The cyclone, the $40,000 grants, and the mysterious people deciding who gets them

Maik Beekmans' Eskdale property was one of the worst-hit locations during Cyclone Gabrielle.

The Hawke’s Bay Chamber of Commerce is backing its processes for assessing applicants of the Government’s Cyclone Recovery Grant for businesses as “very robust”.

The Chamber has received and processed 1738 applications and approved 945 grants in Hawke’s Bay so far.

But some of the region’s hardest-hit businesses are questioning the Chambers’ decisions and processes, arguing a formal inquiry and audit will eventually be needed.

Maik Beekmans’ Eskdale property and business were steamrolled by Cyclone Gabrielle, the water and silt taking out his house, orchard, bespoke trucks and sheds, and causing millions of dollars in damage.

After his grant application was originally declined, he was eventually granted $15,000 (a sum Beekmans has subsequently appealed), less than half of the $40,000 maximum.

Further up the coast, Waipatiki Holiday Park owners Shane and Fay Ashforth previously told Hawke’s Bay Today they were at a loss to understand why - as a community-owned asset - their holiday park had been turned down for a grant and they’d largely been left to rebuild the facility on their own.

The Chamber eventually granted the pair $25,000 after a review was undertaken.

Dan Gale of Eskdale Holiday Park, another business destroyed by Esk Valley flooding, said he shared Beekmans’ concerns and would support an inquiry.

Gale said he was now on the benefit and working full-time during the week to support his family while rebuilding the business over the weekends.

After applying, the Chamber told him that his business didn’t qualify for the maximum $40,000 grant and he was offered $8000.

After contesting, he received $25,000, which he has also now challenged.

“We need the $40,000 so we can actually afford the time to work on our business and still pay ourselves a meagre wage.”

Beekmans said many businesses were getting caught out by what he said were “questionable” decisions by the Chamber.

He said the Chamber was not being transparent with its decision-making and it was not clear who the identities of the people making the decisions were.

“I don’t think we are holier or more entitled than the next person, but on a level playing field, we shouldn’t be having this conversation.

“The method or criteria used is disproportionally affecting companies like ours.”

Beekmans said Esk Valley businesses were watching those who had no visible damage from the cyclone getting bigger grants than those who had lost everything.

Beekmans said the Ministry of Business, Innovation and Employment (MBIE) should have overseen the process themselves in the first place.

“That’s a very big Government department with a lot of people and resources. They can tap into IRD and MSD to get a much clearer view of a business’s performance and therefore their eligibility.”

He said he wanted an inquiry and audit into the Chamber’s handling of the fund allocation and would continue to push for answers.

Dan and Ashlee Gale and daughters Alison, six, and Peyton, four, pictured with the Eskdale Caravan Park sign in Esk Valley, Napier. Photo / Warren Buckland

Hawke’s Bay Chamber of Commerce CEO Karla Lee said transparency was a challenge during the grant process, as individual cases involved “profit and loss statements” and were confidential by default.

She said they could also not disclose who was on the panel due to privacy reasons. Chamber chairman David Trim told Stuff they would not be participating in a “witch hunt” by revealing the names.

“They’re intelligent people, they’ve been chosen for a reason, they’ve been carefully interviewed and we have total faith in their ability,” he said.

“The thing is, when you give away money, people turn pretty ugly, don’t they?”

Lee said the reason some business applications had been declined by the Cyclone and Flood Response Fund was mostly due to them not meeting all of the criteria, but that it would make a significant effort to address any queries.

“If an applicant made a mistake on their application or didn’t explain their business impact clearly, the panel has reviewed these applications and then made another decision with this additional information.

“We appreciate many businesses have faced significant challenges, and while we need to operate within the guidelines and criteria set by Government, the intention to support businesses in Hawke’s Bay is the focus.”

The criticisms of the Chamber’s imbalanced funding were coming from people who had not seen the full applications and detail of the reasoning for decisions, with the difference between trading names and legal names on the public list adding to the confusion, she said.

“There is a lot more to each application than just the outcome of that decision ... it’s probably easier to judge with limited information.”

Lee said the Chamber and MBIE had a successful working relationship and it was confident in how the funding had been handled.

“There were seven regions that got funding, and out of those seven, MBIE came back to us very quickly and said, ‘You guys are stars. You’ve set up systems and your processes are very robust’.”

Lee said wanting to do the best for Hawke’s Bay businesses was at the heart of their process.

“While it has been very challenging, our intent has been to do the best for our business community, and we know our business community really well.”

Gale said he shared Beekmans’ frustrations over the imbalance of funds, looking at other businesses that were granted more that had no structural damage.

“I don’t think the Chamber are the correct people at all [to allocate the funds]. We don’t even know who the panel is.

“Until the applications had closed, lots of people didn’t even know about it because their lives had been turned upside down. I’ve got a mate that didn’t even apply because he didn’t really know, and there will be others.”

He believes the process should’ve been handled in a similar way to the Covid-19 business support schemes that the Government initiated.

“Covid was a drop in the ocean of hassle compared to what has happened to us now.”

Fay Ashforth stands by a two-metre-deep bank of silt at Waipatiki Camp. Photo / Warren Buckland

Portia McKenzie, director of regional development (North) at Kānoa, the regional economic development and investment unit at MBIE, said they have received “one request from a business owner to start an enquiry, which is currently being reviewed by Kānoa officials”.

“Due to privacy restrictions, MBIE cannot comment on specific applications, but please feel assured that the correct processes are being followed and MBIE fully supports the Chamber’s handling of the cyclone relief business grants process.”

She said MBIE applauded the work of the Hawke’s Bay Chamber of Commerce’s handling of the grants, and how it was able to stand them up in a very short timeframe in trying circumstances.

McKenzie also reinforced the notion Chamber staff had worked “exceptionally hard and have had to make many difficult decisions”.