Having written about them in the past and calling for more transparency, it was pleasing to be at their recent public meeting to hear an update. There seemed to be a fairly full and frank commentary by board chairman and local accountant Matt Doyle about our investments.
The latest annual report was light on specific financial results and what I would like to see in their annual reports are basic performance metrics, such as return on equity for each business and net debt/equity ratios of each business.
If financial results are commercially sensitive and confidential, these tools would give ratepayers a quick overview of performance and risk without giving sensitive information away. After all, it is our money and we have a right to know how our investments are performing.
To start with, forestry is always a risky business, as are most commodities, and prices can fluctuate wildly.
Good news, the forests are being sold and by the sound of it there will be a useful profit that can go towards existing debt, as was the original intention of a past mayor, many decades ago.
Energy Direct was also sold not that long ago and given the risks of the fickle energy retail business, it looks like we received a credible result.
It was also encouraging to hear about the new port developments. With anchor tenant, Q-West Boat Builders, the port development looks to be a real goer for Castlecliff and Whanganui as a whole.
In the past there have been other boat-building businesses considering the move to Whanganui but there was no potential for them, with a dying port and no facilities at the time.
The great thing about this development is the potential for what economists call the "positive spillover effect". This is where new businesses attract other complimentary businesses that bounce off each other and which often create other economic benefits.
New technologies are often created with this type of synergy through the mix of knowledge that comes from complimentary businesses.
GasNet is also pumping along and expanding by gaining work in other cities like Tauranga.
But what about the new Commercial Pilot Training Academy? This was an existing business in Feilding that will soon be moved to Whanganui.
Even this is thriving and would seem to be a perfect fit for propping up our local airport that loses us $50,000 to $60,000 a year. That is so long as they can keep attracting international students. Given the collapse of many international language training schools in New Zealand some years ago, this is always a concern.
So as much as the cynic in me does not philosophically agree with governments/councils owning businesses, things are looking very positive for all these council investments.
There is, of course, no guarantee it will always stay that way, but, if Whanganui is to grow its economy it must be bold and it must push forward even further with calculated risk.
We have no option but to grab the bull by the horns. As a ratepayer I want to say thank you to Whanganui Holdings for doing such a great job. Whanganui can no longer sit back and wonder what if.
This will, of course, leave council open to ridicule, should any investments fail, but that is the price of stepping up to the plate ... if you don't take a swing you will never hit a home run.
¦ Steve Baron is a Whanganui-based political commentator, author and founder of Better Democracy NZ, and holds degrees in economics and political science.
