Councillor Rob Vinsen wins battle to reduce Holdings directors' fees

Councillor Rob Vinsen hit out at an increase in directors fees for Whanganui Holdings.

A last-minute crusade by councillor Rob Vinsen has slashed pay of incoming Whanganui Holdings Ltd directors by more than $100,000.

Whanganui District councillors met on Tuesday to appoint a new board to run the council-owned company after a restructure announced last year.

Whanganui Holdings Ltd runs Whanganui's ports and the council-owned Gasnet and New Zealand International Commercial Pilot Academy with subsidiary boards for each.

In August last year council set the budget for paying board members at $252,250, a 20 per cent increase, with the board deciding how that is distributed among members.

But under its Council Controlled Organisation governance manual this was increased to $355,000.

Mr Vinsen believed councillors "unwittingly" signed off the increase when approving the CCO manual later in the year and that it was "unjustified".

"I'm sorry, but that is unacceptable in the tight budget restrictions we are operating under."

He put forward a motion at the meeting to return to a maximum budget of $252,250 for directors fees, with a vote passed 6-7 by council.

Mr Vinsen, who was on the previous board, argued if a member was to get $30,000 a year (as suggested in the CCO manual) that worked out to more than $4000 per meeting.

"That's grossly excessive. It will not be tolerated by the public of Whanganui and neither should it be, and no councillor should tolerate it either."

But other councillors were quick to point out directors do far more than attend meetings.

Chief executive Kym Fell said it was about attracting a high calibre of applicants with expertise and who would be responsible for any liability caused by the company's activities.

He stood by the fees set out in the CCO manual.

"If you're paying peanuts for Holdings directors you're not going to attract the sort of calibre of director in my view."

Deputy mayor Jenny Duncan said council requested applications based on the increased budget and it would be inappropriate to backtrack.

"They are not paid directly from rates, they are paid from the profits of those particular activities.

"I'm very content with paying good people the appropriate remuneration for what is quite a risky job."

Helen Craig said paying directors well was an investment.

"Poor directorship, poor management can lose a heck of a lot more money than the cost of paying them."

But Mr Vinsen said it was "bunkum" that higher pay was needed to attract the right candidates.

"Personally I find that an insult to the people who have been on the board in the past, not including myself."

The discussion around board appointments was not open to public or media and the new directors will be announced by council in about 10 days after background checks are completed and agreements signed.