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

Open Source // Open Society - Full Coverage

Gordon Campbell:
On The Reserve Bank And Auckland Housing

The ‘crisis – what crisis?’ response by the government to the Auckland housing price bubble is no longer acceptable.

So says Reserve Bank governor Grant Spencer – who used unusually frank language in his speech and subsequent interviews yesterday to call for a capital gains tax, and to generally chastise central and local government for their inaction on a threat to the country’s economic health and financial stability.

That threat has been real for some time. The housing price bubble has already created a currency bubble... Undaunted, the government keeps calling this situation a success story. More>>

 

PARLIAMENT TODAY:

Bangladesh: GCSB Dragging NZ Into Human Rights Abuses

The New Zealand government should stop providing intelligence assistance to Bangladeshi security agencies that are known to systematically engage in human rights abuses, said the Green Party today. More>>

ALSO:

Troops Heading To Iraq: Government Must Come Clean On Deployment

New Zealanders deserve more than to hear about their troops’ deployment overseas from Australian media, Opposition Leader Andrew Little says. “News from Australia that Kiwi troops are on their way to Iraq this week is another example of the culture of secrecy and unknown protections around the deployment.” More>>

ALSO:

Image: Strikers And Protestors Join Outside McDonald's

A group of protestors took to McDonald’s Manners St today as a part of the international fast food workers day of action to end zero hour contracts. More>>

ALSO:

Greens: Special Education Funds Not Spent

More than $32 million of funding for children with special needs has not been spent by the Government, despite families of children with special needs complaining for years that they’ve been denied the support they deserve. More>>

ALSO:

John Key: Pre-Budget Speech To Business NZ

So this Government will remain relentlessly focused on improving the competitiveness of our economy... We will continue to give businesses a platform to invest, grow and create jobs in the knowledge they will be backed by a clear and consistent government policy programme. More>>

ALSO:

Multimedia: Andrew Little’s Response To John Key’s Pre-Budget Address

Labour Party leader Andrew Little spoke today on John Key’s pre-budget address this afternoon in Wellington. Little said National has had seven years to achieve a surplus and Kiwis have “fufilled their end of the bargain.” More>>

Surplus Baggage: Key Backs Off ‘Artificial Target’

John Key’s attempt to redefine his cornerstone promise of two election campaigns as an artificial target suggests his other promises are works of fiction, says Labour’s Finance spokesperson Grant Robertson. More>>

ALSO:

Gordon Campbell: On UE Pass Rates And University Dropout Rates

Houston, there is clearly a problem with (a) the plunge in pass rates for University Entrance qualifications, which has been especially steep among Maori students and also a problem with (b) the failure rates for Maori students among those who reach university... Unfortunately the two problems seem related. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
More RSS  RSS
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news