Energy trust quizzed on pay and terms of board members

Members of the Rotorua Energy Charitable Trust board have been questioned over their pay and the maximum time they should serve.

A full room at the trust's Eruera St office yesterday for its annual meeting heard $3million was given through 343 community grants and scholarships in the past year.

The trust's income was $12.2 million, a decrease on its $14.7 million income last financial year, reflecting the reduction in investment returns to 9.6 per cent from 2014's 12.4 per cent.

The net surplus also decreased to $9.8 million this financial year from $12.2 million in 2014.

Trust chairman Grahame Hall said despite the decreased surplus the trust had a very successful year.

"Most important for us this year was the fact that we were able to maintain our reserve target of $131.8 million, which we were able to achieve last year for the first time since the global financial crisis.

"Meeting and maintaining this reserve has given trustees the ability to increase the level of grants to the Rotorua district community, which we did by nearly $1 million this year," Mr Hall said.

During public question time, Rotorua barrister Jonathan Temm asked why there was no maximum term for trustees.

"This trust is the only community trust in New Zealand not subject to a maximum term. What is the trustee proposal now on maximum terms?" Mr Temm said.

Mr Hall said an independent survey was conducted last year by APR Consultants.

"We did a survey and it came out at 51 per cent, and we felt it wasn't a significant amount of a majority to warrant a change to trustees," Mr Hall said.

A resolution was passed to raise the trust chairman's pay from $37,017 to $37,054 and that of other trustees from $20,917 to $20,928.

This was also questioned by Mr Temm, who said the Tauranga trust was responsible for $790 million and its chairperson was paid $28,000.

"You can't compare one with the other. Remuneration set is well below what it is entitled to," Mr Hall said.

Deputy chairwoman Jo-Anne La Grouw, said Mr Hall worked a minimum of 20 hours a week for the trust and he "earnt every dollar".

Community groups and organisations that received grants and scholarships included local not-for-profits, health and disability support services, and community and education providers, as well as groups protecting Rotorua's environment, unique heritage and history. Over the past 20 years, $93.6 million in grants and scholarships had been awarded.

Rotorua Trust 2015
Income $12.2m (down from $14.7m)
Surplus $9.8m (down from $12.2m)
Grants made: 343, totalling $3m

What do you think?
Email editor@dailypost.co.nz, write a letter to PO Box 1442, Rotorua or text OP (message) to 021 242 4568.