Minutes of Regional Council Meeting

1. Welcome/Prayer/Apologies/Notices

The Chairman welcomed everyone to the meeting and introduced Mr Pieri Munro, HBRC’s Te Pou Whakarae who started on 1 October. Mr Munro then offered a karakia to open the meeting.

Resolution

RC105/18 That the apologies for absence from Councillor Peter Beaven and Mr Mike Mohi be accepted.

Bailey/Wilson

CARRIED

2. Conflict of Interest Declarations

There were no conflict of interest declarations.

Adoption of the Proposed Amendment of the 2018-2028 Long Term Plan

RC106/18

Resolutions

1. That Council excludes the public from this section of the meeting, being Agenda Item 4 Adoption of the Proposed Amendment of the 2018-2028 Long Term Plan with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Adoption of the Proposed Amendment of the 2018-2028 Long Term Plan	7(2)(f)(ii) The withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of such members, officers, employees, and persons from improper pressure or harassment.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

2. That Jonathan Hill (Communications Specialist) and Tod Dawson (Napier Port Chief Executive) remain in attendance for this item as subject matter experts available to provide additional information or advice to Council if requested.

Barker/Kirton

CARRIED

Adoption of the Supporting Information for the Consultation Document for the Napier Port Capital Structure

RC107/18

Resolutions

1. That Council excludes the public from this section of the meeting, being Agenda Item 5 Adoption of the Supporting Information for the Consultation Document for the Napier Port Capital Structure with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Adoption of the Supporting Information for the Consultation Document for The Napier Port Capital Structure	7(2)(f)(ii) The withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of such members, officers, employees, and persons from improper pressure or harassment.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Barker/Kirton

CARRIED

Adoption of the Consultation Document for the Napier Port Capital Structure

RC108/18

Resolutions

1. That Council excludes the public from this section of the meeting, being Agenda Item 6 Adoption of the Consultation Document for the Napier Port Capital Structure with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Adoption of the Consultation Document for the Napier Port Capital Structure	7(2)(f)(ii) The withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of such members, officers, employees, and persons from improper pressure or harassment.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

2. That Jonathan Hill (Communications Specialist), and Tod Dawson (Napier Port Chief Executive) remain in attendance for this item as subject matter experts available to provide additional information or advice to Council if requested.

Barker/Kirton

CARRIED

The meeting went into public excluded session at 9.07am and out of public excluded session at 10.10am

The meeting adjourned at 10.10am and reconvened at 10.15am

Adoption of the Consultation Document for the Napier Port Capital Structure

Discussions and debate traversed:

· Council funding the Port development would fall to ratepayers through a rates increase of around a further 50%, and councillor view that there is no appetite for that

· Process has considered information and advice from experts over several months and many hours to arrive at preferred option of Initial Public Offering

· Preferred option open to consultation and no final decisions will be made until after councillors have considered the feedback from the community

· Substantial information provided for the public to inform their feedback

· Councillors elected to make these decisions and seeking more than yes-no feedback from the public to enable the best final decision for the Port and for the region

· The need for the Port to make substantial investment in development has been evident for at least 2 years

· Capital Review process began in 2017, leading to this consultation process to determine how best to fund the Port development as a result of Council’s view that the investment must be made

· Council judgement that Hawke’s Bay wants to retain majority ownership

· Council judgement that consultation process is the means to get feedback from the community, not a referendum as does not provide genuine engagement

· Councillors open to genuine consultation through the consultation process

· Hawke’s Bay fortunate to face this problem as a result of a booming economy, and Port’s ability to grow is crucial to the continued strong economic performance of the region

· Rationale for consulting on up to 49% IPO based on legal advice

· Legal requirement for Council to consult on a preferred option, however final option open to change in response to feedback and submissions received

Recommendations

That Hawke’s Bay Regional Council:

1. receives and notes the “Adoption of the Consultation Document for the Napier Port Capital Structure” staff report

2. receives and notes the Communications Plan for the consultation period formally commencing on 15 October 2018

3. notes that it has previously adopted the following documents as supporting information upon which the contents of the Consultation Document relies:

3.1. Napier Port: Summary review of capital structure options, PWC, 1 October 2018.

3.2. 6 Wharf Development Justification, Port of Napier Limited, August 2018.

3.3. Proposed Long Term Plan 2018-28 Amendment, HBRC, 1 October 2018.

4. adopts the Consultation Document “Our Port - Have your say. Investing in our Port to support a growing Hawke’s Bay” for public consultation.

Barker/Wilson

CARRIED

5. confirms that Council’s preferred option to fund Napier Port’s growth is to offer shares to the public in an up to 49% stake in Napier Port through an Initial Public Offering

For: Dick, Barker, Wilson, Belford, Kirton, Graham

Against: Hewitt, Bailey

CARRIED

Closure:

There being no further business the Chairman declared the meeting closed at 10.46am on Wednesday, 3 October 2018.

Signed as a true and correct record.

DATE: ................................................ CHAIRMAN: ...............................................