a subsequent meeting of the Rotorua Lakes Councill for further discussion

RDC-1060856 6 Strategy, Policy & Finance Committee Agenda Mintues 08 October 2020 5 Confirmation of Minutes – Te whakaū i ngā meneti

5.1 Strategy, Policy & Finance Committee Meeting Minutes 10 September 2020 01-15-227\02 Rdc-1054091 ROTORUA LAKES COUNCIL

Minutes Strategy, Policy & Finance Committee meeting held Thursday, 10 September 2020 at 9:30am in the Council Chamber, Rotorua Lakes Council

MEMBERS PRESENT: Cr Raukawa-Tait (Chairperson) Cr Kai Fong (Deputy Chair), Mayor Chadwick, Cr Bentley, Cr Donaldson, Cr Kumar, Cr Macpherson, Cr Maxwell, Cr Tapsell, Cr Wang, Cr Yates, Mr Berryman-Kamp and Ms Marks (Te Tatau o Te Arawa), Mr Thomass (Lakes Community Board) and Mrs Trumper (Rural Community Board).

APOLOGIES: Cr Tapsell

STAFF PRESENT: G Williams, Chief Executive; J-P Gaston, Group Manager Strategy; J Mikaere, Group Manager Operations; T Collé, CFO/Group Manager Business Support; C Tiriana, Manager CE Office; S Michael, General Manager Infrastructure; O Hopkins, Manager Corporate Planning & Governance; I Tiriana, Manager Council Communications; H King & I Brell, Governance Support Advisors. L Richards, Strategy Advisor; R Viskovic, Strategy Development Manager; S Thurston, Senior Policy Planner; A McGregor, Operations Project Director; S Brown, Manger, Arts & Culture;

The meeting opened at 9.30am. The Chair welcomed Councillors, media, staff and members of the public.

1 KARAKIA WHAKAPUAKI OPENING KARAKIA

Mrs Trumper opened meeting with a Karakia.

2. NGĀ WHAKAPAAHA APOLOGIES

Resolved:

That the apologies from Cr Tapsell & Cr Donaldson (lateness) be accepted.

Moved: Cr Wang Seconded: Cr Yates CARRIED

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3. WHAKAPUAKITANGA WHAIPĀNGA. DECLARATIONS OF INTEREST

Item 6.2 “Rotorua Homes and Thriving Communities Strategic Framework” Ms Marks advised that her personal submission to this item be noted and that it was not submitted on behalf of any other group.

4. NGĀ TAKE WHAWHATI TATA KĀORE I TE RĀRANGI TAKE URGENT ITEMS NOT ON THE AGENDA

No urgent items received.

5. TE WHAKAŪ I NGĀ MENETI CONFIRMATION OF MINUTES

5.1 MINUTES OF THE STRATEGY, POLICY & FINANCE COMMITTEE MEETING 13 AUGUST 2020 RDC-1043503 Resolved:

That the minutes of the Strategy, Policy & Finance Committee meeting held 13 August 2020 be confirmed as a true and correct record

Moved: Mrs Trumper Seconded: Cr Kai Fong CARRIED

6. PŪRONGO KAIMAHI STAFF REPORTS

6.1 DRAFT EASTSIDE STRUCTURE WELLNESS PLAN RDC-1048765 Resolved:

1. That the report titled “Draft Eastside Structure Wellness Plan” be received.

Moved: Cr Bentley Seconded: Mr Berryman-Kamp CARRIED

J-P Gaston (RLC Group Manager Strategy) and Leigh Richards (RLC Strategy Advisor) spoke to a PowerPoint titled “Te Oranga-Nui Rāwhiti mai, Eastside Structure Wellness Plan” (Attachment 1)

Ms Richards introduced Ralph Mosen (Tatau Pounamu Collective member representing Ngāti te Roro o te Rangi and Ōwhata Marae) and invited him to comment on this item.

After discussion, it was decided to lay the appointment of an elected member on the table for further discussion.

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6.2 HE PAPAKĀINGA, HE HĀPORI TAURIKURA TE POUPOU RAUTAKI- ROTORUA HOMES AND THRIVING COMMUNITIES STRATEGIC FRAMEWORK RDC-1049869 Resolved:

1. That the report titled “He Papakāinga, He Hāpori Taurikura Te Poupou Rautaki- Rotorua Homes and Thriving Communities Strategic Framework” be received.

Moved: Mrs Trumper Seconded: Mr Thomass

CARRIED

JP Gaston introduced Hingatu Thompson Establishment Leadership Group (ELG) member and noted apologies from the following ELG members; Tupara Morrison, Geoff Rolleston and Karen Vercoe.

Rosemary Viskovic (RLC Strategy Development Manager) spoke to a PowerPoint titled “ He Papakāinga, He Hāpori Taurikura Te Poupou Rautaki – Homes and Thriving Communities Strategic Framework” (Attachment 2)

ATTENDANCE: Cr Donaldson joined the meeting at 10.22am

Hingatu Thompson (ELG) and Simon Thurston (RLC Senior Policy Planner) made comments to this item.

Further resolved

2. That the committee recommends that Council approve “He Papakāinga, He Hāpori Taurikura Te Poupou Rautaki - Rotorua Homes and Thriving Communities Strategic Framework” (Attachment 3)

Moved: Cr Wang Seconded: Cr Yates CARRIED

7. NGĀ TĀPAETANGA PRESENTATIONS

7.1 SHMPAC Project update (Part 1)

As a number of Manuhiri arrived for this presentation, the Chair asked Cr Yates to extend a welcoming mihi to them all.

Jocelyn Mikaere (RLC Group Manager Operations) introduced her team Stewart Brown (Manager Arts & Culture), Cian White( Performing Arts Director and Aimee McGregor (Operations Project Director)

The team spoke to a Powerpoint presentation titled “Sir Howard Morrison Performing Arts centre – (Part 1)” (Attachment 4).

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8. KA MATATAPU TE WHAKATAUNGA I TE TŪMATANUI RESOLUTION TO EXCLUDE THE PUBLIC

Resolved:

That the committee move into public excluded session.

Moved: Mrs Trumper Seconded: Mr Thomass CARRIED

The meeting adjourned at 11.20am and resumed at 11.35am.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987, for the passing of this resolution are as follows:

General subject of each matter to be Reason for passing this Ground(s) under considered resolution in relation to each Section 48(1) for matter passing of this resolution CONFIDENTIAL MINUTES of previous Please refer to the relevant Good reason for meeting held 13 August 2020 clause/s in the open meeting withholding exists minutes. under Section 48(1)(a). Enable any local authority holding Section 48(1)(a) SHMPAC PROJECT UPDATE – (Part 2) the information to carry on, Section 7(2)(i) without prejudice or disadvantage, negotiations (including commercial and DISPOSAL OF COUNCIL OWNED PROPERTY industrial negotiations). 7-15 TI STREET Enable any local authority holding Section 48(1)(a)

the information to carry out, Section 7(2)(h) without prejudice or disadvantage, commercial activities.

This resolution is made in reliance on Section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Sections 6 or 7 of the Act or Sections 6, 7 or 9 of the Official Information Act 1982, as the case may require, which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as shown above (in brackets) with respect to each item.”

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OPEN SESSION

______

Meeting closed at 12.22pm ______

To be confirmed at the Strategy, Policy & Finance Committee meeting on 8th October 2020

………….……………………………

Chairperson

Note 1: Rotorua Lakes Council is the operating name of Rotorua District Council Note 2: Attachments to these minutes are available on request or on Council’s website www.rotorualc.nz

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File No: 01-63-099-27 RDC-1059524

ROTORUA LAKES COUNCIL

Mayor Chairperson and Members STRATEGY, POLICY & FINANCE COMMITTEE NAME

6.1 Review of the Class IV Gambling and Board Venue Policy 2017

Report prepared by: Rosemary Viskovic, Strategic Development Manager – Sustainability and Social Development Report reviewed by: J-P Gaston, Group Manager Strategy Report approved by: Geoff Williams, Chief Executive

1. TE PŪTAKE PURPOSE

The purpose of this Report is to present the review of Council’s Class IV Gambling and Board Venue Policy 2017 and its recommendations.

2. TE TUHINGA WHAKARĀPOPOTOTANGA EXECUTIVE SUMMARY

The Class IV Gambling and Board Venue Policy 2017 (RLC Gambling Policy 2017) was made under the Gambling Act 2003 and the Racing Act 2003. In particular, the RLC Gambling Policy 2017:

 established a ‘cap’ of 350 on the number of gambling machines in the district;  set the number of gambling machines allowed per venue at the statutory maximum of nine machines (in line with the Gambling Act);  allowed for the relocation of venues, but with tight restrictions; and  established certain criteria and conditions about where gambling machine venues and TAB Board venues may establish in the Central Business District, other commercial zones and other locations in the district.

Since the last review in 2016/17, the Racing Act 2003 has been replaced by the Racing Industry Act 2020 and Board Venues and now called “TAB Venues”. However, the requirements for territorial authorities to have policies under the Racing Industry Act 2020 remain the same as under the Racing Act 2003. Nonetheless, minor corrections should be made to the RLC Gambling Policy 2017 to reflect this change.

As at September 2020, there was one TAB Board Venue in the Rotorua district, and 26 Class IV gambling venues licenced to contain 389 gambling machines. However, there are currently only 365 gambling machines in operation as not all venues are operating the maximum allowable number of machines.

Although the RLC Gambling Policy 2017 had the effect of significantly reducing the number of venues and gambling machines in its first five years of operation, the reductions have been far less in the last five years. Indeed, the number of venues and gambling machines has remained at around the

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RDC-1060856 12 Strategy, Policy & Finance Committee Agenda Staff Reports 08 October 2020

same level since 2010. The actual number of gambling machines licenced is 389, which is still above the cap of 380 set in 2004.

Gambling Policies must be reviewed every three years. As required, the Council has undertaken an assessment of the social impact of gambling in the district and evaluated the effectiveness of the current RLC Gambling Policy 2017. (Attachment 2)

The Gambling Act and Racing Industry Act give councils certain limited powers to regulate the number and location of venues and gambling machines. There are four main options the Council can consider going forward:

 Adopt a ‘sinking lid’ without a ‘cap’;  Reduce the ‘cap’ from 350 to 320;  Not allow any relocations; or  Maintain the status quo.

As a consequence of the review, officers have identified case law under the Sale and Supply of Alcohol Act 2012, SBS NZ Ltd - Rossco’s Café and Bar v Young, which requires district licensing committees to assess applications made for tavern licences that are also class IV gambling venues to ensure they are eligible for tavern licences (or that their primary activity is the sale of alcohol and other refreshments and not gambling). To support this, officers recommend an assessment be undertaken by the Council of all premises holding both tavern licences and class IV gambling venue licences to assess whether their primary activity is the sale of alcohol and other refreshments and not gambling.

The review noted that the annual average non-club gambling machine proceeds were $18.85M for the Rotorua district and although 40% had to be distributed to the community, only 22% was distributed back to the community in the Rotorua district itself (or $4.7M out of $7.54M). The Report suggests further analysis of the grants information be carried out to identify more clearly where the grants money is going in the Rotorua district. The Report further suggests the corporate society owners of the gambling machines be encouraged by the RLC to distribute more to the community in the Rotorua district than only 22%.

In light of the assessment of the social costs of gambling in Rotorua, the effectiveness of the current policy, and the potential future reductions in the number of venues and machines, officers recommend Council remain informed of the matters related to potential future changes with venues by requesting further reports from the Department of Internal Affairs under section 103 of the Gambling Act on a six monthly basis. No further changes to the Policy are recommended at this review.

A draft Replacement RLC Gambling Policy incorporating minor corrections resulting from the introduction of the Racing Industry Act is set out in Attachment 1.

3. HE TŪTOHUNGA RECOMMENDATIONS:

1. That the report “Review of the Class IV and Board Venue Policy 2017” be received.

2. That the Committee recommend to Council that consideration be given to the decision-making requirements of the Gambling Act 2003, the Racing Industry Act 2020 and the Local Government Act 2002.

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3. That the Committee recommend to Council that no changes be made to the current RLC Gambling Policy 2017 with the exception of minor amendments to reflect that the Racing Act 2003 has been replaced by the Racing Industry Act 2020. (see attachment 1)

4. That the Committee recommend to Council that they remain informed of the matters regarding relocations and license transfers by requesting further reports from the Department of Internal Affairs under section 103 of the Gambling Act on a six monthly basis.

5. That the Committee recommend that Council undertake an assessment of all premises holding both tavern licences and class IV gambling venue licences in the district to determine whether their primary activity is the sale of alcohol and other refreshments and not gambling.

6. That the Committee recommend that Council request from the Department of Internal Affairs data on the number of Lottery outlets and TAB outlets nationally and for the Rotorua District, that further analysis of the grants information be carried out to identify more clearly where the grants money is going in Rotorua, that the DIA be requested to collect grants information directly from the corporate societies to enable this analysis to be undertaken more easily and that the corporate society owners of the gambling machines in Rotorua be encouraged to distribute more to the community in the Rotorua district than the average 22%.

4. TE TĀHUHU BACKGROUND

In 2004, all local authorities were required to adopt a policy about gambling machines (or pokie machines) in their districts as a requirement of the Gambling Act 2003 (the ‘Gambling Act’), as well as a Policy on TAB Board Venues under the Racing Act 2003 (the ‘Racing Act’).

Rotorua Lakes Council (‘Council’) adopted a Policy in 2004, which has subsequently been reviewed and is currently titled the ‘Class IV Gambling and Board Venue Policy 2017’ (‘RLC Gambling Policy’).

The objectives of the RLC Gambling Policy 2017 are to: control the growth of gambling; prevent and minimise the harm from gambling; facilitate responsible gambling; and facilitate community involvement in decisions about gambling.

