Don’t compromise TFL success

Opinion

AS a supporter of “keep our Tauwhareparae Farms”, I am somewhat dismayed at how the council voted to grow a new commercial company with the farms as a key element.

This holding company will include Tauwhareparae Farms as its base asset and ultimately a whole lot of low-return commercial businesses that the council currently owns, including a new council building which the council will lease from the expanded holding company.

GDC secures a substantial dividend each year from the Tauwhareparae Farms and expects the commercial company to pay a return of up to 10 percent of the council’s income requirements in a few years’ time, up from 2 percent now. This seems rather hard going.

I do hope the board of TFL can succeed in this new venture. The directors have all done an excellent job in developing the farms and growing an income for the ratepayers since GDC took back the day-to-day running of the farms around 2001. I salute all the directors for their time commitment over the past 15 years, they deserve any remuneration paid to them.

TFL is a success story, it is the ratepayer’s farm and we should all be proud of it and those who work there. It was given to the district by an Act of Parliament in 1884 to provide an income and support the Gisborne Port in the absence of a roading network in those early years.

Phillip Whyte’s book “Gisborne battle for a harbour”, available from the Gisborne library, is a good read for those interested in the history of both the farms and the port. The farms are now making a handsome profit.

The question is why do we need to grow a new company? So the council can divest itself of other low-return assets, or to build a new council building? The easiest answer seems to me would be to ask TFL to borrow $5 million to $7m and for GDC to build its own building. That would not be a big deal, most farmers have to borrow money from the banks for development or seasonal finance. Most have an overdraft facility and pay money back to the bank as income allows.

Or GDC could take a loan itself and pay the loan off with the annual dividend of $1m — likely to be more in future years — that the council receives from TFL. The council then completely owns and controls the building and the building process.

The equations are real and not convoluted as they are with these additions to the holding company.

One councillor stated “one had to be bold when voting for the decision”. It’s not about being brave or bold, it’s about common sense, it is about doing your homework, seek advice and listen to both sides of the discussion, understand governance; you are representing the ratepayer and governing our assets.

When the councillors of the day decided to keep Tauwhareparae Farms and sell the port it was a good decision. We have a very successful port and farm, and neither dependent on ratepayer dollars.

The farming directors need to be aware the rotation of their term, a mere two years. Right now there needs to be a clause added to the constitution of the holding company that “two seats always be reserved for directors with livestock farming experience”.

This is my opinion from my own experience. I could not write before the council decision to grow the holding company by adding the municipal buildings. As the husband of councillor Pat Seymour, I could have compromised her position and potentially denied her the right to vote.