Draft process flawed, says GHL chairman

Chairman of GHL says incorrect information did not help to build trust between the council and GHL.

Chairman of GHL says incorrect information did not help to build trust between the council and GHL.

LEAKED information and flawed process claims were made over the draft statement of intent for Gisborne Holdings Ltd when the district council’s performance, audit and risk committee met this week.

GHL chairman Bob Proudfoot made the claims and said the process in which the committee and the company were preparing a statement of intent was flawed.

“I think we are talking about a draft document here that has to be agreed on between GHL and the councillors,” said Mr Proudfoot. “It is very much a draft document.”

There were a lot of things that had happened with GHL in the past year and a lot that were anticipated to happen.

“I think it is just pot-stirring putting this stuff out into the public,” he said.

The draft should be prepared by the company and the council, and then all the information should be released to the public.

“I was very disappointed at the last meeting we had like this. It was put out as a private meeting between us and yourselves, and we were encouraged to be open and honest.”

Mr Proudfoot said shortly after that, information was “leaked from this room” and it was incorrect.

“Obviously the person who took the information did not understand what they were talking about. They got the wrong information altogether out there in the public.”

This did not help to build trust between the two parties (the council and GHL).

Three years in process

The assets being transferred to GHL were originally coming across in one draft. Now they were coming in three different parts. Three years had passed since the process began.

“We are supposed to be doing forecasts over a five-year period.” This was “almost as bad as trying to project what your income is going to be for a farm”.

Acting committee chairman Craig Bauld said he took Mr Proudfoot’s point.

“If we are arguing about bits and pieces here, that is really none of the business of the public until we have worked it out,” he said.

Pat Seymour said the purpose of the earlier workshop was to have an informal discussion around the table so they got these matters out. That workshop was taken up with a powerpoint presentation that took 90 percent of the time available.

Mr Bauld suggested that the public be excluded for half an hour to allow a free discussion. A motion to do so was carried.

When the committee returned to open meeting it approved a time line for the preparation of the statement of intent that would see its final adoption by the council at its meeting on June 30.

Later in the meeting GHL reported a net profit for the six months to December 31, 2015, of $2.3 million against a budget of $2.8 million. adverse variance against budget was mostly due to movement in the valuation of livestock on hand at Tauwhareparae Farms.

Tauwhareparae Farms had a strong six month period, recording a $2.2 million profit.

It was anticipated that at year end a net profit before tax of $1,375,000 would be made after provision for a 2016 subvention payment of $1 million to GDC. A distribution of $1 million (the 2015 subvention payment) would be made to GDC in May.

Total equity had improved by $6.3 million to $55.5 million and the total assets were $62.4 million, the same as June, 2015. This is the same equity ratio as at June 2015, 89 percent.

LEAKED information and flawed process claims were made over the draft statement of intent for Gisborne Holdings Ltd when the district council’s performance, audit and risk committee met this week.

GHL chairman Bob Proudfoot made the claims and said the process in which the committee and the company were preparing a statement of intent was flawed.

“I think we are talking about a draft document here that has to be agreed on between GHL and the councillors,” said Mr Proudfoot. “It is very much a draft document.”

There were a lot of things that had happened with GHL in the past year and a lot that were anticipated to happen.

“I think it is just pot-stirring putting this stuff out into the public,” he said.

The draft should be prepared by the company and the council, and then all the information should be released to the public.

“I was very disappointed at the last meeting we had like this. It was put out as a private meeting between us and yourselves, and we were encouraged to be open and honest.”

Mr Proudfoot said shortly after that, information was “leaked from this room” and it was incorrect.

“Obviously the person who took the information did not understand what they were talking about. They got the wrong information altogether out there in the public.”

This did not help to build trust between the two parties (the council and GHL).

Three years in process

The assets being transferred to GHL were originally coming across in one draft. Now they were coming in three different parts. Three years had passed since the process began.

“We are supposed to be doing forecasts over a five-year period.” This was “almost as bad as trying to project what your income is going to be for a farm”.

Acting committee chairman Craig Bauld said he took Mr Proudfoot’s point.

“If we are arguing about bits and pieces here, that is really none of the business of the public until we have worked it out,” he said.

Pat Seymour said the purpose of the earlier workshop was to have an informal discussion around the table so they got these matters out. That workshop was taken up with a powerpoint presentation that took 90 percent of the time available.

Mr Bauld suggested that the public be excluded for half an hour to allow a free discussion. A motion to do so was carried.

When the committee returned to open meeting it approved a time line for the preparation of the statement of intent that would see its final adoption by the council at its meeting on June 30.

Later in the meeting GHL reported a net profit for the six months to December 31, 2015, of $2.3 million against a budget of $2.8 million. adverse variance against budget was mostly due to movement in the valuation of livestock on hand at Tauwhareparae Farms.

Tauwhareparae Farms had a strong six month period, recording a $2.2 million profit.

It was anticipated that at year end a net profit before tax of $1,375,000 would be made after provision for a 2016 subvention payment of $1 million to GDC. A distribution of $1 million (the 2015 subvention payment) would be made to GDC in May.

Total equity had improved by $6.3 million to $55.5 million and the total assets were $62.4 million, the same as June, 2015. This is the same equity ratio as at June 2015, 89 percent.

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