West Coast Regional councillors have discussed a report on the sale of the council’s Rolleston 1080 investment property behind closed doors.
The council sold its share in the poison-bait manufacturing company in 2020 but kept the land and buildings until January this year when the property sold for $1.5 million.
Councillors on the Corporate Services committee were recently provided with a detailed breakdown of how the funds were allocated.
But at Tuesday's meeting (16/9), Cr. Peter Ewen said he was unclear on whether there had been any residual loan left to pay off from the original purchase, and he would like the chance to clarify the point.
Chair Mark McIntyre and Chief Executive Darryl Lew recommended the public should be excluded from the discussion because the report contained commercially sensitive details, and the meeting was closed to the public.
The WCRC invested about $1.9 million in the Rolleston venture in 2013, paying $1.3m for the property and $490,000 for a 49 percent share in the company, Pest Control Research Ltd. (PCR).
The purchase was not publicised at the time and provoked strong protest from 1080 opponents when it was uncovered by the Greymouth Star.
In December 2020 the council sold its share in PCR for a dollar and was paid out $390,000 from the joint venture account.
The council’s then chairman Allan Birchfield admitted at the time that the Rolleston investment had not returned the hoped-for profits.
But the property had gained $400,000 in value and “cost ratepayers nothing,” he said.
A Colliers report later commissioned by chief executive Heather Mabin noted the council had paid $374,000 for improvements to the building and was receiving rent of $110,000 a year.
LDR has made an official information (LGOIMA) request for a copy of the latest report to councillors. Corporate Services manager Peter Miller is leaving the WCRC and was thanked by Cr McIntyre for his hard work on finances.
“Peter’s presented the numbers to us and without Peter's help we were pretty much flying blind for the [previous] few years- he’ll be a great loss.”
The Chair also had a word of encouragement for other council staff, as some WCRC election candidates, including Cr Birchfield, are campaigning on cutting staff numbers.
“Rest assured, that common sense will prevail in the upcoming elections. That’s the chair’s report,“ Cr McIntyre said.
-LDR is local body journalism co-funded by RNZ and NZ On Air.

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