ANOTHER OPINION
The opinion piece on the NPDC Perpetual Investment Fund (PIF) by Councillor Handley, is accurately titled ‘‘Time to set the TIML record straight’’. The picture he paints doesn’t.
He used the phrase ‘‘Given the mixed performance of the PIF in recent years’’. In its 12 years, the PIF has performed well, earnings averaging 7% after tax. In recent years the PIF has outperformed most NZ funds, the last full year return being 20.1% (after tax). I’m sure readers would be delighted if their superannuation funds or investments returned anything like the PIF average.
He says ‘‘TIML was given broad but clear parameters in which to operate, one of which was the fund was to be diversified and no one investment was to exceed 9.9%. This was ignored.’’ He implies the TIML board and fund managers wilfully ignored a council directive. Nonsense. All major decisions were brought to council for approval.
From October 2010-13 Clr Lockett chaired the finance committee and had an excellent relationship with TIML. The huge Tasmanian farms, which TIML had bought run down and then built up using New Zealand expertise, methods and efficiencies (doubling production), have averaged 11.3% return per annum. It was intended to sell a major share in late 2013, to rebalance the Fund. TIML Board and staff have recently achieved a very successful sale returning full value to the PIF.
Council was very aware of TIML’s concerns; the imbalance caused by having to sell off smaller investments to continue releasing the $20 million (plus) per annum that previous councils demanded (vastly above what the PIF was earning). My first week financial briefing informed that $17.3m from the PIF had already been committed for the 2010/11 year. We began working immediately to reduce the release payment required. This took two years to fully achieve.
Surprisingly Clr Handley appears to have also ‘‘forgotten’’ that the 2011 release payment ($20.89m) was set by the previous Mayor and council. For the years we set the release payments, the fund paid out $20.09, $9.04m, and for 2013/14 was $5.18m. Each year we used less than was allocated, hastening the fund’s recovery. Harry Duynhoven
New Plymouth
SCIENTIFIC BASIS
‘‘Wellness Project coming soon’’ should’ve been reported differently. The concept that all ideas are equal, and therefore deserve equal time, is completely wrong and this article was reported as if these ideas are somehow ‘‘beyond’’ just getting together and having a cuppa and a bit of stretching exercise. I have no doubt the three organisers are genuine in their desire to help others but, since they have specialised in pseudo-science instead of actual medicine, it should be pointed out to Midweek readers that there is no scientific basis for what they preach. I’d encourage anyone to explore what the field of medicine actually has to say about craniosacral therapy... You can get yourself a cuppa and relax while you laugh at the efficacy of the treatment.
Graeme Woller
LOW HUMOUR
Well Kath Brown’s questionable sense of humour has reached a new low. ‘‘Thumbs Down to terrorists ruining people’s holiday plans. Going to Europe is something you’d now have to think twice about’’. Inappropriate humour for a community newspaper Ms Brown.
Liz Huston
New Plymouth
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