The RLC Gambling Policy 2017 was made under powers given to local authorities by both the Gambling Act and Racing Act. In particular, the RLC Gambling Policy 2017:

Since the last review in 2016/17, the Racing Act 2003 has been replaced by the Racing Industry Act 2020 and Board Venues are now called “TAB Venues”. However, the requirements for territorial authorities to have policies under the Racing Industry Act 2020 remain the same as under the Racing Act 2003. Nonetheless, minor corrections should be made to the RLC Gambling Policy 2017 to reflect this change.

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Also of note in terms of the current situation is that a relocation is proceeding of 9 gambling machines from the Outlaw Bar at 1153 Arawa Street (which currently has 18 gambling machines) to Hennessey’s Irish Bar at 1208 Tutanekai Street (which currently has 9 gambling machines). The proposal also involves the 9 remaining gambling machines being removed from the Outlaw Bar so it is no longer licensed for Class 4 gambling. The proposal will involve an increase from 9 to 18 gambling machines at Hennessey’s Irish Bar, but a reduction overall of 9 machines in the Rotorua district.

Further, VC’s Turf Bar at 1184 Arawa Street closed in January 2020, although an application has been granted by the Department of Internal Affairs to the Lion Foundation for the 18 gambling machines licensed for that site to remain inactive.

Officers suggest RLC remain informed of the matters related to these venues by requesting further reports from the Department of Internal Affairs under section 103 of the Gambling Act on a six monthly basis.

Section 102 of the Gambling Act and section 96 of the Racing Industry Act require the Gambling Policies to be reviewed every three years. The last review took place in 2017. Both Acts provide that the Policy does not cease to have effect because it is being reviewed.

The Gambling Act and Racing Industry Act require that the review consider the social impact of gambling in the district. This is attached to this Report for information in Attachment 2.

5. TE MATAPAKI ME NGĀ KŌWHIRINGA DISCUSSION AND OPTIONS

As noted above, the Gambling Act and Racing Act give local authorities certain limited powers to regulate the number and location of venues and gambling machines through Class IV Gambling Venue and Board Venue policies.

For instance, section 101(3) of the Gambling Act provides that a policy — (a) must specify whether or not class IV venues may be established in the territorial authority district and, if so, where they may be located; and (b) may specify any restrictions on the maximum number of gambling machines that may be operated at a class IV venue; and (c) may include a relocation policy.

Firstly, while local authorities can regulate whether or not class IV venues may be established in the territorial authority district, ‘grandparenting clauses’ in the Gambling Act mean that any venues existing when the Act came into force can remain.

The current RLC Gambling Policy 2017 does not prevent the establishment of new class IV venues per se, but the overall District cap (maximum) of 350 gambling machines acts as a defacto limit on any new venues.

The RLC Gambling Policy 2017 does establish certain criteria and conditions about where gambling machine venues and TAB Board venues may be located. They may be located in the Central Business District, other commercial zones and other locations for organised sporting or other recreational non-profit purposes in the district. They cannot, however, be located within 100m (as measured boundary to boundary) of certain sensitive sites.

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Turning to the ‘cap’, the current RLC Gambling Policy 2017:

 establishes a ‘cap’ of 350 on the number of gambling machines in the district; and  sets the number of gambling machines allowed per venue.

The RLC Gambling Policy 2017 also provides for relocations, subject to restrictions.

Finally, the RLC Gambling Policy 2017 also provides that new Class IV venues may be combined with existing or proposed Board venues, but new Board venues may not be combined with existing or proposed Class IV venues.

Policy Response Options

Although the RLC Gambling Policies have since 2004 had the effect of significantly reducing the number of venues and gambling machines in the first five years, the reductions have been far less more recently. Indeed, the number of venues and gambling machines has remained at around the same level since 2010. The actual number of gambling machines licenced is 389, which is still above the original cap of 380 set in 2004.

 Adopt a ‘sinking lid’ without a ‘cap’;  Reduce the ‘cap’ from 350 to 320;  Not allow any relocations; or  Maintain the status quo.

With regard to the options to adopt a ‘sinking lid’ without a ‘cap’ and not allow any relocations, although these were considered thoroughly during the 2016/17 review, submissions from the community were divided, with some advocating adopting a ‘sinking lid’ without a ‘cap’ and no relocations, while others advocated for no sinking lid and to allow relocations. The Council’s response in 2016/17 was to amend the policy to adopt a ‘sinking lid’ with a ‘cap’ of 350 and to allow relocations, subject to restrictions in relation to sensitive sites. Overall, officers suggest this policy position remains appropriate.

With regard to the option of reducing the ‘cap’ from 350 to 320, officers note that once the relocation of machines from the Outlaw Bar to Hennessey’s Irish Bar is complete, the number of licensed machines in the district will reduce from 389 to 380. Further, should the 18 gambling machines licensed to the Lion Foundation for 1184 Arawa Street be relinquished, the number will then reduce from 380 to 362, which is close to the 350 ‘cap’. As a consequence, officers recommend that Council remain informed of the matters regarding relocations and license transfers by requesting further reports from the Department of Internal Affairs under section 103 of the Gambling Act on a six monthly basis.

As a further consequence of the review, officers have identified case law under the Sale and Supply of Alcohol Act 2012, SBS NZ Ltd - Rossco’s Café and Bar v Young, which requires district licensing committees to assess applications made for tavern licences that are also class IV gambling venues to ensure they are eligible for tavern licences (or that their primary activity is the sale of alcohol and other refreshments and not gambling). To support this, officers recommend an assessment be undertaken by the Council of all premises holding both tavern licences and class IV gambling venue

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licences to assess whether their primary activity is the sale of alcohol and other refreshments and not gambling.

The review also highlighted that the Department of Internal Affairs (‘DIA’) does not publish data on the number of Lottery outlets or TAB outlets nationally or by territorial authority district despite these being significant forms of gambling. The Report suggests the RLC request this information from DIA. The review noted that the annual average non-club gambling machine proceeds were $18.85M for the Rotorua district and although 40% had to be distributed to the community, only 22% was distributed back to the community in the Rotorua district (or only $4.7M out of $7.54M). The Report suggests further analysis of the grants information be carried out to identify more clearly where the grants money is going in Rotorua. The Report further suggests the corporate society owners of the gambling machines be encouraged by the RLC to distribute more to the community in the Rotorua district than only 22%. Moreover, the Report suggests that DIA be requested to collect grants information directly from the corporate societies to enable this analysis at territorial authority level to be undertaken more easily.

In light of the assessment of the social costs of gambling in Rotorua and the effectiveness of the current policy, and the likely forthcoming reductions in the number of venues and machines, officers recommend Council remain informed of the matters regarding relocations and license transfers by requesting further reports from the Department of Internal Affairs under section 103 of the Gambling Act on a six monthly basis.

A draft Replacement RLC Gambling Policy incorporating the minor corrections resulting from the introduction of the Racing Industry Act is set out in Attachment 1.

6. TE TINO AROMATAWAI ASSESSMENT OF SIGNIFICANCE

As the decisions of this report do not concern amending the policy, they are not considered significant in accordance with the Local Government Act 2002 and the Council’s Policy on Significance. In light of the decision-making requirements under sections 77, 78, 79, 80, 81 and 82 of the Local Government Act 2002, although other options, such as having no policy, relying only on education/information or general legal requirements are possible, the benefits of a policy as an option outweigh the costs in terms of the present and future interests of the district. A policy also better promotes or achieves community outcomes as expressed in the Rotorua 2030 Goals in a more integrated and efficient manner than having no policy. In terms of the impact of this option on the Council’s capacity to meet present and future needs in relation to any statutory responsibility, Council has the capacity and resources to continue to monitor and enforce the policy.

7. NGĀ KŌRERO O TE HAPORI ME TE WHAKATAIRANGA COMMUNITY INPUT/ENGAGEMENT AND PUBLICITY

Extensive public engagement including community survey was undertaken at the last review of this policy in 2017. It is unlikely that there would be any change in the perspectives identified at that time and in light of proposing no changes to the policy at this review, no community engagement is proposed. The outcomes of the review will be communicated to the Societies and Venues and other specific interested parties advising of this outcome.

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8. HE WHAIWHAKAARO CONSIDERATIONS

8.1 He Whaiwhakaaro Mahere Pūtea Financial / budget considerations

Costs associated with conducting this policy review are within existing budgets. There are no changes recommended within this review, and so there is no significant impact on future operating costs.

8.2 Kaupapa Here Me Ngā Hiraunga Whakariterite Policy and planning implications

The recommended amended Policy is consistent with the Rotorua 2030 Vision and Portfolio Strategies.

8.3 Tūraru Risks

No significant risks have been identified.

8.4 Te Whaimana Authority

The Committee has the authority to make the resolutions included within this report.

9. NGĀ ĀPITIHANGA ATTACHMENTS

Attachment 1: Amended RLC Class IV Gambling and Board Venue Policy Attachment 2: Report Assessing the Social Impact of Gambling in the Rotorua District

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RDC-1059524 18 Strategy, Policy & Finance Committee Agenda ATTACHMENT 1 8 October 2020

9.2 CLASS IV GAMBLING AND BOARD VENUE POLICY

Date Adopted Next Review Officer Responsible Strategic Development Manager, 1 July 2017 1 August 20232020 Sustainability & Social Development

Policy Purpose:

To control the growth of gambling, prevent and minimise the harm of gambling, facilitate responsible gambling and community involvement in decisions about gambling.

Class 4 gambling: Gambling that utilises or involves electronic gambling machines, otherwise known as “pokie machines” as required by the Gambling Act 2003.

The Rotorua racecourse is used for certain major events but the District Plan does not allow any retailing at the racecourse.

Policy:

A. Definitions:

Central Business District: as defined by City Centre Zones 1-3 in the District Plan (see attached Map).

Class 4 gambling: Gambling that utilises or involves electronic gambling machines, otherwise known as “pokie machines”.

Class 4 gambling venue: Any venue that conducts Class 4 gambling activities outside a casino.

Community facility: Land or buildings which are used in whole or in part for the assembly of persons for such purposes as deliberation or social entertainment or similar purposes and including buildings used for clubrooms, arts, museum and cultural community premises, cinemas, theatres, conference rooms, church halls, marae and meeting rooms, but not including a chartered club or building designed specifically for indoor recreation.

Problem gambler: A person whose gambling causes harm or may cause harm.

TABBoard Venue: TAB Venue controlled by the TAB New Zealand Racing Board.

RDC-1059524 19 Strategy, Policy & Finance Committee Agenda ATTACHMENT 1 8 October 2020

B. Objectives of the policy

(i) Control the growth of gambling.

(ii) Prevent and minimise the harm from gambling.

(iii) Facilitate responsible gambling.

(iv) Facilitate community involvement in decisions about gambling.

C. Location of new Class 4 gambling venues and TABboard venues

Class 4 gambling venues and TABBoard venues may be established within the Central Business District subject to:

(v) The number of gambling machines proposed for the venue being able to be met within the overall District cap (maximum) of 350 machines as determined by Council and specified in Section E hereof;

(vi) Being able to satisfy Council that the location of the proposed venue is not incompatible with other predominant uses of the proposed premises or adjacent premises;

(vii) Not being a venue at which the primary activity is associated with family dining, family activities (e.g. cinemas) or children’s activities;

(viii) Not being a brothel, as defined in Section 4 of the Prostitution Reform Act 2003;

(ix) Being no closer than 100 metres, as measured from boundary to boundary, of an existing Class 4 gambling venue;

(x) Being no closer than 100 metres, as measured from boundary to boundary, of any school, early childhood centre, kindergarten, other educational facility, place of worship or other community facility as defined in the District Plan;

(xi) Meeting application and fee requirements.

The Council will not grant consent for the establishment of any new Class 4 Gambling venue or any new TABBoard venue outside the Central Business District. This also means that the Council will not grant consent for the relocation of an existing venue from a location outside the Central Business District to another location outside the Central Business District.

A relocating venue will not be required to reduce the existing number of gaming machines to meet the overall District cap (maximum) of 350 machines.

D. Numbers of gambling machines allowed per venue

(xii) This policy does not affect any Class 4 gambling venue established on or before 17 October 2001.

(xiii) Class 4 gambling venues established between 18 October 2001 and 18 March 2004 shall be allowed a maximum of nine (9) gambling machines.

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(xiv) Class 4 gambling venues established after 18th March 2004 shall be allowed a maximum of nine (9) gambling machines subject to the number of gambling machines proposed for the venue being able to be met within the overall District cap (maximum) of 350 machines as determined by Council and specified in Section E hereof.

E. Overall cap on the number of gambling machines in the District

(xv) The number of gambling machines operated within the District shall not exceed 350 machines.

(xvi) Where a society surrenders or otherwise ceases to hold its Class 4 gambling venue licence in relation to a particular venue, Council consent may be granted to that society or to another society in relation to a different licensed venue subject to:

a. The new licensed venue being within the Central Business District;

b. The number of gambling machines proposed for the venue complying with Section D hereof;

c. The number of gambling machines proposed for the venue being able to be met within the overall District cap (maximum) of 350 machines as determined by Council.

F. Combination of Class 4 gambling and TABboard venues

(xvii) New Class 4 gambling venues may be combined with existing or proposed TABBoard venues subject to the number of gambling machines proposed for any venue being able to be met within the overall District cap (maximum) of 350 machines and the venue being within the Central Business District as determined by Council and specified in Section D hereof;

(xviii) New TABBoard venues may not be combined with existing or proposed Class 4 gambling venues.

