Media Statment From the Regional Council Chairman, 20 March 2009
Recent media coverage may give people the impression that there is a present proposal by the HB Regional Council to sell off its shares in the Port of Napier Ltd.
This is not the case. In fact the only decided action is to actually buy shares to lift the Council’s holding up to 100%.
Subject to fair value, this transaction should be completed by the end of June, with the 8.2% minority holding being acquired from Horizons Regional Council.
The possibility of a future sell down arises from a proposal in the Council’s Draft Ten Year Plan to amend investment policy to give more flexibility in management of the Council’s substantial investment portfolio. The purpose of the policy review is to enable the Council to take up opportunities when appropriate to invest in new infrastructure where significant economic and environmental benefits can be generated for the province.
The new investment policy will provide several options, only one of which could be a sell down of the Port shares (preferably to Hawke’s Bay investors). However, that would only be possible if the case was so compelling that it survived a special public consultation process that all Hawke’s Bay ratepayers and citizens would participate in. As well, the policy provides that as a vital strategic asset the Council would never hold less than a controlling interest (51%).
The policy review itself is also subject to public consultation as part of the Council’s Draft Ten Year Plan which is about to be published and on which people have the opportunity to submit or express opinions on over the next couple of months.
I stress, the only present intention of the Regional Council is to buy Port shares, not sell them.
|