Return assets, council tells FNHL

Big changes are looming for a council-owned holding company with millions of dollars in assets - but the Far North District Council is so far keeping mum on its plans.
Far North Holdings Ltd was set up in 1997 to operate a swag of council assets including airports, wharves, commercial buildings, a marina and boatyard, and even the council offices.
The company is supposed to make money for the council, reducing its dependence on rates.
But Mayor Wayne Brown has made no secret of his displeasure with FNHL, signalling even during his swearing-in at Mangonui last year, that the company would come in for special attention this term.
He wants a more commercial focus for the company and a bigger dividend paid to the council.
Now FNHL has been instructed to return assets to the council, including the council building in Kaikohe and its "community assets" - property which benefits the community but does not make a profit.
The three-year terms of the company's directors - Tony Norman, Ken Rintoul and Shane Lloydd - expire on April 14.
A letter from Mr Brown to the directors said a new board would be named in due course.
The council has commissioned a review of FNHL by accountancy firm Sumpter Baughen and has been heavily revising FNHL's statement of intent, which sets out the holding company's plans for the coming 12 months.
Discussions have so far taken place in the public-excluded sections of council meetings. The Advocate has requested the Sumpter Baughen report under the Official Information Act.
A council workshop discussing FNHL was held on February 10, with a report tabled at last week's council meeting.
Councillors resolved that FNHL should return the council's Kaikohe headquarters and all community assets as a one-off special dividend, on top of the $100,000 FNHL pays the council each month to catch up on past unpaid dividends.
At the workshop FNHL's directors questioned whether Mr Brown had the authority to "instruct the board in the manner that he had in recent times".
Mr Brown, however, said he had issued instructions only after council resolutions or with councillors' support.
He also said the council had no plans to leave its headquarters in Kaikohe, but would be unlikely to sign a new lease if FNHL retained the building. The current lease expires in mid-2011.
Mr Norman told the workshop FNHL had made a $718,000 profit in the last six months of 2010, more than the $600,000 budgeted. Ashby's Boatyard in Opua was one of the best performing assets.
Mr Norman also spelt out the non-income-returning assets the company was considering selling.