Council apology for debt claim

THE Dunedin City Council has apologised to Fisher & Paykel for an ‘‘incorrect assumption’’ after suggesting the company owed ratepayers $75,000.

Council infrastructure and networks acting general manager Leanne Mash yesterday confirmed the money was owed by another entity, Golden Block Investments (GBI), not Fisher & Paykel.

‘‘We have apologised to Fisher & Paykel for this incorrect assumption,’’ she said.

The written statement came a week after Ms Mash, speaking at last week’s infrastructure services and networks committee meeting, appeared to suggest the council was chasing Fisher & Paykel for a refund.

The council had invested $2.3 million in renovations in 2014 to help accommodate the expansion of Fisher & Paykel design centre, both within Wall Street and into the neighbouring Penrose building.

Ms Mash, responding to questions by Cr Aaron Hawkins at last week’s meeting, said some of the renovations ‘‘didn’t go ahead, and we have asked for the return of those funds’’.

That mystified Fisher & Paykel Dunedin site manager Richard Butler, who said any suggestion money was owed by Fisher & Paykel was ‘‘entirely news to me’’.

Yesterday, Ms Mash clarified, saying the council’s $75,000 had been paid to GBI — which owned the Penrose building — towards the cost of moving an existing tenant out to make way for Fisher & Paykel.

GBI was itself 50% owned by the council, but the council and GBI had agreed to share the previous tenant’s relocation costs of $150,000.

The money was in the process of being refunded.

❛ We have apologised to Fisher & Paykel for this incorrect assumption