Council companies a concern

A change to allow a company to approve transactions in excess of $30 million without Invercargill City Council approval needs to be checked, a ratepayer says.

Submitters took the chance to comment on city councillor directorships and council companies during hearings on the council’s 2017-18 annual plan.

In February, councillors agreed to an intendant review of the council policy which concerned the appointment of councillors as directors on council companies.

The review would include the council’s holding company Invercargill Holdings Ltd (Holdco).

Invercargill resident Rodney Tribe’s submission says that he was concerned with a Holdco constitution change, which occurred in July and August last year.

The change gave Holdco the ability to approve transactions in excess of $30m without council approval.

Tribe’s submission says the council should re-visit the constitution changes.

A review of the constitution could ensure the council regained control over Holdco and its subsidiaries’ previous borrowing levels and constitutional changes, it says.

Invercargill resident Louise O’Callaghan’s submission says she did not accept that councillors could act in the best interest of ratepayers when appointed as directors to council companies.

The councillors should either not be appointed, or should not receive remuneration, it says.

O’Callaghan called for a full review of the purpose and function of councilowned companies.

In February, council director of finance and corporate services Dean Johnston said a review of the directorships policy could cost about $100,000.