Consumers will retain hold of Unison Trust

Lines company Unison Networks' ownership will remain in consumer's hands, says Hawke's Bay Power Consumers' Trust chairman John Newland.

The trust holds ownership of Unison on behalf of Napier and Hastings consumers.

As part of an ownership review held every five years, Pricewaterhouse Coopers (PWC) presented a report on Unison and outlined ownership options to the trust.

The report said the current trust structure had served Unison Networks well, but because Unison had increased its borrowings, and the trust had no additional reserves of its own, Unison may have to forgo future opportunities.

It also said the election cycle may generate risk of instability.

A Unison directors' report to the trust said raising capital was not an issue, but agreed with PWC about the election cycle.

"The directors consider that the company has been, and continues to be, well served by the elected trustees over recent years but recognises the potential for significant change in the make-up of the trust following an election and the potential for a sea-change in the direction of the company as a result," it said.

The directors report said the current model worked well but recommended the trustees review the election process and consider increasing the number of trustees from five to six, lengthening trustees' terms from three to four years, staggering the election cycle so that no more than half of the trustee positions are subject to re-election at any one time, removing the limitations on the number of consecutive terms a trustee can serve and providing guidelines for the skills required of trustee candidates.

Public submissions gave "a strong call" for the existing ownership structure to be retained.

Mr Newland said the election cycle would be reviewed. "We did not consider that matter to be part of the review so are going to work through these suggestions at our August meeting."