Tainui defends asset sell-off call after tribe's submission attacked

Claudelands Event Centre. Photo / Christine Cornege

Tainui Group Holdings' boss is defending recommendations for the Hamilton City Council to sell city assets such as hotels and the Claudelands Event Centre - with angry councillors saying the presentation was "threatening" and "aggressive".

Chief executive Mike Pohio has denied that the group's submission to the council contradicted its previous advice over investing in assets, but said his key priority was making sure they paid only their "fair share".

He said the recommendations for council to sell its shares in Ibis and Novotel Tainui and Claudelands were centred around ways the council could get more revenue without unfairly targeting ratepayers or developers.

Waikato-Tainui's commercial arm also opposed changes to the development contribution policy, which was unfair and did not support a differential being offered to the CBD even though it was a prominent landlord.

Mr Pohio has been approached by several city councillors in the past few days who were disappointed with the submission by Tainui Group Holdings (TGH) on the long-term plan. The plan was presented by TGH's law firm Bell Gully and the manager of Tainui's newest project - the inland port at Ruakura.

Hamilton Deputy Mayor Gordon Chesterman described it as a "poorly pitched, aggressive, and legalistic view from a major Auckland-based law firm", and was disappointed Mr Pohio did not appear.

Councillor Martin Gallagher said TGH's comments were "deeply disappointing" and had been "disrespectful" by implying the council had no community role. Councillor Maria Westphal said "the tone of the submission was threatening" and Tainui was "protecting their own interests".

"And on the other hand, we have to look at the interest of the whole city and all the ratepayers, all the residents and all the citizens. But I don't think it's an impossible task."

Mr Pohio disagreed that it criticised the council's previous decisions, and said the purpose was to share Tainui's views on how the council should address its poor financial state.

"In our view, the decision to develop the hotel has proven to be a sound one because we have a 4-star in the middle of the city, we have a 3-star adjacent, and that helps fill Hamilton's accommodation requirement. In constrained economic times we all look for how we can more efficiently and effectively deliver what the customer wants. In this case, we are wanting to pay our fair share - both in development contribution terms and rate terms."

He said it was "most regrettable" that neither he nor the property general manager Nathan York could attend the meeting, but stood by the submission which was signed off by Mr York and approved by him.