More confusion and questions


About 25 people protested outside the GDC Fitzherbert St buildings and called on Council to stop the planned demolition and reconsider the whole assets transfer process.

Tairawhiti Residents Association responding to an offical explanation from Council on why rent is being paid on the Testing Station and Holiday Park said the information provided adds even more confusion and questions.

“In the real world the Asset owner (GDC) would receive the rental and the Activity (GHL) the one receiving the activity income, would pay the rental” said Chairperson Rick Thorpe. 

“It appears they have made an error and confused the roles of each entity. The spreadsheet and Heads of Agreement clearly suggests that GHL is receiving all the activity income, a management fee and a rental payment from GDC. At $37,500 a month or $450,000 a year this is a lot more than the net return GDC received from these two assets in the last financial year. Remember GHL is receiving all the income, so they pick up any profit as well.”

Mr Thorpe said it was clear that in the short to medium term the transfers were going to mean cuts to other parts of Council in order to make budgets balance and Council claims of longterm improvement in returns were not founded on any evidence in documents produced to date.

“While this may have been a temporary arrangement until the proposed transfer happens, there was clearly predetermination of the outcome before the so called public consultation even takes place. That alone should be grounds to hit the pause button, even at the 11th hour.”

“We don’t want to pick a fight with Council, we’d much rather invest time and energy into positive projects and opportunities, but someone has to bring this stuff to light so we can clear it up and move forward with accurate information and better decision-making.”


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See also: Why is GDC paying rent on assets it owns?



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