G. Applications

(xix) Applications for Council consent for a new Class 4 gambling venue or TABBoard venue must provide:

a. Name and contact details for the applicant;

b. Street address of premises proposed for the Class 4 gambling venue consent or TAB venue consent;

c. The names of all owners and managers;

d. A site plan covering both Class 4 gambling activities and other activities proposed for the venue, including details of each floor of the venue;

e. Evidence of the distance to the nearest existing Class 4 gambling venue, school, early childhood centre, kindergarten, other educational facility, place of worship or other community facility as defined in the District Plan.

f. Applications for territorial authority consent may be lodged at anytime. Applications received by Rotorua District Council where no capacity within the machine cap is available will be declined. Before lodging an application an applicant should check with

RDC-1059524 21 Strategy, Policy & Finance Committee Agenda ATTACHMENT 1 8 October 2020

the Department of Internal Affairs as to how many machines are currently licensed for Rotorua, to ascertain if there is any capacity currently available for allocation. Applications for Venue Consents received by Rotorua District Council will be considered in order of the working day in which they were originally receipted on lodgement, subject to the application being complete and being accompanied by the appropriate fees.

(xx) If two or more qualifying and complete applications are received on the same working day, a ballot will be undertaken to prioritise applications for any allocation of additional capacity. In such a ballot, the application drawn first will be allocated machines to the lesser amount of either the number of new machines requested in the application or the capacity available for allocation. After initial allocation, any remaining capacity will be allocated to the other applicant or applicants by way of an additional ballot, and so forth until all capacity has been allocated, or no qualifying applications are held.

(xxi) If an applicant subsequently declines a Venue Consent offered for any allocation of a number of machines, that application will be treated as declined, and the said machine capacity will be reallocated as above.

(xxii) Council shall place public notification of the application(s) in a local daily newspaper within 7 days of the application being lodged, at the applicant’s expense, detailing the class 4 venue proposal and clearly identifying the location of the venue(s). The applicant shall also display prominent notice(s) about the application within and clearly visible outside the proposed venue, in a form determined by Council. The notices must be displayed from the lodging of the application until such time as it is granted or declined.

H. Application fees

Application fees will be set by Council and reviewed on not less than a three-yearly basis, and shall include consideration of the cost of processing the application, including any consultation and hearings involved.

I. Policy review period

(xxiii) This policy will be reviewed on a three-yearly basis.

(xxiv) This policy may be reviewed at any time where there is an urgent concern or request from the community.

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RDC-1060856 23 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020

ASSESSING THE SOCIAL IMPACT OF GAMBLING IN THE ROTORUA DISTRICT

September 2020

1. Introduction

In 2004, all territorial authorities were required to adopt a policy about Class 4 gambling (or pokie) venues in their districts as a requirement of the Gambling Act 2003 (the ‘Gambling Act’). These policies must be adopted or amended using the special consultative procedure in the Local Government Act 2002.

All territorial authorities were also required to adopt a policy on Board Venues under the Racing Act 2003 (the ‘Racing Act’). The Racing Act 2003 has been replaced by the Racing Industry Act 2020 (the ‘Racing Industry Act’), and “Board Venues” are now called “TAB Venues” in the new Racing Industry Act. However, the requirement for every territorial authority to have a policy remains, and the definition of the venues is the same.

Section 102 of the Gambling Act, and section 96 of the Racing Industry Act, require the respective policies to be reviewed every three years. In both Acts, an existing policy does not cease to have effect because it is due for review or is being reviewed.

Neither Act specifies what a review of these policies should entail. However, both require that a territorial authority must have regard to the social impact of gambling within its district when adopting a policy and may have regard to the cumulative effects of additional opportunities for gambling in the district, among other matters (section 101 of the Gambling Act and section 96 of the Racing Industry Act). It follows that a review should include an assessment of the social impact of gambling and how this may have changed over the years, particularly since the last review.

Ultimately, a key focus of any policy review should be to assess the efficacy of the existing policy. It should attempt to answer the question: What has the existing policy done to improve the positive impacts, and/or reduce the negative impacts, of this activity, in our district?

Social impacts and gambling harm

The social impact of a policy may include the effects that an activity likely has on people and communities, including health, mental health, economic, cultural and other effects. Because these two policies are derived from statute, the purposes of those statutes can guide a territorial authority’s understanding of what is meant by the social impacts of gambling.

The relevant purposes of the Gambling Act include to:

• prevent and minimise harm from gambling, including problem gambling; and • ensure that money from gambling benefits the community; and • facilitate community involvement in decisions about the provision of gambling. One of the purposes of the Racing Industry Act is to:

• prevent and minimise harm from gambling conducted under this Act, including harm associated with problem gambling.

Both Acts share a common definition of “harm”:

RDC-1060856 24 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020

“harm -

(a) means harm or distress of any kind arising from, or caused or exacerbated by, a person’s gambling; and (b) includes personal, social, or economic harm suffered: (i) by the person; or (ii) by the person’s spouse, civil union partner, de facto partner, family, whanau, or wider community; or (iii) in the workplace; or (iv) by society at large.” This report addresses social impacts in terms of positive and negative effects. The negative social impacts fall under the Gambling Act’s definition of “harm”. The positive social impacts of Class 4 gambling are principally the money derived from gambling that benefits the community, and income for the class 4 venues themselves. The positive social impacts of sports and TAB betting are entertainment (for the gamblers), and there is also ongoing financial support provided to the racing industry.

2. National Level

Class 4 venues and Machines

Over the past five years, from 30 June 2016 to 30 June 2020, the number of gaming machines nationally decreased by 8.6% percent from 16,250 machines at 1,220 venues to 14,847 at 1,074 venues.3 This was less than the 9.4% decrease over the previous five years.

The Department of Internal Affairs does not publish data on the number of Lottery outlets or TAB outlets nationally or by territorial authority district. That information could potentially be acquired from the Department.

Expenditure

Gamblers in New Zealand spent $2.4 billion dollars on four main forms of gambling in the 2018/19 financial year. 4

Over the nine financial years shown in the graph below, the average expenditure per year has been $2.28 billion, ranging from $2.16 billion (in 2010/11) to $2.43 billion (in 2017/18).5

Over the first five years of this period, total gambler’s losses were around $2.2 billion. In 2015/16 they rose to $2.3 billion, and for the last three years have been over $2.4 billion. While losses increased across all four modes of gambling, the increases are mainly attributable to casino gambling and NZ lotteries products. Class 4 gambling losses showed a “dip” from 2012/13 to 2016/17, reducing from a high of $933 million in 2010/11 to $855 million in 2013/14, then rising again to over $900 million again in the last two years.

3 Department of Internal Affairs, Gambling Expenditure Statistics http://www.dia.govt.nz/diawebsite.nsf/wpg_URL/Resource-material-Information-We-Provide-Gambling-Expenditure-Statistics 4 Expenditure is the amount wagered less winnings. It is also termed Gross Profit, or in the case of Electronic Gaming Machines (or pokie machines), Gaming Machine Proceeds (GMPs). All refer to the total gamblers’ losses, rather than the total amount wagered by gamblers, which is called turnover. 5 Department of Internal Affairs, Gambling Expenditure Statistics http://www.dia.govt.nz/diawebsite.nsf/wpg_URL/Resource-material-Information-We-Provide-Gambling-Expenditure-Statistics

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Figure 1: Annual Gamblers' losses ($million) -

1,000 900 800 700 600 500 400 300 200 100 - 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Class 4 EGM Casinos NZ Lotteries TAB

Source: Department of Internal Affairs, Gambling Expenditure Statistics

Over this period, Class 4 Electronic Gaming Machines (‘EGMs’) have accounted for the most substantial contribution to gamblers’ losses, ranging from 39% (in 2013/14) to 43.2% (in 2010/11). Gambling in casinos (which includes some gambling on EGMs/pokies), came second at an average of 24.5%, while Lotteries products averaged 21.6% and TAB betting averaged 14.6%.

Gambling participation

The New Zealand 2012 National Gambling Study found that eighty percent of the adult population had participated in some form of gambling during the previous year (when the study was undertaken). The study found that approximately one in five adults (22%) gambled weekly or more often. Other than Lotto (17%), Instant Kiwi and raffle tickets (both 3%), no more than two percent of adults participated in gambling activity weekly or more often.

In the year of the study, 12% of adult New Zealanders played a non-club pokie machine, compared to 61% who bought a Lotto ticket. Only 1.2% played non-club pokies weekly or more often, compared to 16% who bought Lotto weekly or more often. Participation in club venue pokies was lower: only 5.7% played a club venue pokie machine and only 0.5% played club venue machines weekly or more often.

Taking all physical TAB outlets together, 7.8% of adults did race betting and 3.1% sports betting in a year, while only 0.9% and 0.2% used them weekly or more often, respectively. The study did not discriminate between TAB betting at TAB venues (as defined in the Act for the purposes of making a Board Venue policy), and other TAB outlets where betting can take place “in person”.

It is a striking feature of these participation rates that the largest share of gamblers’ losses, as described in the section above, are derived from a small proportion of casual or regular gamblers. While a large proportion of the population buy lottery products, these produce only the third-largest share of gamblers’ losses. Conversely, the small proportion of adults who play pokies, either occasionally or frequently, produce the largest share of losses by a substantial margin.

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Gambling harm

The very small proportion of adults who gamble on EGMs are also the highest proportion to receive problem gambling treatment services (whether a gambler, family member, or affected other), and who have identified the primary problem gambling mode causing them harm.

Figure 2: All clients assisted by primary gambling mode

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Class 4 EGM Casino EGM Casino Table NZ Racing Board Lotteries Products All Other

Source: NZ Ministry of Health, clients assisted by primary problem gambling mode

In the latest reporting year (financial year ended June 2018), Electronic Gaming Machines in Class 4 venues were the primary gambling mode for 49% of clients in treatment. When combined with Casino EGMs, they were the primary gambling mode for 59% of clients. While these proportions have declined over time since this data has been reported (from 74% and 84%, respectively, in 2005), by this measure EGMs still account for more gambling harm than all other modes combined.

These results are confirmed by a nationally representative, face-to-face, in-home survey managed by the Health Promotion Agency, which found that 49% of those who gambled on EGMs in pubs or clubs, at least monthly, experienced some harm from their gambling.

The survey found that, while the majority of New Zealanders gamble infrequently and without harm, a significant minority are at risk of harm. The study found that 3.3% of New Zealanders aged 15 years and over met the criteria for low-risk gambling (an estimated 125,000 people); 1.5% for moderate-risk gambling (55,000); and 0.1% for problem gambling (6,000)

Continuous forms of gambling, in which money can be rapidly reinvested are particularly associated with problem gambling risk.

The HPA study also found that:

Second-hand harm • 1 in 5 New Zealand adults (22%) have been affected at some time in their lives by their own gambling or the gambling of others. • Six percent of respondents (~214,000 New Zealand adults) reported experiencing at least one form of household-level gambling harm (including having an argument about time or money

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spent on gambling, or going without, or bills not being paid because too much money was spent on gambling by another person). • Experience of a friend or family member gambling more than intended has been steadily dropping since 2006/07, from 36% to 12% in 2016. • Māori and Pacific people and those who gamble themselves were most likely to be close to someone with problems with their gambling. • Māori and those who live in high deprivation areas are most impacted by the gambling of others. • The most commonly reported form of gambling associated with household harm was gaming machines at pubs or clubs.

Attitudes towards pokies • Nearly half of New Zealand adults (46%) believed that pokies in pubs or clubs were harmful and over one third (35%) believed they were socially undesirable.

Pokies and alcohol • The majority (59%) of New Zealand adults do not believe that ‘pokie machines make a pub or bar more enjoyable to spend time at.’ • Two in five (42%) prefer to drink in pubs or bars that do not have pokie machines, and only 14% preferred to drink in pubs or bars that have pokie machines. • Out of those who play pokies (either at a pub or club and casino), around 1 in 3 (29%) reported that they spend more on pokies when they drink alcohol. Online gambling is represented within the “other” category in the data presented above, along with housie, bingo, card games, etc. That category has increased from around 5% to around 10% of problem gamblers seeking treatment, mainly in the period 2011 to 2013. The Department of Internal Affairs is conducting a review into online gambling in New Zealand. While it is illegal for online gambling to be provided domestically, except by authorised providers (Lotto NZ and the TAB), it is legal for New Zealanders to gamble on offshore websites. Work is underway by the Department of Internal Affairs to develop a regulated online gambling system for New Zealand. At present, there is no role for local government in regulating online gambling.

Lotteries Commission products also registered a similar increase, in the years 2011 to 2016, but have not been subject to the same focus of attention by the Department.

Benefits to communities

Of the $2,402 million spent by gamblers, an estimated $655 million (31.4 per cent) was distributed to a variety of community purposes from gambling proceeds nationally.

Non-casino gambling machine trusts raised an estimated $260 million for authorised purposes. NZ Lotteries transferred $201 million to the Lottery Grants Board for community services and projects. The New Zealand Racing Board allocated $140 million, mostly to support racing club activities and infrastructure. Casinos paid just over $4 million to their community trusts. In addition, gambling operators were required to pay a levy from their profits to meet the costs of an integrated problem gambling strategy – estimated to be $54 million (GST exclusive) for the current 2013-16 levy period.6

The Gambling Act provides for Class 4 gambling to be permitted only where it is used to raise funds for “authorised purposes”, which benefit the community in some way. Authorised purposes are different in law from charitable purposes principally because sport was not classified as a charitable activity under the Charities Act 2005 when the Gambling Act 2003 was introduced. That is no longer the case, as amateur sports

6 Department of Internal Affairs, Gambling Expenditure Statistics http://www.dia.govt.nz/diawebsite.nsf/wpg_URL/Resource-material-Information-We-Provide-Gambling-Expenditure-Statistics

RDC-1060856 28 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020 are now considered to be charitable activities, meaning that donations and grants to some sporting bodies are now partially tax deductible.

