Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Council seeking views on two proposals

News Release

Tuesday 20 November 2012

Council seeking views on two proposals: joining Funding Agency and joint venture structure for TERAX

ROTORUA 20.11.12: Rotorua District Council has released two proposals to the public and is seeking feedback on both from residents, by 4 December.

The first proposal the council is currently considering is to become a shareholding local authority (SLA) in the recently formed Local Government Funding Agency (LGFA).

The funding agency was formed in 2011 by a group of 18 councils, along with the Crown which holds a 20% shareholding. LGFA’s primary purpose is to provide lending sources for councils at lower cost than other lending institutions in the marketplace.

The highest level of participation for councils in LGFA is as a shareholding local authority and requires councils to invest capital. Those participating councils would however expect to receive a return on their investment while also becoming a guarantor of the agency.

Corporate & Customer Services Committee chair Janet Wepa says membership would allow Rotorua District Council to borrow at lower interest rates than at present. She said the benefits would outweigh any potential costs or risks involved.

“Participation in the funding agency would also spread our debt maturity profile and strengthen our liquidity requirements by increasing the options for accessing secure long term funding.

“We could expect a net funding benefit of $30,000 per annum for every $10 million raised in loans,” said Mrs Wepa.

“However if 50% of our borrowing requirements, as signalled in the Long-term Plan, were sourced through LGFA we could expect to save an estimated $750,000 in interest payments over a five year period.”

LGFA has been awarded an AA+ credit rating from both Standard and Poor’s, and Flitch, a rating that is on par or stronger than banks operating in New Zealand.

The other proposal Rotorua District Council is currently consulting with the community on is a proposed Limited Partnership structure between the council and Scion.

This legal entity would provide for joint-venture management of the commercialisation of TERAX, the patented and trademarked technology developed by Scion for transforming waste biosolids from the city’s wastewater treatment plant into usable products.

Rotorua District Council Infrastructure Services Committee chair Glenys Searancke said the council preferred the Limited Partnership option for managing the commercial licensing of TERAX to third parties.

“This option offers the best structure, given our need to limit liability, provide flexibility and optimise tax efficiency, while protecting our 50 per cent ownership of the intellectual property.”

TERAX technology is an innovative world-first process for managing organic waste. It “cooks” biosolids and breaks the material down into useful industrial chemicals, energy or fertiliser products.

The council and Scion have built a large-scale pilot plant to trial the new technology and this is now operating successfully at the council’s wastewater treatment plant.

Copies of both the Local Government Funding Agency and TERAX proposals are available from the council’s customer centre or can be downloaded online from the council website www.rdc.govt.nz.

Submitters will be given the opportunity to speak to the mayor and councillors in support of their Local Government Funding Agency proposal submissions or TERAX proposal submissions at public hearings on 10 December.

Submissions close with the council on Tuesday 4 December.

[ENDS]

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news