Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

More and more spent by Horowhenua on economic development

Horowhenua District Council spent almost $1.3 million on economic development activity between June 2016 and March 2018.

Council's Annual Report states $804,000 was spent on economic development in 2016-2017 and $491,000 has been spent so far this financial year. Council’s nine month report states $717,000 was the forecasted budget to the end of March.


Council’s economic development activities are based on a 2015 report by the New Zealand Institute of Economic Research (NZIER) that targets “relatively” cheap land and low/stagnant wages as two of the main economic advantages of doing business in Horowhenua if an expressway was built past Levin. The report was commissioned by the Council and Economic Development Board.

Chief financial officer Doug Law said in a six month report to the Finance, Audit and Risk committee in February that 90 percent of the economic development work plan for this year would be completed by December 2017 but only 30 percent was. Mr Law said he would report on, "our achievement/non-achievement at June 2018" in his eleven month financial report but he didn’t. Mr Law has not responded to requests for comment on the omission.

He also said, "Capital expenditure within the Property activity is tracking higher than budgeted…primarily due to unbudgeted expenditure, including the Durham Street site clearance, and an unplanned property purchase."

The Durham Street site clearance refers to the demolition of the 100 year old former Jack Allen House in Levin’s Central Business District, one of five land lots between 15-23 Durham Street sold for $980,000 by Council to BOHR Property Ltd on November 14, 2017 for a new medical centre.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

BOHR Property Ltd is listed as a property rental company and all but four of the shares are owned by company director Johannes Roberti, an environmental scientist turned business development manager and husband of (GP) Dr Bente Christine Ongkiehong, who co-owns the Cambridge Street Medical Centre in Levin. She is also a director of BOHR Property Ltd.

Dr Ongkiehong and Mr Roberti have not responded to requests for an interview to explain why the company is listed as a property rental company rather than with a “community health centre operation” or “Clinic - medical - general practice” industry classification.

Information has also been sought from Council about the “unplanned property purchase” as a report by economic development manager Shanon Grainger said council should support the establishment of the Horowhenua New Zealand Trust, “because Councils are not expert professional commercial property developers or managers.”

Council also intends transferring up to 40 percent of public assets to the Trust which would be sold on the open market for seed funding. Chief executive David Clapperton says the first group of properties to be transferred in the next few months will be worth about $7 million.


© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.