Media Release

Businesslike, commercial and straight down the line – that’s what Far North District Council Mayor Wayne Brown expects of the council’s restructured trading arm, Far North Holdings Ltd.

The council has today announced the appointment of Far North business analyst and financial restructuring specialist Tony Norman as Chair of the company (a position he has held on an interim basis since January) with Hokianga businessman and tourism operator Shane Lloydd and Okaihau civil construction contractor and property trader Ken Rintoul as directors.

They replace former Chair Malcolm Nicolson (who will retain his management role with the company) and director Richard Dimmock, who has already stated that he does not wish to renew his contract. The changes are effective from Monday, April 14.

Mayor Brown, who also chairs the Council Controlled Trading Organisation (CCTO) Committee, said the committee had reviewed 24 applications for the directors’ positions and had chosen the successful candidates from a shortlist of eight.

“We have selected three directors who have business backgrounds, strong commercial skills and a geographical spread across the district,” he said.

They had accepted a three-year term of office, subject to termination by the shareholders at any time. Their fees were set within a total package of $60,000 ($30,000 for the chair and $15,000 per director) considered to be within the standard range for a company of FNHL’s size.

“We were inspired by the number and calibre of applicants within our region,” Mayor Brown said. “The council has been very disappointed by the lack of locals appointed to various bodies within the Far North and we will be seeking to change this situation by establishing a data base of skilled local people to be held for consideration for future positions. We will be advising MPs, the Northland Regional Council and local trusts that there are plenty of local candidates and there is no need to go further afield”.

Regarding FNHL’s Statement of Intent, Mayor Brown said the council would determine its content, but he expected the company to be run along the lines of a State owned Enterprise with requirements to

• fix a dividend policy
• fix a debt to equity ratio
• provide a return on investment at least equal to weighted average cost of capital

The company would be asked to submit a list of strategic assets that should not be sold on this basis, he said.

In addition, FNHL would need to develop an agreed business plan and Statement of Corporate Social Responsibility, reflecting its statutory requirement to also take into account the public good.

"The company wilI be required to behave as a rational commercial business would behave," he said. "The council and the company will have an open and clear line of communications so that each knows what the other expects and there are no surprises.

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Page created/updated: 14 April, 2008

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