LUCY CRAYMER
Body1: The public spoke, the council listened and decided not to sell its 34 percent share in Infracon.
Infracon Limited, the infrastructure construction company, was created in 2002 when CHB Works and Tararua Roading Limited merged.
The council had decided to sell its share to Tararua District Council as long
as public consultation supported the decision. The Long Term Council Community Plan stated although the council felt Infracon was a strategic asset it wanted to sell it, invest the money and obtain a higher return from other investments.
But yesterday the council took an about-turn after public submissions did not give them the expected mandate to go ahead with the sale. The council's decision not to sell its share will be confirmed by a formal resolution at a full council meeting on June 29.
The Central Hawke's Bay District Council chief executive, John Freeman, said earlier this year that both the Tararua District Council and Central Hawke's Bay District Council had announced the proposal for a change in the shareholding of the company.
"The minority shareholding currently owned by the Central Hawke's Bay District Council was to be offered for sale and the Holding Company for the Tararua District Council had agreed to acquire the shares, subject to conditions and ratepayers' approval via public consultation," he said.
Forty-seven percent of submitters had opposed the sale of the company. One of the opponents, Waipukurau resident Stephen Bradley, had argued that it was wrong to sell off assets for a quick fix.
"Infracon employs a lot of staff and if we lose these jobs and income we will be worse off ... The council also does not have a good record with having money in the bank and only using the interest."
