Cherie Gourlay is doubtful there will be any cash left over to pay other debts. Photo / John Stone
A string of people and businesses owed thousands of dollars by a Northland farmer have little hope they will be paid following the mortgagee auction of his farm.
The claims, including non payment of bills for grazing, farm machinery and rural contractors, are against Hikurangi swamp farmer Jack Ilich, his son Andrew and grandson Stefan.
The Ilich farm "Tanekaha" goes up for auction tomorrow, but those owed money have little hope they will be paid if the farm does sell.
Creditor Cherie Gourlay believes the money will first go to the bank and is doubtful there will be any cash left over to pay other debts. "I doubt we will be paid even if the farm does sell."
Bayleys are the real estate company marketing the property on Hukerenui Rd. It is being marketed as a 185 hectare farm which has been divided into about 54 paddocks, linked by an extensive race network system. It has three houses, including a spacious four-bedroom homestead with spectacular views.
A property valuation and sales report shows the farm sold in June, 2013, for $3,900,000. The rating valuation done in September 2012 was $3,955,000.
Marketing material says the farm has good water supply and Hikurangi swamp flood pump systems and, with significant stock bank upgrades, it was now ready to deal with any future abnormal storm events.
The Northern Advocate approached Jack Ilich, who has been farming on the swamp for more than 50 years, for comment about the debts owed. He said, that due to three floods last year, they had been put under financial strain but would not comment further.
His son Andrew Ilich, who lives in Auckland, was also asked for comment but declined and said he would respond via his lawyer. Neither Jack or Andrew Ilich had responded to phone calls by edition time.
In 2008, Jack Ilich told the Northern Advocate floods the year before put him $300,000 out of pocket but he was looking for a good season and would make back the loss plus a little more.
One of those owed money by Jack Ilich is widow Shirley Blackwell. Her husband and Parua Bay farmer Norman Blackwell passed away a year ago with a grazing bill of $28,595 still unpaid by Jack Ilich.
When Mr Blackwell became a tetraplegic in 1994, he could no longer work on the farm and decided to let it out for grazing. Mrs Blackwell would carry out the farm work, shifting and checking stock daily and it was their only source of income. In 2008, they took on a new grazer Jack Ilich and for three years the agreement and payments worked. But, in August 2011, a payment bounced and snowballed until the bill came to more than $28,000.
Daughter Cherie Gourlay has battled to get payment but doubts the debt will be paid if the Hikurangi farm sells.
"The common denominator most of the creditors have is the fact they originally felt sorry for Jack and his environmental issues on his farm. They all allowed him to extend his credit, thinking they were helping out a local farmer in tough times," Mrs Gourlay said.
"Little did they know many others were doing the exact same thing and he was simply taking advantage of their goodwill. They are destroying people's lives by not paying."
Another owed $20,418 for grazing is 81-year-old widow Gwen Murphy, of Glenbervie.
"I grew up in an era where farmers helped each other. If your neighbour needed help you helped them. I never considered some one wouldn't honour a deal."
Jack Ilich approached her about grazing stock on her property but then she dealt with Andrew after that. She has retained a number of the Ilich's cattle in the hope she may still be paid but, if not, she may consider selling them.
"I hoped I would have been paid ... I didn't wish animosity. We looked after the animals and if he paid what they owed for grazing they could take their stock. I don't want to get legal but he never did pay."
Whareora farmers Kerry and Sheryl Campbell said they had to go through the Disputes Tribunal to get nearly $9000 for unpaid grazing fees. He dealt with Jack and Stefan Ilich in November last year. After one payment, the money ceased. The tribunal allowed the couple to sell 10 of the Ilich's calves and take the money as payment.
"We had been without a regular income for four months. All out expenses had been added to our bank overdraft."