Local authorities have no control over where the funding from class 4 gambling is allocated. Gaming machine societies are required under the Gambling Act and the Gambling (Class 4 Net Proceeds) Regulations 2004 to distribute a minimum amount of 40 per cent of their proceeds to the community. However, there is no obligation to return a specific portion of GMP to the district in which it was produced, or to provide benefits to people affected by gambling harm. Nonetheless, some corporate societies do have “in-house” policies of returning grant funding to the communities of origin.

The Gambling Act requires each corporate society to publish information about the grants that it makes, at least six-monthly, on its website. The Department of Internal Affairs has chosen not to collect grants information directly from corporate societies, although it has the power to do so.

The Problem Gambling Foundation has collected the information from corporate societies’ websites and has maintained a record of grants but cannot guarantee its accuracy.

Recipients may include sports, arts, heritage, conservation, education, leisure, hobby groups and other activities and organisations. Often the work of these organisations is carried out by volunteers. Without the financial resources available from the proceeds of gambling, the levels of such activities would likely be less. Moreover, the financing of community organisations has moved to reflect the availability of funds from gaming societies to an extent that some may find it hard to operate were this source of funding removed or reduced, at least in the short term.

This is equivalent to 33.6 per cent of expenditure versus the minimum requirement at that time to grant 37.12 per cent (and actual national average of 42.1 percent for 2013). This equates to a net result of Rotorua gamblers funding approximately $1 - 2m to grant recipients outside Rotorua each year. However, it should also be noted that residents of Rotorua likely benefit to some extent from activities funded outside the district when they participate in or benefit from those activities (e.g. surf lifesaving activities).

The largest contributor (39% or $4,624,113) of the grants was One Foundation (previously known as First Sovereign Trust), which is based in Rotorua. It had 72 gambling machines in 4 venues. The second largest contributor was the NZ Community Trust (21% or $2,507,338), with 93 machines in 7 venues. Education was the largest recipient of grants ($2,124,090), which was 18% of the total grants. The next largest type of recipient was Māori ($1,329,383), which was 11% of total grants followed closely by Community Groups which amounted to $1,300,637 (or 11% of the total).7

Economic Benefits

The Community Gaming Association (an association of non-club corporate societies who run Class 4 gambling machines), completed a survey in 2009 that estimated there were 300 full-time equivalents directly employed by Class 4 non-club corporate societies. It estimated there were 215 employees of external service providers and contractors providing either full-time or part-time services directly to the societies. No updated survey has been found regarding gambling and employment since the last review.8

A report from 2010 by the Australian Productivity Commission concluded that employment in the gambling industry, and economic activity as a result of gambling, was not likely to result in significant benefits because there were alternatives available for consumer spending (retail products or other forms of entertainment) that, if gambling did not exist, would contribute to the economy in terms of the labour and capital and the

7 Problem Gambling Foundation of New Zealand, Gambling Report with Grants and Analysis, January 2012 – June 2014 8 See Kaipara District Council, Class 4 Gambling Venue Policy Review Statement of Proposal (March 2015), page 6.

RDC-1060856 29 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020 benefits people derive from these activities (retail and entertainment).9 Another Australian report found that every million dollars spent on gambling created half the number of jobs versus retail.10

A recent economic analysis, produced by the NZ Institute of Economic Research (NZIER) for the Problem Gambling Foundation, produced similar results, finding that:

 Most, if not all, money currently spent on Class 4 gambling is likely to be spent elsewhere, rather than saved.  Money that consumers would have spent on Class 4 gambling is unlikely to shift to other types of gambling, including illegal gambling and online gambling.  The cost to retail industry sales of Class 4 gambling is estimated to be $445 million for 2018/19.  The increased retail sales from diverted EGM spending would create an additional 1,127 full time equivalent jobs for 1,724 workers. A report commissioned by Auckland Council in 2012 took a different approach, including the effects of a reduction in community funding if there were no class 4 gambling, and found that class 4 gambling had a small net positive effect on economic output. That report did not, however, compare that result with a “counterfactual” in which community funding from class 4 gambling would be replaced with funding from an alternative source.

There has been no comprehensive study of the economic effects of class 4 gambling in New Zealand that takes into account the total social benefits and social costs.

Social Benefits

The fact that people pay money to gamble (rather than spending the money on some other commodity or service) suggests that there is entertainment value derived from gambling.

A Department of Internal Affairs (‘DIA’) survey, People’s Participation in and Attitudes to Gambling 1985- 2005 found that around two-thirds of participants had gambled on gambling machines as a form of entertainment, with participants also saying this was a way to be with people or to get out of the house.11 While no updated DIA survey has been prepared regarding gambling as a form of entertainment since the last review, more recent 2011 research suggests that the vast majority of adults (84%) never use gambling machines.12

A 2007 research project, Whakatau Mai Ra: The Impacts of Gambling for Maori Communities: A National Maori Collaborative Approach, drew a conclusion that “… socialising, enjoyment and fun was directly related to more communal activities such as housie and community raffles. Based on the findings, there is a clear view that people genuinely do enjoy participating in gambling activities, and the benefits of being able to socialise with others, particularly whanau members”.13 No updated report has been found regarding gambling and Maori communities since the last review.

9 See, Productivity Commission (Australia) 2010, Gambling: Report No. 50, page 10. 10 South Australian Centre for Economic Studies with the Department of Psychology, University of Adelaide (2005, November). 11 Department of Internal Affairs, People’s Participation in and Attitudes to Gambling 1985-2005: Final Results from the 2005 Survey, page 21. This remains the latest Department of Internal Affairs’ survey of people’s participation in and attitudes to gambling. 12 Gray, R. (2011). New Zealander’s participation in gambling: Results from the 2010 health and lifestyles survey. Wellington. Health Sponsorship Council. 13 “Whakatau Mai Ra”: The Impacts of Gambling for Maori Communities - A National Maori Collaborative Approach (2007), page 26.

RDC-1060856 30 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020 3. Local trends

TAB Outlets

There is one TAB (or Board) Venue in the district: Rotorua Central, located at 1154-1156 Eruera Street. TAB Venues are defined in section 2 of the Racing Industry Act as “…premises owned or leased by TAB NZ and where the main business carried on at the premises is providing racing betting, sports betting, or other racing or sports betting services.”

As noted above, the Racing Industry Act provides for territorial authorities to have a policy on TAB venues.

However, territorial authorities have no power to regulate the number and location of TAB “agency” venues, which are situated in a venue owned or leased by another person. These may be staffed outlets (Full Service) or betting terminals (Self Service). TAB betting is also available via the internet, on a computer or by using a smartphone app.

Besides the Rotorua Central TAB Venue at 1156 Eruera Street, there are nine other TAB outlets in the district. All ten TAB outlets are also class 4 gambling venues. The names of these venues, type of outlet, address and number of pokies (EGMs) at each is displayed in the table below.

Figure 3: TAB outlets in Rotorua District, September 2020

Venue Type Address EGMs Rotorua Central TAB Store 1156 Eruera St 18 2 Brookland Rd, Western Brookland Glassy Junction Self Service 15 Heights Four Winds Tavern Rotorua Self Service 2 Owhata Rd, Owhata 18 Ruck & Maul Rotorua Full Service 1279 Amohia St 18 Cheers Bar, Copthorne Hotel Full Service 328/348 Fenton St 15 Rotorua Club Inc Full Service Rotorua Racecourse 8 Rotorua Commercial Full Service Moncur Drive 12 Travellers Club Mitchell Downs Tavern Full Service 12 Goldie St, Pukehangi 18 Village Sports Bar & Cafe Full Service 262 Ngongotaha Rd 14 Rotorua Citizens Club Self Service Cnr Arawa & Rangiuru St 18 Source: TAB Store Locator (website), accessed September 2020, combined with DIA Gaming statistics.

Class 4 venues

In September 2020, there were 26 Class 4 gambling venues in the Rotorua district, representing 2.5% of venues nationally. The venues in Rotorua are licensed to have a total of 389 class 4 machines, or 2.46% of machines nationally.

Since around the time of the Review of the Gambling Policy undertaken in 2011:

 18 gambling machines operated by the Rotorua RSA were moved to the Outlaw Bar on Arawa Street (Inner City to Inner City) in December 2015.  18 gambling machines operated by Kiwispirit were moved from Hinemoa Street to Arawa Street (Inner City to Inner City) in September 2015.  8 gambling machines operated by the Rotorua Club on Fenton Street moved to the Racing Club immediately behind them on Fenton Street (City fringe to City fringe) in August 2010.  9 machines operated by Valentines were removed 6 months after that business closed down in February 2016.

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 18 machines operated by the Locker Room were removed when that business closed down in February 2014. Figure 4: Class 4 venues grouped by corporate society, Rotorua, September 2020

Corporate Society, Venue(s) Address EGMs One Foundation Limited 59 Four Winds Tavern Te Ngae Shopping Ctr, Te Ngae Rd, 18 Rotorua Ruck 'n Maul 1279 Amohia Street, Rotorua 18 The Outlaw Bar 1153 Arawa Street, Rotorua 18 Woolshed Tavern 3820 Broadlands Road, Reporoa 5 New Zealand Community Trust 54 Hennessy's Irish Bar 1208-1210 Tutanekai Street, Rotorua 9 Kaspers Sports Bar 1302 Tutanekai Street, Rotorua 18 Mo's Bar 1142-1144 Tutanekai Street, Rotorua 18 West End Tavern 221-223 Old Taupo Road, Rotorua 9 The Southern Trust 41 Barcode 1232 Arawa Street, Rotorua 18 Brookland Glassy Junction 2 Brookland Road, Mangakakahi 15 Selwyn Tavern 14-16 Kokako Street, Selwyn Heights 8 The Lion Foundation (2008) 28 Copthorne Hotel Rotorua Cnr Fenton St & Ward Ave, Fenton 10 Park Mitchell Downs Tavern 12 Goldie Street, Pukehangi 18 VC's Turf Bar 1184 Arawa Street, Rotorua 0 Grassroots Trust Limited 30 Ngongotaha Tavern 11B Hall Road, Ngongotaha 12 The Sidepocket Bar 1129 Hinemoa Street, Rotorua 18 Pub Charity Limited 26 Malfroy's Bar 172-176 Malfroy Road, Rotorua 12 Village Sports Bar/Cafe 262 Ngongotaha Road, Ngongotaha 14 Dragon Community Trust Limited H2O Gaming & Sports Bar 318 Malfroy Road, Hillcrest 18 Four Winds Foundation Limited Crates 'n Cues Bar 1237 Pukuatua Street, Rotorua 18 Infinity Foundation Limited The Fentons Bar 1295 Fenton Street, Rotorua 18 Racing Industry Transition Agency TAB Store Rotorua 1156 Eruera Street, Rotorua 18 Rotorua Citizens Club Inc Rotorua Citizens Club 1146 Rangiuru Street, Rotorua 18 Youthtown Incorporated Vault Bar 1122 Hinemoa Street, Rotorua 18 Rotorua Commercial Travellers Association Incorporated Rotorua C. Travellers Club Moncur Drive, Tihiotonga 12 Rotorua Club Incorporated Rotorua Club 274 Fenton Street, Rotorua West 7 Total EGMS 365

There are currently 365 gaming machines in operation, at 26 venues. Three are club venues (37 machines total). The remainder are non-club or commercial venues.

Not all venues are operating the maximum allowable number of machines, so the licenced maximum is 389.

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As Rotorua has only 1.5 per cent of the New Zealand population this means Rotorua has a higher proportion of venues and machines than the national average. If Rotorua had the “national average” number of machines per head of population, it would have 247 machines. In other words, for every thousand people in Rotorua there are 5.9 machines available versus a national average of 3.8. If average Rotorua visitors were included in the population, it would be 5.4 machines per thousand people.

The effect of the Council’s current Policy has been the gradual reduction of venues and machines within the district over the past 10 years, with a slowing reduction more recently: from June 2010 to June 2016 the number of machines reduced from 416 to 389 (6.5 percent reduction compared with 14.2 per cent nationally). From June 2016 to June 2020 the number of machines reduced from 389 to 365 (6.2 percent reduction compared with 8.6 per cent nationally).

Because the reduction in machines in Rotorua has consistently been less than the reduction nationally, Rotorua’s share of machines has gradually increased: from 2.20% in 2010, to 2.36% in 2016, to 2.46% in 2020.

Expenditure

Data for expenditure on TAB betting and lottery products is not readily available at local authority level. Therefore, the focus of this section is necessarily on class 4 EGMs/pokies.

Figure 5: Quarterly gamblers' losses from pokies, Rotorua - 2014 to present

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

Jun Jun Jun Jun Jun Jun Jun

Mar Mar Mar Mar Mar Mar Mar

Sep Sep Dec Sep Dec Sep Dec Dec Sep Dec Sep Dec 2014 2015 2016 2017 2018 2019 2020

Source: Department of Internal Affairs, Gaming Machine Proceeds (GMP) Data

Over the past six years, gamblers’ losses from class 4 gambling in Rotorua increased every year from 2014 ($19.8 m) to the end of 2019 ($25.4 m).

There is a clear seasonal pattern, from 2014 to 2019, of GMP in each March quarter decreasing from the previous quarter, then building through the rest of the year (with the exception of December 2019, which registered a slight decline from the September quarter). Expenditure in the March and June quarters in 2020 shows the impact of COVID-19 restrictions on venue attendance, gambling participation, and therefore gamblers’ losses. These quarterly patterns are not unique to Rotorua – they are also displayed in the national data.

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Of the $939 million spent by gamblers nationally on EGM/pokie machines in 2019, $25.4 million was spent in the Rotorua district. That represents 2.69% of the national spend, whereas Rotorua has 1.5% of the population.

The distribution of Gaming Machine Proceeds (GMP) is controlled by the Gambling Act and regulations made under that Act. The table below shows how GMP is divided by percentage, using 2019 GMP to demonstrate how much money the shares represent.

