GDC opts for quick commercial operations transfer

Most transfers are straightforward but some were complicated and the process would be subject to public consultation.

Most transfers are straightforward but some were complicated and the process would be subject to public consultation.

GISBORNE District Council has opted for a shorter timeframe to proceed with the transfer of its commercial operations to its fully-owned subsidiary Gisborne Holdings Ltd, which has already taken ownership of the new administration building.

The council was presented with two options from operations group manager Barry Vryenhoek for the transfer of commercial operations.

It has opted for the shorter time frame which will require an amendment as part of the 2016/17 long-term plan process.

The alternative, which the council rejected, was to allow for a longer timeframe that would consider the election year restrictions, which mean no key decisions can be made between September 29 and December 1. Next year is an election year.

Chief executive Judy Campbell said there was a big period during which the outgoing council could not bind the incoming one.

It was a case of either racing through to June or the council was really talking 2017. The council had a fairly heavy workload — this was annual report and annual plan time and the finance and planning teams were deeply involved.
Brian Wilson said the council had seen many papers before showing how costs had been cut from the operation and operating costs were kept down.

A need to increase income

But the next stage was that they had to increase income and there was no other way of doing it. GHL having the administration building was not going to add anything to it at this stage.

“We need to put some of the commercial operations in there. I believe we should do it soon to get the benefit straight away,” he said.

The council knew what commercial operations were proposed and he was pretty sure that everyone was reasonably comfortable with GHL taking them over.

“I believe it is up to us to give the benefit to the ratepayer and get that extra income in as soon as we can,” he said.
Larry Foster said it was something of an “underhand pass” to give GHL the building without extra income from the other operations.

They had agreed to give all the operations over to GHL. To give them only half was like walking around “with your pants half down”.

Mayor Meng Foon said he could remember at least six annual plans at which submitters had come and asked why the council owned these operations when other entities could do better commercially.

The council was constrained politically. The big example was the port, which was now making $5 million a year.
Judy Campbell said this was better than the port because the council did not have to sell the assets.

While some transfers were straightforward, there were a couple that were more complicated and this process would be subject to public consultation.

GISBORNE District Council has opted for a shorter timeframe to proceed with the transfer of its commercial operations to its fully-owned subsidiary Gisborne Holdings Ltd, which has already taken ownership of the new administration building.

The council was presented with two options from operations group manager Barry Vryenhoek for the transfer of commercial operations.

It has opted for the shorter time frame which will require an amendment as part of the 2016/17 long-term plan process.

The alternative, which the council rejected, was to allow for a longer timeframe that would consider the election year restrictions, which mean no key decisions can be made between September 29 and December 1. Next year is an election year.

Chief executive Judy Campbell said there was a big period during which the outgoing council could not bind the incoming one.

It was a case of either racing through to June or the council was really talking 2017. The council had a fairly heavy workload — this was annual report and annual plan time and the finance and planning teams were deeply involved.
Brian Wilson said the council had seen many papers before showing how costs had been cut from the operation and operating costs were kept down.

A need to increase income

But the next stage was that they had to increase income and there was no other way of doing it. GHL having the administration building was not going to add anything to it at this stage.

“We need to put some of the commercial operations in there. I believe we should do it soon to get the benefit straight away,” he said.

The council knew what commercial operations were proposed and he was pretty sure that everyone was reasonably comfortable with GHL taking them over.

“I believe it is up to us to give the benefit to the ratepayer and get that extra income in as soon as we can,” he said.
Larry Foster said it was something of an “underhand pass” to give GHL the building without extra income from the other operations.

They had agreed to give all the operations over to GHL. To give them only half was like walking around “with your pants half down”.

Mayor Meng Foon said he could remember at least six annual plans at which submitters had come and asked why the council owned these operations when other entities could do better commercially.

The council was constrained politically. The big example was the port, which was now making $5 million a year.
Judy Campbell said this was better than the port because the council did not have to sell the assets.

While some transfers were straightforward, there were a couple that were more complicated and this process would be subject to public consultation.

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