It also agreed to explore partnering with a community trust or forming a new charitable trust to hold the investments.<\/p>\n
The mayors collectively wrote to Watts and Minister Responsible for Resource Management Act Reform, Chris Bishop, who have been leading local government reforms.<\/p>\n
The mayors asked them to urgently engage with the council and consider intervening by \u201cpausing or deferring the material structural components\u201d of the amendment.<\/p>\n
Tauranga MP Sam Uffindell and Tauranga-based Act MP Cameron Luxton told the Bay of Plenty Times they also urged the ministers to look at the issue.<\/p>\n
Council advised to \u2018exercise restraint\u2019 <\/p>\n
Watts\u2019 letter to McDonald said councils should \u201cexercise restraint\u201d when making \u201csignificant, long-term decisions\u201d relating to the ownership and governance of key regional assets until reform outcomes were clear.<\/p>\n
He said the loss of independent expertise from Quayside\u2019s board was \u201cconcerning\u201d and independent directors played a \u201ccritical role in the prudent management of financial assets\u201d.<\/p>\n
A regional council spokesperson said councillors were reviewing correspondence from Watts and it was too early to comment further.<\/p>\n
Tauranga MP Sam Uffindell said, in his view, regional councillors should not be on the board of Quayside Holdings. Photo \/ Alex Cairns<\/p>\n
Uffindell said he expressed his concerns to Watts on Thursday.<\/p>\n
Uffindell \u201cstrongly\u201d disagreed with the regional council\u2019s intended approach towards Quayside, and believed neither councillors nor its chief executive should be on the board.<\/p>\n
In his view: \u201cIt\u2019s a conflict of interest \u2013 get out of it and let independent directors with appropriate commercial acumen grow the fund without political interference.”<\/p>\n
Uffindell also questioned the timing of the restructure during the reforms.<\/p>\n
He said he feared it was a council \u201cploy\u201d to \u201cgrab Quayside\u2019s assets, erode the capital base and waste funds on \u201da bunch of feel-good projects with little oversight and marginal benefit\u201d.<\/p>\n
He said he believed the independent directors\u2019 departures indicated their concern about the fund\u2019s direction.<\/p>\n
In his view: \u201cIndependent directors are talking with their feet and I can\u2019t blame them.\u201d<\/p>\n
Bay of Plenty MP Tom Rutherford said he supported Watts\u2019 letter.<\/p>\n
\u201cNow is not the time for the regional council to make substantial decisions before there is more certainty about the structure of local government.\u201d<\/p>\n
\nBay of Plenty MP Tom Rutherford has echoed Minister Watts\u2019 call for the regional council to “exercise restraint when making significant long-term decisions”. Photo \/ Mark Mitchell <\/p>\n
Responding to the MPs\u2019 comments, a council spokesperson said it had been looking \u201cfor some time\u201d at whether the way its regional investments were structured, governed and managed remained fit-for-purpose for the Bay of Plenty \u2013 now and into the future.<\/p>\n
Reducing Quayside\u2019s board was part of that work and would help ensure governance remained efficient and cost-effective, which would keep costs down for ratepayers.<\/p>\n
The spokesperson said the amendment provided a framework for future decisions about the investment portfolio and did not make any immediate operational changes to Quayside.<\/p>\n
\u201cThis is an enabling decision to explore investment models that could deliver greater community access to funding, in a similar way that both Auckland and New Plymouth have done.\u201d<\/p>\n
In a June 26 Quayside statement to the NZX, Wynne said the council had set its \u201cpreferred governance direction for the next phase\u201d. <\/p>\n
The independent directors \u201crespect the shareholder\u2019s role in making those decisions\u201d and would support an orderly transition.<\/p>\n