Boat ramp deal 'secures valuable asset'

Napier City Council has agreed to buy Hawke's Bay Sports Fishing Club's boat-launching ramp for $271,000 - a move councillors say secures a valuable asset for the city at a good price.

The purchase offer, agreed at a council meeting yesterday, will enable the club to pay off a burdensome debt, for which the council is guarantor.

The club has struggled financially for a number of years and approached the council last month with an offer to sell a third-share of the boat ramp - situated beside its Ahuriri clubrooms on council reserve land - for $400,000.

The council's $271,000 counter-proposal for the entire ramp - equal to the full outstanding value of the club's bank loan and overdraft - was discussed at a council committee meeting last week but could not be approved under standing orders because one councillor did not support it.

The same councillor, Annette Brosnan, was again alone in voting against the proposal yesterday but because the matter was addressed at a full council meeting it required a majority, not unanimous support, to be approved.

Deputy Mayor Faye White told the meeting the deal meant the council was taking ownership of the ramp for "a very reasonable amount", given it had been valued at $1.2 million.

The purchase would not be a burden on ratepayers because it would be funded through money set aside in the council's harbour board endowment land sale fund, which must be used for harbour and coastal development work.

"We do help many organisations with recreational and sporting facilities within our areas - all the codes across the city. Recreational fishing is something that is important to tourism cities and most cities do own the boat ramps," Mrs White said.

"While there is a perception that we've given a big handout and used ratepayer money for ill-gotten gains, we've actually just secured a valuable asset for our city."

Ms Brosnan said the decision was not about the value of clubs to the community, but simply on whether to make an early move to buy out the guarantee over the loan. "It is a bailout in a way. The fishing club is getting out of their debt on the back of ratepayers' money."

The council intends spending up to a further $75,000 installing barrier arms on the ramp to ensure users pay the required fee to launch boats. The club has previously said it has suffered financially because boaties have abused the existing "honesty system" for paying to use the ramp.

After the meeting club president Alex Smith said the decision meant a "new start" for the club. While the deal was much less than the club's initial offer "we have to [accept it]. We can't look back, we have to look forward."