Figure 6: Allocation of Gaming Machine Proceeds from Rotorua, for 2019

Requirement Share Amount Gaming Duty A 20% $ 5,057,826 Problem Gambling Levy B 0.78% $ 197,255 Authorised Purposes (min) C 40% $ 10,115,652 Venue operators (max) D 16% $ 4,046,261 Corporate Society costs (residual) E 23.22% $ 5,872,136 Total 100% $ 25,289,130 A Gaming Duties Act 1971 B Gambling (Problem Gambling Levy) Regulations 2019 C Gambling (Class 4 Net Proceeds) Regulations 2004 D Gambling (Venue Payments) Regulations 2016 E Gambling Act 2003, section 52

Almost 21% of GMP goes to the government as Gaming Duty and the Problem Gambling Levy. The Gaming Duty of 20% goes into the Consolidated Fund, while the Problem Gambling Levy is spent on harm prevention and minimisation, problem gambling treatment services, public health research and evaluation.

A minimum of 40% must be spent on the authorised purposes of the clubs and corporate societies that operate class 4 venues. Corporate societies can pay a maximum of 16% to the bars and pubs that host their machines. The residual is absorbed in corporate society or club operating costs.

The Gambling Act requires that, in order to obtain a class 4 operator’s licence, an operator must minimise its operating costs and maximise returns to authorised purposes. How effectively this requirement is met is not publicly reported; for the sector as a whole or on a society-by-society basis.

Community Grants

The Problem Gambling Foundation (‘PGFNZ’) holds a database of grant data collected from publications and websites.

The PGFNZ database has been used to create a dataset, which provided detailed analyses of class 4 grants for the Hauraki Māori Trust Board in 2017, and the Whangarei District Council in 2018. Although the dataset has not been updated recently, it has been accessed to provide a breakdown of five years of grants made by corporate societies to authorised purposes in the Rotorua District from 2012 to 2016.

Figure 7: Class 4 gaming society grants to Rotorua District 2012-2016, by category

Recipient Group, Subgroup 2012 2013 2014 2015 2016 Community Arts $13,375 $17,650 $87,526 $52,101 $43,543 Ethnic $2,100 $2,100 $23,017 $15,404 $2,003 Families $3,000 $28,856 $14,302 $1,000 $1,336 Local $761,820 $1,522,835 $1,450,044 $1,084,046 $888,822

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Seniors $ - $30,000 $3,000 $49,335 $35,405 Youth $240,415 $205,757 $139,789 $128,192 $58,213 Other Group $252,605 $407,375 $417,671 $466,886 $426,954 Community Total $1,273,316 $2,214,572 $2,135,350 $1,796,963 $1,456,278 Social Services Education $889,136 $1,090,909 $1,044,869 $978,847 $878,184 Emergency Services $190,000 $70,593 $39,606 $2,700 $64,635 Health $430,888 $488,244 $401,552 $244,493 $295,339 Welfare $7,200 $31,196 $24,960 $ - $104,159 Social Services Total $1,517,224 $1,680,942 $1,510,987 $1,226,040 $1,342,317 Sports Indoor Sports $46,075 $157,091 $108,527 $110,096 $224,224 Outdoor Sports $536,165 $500,506 $502,752 $248,058 $527,225 Racing $265,696 $109,650 $77,950 $15,000 $5,000 Special $41,200 $88,865 $98,703 $301,582 $71,085 Team Sports $218,246 $352,927 $578,197 $424,752 $526,231 Water Sports $29,414 $144,474 $155,657 $126,892 $135,741 Other $131,762 $115,429 $177,375 $98,635 $112,835 Sport Total $1,268,559 $1,468,942 $1,699,162 $1,325,015 $1,602,341 Grants Total $4,059,098 $5,364,457 $5,345,499 $4,348,019 $4,400,936

Source: Problem Gambling Foundation grants data.

The data shows that over that period, on average $1.78 million per year went to a wide variety of community organisations. Within the “Community” category were many Maori organisations, faith-based organisations and churches, arts, heritage and events.

In the “Social Services” category, on average $1.46 million per year went to services associated with central government services, including health and disability services (particularly hospices), education (early childhood, primary, secondary, as well as some special needs and adult services), and emergency services (including ambulance, fire services, coastguard, search and rescue). A small proportion went to welfare (childcare, including playcentres and the Plunket Society, and a few grants to the Rotorua Budget Advisory Service and Waiariki Women’s Refuge).

In the “Sports” category, on average $1.47 million per year went to sports (including thoroughbred and harness racing).

Evidently, grants from class 4 gambling have made significant contributions to a wide range of socially beneficial activities, and the total contribution amounting to $4.7 million per year, on average over this period is substantial.

The grants were provided by 21 different corporate societies, with total grants for the period ranging from a single grant of $1,000 (from Trust House Charitable Trust to the Koinonia Christian Centre), to $8.2 million granted by the Rotorua-based One Foundation (previously known as First Sovereign Trust) for a wide variety of purposes.

A breakdown of the major class 4 grant providers, in ranked order of their contributions over the 5-year period, is displayed in the table below.

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Figure 8: Class 4 grants providers ranked by contribution - Rotorua 2012 to 2016

Grants per year 2012 2013 2014 2015 2016 Totals One Foundation $ 1,420,164 $ 2,189,797 $ 1,678,674 $ 1,021,261 $ 1,909,732 $ 8,219,628 Southern Trust $ 537,338 $ 1,116,574 $ 2,095,408 $ 1,061,126 $ 988,787 $ 5,799,232 NZ Community Trust $ 1,130,996 $ 1,177,406 $ 237,936 $ 1,294,961 $ 587,719 $ 4,429,018 Pub Charity $ 327,992 $ 141,774 $ 519,732 $ 344,356 $ 309,884 $ 1,643,739 Infinity Foundation $ 142,576 $ 258,154 $ 328,958 $ 243,159 $ 140,831 $ 1,113,679 Lion Foundation $ 202,270 $ 236,959 $ 223,299 $ 126,042 $ 138,427 $ 926,997 Four Winds Found’n $ 86,500 $ 144,445 $ 128,500 $ 110,540 $ 159,088 $ 629,073 All others (14) $ 211,262 $ 99,347 $ 132,992 $ 146,574 $ 166,467 $ 756,642 Total $ 4,059,098 $ 5,364,457 $ 5,345,499 $ 4,348,019 $ 4,400,936 $ 23,518,008

The Gambling (Class 4 Net Proceeds) Regulations 2004 require that 40% of GMP (from Non-club venues only) must be distributed to authorised purposes. However, there is no requirement that these grants must be made to the district from which the GMP originated. The table below shows that the average return to Rotorua, per year over the period, was 22.9%; ranging from 19.4% in 2012, to 27.0% in 2014.

Figure 9: Grants percentage of Non-club GMP, Rotorua 2012 to 2016

Gaming Machine Proceeds Year 2012 2013 2014 2015 2016 Totals Club GMP $ 2,290,768 $ 2,162,799 $ 1,449,680 $ 1,260,172 $ 1,180,600 $ 8,344,018 Non-Club GMP $18,649,804 $ 18,031,884 $ 18,315,833 $ 18,547,169 $ 20,710,406 $ 94,255,096 Total GMP $ 20,940,572 $ 20,194,682 $ 19,765,513 $ 19,807,341 $ 21,891,006 $ 102,599,114 Grants percentage of Non-club GMP Grants per year $ 4,059,098 $ 5,364,457 $ 5,345,499 $ 4,348,019 $ 4,400,936 $ 23,518,008 Percent of GMP 19.4% 26.6% 27.0% 22.0% 20.1% 22.9%

There are some limitations to this analysis, as it does not capture grants made to the wider Bay of Plenty region, or to national organisations, which might also benefit people living in the Rotorua District. On the other hand, people in the wider area and from elsewhere in New Zealand, who visit Rotorua and use facilities and services funded from these grants, may also derive some benefit from them.

Despite these caveats, the data shows that the proportion of GMP returned to Rotorua specifically was substantially short of the regulated minimum of 40%.

The average annual non-club GMP for the period was $18.85 million, which means that $7.54 million was distributed to authorised purposes each year, of which Rotorua obtained grants worth $4.7 million.

It should be noted that grants from class 4 corporate societies are not the only source of funding available for community groups and charitable purposes. Support is also available from the Lottery Grants Board, BayTrust (previously the Bay of Plenty Community Trust), the Rotorua Charitable Energy Trusts, and various other philanthropic entities.

Social costs of gambling

Based on the national prevalence of problem gambling, the number of problem gamblers in Rotorua district is estimated to be in the range of 459 to 918 people. As the behaviour of each severe problem gambler is

RDC-1060856 36 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020 likely to affect between 5 and 10 other people, this suggests that there could perhaps be as many as 9,183 people affected by problem gambling in Rotorua.14

Children will be amongst those negatively affected if their parents have problems with gambling. Gambling can lead to neglect, broken homes, damaged relationships between children and parents, physical and emotional harm, and a higher risk of children becoming problem gamblers themselves.15

New Zealand research shows that gambling-related harm affects some sections of the community more than others. In particular:

 People living in high deprivation neighbourhoods are more likely than people living in other neighbourhoods to be problem gamblers, and are more likely to suffer gambling-related harm;  Māori and Pacific peoples are more likely than other groups to be problem gamblers, and are more likely to suffer gambling-related harm; and  Māori and Pacific women are more likely than other groups to suffer harm related to non-casino gaming machines.16 Across New Zealand there is a clear trend in the concentration of machines across deprivation areas: electronic gambling machines are more likely to be found in the more deprived areas of New Zealand.17

It has been stated that 71% of the gambling machines are in the poorest 30% of the Rotorua district.18 The maps in Appendix A show the location of all 26 Class 4 Pokie Venues in the Rotorua district against the deprivation index. The maps confirm that Class 4 Pokie Venues are predominantly located in areas of higher deprivation in Rotorua.

Drawing on these factors, the Rotorua district is at risk of greater impacts of problem gambling due to:

 a relatively high rate of unemployment and benefit dependency (including sole parent families);  a relatively high proportion of residents aged less than 25 years;  a relatively high proportion of Māori residents;  increasing numbers of Māori, Pacific Island and Asian residents;  over 50% of the district’s population living in areas that are considered the most deprived in New Zealand; and  increasing numbers of older residents on fixed incomes.19

14 At any given time, between 0.3% and 1.8% of adults living in the community in New Zealand are likely to score as problem gamblers on standard questionnaires. This is between about 10,000 and 60,000 people. See Department of Internal Affairs, Problem Gambling in New Zealand – A Brief Summary, paragraphs 1 and 24. 15 Problem Gambling Foundation of New Zealand, Submission on the Rotorua District Council Gambling Venues Policy (2015), paragraphs 45-54. See also the research of Laurie Morrison at www.aut.ac.nz/profiles/laurie-morrison 16 At any given time, between 0.3% and 1.8% of adults living in the community in New Zealand are likely to score as problem gamblers on standard questionnaires. This is between about 10,000 and 60,000 people. See Department of Internal Affairs, Problem Gambling in New Zealand – A Brief Summary, paragraphs 1 and 24. See also the research of Laurie Morrison at www.aut.ac.nz/profiles/laurie- morrison 17 Francis Group. Informing the 2009 problem gambling needs assessment: Report for the Ministry of Health (2009) 18 Problem Gambling Foundation of New Zealand, Submission on the Rotorua District Council Gambling Venues Policy (2015), paragraph 6 19 For more detailed information about Rotorua’s demographic profile, see http://nzdotstat.stats.govt.nz/wbos/Index.aspx

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Research by the Problem Gambling Foundation suggests that the problem gambling statistics for Rotorua are higher than other selected territorial authorities.20 Data from the Ministry of Health shows that from July 2013 to June 2018, there were 1062 new clients who contacted an intervention service for the first time for psycho-social support either by phone or face-to-face. This compares with 1544 in the previous five-year period.21

A 2009 New Zealand Research Report concluded that: “from the perspective of public policy, and particularly harm minimisation, holding or reducing EGM [electronic gambling machine] numbers would appear to be prudent … and is likely to lead to reduced harm both through reduced availability and by enabling adaption processes.”22

Local Research

In 2016/17, Rotorua Lakes Council engaged APR Consultants Ltd to undertake a survey to gauge the opinions of Rotorua residents on gambling and especially EGM/pokie machines. The survey was undertaken in late 2016/early 2017, primarily by telephone (350 respondents), supplemented by 100 additional ‘face to face’ surveys in Rotorua’s CBD and surrounds, and an on-line survey (46 respondents).

389 of the 496 respondents (78.4%) indicated some form of gambling over a 6-month period.

Most popular was entering a NZ raffle like Lotto (60.7%), followed by entering a competition or purchasing raffle tickets (38.9%) and buying a scratch ticket like Instant Kiwi (30.2%). Only 40 respondents (8.1%) had played a pokie machine outside a casino (i.e. at a pub or club)

Of the respondents, the average expenditure over a six-month period was $435.38. The minimum spend was $1.00 and the highest $20,870.00.

The most money was spent while playing EGM/pokie machines despite this only being the sixth highest popular gambling activity.

Of the 40 respondents (8.1%) who played pokie machines, the average visit in the six-month period was 31.81 visits. The average spend was $44.31 per visit. Respondents spent on average $1,412.81 playing pokie machines over six months, a total of $56,512.50.

81 respondents (16.3% of respondents) had been impacted by a problem gambler. The highest frequency of effects were not being able to pay bills (6.9%), followed by affecting relationships (5.0%), wasting money (4.2%) and losing savings/going bankrupt (2.4%).

