Council puts OBA on notice over $30,000 grant5 min read
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The Auckland Council has placed Business Onehunga on notice after a $30,000 grant was approved to an unregistered incorporated society intended to advocate against the proposed East West Link project.
The funding was approved for the East West Development Society (EWDS), a voluntary advocacy group formed to fight the proposed East West Link corridor. The chair of Business Onehunga, Mark Jorey, wrote and proposed the motion on the agenda.
Auckland Council officials say the decision raises concerns about compliance with BID policy requirements, which stipulate that the public money must be used to directly support the economic wellbeing of businesses within the BID boundary.
Acting Manager CCO Governance and External Partnerships, Claire Gomas, says the business association was advised not to proceed with the funding to an, as yet, unregistered incorporated society.
“The executive committee decision to allocate funds to an area outside of the future BID boundary map area, after 30th June, is of concern,” says Claire. “The current decision-making appears to provide benefit to an advocacy group outside the BID boundary area, funded through the society’s BID targeted rate grant funding.”
The council has concerns about whether this decision meets BID policy rules, which require that the money be spent to contribute to the economic prosperity of businesses in the BID area.
Claire says, “It is not clear how funding could be used by the EWDS to effect a plan or route for the East West Link, or how this would benefit BID businesses within the boundary.”
Another concern raised by the council is that the main beneficiaries may be outside the BID area from 1st July.
Mark says the corridor was still in the expanded BID area when the money was granted. However, Claire says, “the decision to spend BID funds on an initiative that will not benefit future BID members as the area will be reduced, was made by the current OBA Executive Committee Chair and members, despite Auckland Council’s advice.”
Business Onehunga is responsible for ensuring that public money received through BID funding is spent in accordance with the policy. Auckland Council must be satisfied with this spending, and have the ability to review and audit spending.
“We place the OBA on notice that if they resolve to proceed with the motion, the council may seek to review the OBA in line with the policy.”
Mark defended the decision, saying the EWDS has the experience, knowledge, resources, and networks to advocate for a better outcome for the East West Link proposal.
“Business Onehunga alone does not have the resources, and advocating for Onehunga is an investment, which, if successful, will benefit all members.”
At a recent committee meeting, three executive members did not vote on approving the grant due to conflict of interest as they were associated with the EWDS. Other members approved the funding, and requested the money be paid by 26th June, shortly before the BID boundary was reduced to only incorporate the town centre.
When asked what the funds could have been used on, Mark says “the association did not have any alternative requests for funding” and no other proposals were put forward.
However, during the Special General Meeting (SGM) in April 2025, the operating budget was slashed from $1 million to $410,000. This resulted in significant changes across the area.
Three nightly security patrols, previously conducted by a certified security company, were cancelled due to funding constraints. Security coverage is now largely reliant on a volunteer community patrol group, not affiliated to Business Onehunga. No patrols operate in the wider expanded area.
Due to safety concerns, Business Onehunga approached Auckland Council, which deployed compliance officers to patrol the town centre at night. These officers also assist with issues relating to rough sleeping, dumped rubbish, graffiti, and maintenance concerns.
During the daytime, a maintenance officer from Business Onehunga previously used a leased van to respond to issues across the wider area, but the vehicle had to be returned.
Business Onehunga reports issues directly to the council, and while some issues are addressed within five days, the council’s graffiti removal services do not repair chain stores or larger commercial outlets. As a result, the officer now walks to the site, carrying equipment to complete necessary repairs.
Funding for CCTV coverage was also significantly reduced, limiting the extent of surveillance across the area.
Some businesses are being affected by ongoing construction works, including the upgrades at the Grey Street and Onehunga Mall intersection. Business owners have questioned whether advocacy spending should be prioritised over helping struggling businesses.
One business owner, when informed about the grant payment, says: “Why do they want to spend money on a project that may not happen, instead of helping the businesses who are struggling now?”
Council oversight will continue and accountability reporting required. Manager of Business Onehunga, Victoria Puxty, will oversee compliance, and has the authority to request monthly financial and activity reports. If the funds are used outside the approved purpose, the OBA will seek the return of the funds.
*Just before going to print, the Maungakiekie-Tāmaki Local Board approved the BID targeted rate to drop to $350,000. The new BID area now incorporates 444 business ratepayers and property owners, instead of the previous 1,123.
