How does network sale satisfy trust purposes?

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Opinion

Re: Curious about point of view, October 22.

Regarding the importance of the asset within the trust, let's get back to the trust's purposes:

“5.1.1 To preserve the value of the capital of the Trust Fund having regard to the effect of inflation and profits and losses from time to time earned or sustained by the Trustees in the exercise of their powers and duties under this deed, or any other losses sustained by the Trustees.

“5.1.2 To provide for the beneficiaries in such manner as the Trustees shall from time to time decide including, without limiting the generality of the foregoing:

“(a) Paying for or subsidising the installation or maintenance of electricity reticulation or the supply of electricity in areas of the district where the Trustees, after taking such advice as they think fit and having regard to the cost of supplying power to those areas, are of the opinion that the provision of those services by the Company will not provide an acceptable commercial return to the Company except at a cost to the consumer of that electricity that is excessive having regard to the cost to the majority of consumers who are connected to the Company's electricity distribution system and who have similar load profiles.

“(b) Supporting business community and other initiatives which in the opinion of the Trustees are likely to encourage or sustain economic growth within the district that is or may be directly or indirectly for the benefit of the beneficiaries.

“5.2 No Trust purpose stated in this clause shall be deemed to have greater significance than any other such purpose.”

How does selling Eastland Network satisfy any of the above?

Preserving the capital? The purposes to which they intend re-investing, giving more money to EGL to play with, is a bad idea given their recent track record. Flick Energy — big losses; Geothermal power — unplanned extended outage; Helicopter investments — overspend.

Having regard for the cost to the majority of consumers who are connected to the company's electricity distribution system? Does selling do this? I think not.

Supporting businesses to encourage or sustain economic growth? A well-run network would do this. Forestry-focused port development, solar generation and wellbeing handouts all fall well short in my opinion.

As for the Trust wanting to spend their share on our “wellbeing”! Give us a break. We want our network, in our ownership, well maintained, and future-proofed for a climate changing E-World.

Colin Alder