Local Consultation

Officers have re-assessed the feedback from the 2017 consultation on the previous review of the Gambling Policy. The feedback from submitters dealing with gambling related harm was that they strongly supported a ‘sinking lid’ policy and ‘no relocations’ which would result in reducing venue and machine numbers over

20 Problem Gambling Foundation of New Zealand, Submission on the Rotorua District Council Gambling Venues Policy (2015), paragraphs 7-8. Rotorua District Council, The Impacts of Gambling in Rotorua - A Draft Report to Support the Rotorua District Council Gambling Policy Review (April 2014), page 36. 21 Rotorua District Council, The Impacts of Gambling in Rotorua - A Draft Report to Support the Rotorua District Council Gambling Policy Review (April 2014), page 36. 22 Abbott, M., Storer, J., & Stubbs, J. (2009 December). Access or adaptation? A meta-analysis of surveys of problem gambling prevalence in Australia and New Zealand with respect to concentration of electronic gaming machines. International Gambling Studies, 9(3), 225-244.

RDC-1060856 38 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020 time. They were also clear that should relocations be allowed in the future, the current rules needed to be amended to stop situations whereby venues relocated too close to schools.

The feedback from gambling societies and venue operators was that the status quo should remain, and relocations should continue to be allowed for the sustainability of their businesses.

The topic was also discussed at the Destination Rotorua Board in early 2016 to understand any impact to the visitor sector. Their agreed position was “there is minimal support for continued proliferation of existing arrangements; such as pokie gaming rooms and machines attached to various public bar environments across Rotorua.”

4. Policy effectiveness

TAB Venue (Board Venue) Policy

The Racing Industry Act 2020 provides territorial authorities with limited powers to regulate the number and location of “TAB Venues”, as defined by the Act. They have no power to regulate other types of TAB outlet, including Full Service and Self-Service agency outlets, or online TAB betting.

Under these circumstances, any TAB Venue policy adopted by the council, or any amendment to its current policy, is unlikely to have a discernible effect on the overall availability of TAB gambling in the Rotorua District.

Class 4 Venue Policy

The key decisions in making a class 4 venue policy are whether to allow new venues, and whether to allow venues to relocate.

If a policy allows either, then further policy options may be considered, including the number of machines at a new venue (up to the statutory maximum of nine), the proximity of a venue to existing activities and amenities, proximity to other venues, and what the primary activity at the venue should be.23

It must be noted that gaming venue consents are effectively granted in perpetuity. Once granted, the consent may not be rescinded, nor may any other criteria or conditions applied to the consent be altered. All further decisions about the ownership and operation of class 4 venues are made by the Secretary for Internal Affairs, when issuing or amending the class 4 venue licence. The Secretary is under no statutory obligation to consider the views of the territorial authority when making these decisions and it has not been the Department’s practice to do so.

If the policy allows relocations, the Gambling Act requires a territorial authority to “consider the social impact of gambling in high-deprivation communities within its district”. In this regard, the Act could be interpreted as saying that relocation to less deprived areas might reduce gambling harm within the district overall. Although there is no evidence to suggest that would be the case, nevertheless a territorial authority might adopt such a policy and allow one or more relocations on that basis. Over time, destination area(s) might

23 There is no restriction in the Gambling Act, regarding the primary activity at a venue. It is a condition of a Class 4 Venue licence that a class 4 venue is not used mainly for operating gaming machines, and that the primary activity must be “offered and available” when a venue is being used for class 4 gambling.

RDC-1060856 39 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020 become more (or less) deprived, and the council might regret its decision(s), but the Gambling Act does not permit it to change its mind. Those venues could remain in the consented new locations indefinitely.

Likewise, a policy might specify that a new venue should not be established within a specified distance from a school, church, marae or council facility (for example). However, the policy cannot restrict any of those services from subsequently being established near the venue, and the consent will endure regardless.

If a territorial authority decides not to allow any new venues, then it is said to have a “sinking lid” policy. Rotorua currently has a sinking lid, with a “cap” (or ceiling) of 350 machines.

Under the Gambling Act, a sinking lid only sinks after a venue ceases gambling, the licence-holder surrenders their licence (which the Act says it must do within four weeks), and then six months elapses and no new licence has been issued for that venue, by the Secretary of Internal Affairs.

This six-month “grace period” allows a venue to be closed for repair or renovation or if, (for example) a venue owner’s business fails it gives time for a new owner to take possession of the venue, a corporate society to obtain a new class 4 licence, and for the venue to be re-opened. It means the sinking lid might not sink.

However, this six-month grace period can also be extended by the Secretary of Internal Affairs under section 71(1)(g) of the Gambling Act, by allowing a venue operator not to surrender the licence within the first four weeks. There are recent examples of the Secretary of Internal Affairs allowing a licence-holder to extend the grace period by many months, or years, by granting multiple non-surrender extensions.

There is a current example of this practice being employed in Rotorua, regarding a venue known as VC’s Turf Bar, at 1184 Arawa Street. The venue closed on or about 7 January 2020, but the Lion Foundation has made two section 71(1)(g) applications to extend the inactivity period for VC’s Turf Bar (on 18 December 2019 and on 7 August 2020).

If a territorial authority decides not to allow any relocations, that part of its policy may also have limited effect, under certain circumstances.

Territorial authorities have been required to include a relocations policy in their Class 4 Venue policies since September 2013. Before that amendment, if a venue closed at one site and re-opened at another it could only have the statutory maximum of nine machines at the new venue, regardless of how many it operated previously. Essentially, if a venue relocated, it could lose as many as nine machines. Now, if a territorial authority allows relocations in its policy, a venue may relocate and take as many as 18 machines to the new venue.

Earlier in 2013, the High Court had allowed the Waikiwi Tavern (in the Invercargill suburb of Waikiwi), to relocate an 18-machine class 4 venue to an address two properties away from its original location, without loss of machine numbers.24 The Judge decided that this relocation was allowable because:

1. the new building will be in a site that is very close to the existing site; 2. the class 4 venue’s name will be the same; 3. the ownership and management of the venue will be the same; and 4. for all intents and purposes, the patrons of the tavern and the public of Invercargill will regard the tavern as having retained its venue even if the building is relocated on a nearby site. Since then, and despite the subsequent changes to the Gambling Act, the Secretary of Internal Affairs has treated that High Court decision as a precedent that could legitimately be applied elsewhere. More than a dozen relocations have been permitted under the “Waikiwi precedent” in the intervening years, regardless of whether the relevant territorial authority allowed relocations in its class 4 policy, and in most cases inconsistently with such a policy.

24 ILT Foundation v The Secretary for Internal Affairs [2013] NZHC 1330 [6 June 2013]

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A proposed relocation is underway in Rotorua at the time of writing this Report. It has been proposed that nine machines be relocated from the Outlaw Bar at 1153 Arawa Street (18 machines) to 1208 Tutanekai Street, where Hennessy’s Irish Bar hosts 9 machines. As a consequence, the number of machines at Hennessey’s will increase to 18. The proposal also involves the 9 remaining machines being removed from the Outlaw Bar so it is no longer licensed for Class 4 gambling. The proposal will involve an increase from 9 to 18 gambling machines at Hennessey’s Irish Bar, but a reduction overall of 9 machines in the Rotorua district.

In summary: any form of sinking lid policy (with or without relocations) is unlikely to have a substantial effect on the availability of class 4 gaming in Rotorua, in the short term. Because of the way the Act is written and administered, a sinking lid is likely to sink very slowly or not at all.

Primary Activity and Alcohol Licences

Some local authorities, most notably Auckland Council, have taken a proactive approach toward their sinking lid policies by using the Sale and Supply of Alcohol Act

The Gambling Act does not specify what the ‘primary activity’ at a venue must be – only that it should not be class 4 gaming and that it must be ‘offered and available’ when the pokie machines are being used. These aspects of pokie venue operation are decided by the Secretary of Internal Affairs, when issuing or renewing a Class 4 venue licence, and there is no process for the community or a local authority to challenge those decisions, other than applying to the High Court for a judicial review.

However, most pokie venues have an alcohol on-licence, often a “Tavern” licence, issued under the Sale and Supply of Alcohol Act. It is a requirement of a Tavern licence that the premises must be used, or intended to be used, principally for providing alcohol and other refreshments to the public. In effect, a tavern may lose its alcohol licence if it is used principally for gambling. And if a tavern loses its alcohol licence, then it changes or ‘primary activity’, for the purposes of the Gambling Act and must lose its Class 4 venue licence.

Alcohol licencing decisions are made by a District Licencing Committee (DLC), in a process that allows input from the public, the Police, and health authorities. Decisions of a DLC can be appealed to the Alcohol Regulatory and Licencing Authority (ARLA).

ARLA decisions are binding on DLCs, and in a recent decision (with regard to Rossco’s Café and Bar in Tauranga), ARLA declared that a DLC is required to have regard to the overall nature and use of the tavern premises for the purpose proposed by the applicant, and if the DLC is not satisfied the premises are used or intended to be used as a tavern, then the DLC may not issue a licence.

Overall, the alcohol licencing process is more accessible and transparent than the Class 4 venue licencing process. It gives communities more influence over licencing decisions, and it can be used to close Class 4 venues that are in breach of the law.

Current Status

As of June 2020, there were 26 Class 4 gambling venues in Rotorua district, with the venues licensed to contain 389 gambling machines. The Rotorua district ratio of persons per machine and spend per person is higher than the national ratio. In addition, there was one TAB Board Venue in the district.

In terms of the main social benefits, although sports, arts, conservation and other community organisations based in Rotorua are the recipients of grants related to the proceeds from gambling machines, determining the precise amount that is returned to the district by gaming machine societies is difficult to quantify.

In terms of the main social costs, the problem gambling statistics show that Rotorua has higher levels of problem gambling than nearby districts. In addition, Rotorua has a higher proportion of factors leading to

RDC-1060856 41 Strategy, Policy & Finance Committee Agenda ATTACHMENT 2 08 October 2020 greater gambling-related harm, such as people living in high deprivation neighbourhoods, a higher proportion of Māori residents and people on benefits.

From the information available, it is reasonable to conclude that there are ongoing social costs to Rotorua from gambling machines that outweigh the social benefits.

5. Response

The Gambling Act and Racing Act give territorial authorities certain limited powers to regulate the number and location of venues and gambling machines through Class 4 Gambling Venue and Board Venue policies. In terms of the number of gaming machines, essentially, territorial authorities can opt to have a ‘cap’ on the number of pokie machines in their district, apply a ‘sinking lid’ or provide for increases in the number of machines.

Rotorua Lakes Council (‘Council’) adopted a Policy in 2004, which has subsequently been reviewed and is currently titled the ‘Class IV Gambling and Board Venue Policy’ (2017) (‘Policy’).

The current Rotorua Policy:

 establishes a ‘cap’ of 350 on the number of gambling machines in the district;  sets the number of gambling machines allowed per venue at the statutory maximum of nine machines;  allows for relocation of venues, with some restrictions; and  establishes certain criteria and conditions about where gambling machine venues and TAB Venues may establish in the Central Business District, other commercial zones and other locations in the district. Although this Policy had the effect of significantly reducing the number of venues and gambling machines in its first five years of operation, the reductions have been far less in the last eight years. The number of venues and gambling machines has remained at around the same level since 2010. The number of gambling machines licensed is currently 389, which is still above the cap of 350 set in 2004. There have been no relocations from outside the Inner City into the Inner City since the last review.

In light of the overview above concerning the social costs of gambling in Rotorua, it is opportune for the Council to consider whether the current Policy might be adjusted to address further the social costs of gambling.

RDC-1060856 42 Strategy, Policy & Finance Committee Agenda Staff Report 08 October 2020

File No: 60-12-023 RDC-1055580

ROTORUA LAKES COUNCIL

Mayor Chairperson and Members STRATEGY, POLICY AND FINANCE COMMITTEE

6.2 Adoption of Draft Open Space Level of Service Policy for Public Consultation

Report prepared by: Stephanie Kelly, Recreation Planner Report reviewed by: Jocelyn Mikaere, Group Manager Operations Report approved by: Geoff Williams, Chief Executive

1. TE PŪTAKE PURPOSE

The purpose of this report is to present the proposed Open Spaces Policy, and to seek a Committee recommendation to Council for adoption of the Policy as a draft for public consultation.

2. HE TŪTOHUNGA RECOMMENDATION

1. That the report ‘Adoption of Draft Open Space Level of Service Policy for public consultation’ be received.

2. That the Committee recommends to Council the proposed Draft Open Space Level of Service Policy be adopted for public consultation pursuant to Section 82 of the Local Government Act 2002.

3. TE TĀHUHU BACKGROUND

Open Space can be defined as all land under the control of Council that is set apart for public recreation purpose inclusive of recreation reserves, freehold land, drainage reserve, esplanade strips and reserves, court, alley, cycle track and road reserves used for public recreation, excluding exclusive lease land.

Currently Council’s only level of service policy for the provision of open space is included in the Reserves Structures Policy which requires a playground to be located within a 500m catchment of at least 95% of residential properties within the urban area.

Due to limited growth and subsequently a minimal requirement to provide additional reserve land, this approach has been sufficient to inform decision making on requirements for new open space.

RDC-1060856 43 Strategy, Policy & Finance Committee Agenda Staff Report 08 October 2020

However with recent increases in development and growth projected to increase, there is a need for clear policy guidance on requirements for new open space across the District.

Council’s level of service for open space also drives the financial contribution funding approach therefore it is important that it has a strong rationale behind it. This can be achieved by reflecting the local situation and characteristics, aligning the level of service with strategic direction and clearly demonstrating the connection between growth and future provision.

The Rotorua District is fortunate in that we have a large amount of open space which provides a diverse range of experiences however the quality and accessibility of the open space network is variable. Having a robust framework for assessing open space requirements would enable Council to ensure that both the existing and future open space network is fit for purpose and provides value for the Rotorua community.

