Ag 15 april, 2016

Page 1

Friday, April 15, 2016

Since Sept 27, 1879

Retail $1.50 Home delivered from 95c

THE INDEPENDENT VOICE OF MID CANTERBURY

Students show what they’re made of Ashburton College students took to the stage this week for their annual Festival of the Spoken Word.

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FULL STORY

P4 PHOTO TETSURO MITOMO 130416-TM-0051

Poppies for Puppies P2

Property April 15, 2016

& LIFESTYLE

Industry Comment

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s and Andrew The OCR, bank Little

What's On

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Open Home

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Mid Canterbury

Events diary

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open homes

Axe poised over Grow Mid Canty BY SUE NEWMAN

SUE.N@THEGUARDIAN.CO.NZ

portunZeaity Rare op land Real Estate New

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by

ILS

FURTHER DETA

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tion ion In Excava

Precis

• Site works • Carparks • Driveways

• Landscape levelling • Demolition more • Paths & patios + so much • Drainage ng • Foundation • Site cleari d.com excavation .braas@iclou .nz | jansen n – 021 554 584 andbraas.co www.jansen – 021 716 165 | Ilco Janse Alex Braas

INSIDE

Ashburton’s economic agency Grow Mid Canterbury is likely to have its funding lifeline cut after it was revealed, in a damning report to the Ashburton District Council, it was in serious financial difficulty. The council commissioned an independent report on the economic agency because of growing concern over its inability to provide clear reports on its use of council funds. It was also concerned about the range of related party transactions the organisation was involved in. In his report Peter Winder described GMC as an organisation that had a “complex structure and quite confused governance”.

Several of the programmes it delivered could easily be delivered by other agencies and there were no clear measures to show where the council’s funds were spent and whether the council received good value for the ratepayer money it spent. “It’s an organisation that’s in financial difficulty. The council’s decision now is should it continue to purchase services from this organisation?” Mr Winder said. For the 2014/15 financial year the organisation showed a $187,000 loss and at the end of 2015 it had negative equity of $271,000. Its annual account was tagged with the auditor’s comments “… material uncertainty exists that may cause significant doubt on the entity’s ability to continue as a going concern …” The council provides GMC with an

annual grant of $245,000, 44.4 per cent of its total funding, with the remainder coming from other contracts and government agencies. He described the organisation’s relationship with the council as “unhealthy”. While most economic development agencies had very simple structures, GMC was involved in a complex web of companies and related party transactions, Mr Winder said. “This surprised me and there is obvious potential for conflicts of interest arising from these and that raises questions for the council over the probity and appropriateness of the way in which GMC operates.”

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