Feedback from my last editorial was that our Regional Council was indignant that I said that they received around $40m in dividend income from the 73,687,536 shares owned by Quayside Holdings (their 100% subsidiary) in Port of Tauranga. I didn’t drill into the detail in which Quayside issued $200m of perpetual preference shares (effectively borrowing from investors), and therefore part of this $40m dividend goes towards paying interest to these investors. However BOP Regional Council receive the interest on the $200m plus an approximatey $4m a year in tax credits, with the proviso that they spend this money on regional infrastructure initiatives. This was a really smart move by our regional council which has seen that $200m fund grow substantially. I would note however that this was established in 2008, and yet 7 years on the Bay of Plenty hasn’t seen much of this promised infrastructural spend.

Come on BOP Regional Council – an 8.5% proposed rate rise for our ratepayers is a disgrace. Regional Councillors are elected (by us) to use their governance skills to put a blow torch to inefficiency and ineffectiveness, and yet they continue to allow an already bloated bureaucracy to continue in what can only be described as “out of control.”

If you have a view on these or any other local government issues, I invite you to email me.