4. TE MATAPAKI ME NGĀ KŌWHIRINGA DISCUSSION AND OPTIONS

The proposed Open Space Policy has been developed using both qualitative and quantitate measures and will inform Council’s open space requirements for new development areas including informing Councils structure planning and locality planning processes. The proposed Policy will also provide guidance to assess the suitability of the existing open space network against the standards outlined in the policy to ensure the open space network is fit for purpose. In addition, the proposed Policy is intended to:  Provide clarity on what we want to achieve from our Open Space network  Provide certainty to Council, developers and the community on future provision  Ensure an integrated approach with walking, cycling, stormwater etc.  Provide the rationale for financial contributions  Provide the link between the purpose of the a reserve and how we maintain it  Ensure alignment with Council’s strategic direction including the Housing and Thriving Communities Strategy and Sport and Recreation Strategy

The proposed Policy identifies the following objectives for the open space network:  The open space network is accessible to all.  The open space network is connected.  The open space network is protected and enhanced.  The open space network is something that we are proud of.  The open space network delivers great outcomes in partnership with Te Arawa and our community.

The proposed Policy includes four levels of service standards which are designed to ensure that the community have good access to the open space network and the variety of open space experiences that it provides, and that the open space network is the outcome of good design and is highly valued by the community. The level of service standards for the open space network are:

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 Quality standards – what our open spaces should look and feel like,  Quantity standards – how much open space we should have,  Accessibility standards – how far people should travel to get to open space, and  Function standards – the range of experiences the open space network provides. The proposed Policy is vital to ensure that Council is able to effectively respond to growth in a way that provides certainty to Council, developers and the community on future provision and the outcomes we want to achieve from the Open Space network.

5. TE TINO AROMATAWAI ASSESSMENT OF SIGNIFICANCE

The decisions in this report are not considered significant in accordance with Council’s Significance Policy.

6. NGĀ KŌRERO O TE HAPORI ME TE WHAKATAIRANGA COMMUNITY INPUT/ENGAGEMENT AND PUBLICITY

Following adoption of the draft Open Space Policy by Council, public consultation will be undertaken pursuant to section 82 of the Local Government Act 2002.

Consideration of feedback and a final recommendation will be bought back to the Committee for consideration.

7. HE WHAIWHAKAARO CONSIDERATIONS

7.1 Mahere Pūtea Financial/budget considerations

There are no costs associated with the recommendations of this report. Any wider financial considerations associated with implementation of the Policy will be considered through Council’s Long Term Plan or Annual Plan processes or through alternative funding sources.

7.2 Kaupapa Here me ngā Hiraunga Whakariterite Policy and planning implications

The decisions in this report align with the Vision 2030 Goals of Outstanding Places to Play, a Resilient Community and Enhanced Environment.

The decisions in this report support the strategic outcomes identified in the Housing and Thriving Communities Strategy and the Sport and Recreation Strategy.

7.3 Tūraru Risks

This report is proposing to undertake public consultation on the proposed Policy which reflects a best practice approach to inform open space requirements. On this basis that the draft Policy is adopted and public consultation is undertaken there are no major risks associated with the decisions or matters in this report.

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7.4 Te Whaimana Authority

The Strategy, Policy and Finance Committee is delegated to make recommendations to Council on this matter.

8. NGĀ ĀPITIHANGA ATTACHMENTS

Attachment 1: Proposed Open Space Policy (Pages 46 – 59)

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OPEN SPACE LEVEL OF SERVICE POLICY (DRAFT)

Date Adopted Next Review Officer Responsible

TBD TBD Recreation and Open Spaces Manager

Purpose

To outline Council’s approach to the provision and development of the open space network. This will determine Council’s open space requirements for new development areas and guide assessment of the suitability of the existing open space network against standards outlined in the Policy.

Scope

The Policy applies to all Council controlled open space, including lands gifted that are subject to the Ngāti Whakaue Gifted Reserves Protocol Agreement. It is acknowledged that Council is one of a number of providers of open space in the district, and that there is a need to understand Council’s role within the broader context of the network. The Policy applies across the district however as 80% of the population are located within urban areas, the level of service standards are more applicable to these areas. The Policy identifies opportunities to acknowledge mana whenua and represent the importance of Te Arawa to this place through the planning and development of the open space network. Te Arawa iwi are tāngata whenua of the Rotorua district and Māori culture and heritage is a special characteristic and strength of this place.

Definitions

Open Space - Open space under the control of Council, set apart for public recreation purpose inclusive of recreation reserves, freehold land, drainage reserves, esplanade strips and reserves, court, alley, lakeside reserves, cycle track and road reserves used for public recreation, excluding exclusive leased land.

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Objectives

Council’s strategic direction including Vision 2030, Spatial Plan, Sport and Recreation Strategy, Open Space Strategy and Sustainable Living Strategy provide the context for determining the following objectives that apply to the open space network:

 The open space network is accessible to all. The open space network is accessible for all regardless of age, ability, socio-economic status. Our community do not have to walk far to experience open spaces.  The open space network is connected. Recreation, transport and ecological corridors are created. Communities are linked together.  The open space network is protected and enhanced. The open space network plays a significant role in contributing to the environmental values of our district. We look after what we have and add value wherever possible. We educate our community and visitors to the area on the importance of our open spaces, culture and natural environment.  The open space network is something that we are proud of. The open space network is highly valued by the community and is the outcome of good design and community involvement.  The open space network delivers great outcomes in partnership with Te Arawa and our community. Te Arawa principles and partnership is a fundamental part of how we plan and deliver our open space network. Open spaces are reflective of our culture and history.

General Policies

1.1 Level of Service Standards

The level of service for the open space network is determined by the following:  Quality standards - what our open spaces should look and feel like,  Quantity standards - how much open space we should have,  Accessibility standards - how far people should travel to get to open space, and  Function standards - the range of experiences the open space network provides. The standards are designed to ensure that the community have good access to the open space network and the variety of open space experiences that it provides while ensuring that the open space network is the outcome of good design and highly valued by the community.

1.2 Integrated Planning

Council takes an integrated approach to open space planning. This recognises that the open space network achieves multiple objectives of Council including recreation, conservation, amenity, transport, culture, sustainability, infrastructure, community development. Bringing together considerations such as walking and cycling network plans, stormwater management, environmental objectives, cultural values and aspirations, growth planning and neighbourhood reinvigoration projects will achieve better outcomes for our community.

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Level of Service Policies

2.1 Quality Standards

2.1.1 Purpose: Quality standards define what we want our open spaces to look and feel like. They refer to the features and characteristics of open space that impact on its ability to meet community social and recreational needs. They influence the way that open spaces are valued and used. While there is relatively good access to open space in many parts of the city and wider district, the quality is variable. In particular, low socio-economic areas tend to be associated with a lower quality of provision, which is often characterised by poor landscaping, utilitarian design, visible damage to plantings and park structures, and the presence of graffiti. The intention of the quality standards is to apply to all areas of the city and district. 2.1.2 Policy: The planning, provision, development and management of the open space network will be guided by the following quality standards.

Consideration Standards

Location of - Central and prominent to surrounding residential area. open space - Have good connections to the surrounding area and other destinations. - Maximise street frontage to create good visual surveillance and safety. - Topography and proportion compatible with the intended purpose. - Located at the intersection of movement corridors, near transport routes and where a high level of use is anticipated. - Located to protect and enhance cultural, environmental and heritage values. - Located to maximise the value of adjacent existing open spaces, also a wider consideration for a proposed development or structure planning process (for example, streets could be located to provide good street frontage to an existing reserve or further open space could be provided to increase the size and function of an existing reserve).

Development - All open spaces have a clear purpose and function (primary and secondary). of open space - Activities reflect needs of user groups and local communities. - Encourage sense of ownership over the space. - Apply universal design and flexibility to cater to changing demands. - Create visible activity nodes to encourage social interaction and safe environments. - Permeable fencing and avoidance of solid planting to encourage passive surveillance and improve safety of reserve users. - Understand cultural, heritage and natural values to create engaging and distinctive open spaces. - Contribution to environmental values including ecological corridors.

Maintenance - Aim to ensure maintenance standards reflect the purpose and function of the of open space open space to maintain quality open spaces in the future.

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The open space categories and provision metrics table provides further guidance on function, provision targets and indicative amenities for each type of open space. 2.1.3 Application:

The quality standards guide requirements for new areas of open space and are applied to the existing network to determine where improvements are required. For existing areas this could include the purchase of land to improve visibility and access into reserves. Divestment of land may be considered where there are limited options to improve quality or it is not practical from a cost/benefit point of view and an alternative area of land is available to better meet the quality standards. It is recognised that some types of open space such as stormwater gully systems, while potentially providing open space values through amenity, ecological corridors and walking/cycling connections, the nature of the land may limit the extent to which the quality standards can be achieved. Reserve Management Planning and Neighbourhood Reinvigoration processes will be used to help apply the quality standards, and engage with the community on their expectations with regard to their local reserves. Application of quality standards can be achieved through community design processes to encourage ownership and pride in the open space network and through partnerships with Tangata Whenua to reflect cultural values and activities. A Best Practice Guide for Open Space will be developed to provide further guidance on expectations of these standards including illustrated examples to highlight good practice (and what not to do). Implementation is subject to Council’s Long Term Plan and Annual Plan processes.

2.2 Quantity Standards

2.2.1 Purpose: Quantity standards determine how much open space is required. Through application of these standards, there is likely to be an increase in the quantity of open space available as an outcome of growth and other opportunities. 2.2.2 Policy: The level of service is primarily driven by standards for the accessibility, quality and function of the open space network. In order to meet these standards, new open space may be required in both existing residential areas and new development areas. This will increase the amount of open space available to the community. Council may also acquire (or receive) land for open space purposes through the following:

 Responding to strategic opportunities that achieve wider Council/community objectives.  District Plan esplanade reserve provisions. Acquisition can be through vesting of land, purchase of land or a works in lieu agreement with a developer or other organisation. The requirement to provide on-site open space as part of a development may be considered in planning for areas of higher density. This will be considered through the District Plan review process. Areas of medium to high density increase reliance on the open space network as this often fulfills the role of their own backyard, and provides amenity in a built-up environment. An evaluation will be undertaken to determine the open space available, the quality of these spaces, and the function that they provide. Consideration will be given to community perceptions about their open space

RDC-1060856 50 Strategy, Policy & Finance Committee Agenda Attachment 1 08 October 2020 environment. Strengths and weaknesses will be identified and consideration will be given to a range of options available to address identified issues. These options could include:

 improving the quality of open spaces (this is a critical component of attractive and liveable high density urban areas)  improving the function of open spaces  improving connections between open spaces (using streets, accessways, cycle ways etc)  improving the amenity values of the open space network  provision of additional areas of open space such as pocket parks  enhancement of streetscape to provide amenity and recreational opportunities  recognition of open spaces provided by schools, churches, marae and other organisations  consideration of provision of on-site open space  contribution of town centres and civic spaces Council will measure the amount of open space using a population-based ratio, in other words the actual number of hectares of open space provided for every thousand people. This will only be used to identify how much open space is available based on actual provision, and how this changes over time. The ha/1000 ratio is a common way of comparing provision against other Councils. It will not be used to determine the quantity of open space required in the district as this is primarily driven by standards for the accessibility, quality and function of the open space network.

The open space categories and provision metrics table provides further guidance on function, provision targets and indicative amenities for each type of open space. 2.2.3 Application: Implementation is subject to Council’s Long Term Plan and Annual Plan processes.

2.3 Accessibility Standards

2.3.1 Purpose: Accessibility standards primarily determine how far people should have to travel to get to the open space network, in other words, physical accessibility. The policy also seeks to ensure that as far as practicable, the open space network is developed in a way that everyone is able to access it regardless of their age, ability or location. 2.3.2 Policy: The aim is to ensure everyone has reasonable access to the open space network and the variety of experiences it provides. A no exclusions aspiration is in place so that accessibility is achieved regardless of age, ability or location. Accessibility to places that support cultural values and activities of importance to Tangata Whenua is a key consideration. The base level of service for accessibility is that the majority (90%) of residents located in urban areas are able to walk 10-15 minutes (or 500 metres) to a neighbourhood park or the equivalent function of a neighbourhood park provided on a different type of reserve, for example a sportspark. Urban areas are defined by the District Plan zones of Residential (1-5), Future Residential, City Centre (1-3) and Rural Village. The role of other providers such as Schools and Marae can be considered as a way to achieve this standard although it needs to be recognised that this does not necessarily provide security of long-

RDC-1060856 51 Strategy, Policy & Finance Committee Agenda Attachment 1 08 October 2020 term access. It some situations it may be appropriate to enter into a community share partnership with the provider to provide and promote community access. Walking distance will be measured as an actual distance, not as the crow flies to take into account the street network and physical barriers such as railways and main highways. Connectivity of the network is an important consideration as this provides easier access to areas of open space. As the size and function of open spaces increases, the greater the distance that people will have to travel (walk, cycle, public transport or drive) to them. If it is considered impractical to achieve accessibility standards because of the nature of the built environment or the cost/benefit involved in doing this (eg purchasing a number of residential properties), then the priority will be on increasing accessibility, visibility and quality of the nearest reserve(s). The open space categories and provision metrics table provides further guidance on function, provision targets and indicative amenities for each type of open space. 2.3.3 Application: Open Space Network Plans will be developed to map the 500 metre radius (ideally based on actual travel distance as opposed to as the crow flies) and identify gaps in provision. This will take into account future development areas. Implementation is subject to Council’s Long Term Plan and Annual Plan processes.

