The loss of the $2m dividend for the council was the equivalent of a 3 to 4 percent rise in rates.
“That’s the tension we have here —this is not purely a farming operation, it has to feed the community.”
Pete McKenzie suggested the company has “missed the boat” on the sale, as farm vaules had fallen, and asked what would be done with the money “because I don’t want GDC to have it”.
Mr Rae said the majority, should the council decide to sell, would be in a managed portfolio similar Trust Tairāwhiti but it could also be involved in co-investing in community and tourism assets.
The board had ruled out getting involved in commercial forestry.
Mr Rae pointed out while a decision had not been pre-determined, the consultation process would be thorough and would involve a two to three year process, involving the original owners of the land Te Aitanga-a-Hauiti, Ngati Ira and Te Aitanga a Mahaki.
The land where the farm was, was sensitive land and also likely to end up involved in Treaty of Waitangi settlement claims, Mr Rae said.
Anne McGuire (Te Aitanga-a-Hauiti) said the land was more important than a dividend.
“When this land went from tribal ownership in the 1980s it was 67,500 acres. In 1970 half of that was sold. Some of my elders went right to Queen Elizabeth II to try and stop it.
“What has happened to it? Foreign ownership, forestry.
“I’m also going to say welcome to the club.
“I’m a shareholder in five Māori incorporations around Tolaga Bay. We are all in the same boat. I am predicting that I may get one dividend but I am predicting the other four farms around Tolaga Bay, I well not be getting one. So be it, I want to keep my land.”
Peter Reeves, a GHL board member from 2009 to 2020, said he “challenged” the board’s thinking around the farm, following two or three good seasons for farming.
Farmer Dan Griffin asked why the farm had been so heavily de-stocked by 9000 units.
He said he was “vehemently opposed” to selling the farm.
“If we sell now, give it 20 years and there will be no money left. It’s in a bad space at the moment but we’ve been in a bad space before, and it won’t take much to get the farms up and running again.”
The meeting was told the de-stocking was down to the amount of Land Class 7 and 8 on the property, which was unproductive and had very old infrastructure.
District councillor Colin Alder asked if the company could not ask the bank for money to invest in the farm.
Mr Rae said there was not a banking problem, the company had a cash-flow problem.
Richard Burke said the region needed to find a way to improve its economic outcomes.
“Otherwise we are not going to stop going to Wellington and we will just be a victim all our lives.”
Former councillor Roger Haisman questoned “anybody’s right to sell those farms”.
He pointed out selling up had been proposed 20 years ago to help fund the establishment of Eastland Port.
“Myself and three other councillors had a strong stance against that and we managed to stop that sale then. I’d just like to remind people just how much money the community has had sicne we stopped that sale, which would have gone straight into concrete and concrete blocks.”
Mr Haisman added the farms were not run down when they were taken over by the council and had a lot of money spent on them.
“Farming is a long-term game.”
Lyall Evans said the issue for him was that the beneficiary was the city and district, but he was concerned if the money from a sale went to the council.
“We all have a fear it will just disappear into the ether. That is the unfortunate level of mistrust that exists.”
Dan Jex-Blake questioned if the council was the right owner for the farm and if it had a passion for the farm.
“The reticence, and it’s been well-traversed today, is that — and no disrespect to our council — but we don’t trust $150m ending over there without any commercial control over it.”
The public needed to be confident any proceeds would be well managed and invested wisely.
Mr Rae the review of the company’s whole portfolio would include all assets, except the Waikanae Top10 Holiday Park, which was the only assets to turn a profit across a year that ended with GHL reporting a $1.9m loss.
The directors would now reflect on what they had heard at the meeting to “consider some good points”, before starting a consultation process.
GHL has a $139 million asset base comprising Tauwhareparae Farms (62 percent), Waikanae Beach Top 10 Holiday Park (5 percent), the Wash’n Go Gisborne Auto Wash (1 percent) and property (31).
