Ashburton management of trust challenged

Barry Monks
Barry Monks
Management of the Oamaru Licensing Trust could be shifted back to Oamaru if a move by new trust board member Barry Monks is successful.

Mr Monks, elected to the board for the first time in October's local body elections, will put a motion to a board meeting on Thursday terminating the present management contract with the Ashburton Licensing Trust, and setting up local management in Oamaru.

He has raised the issue at board meetings since being elected in October, but no decisions have been made.

However, board chairman Ali Brosnan said those issues should be dealt with by the board in-committee with the public excluded, not through the media.

The board already had "work in progress" on the issue.

"Members are elected to the board to administer the trust's assets on behalf of the community, and need to understand motions discussed in-committee need to stay in-committee," Mr Brosnan said.

The trust had its own management in Oamaru until April 2006, when it entered a five-year contract for management and accounting services with the Ashburton trust. That contract has a right of renewal for a further five years from April 1 this year.

Last financial year, according to its annual accounts, it paid $161,316 in management fees, which included the Ashburton trust and another company, for management of the Kingsgate Brydone Hotel.

Mr Monks, emphasising he was speaking as a board member and not on behalf of the trust, is not convinced the trust is "being well served by a management team based in Ashburton".

At the board's meeting on January 27, he intended to move the Oamaru trust terminate the contract at the renewal date of April 1, setting in place an Oamaru-based management structure before then.

"Although there may be some benefits in being managed by a larger trust, I am not sure that the current management structure has represented any cost savings or improvements in decision making," he said.

Some of the decisions by the board over the term of the Ashburton management were of concern to Mr Monks, in particular the decision to borrow heavily to undertake new developments.

He believed there needed to be Oamaru-based management by people with a knowledge of the local area and market conditions.

Because the Oamaru trust was owned by the community for the benefit of the community, he offered people the opportunity to comment - "either for or against" - on the trust management.

"Essentially, I want to know what the public think of the current management structure and whether they believe it should be managed from Oamaru," he said.

Time should also be set aside at the public forum of the January 27 board meeting to allow for public input, he said.

- david.bruce@odt.co.nz

 

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