2.4 Function Standards

2.4.1 Purpose: Function standards determine the diversity of experiences our community and visitors should expect from our open space network. 2.4.2 Policy: The aim of the function standards is to ensure a variety of open space and recreational experiences are provided from the open space network, and provide a balance between small neighbourhood parks and larger premier parks. The open space network will be categorised in accordance with Council’s open space categories. Each space will have a clear primary (and secondary) purpose and function. This will guide the ongoing development and management approach to each reserve. It is recognised that some reserves have a higher level of service approach as they experience high levels of use at certain times of the year due to the purpose and function of the reserve (eg Lakeside Reserves). The open space categories and provision metrics table provides further guidance on function, provision targets and indicative amenities for each type of open space. 2.4.3 Application: Reserve Management Planning and Neighbourhood Reinvigoration processes will be used to help apply the function standards, and engage with the community on their expectations with regard to their local reserves. Implementation is subject to Council’s Long Term Plan and Annual Plan processes.

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Landuse and Development

It is recognised that geographic areas of the district have different characteristics, communities, landuse, development patterns and levels of existing open space provision. Therefore, it is not practical to have one consistent standard across the district. The table below provides guidance on considerations when applying the level of service standards to different areas across the district.

Landuse Type Considerations and areas of focus

Rural It is often assumed that because the rural environment is characterised by open landscapes and views and the feeling of openness, that public open space is not needed, however open space is essential in contributing to the rural sense of place and community. This is especially so for sport and recreation parks and community parks that are often the centre or hub of rural settlements. It is important that these parks meet quality, accessibility and function standards.

The rural environment is also popular for recreation uses, such as walking, horse- riding, farm-stays, photography, sightseeing and off-road vehicle use (4-wheel drive vehicles and mountain bikes). The Department of Conservation manages a significant amount of the remaining natural areas found in rural environments.

Rural Residential Council is starting to see a growing number of rural residential subdivisions. As these areas are predominately located close to a small town or urban area, it is important that connections are provided to any commercial, community or recreational destinations nearby.

The larger lots provided by rural residential subdivisions do not necessitate the need for a neighbourhood or community park as they have larger sections that provide for play and amenity. However, the protection of significant cultural, heritage or environment features and connections to walking and cycling networks are important considerations in rural residential developments. Where the subdivision is of a significant scale (eg over 100 lots), consideration may be given to provision of local neighbourhood or community parks.

It is also important that the wider cumulative impact of rural residential developments on high use areas such as premier parks, lakeside reserves and outdoor adventure areas across the district is recognised.

Urban – existing Focus is on optimising the open space network through:

- Improving linkages and connections (including with new developments). - Improving quality. - Identify clear purpose and function for all areas. - Achieve 500m accessibility for neighbourhood parks. - Partnership and integrated approach.

Focus on high deprivation areas recognising role that open space planning and development can play in strengthening communities. Use neighbourhood reinvigoration projects to start to achieve standards.

It is also important that the wider cumulative impact of infill development on high use areas such as premier parks, lakeside reserves and outdoor adventure areas across the district is recognised.

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Landuse Type Considerations and areas of focus

Urban – new Focus on local neighbourhood reserve provision and walking and cycling, protection of natural areas, dual role of stormwater reserves.

Focus on integrating with stormwater, transport, schools and community facilities, and connecting into existing neighbourhoods.

It is also important that the wider cumulative impact of new growth areas on high use areas such as premier parks, lakeside reserves and outdoor adventure areas across the district is recognised.

Urban – medium to Focus is on a range of methods of provide open space network outcomes: high density - Improving quality of open spaces. - Improving function of open spaces. - Improving connections using streets and accessways. - Provision of additional open space. - Enhancement of streetscape. - Role of open space provided by other organisations. - Role of civic spaces. - Potential for provision of onsite communal open spaces.

It is also important that the wider cumulative impact of higher density living on high use areas such as premier parks, lakeside reserves and outdoor adventure areas across the district is recognised.

Acquisition, Divestment, Funding and Implementation

This policy assists with identifying open space requirements and the investment needed to both respond to growth and ensure the existing network is achieving good outcomes. The Ngāti Whakaue Gifted Reserves Protocol Agreement applies to decisions made under this policy. Under this agreement it is understood that if such reserves should not be used for their original purpose then they should be returned to Pukeroa Oruawhata Trust on behalf of Ngati Whakaue, unless there is agreement otherwise. Council will only consider disposal of open space land when it is clearly established that the land is surplus, and disposal would result in a clear benefit to the wider open space network and the open space needs of Rotorua residents. Any proposed disposal of land will follow relevant Council and legislative process including the Ngāti Whakaue Gifted Reserves Protocol Agreement, Reserves Act 1977 and Local Government Act 2002. Council seeks to recover the costs of open space provision and development associated with growth. This primarily occurs through financial contribution charges in accordance with the Rotorua District Plan. Financial contributions are used to achieve positive effects on the environment as the result of growth. As more land is developed, the density of housing may increase and more pressure is placed on existing reserves. New reserves may also be required to provide for the higher demand for recreational space in the district and increased amenity. Council will consider the potential for vesting of land for reserves (and potential development of the land) subject to agreement on the land meeting the requirements of this policy. The type of land that could be vested in Council in lieu of financial contributions could include:

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 A relatively flat area of land for a neighbourhood park, accessible to the user population and adequate to accommodate children’s play equipment, tree plantings and open space.  A linkage, or potential linkage, along or to significant natural features, or between other areas of public open space and community facilities (excludes linkages between roads).  Land for the protection or enhancement of significant mature trees, significant areas of indigenous vegetation, indigenous wildlife habitat, margins of waterways, biodiversity, natural and cultural landscapes heritage places and buildings, or other significant natural features.  Land for the protection or enhancement of historic or cultural features of significance to the population of the district. In all respects, the Council will retain the right to decide on the appropriate level of money and/or land contribution in accordance with this Policy and the Rotorua District Plan financial contribution requirements.

In order to give effect to the Policy it is likely to be implemented in a variety of ways:  Used by staff and developers to guide open space requirements for new developments.  Used as a basis for the collection and use of financial contributions.  Applied to the existing open space network to determine alignment.  Development of an open space network plan (that also considers acquisition, rationalisation, divestment opportunities).  Input into development of spatial plans and structure plans (eg Pukehangi).  The above information to help inform Long Term Plan capital programmes.  Development of appropriate performance measures.  Open space assessment for large development proposals (eg Brent Block 179 lots).  Set levels of service for incorporation into Asset Management Plans. Implementation is subject to Council’s Long Term Plan and Annual Plan processes.

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Relevant Legislation, Bylaws and Policies

Policies

1.4 Property Disposal Policy

This policy provides a consistent approach when considering the disposal of Council-owned properties, provides a complete and robust process to clearly identify properties that may be considered for disposal and seeks to manages Council’s risk and legal requirements in this regard.

5.2 Administration of Reserves Policy

This policy covers reserve management plans, easements and private access to reserves, and esplanade reserves.

5.7 Reserves Structures Policy

This policy covers the provision of playgrounds. The policy requires playgrounds that cater for pre- schoolers and children are to be located so that access and potential use within a catchment radius of approximately 500m is maximised. Exceptions to this will be when playgrounds are located within lakeside, rural and inner-city reserves that have high visitor numbers, but insignificant local residential users within 500m. Playgrounds that cater for young people are to be located within suburban or rural communities so that access and potential use within that suburb or community is maximised. Playgrounds are to be sited on reserves (or other land) according to the following principles:

 High visibility for safety and awareness and to deter vandalism.  Safe and convenient access to roads, pathways, rights of way.  Account to be taken of the presence of natural hazards and barriers to use.  If possible, sufficient open space should be left around the playground for other activities, and to provide a buffer to residential housing.  The area is to be well drained.  To take advantage of the best features of the location.  Following accepted methods of consultation with neighbouring residents and businesses. If located on land that does not belong to Council, then a legal agreement protecting public rights to use the area must be executed

5.8 Sports Grounds and Facilities Policy

The overall aim of this policy is to ensure a consistent approach is undertaken with regard to the management, development and maintenance of sportsgrounds and associated facilities.

Rotorua District Plan

The District Plan identifies esplanade reserves required for access and ecological values with priority areas identified.

All designated reserves are scheduled in the District Plan.

The District Plan outlines requirements for reserve zoned land and financial contribution requirements for reserves.

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Reserves Act 1977

Providing, for the preservation and management for the benefit and enjoyment of the public, areas of New Zealand possessing values including recreational use or potential, whether active or passive; or natural, scenic, historic, cultural, archaeological, biological, geological, scientific, educational, community, or other special features or value.

RDC-1060856 57 Strategy, Policy & Finance Committee Agenda ATTACHMENT 1 8 October 2020 Open Space categories and provision metrics guideline

Type Function Examples Indicative amenities Provision metrics

Neighbourhood Parks Provides basic informal Scott Ave Reserve - Playgrounds Ideal size of 3000m2. recreation and social - Landscaping Urban - Located within 500m or 10-15-minute walk of opportunities with a short walk - Seats 90% of residences in urban areas. of surrounding residential - Small grassed play space Rural and rural residential – No requirement. properties. - Pathway connections

Pocket Parks Small scale parks usually - Landscaping Usually less than 1000m2 in size. provided in high density living - Seats areas and/or within Provided in high density living areas and commercial commercial areas to provide areas. amenity relief from the built environment.

Community Parks Provides a variety of informal Linton Park - Playgrounds Minimum size of 1ha. recreation and social - Landscaping Urban – TBD after application of standards. experiences from residents - Seats Rural – Village green for small rural towns and villages. across a suburb. Activities - Large grassed play space Rural residential – No requirement. include family gatherings, small - Pathway connections community events and - BBQ and picnic areas informal games of sport. - Cycle stands - Carparking Also provides a neighbourhood - Possible sportsfields park function to surrounding residents.

Sport and Recreation Network of reserves with Westbrook Park - Sportsfields Provision and development determined by supply and Parks primary purpose to provide for - Clubrooms demand for winter sports fields. Options for organised sport and recreation - Public toilets and changing responding to under supply include: activities. Also used for events rooms. - Code reallocation and tournaments (sport and - Cycle stands - Artificial surfaces non-sport). - Carparking - New sportsfields Also provides a neighbourhood - Playgrounds - Irrigation and drainage improvements and community park function - Pathway connections - Floodlights to surrounding residents. - Hard courts 57

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Type Function Examples Indicative amenities Provision metrics

- Other play opportunities such as skateparks.

Premier Parks (also Showcase the best that the city Government Gardens - Specialised facilities No quantity guidance. Tend to be outcome of called Destination and district has to offer, - High standards of landscaping historical provision or natural/cultural features. Reserves) providing a unique experience and amenity. Existing areas identified as premier parks and focus on for the community and visitors - Large events space. quality, function and accessibility improvements. to the area. Offer a range of - Public artworks Ensure maintenance level of service reflects primary experiences and typically - Highly structured and purpose and function, and extent of use. provide for a large number of developed spaces. visitors. - Walking and cycling connections. Also provides a neighbourhood - Destination playgrounds. and community park function - Water access to surrounding residents. - Viewpoints - Distinctive natural, heritage or cultural features. - Public gardens - Signage/interpretation

Lakeside Reserves Many of Rotorua’s lakes are Hannahs Bay Reserve - Boat ramps and lake access No quantity guidance. Tend to be outcome of destinations for locals and points. historical provision. tourists particularly during - Picnic/BBQ areas Existing areas identified as Lakeside Reserves and summer months. For visitors - Carparking focus on quality, function and accessibility to experience the lake - Landscaping and amenity. improvements. Ensure maintenance level of service environment, these reserves - Public toilets reflects primary purpose and function, and extent of focus on providing maximum - Events space use. enjoyment and - Playgrounds/nature play access/interaction with the - Walking/shared paths water. - Signage/interpretation

Also provides a neighbourhood and community park function to surrounding residents.

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Type Function Examples Indicative amenities Provision metrics

Cultural/Historic Many cultural/historic reserves Reserve development should No quantity guidance. Tend to be outcome of Reserves are in Maori ownership. reflect tangata whenua historical provision or protection of significant sites as Accessibility and connectivity aspirations for the reserve. part of a development process or where creating a of these reserves is important. reserve enables a site to be protected.

Recreation and Provides contiguous networks Waitete Stream - Walkways No quantity guidance. Focus on connecting existing Ecological Linkages of open space that establish Esplanade Reserve - Trails areas of open space. Establish district wide plan with recreational, walking and - Cycleways network aspirations within and around urban areas cycling and ecological - Landscaping (lakes, caldera, Green Corridor, Te Ara Ahi) and rural connections, integrated with - Seating areas connections. Identify District Plan priority esplanade on-street connections and - Boardwalks reserves and connections to/from these. stormwater networks. Often - Native bush provide access to the water - Signage Influence of topography – connections usually guided (lakes, rivers, streams etc). by gullies, streams, stormwater, escarpments requirements. Use of the road network (formed and unformed), waterways and rural areas to provide greater opportunities for community recreation activities and environmental benefit.

Recognise limitations with applying some of the quality standards.

Outdoor Adventure Large outdoor activity areas, Tokorangi and - Cycle trails No quantity guidance. Significantly adds to the mainly covered in forest. Used Whakarewarewa - Walking trails diversity of experiences available within the district. for range of activities including forests (The - Visitor centres Popular with the local community and with visitors mountain biking, nature Redwoods). - Specialised facilities and tourism. walking and associated - Outdoor adventure activities commercial tourism activities. - High profile events - Signage/interpretation Note over time, these categories will be applied to other relevant planning processes for consistency such as reserve management plans, asset management plans and the Rotorua District Plan.

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7 Resolution To Go Into Public Excluded - Ka Matatapu Te Whakataunga I Te Tūmatanga (to consider and adopt confidential items)

General subject of each matter to be Reason for passing this Ground(s) under considered resolution in relation to each Section 48(1) for matter passing of this resolution CONFIDENTIAL MINUTES of previous Please refer to the relevant Good reason for meeting held 10 September 2020 clause/s in the open meeting withholding exists minutes. under Section 48(1)(a). ECONOMIC RECOVERY PROJECT 1 Protect information where the Section 48(1)(a) making available of the Section 7(2)(b)(ii) information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.