.png)
Main Issue
Q: Why is Centralines in the news?
A: Centralines have granted $200,000* to Tukituki Water Security Ltd. (TWSL), a private company with local farmer Mike Petersen as sole director and shareholder (find TWSL on the Companies Register here).
(*They are calling this a "business development expense")
Why Wise Water Use oppose this expenditure
Q: What is the issue with Centralines giving this private company $200,000?
A: There are 3 main issues
1. This money has effectively been taken out of power consumers’ back pockets (i.e. it could have been returned as rebates or dividends). Even if you support going ahead with building the Ruataniwha dam for irrigation, you might not support the expenditure of power consumers’ money in this way.
2. There has been no transparency from Centralines about this decision. Centralines Chairman, Ian Walker, has been asked to make a public announcement as discussed here, yet to date has not done so. Also, the money has not been itemised in Centralines’ Financial Statements, so few knew about it until it was published in the HB Today.
3. There may be a conflict of interest, since Centralines’ board members Ian Walker and Sarah von Dadelszen apparently both participated in the decision to allocate money to TWSL, and are also members of the group which then spent the money on a report promoting the Ruataniwha dam. Both have previously publicly supported the dam.
Why sign the petition?
Q: Who are Wise Water Use?
A: Wise Water Use is a collaboration of Central Hawkes Bay residents with the common goal of promoting wise use of our existing water resource, before spending public money on expensive engineering projects like large dams or managed aquifer recharge.
Q: What outcome does Wise Water Use seek?
A: Wise Water Use is asking you, as a local power consumer and therefore owner of the power network, to sign their petition advising the Trust Chair, Alistair Setter:
That you do not agree with Centralines’ granting Tukituki Water Security Ltd $200,000; and
That you want the trustees to remove water storage from Centralines’ Statement of Corporate Intent. This will stop then spending any more money on resurrecting the Ruataniwha dam for irrigation, or any other similar proposals – this is not core business for a lines network company.
Some more details
Q: Who are Centralines?
A: Centralines is a company managed by a board of 6 directors, appointed by the trustees of the CHB Power Consumers Trust to operate the local power line network. The network is owned by every CHB resident with a power connection. You can meet the board here.
Q: What about Centralines' staff - does this issue involve them?
A: No, Centralines' staff work hard to maintain our electricity network to one of the highest standards in the country. This issue is about a decision made by Centralines' board members.
Q: What is the role of the CHB Power Consumers Trust?
A: The Trust are the governing body charged with overseeing the CHB Power network on behalf of its owners, the CHB community. They are responsible for ensuring the power network is well maintained, and returns profits to us as owners.
Q: Who are the CHB Power Consumers Trust?
A: There are 7 trustees, elected every 3 years by CHB power consumers. Local farmer Alistair Setter is the Trust’s current Chairman. You can meet the trustees here.
Q: Where do Centralines get their money from?
A: Centralines is a very profitable company – profits come from charging local power consumers (you) a fee to transmit power from energy providers (e.g. Contact, Meridian etc.) across the network into homes, farms and businesses. This fee is charged to consumers as part of their monthly power bill.
Q: Can Centralines just hand out money to a private company like TWSL?
A: The Trust has given Centralines the OK to spend some of the profits they get from local power consumers (you) by investing back into the community, and to promote economic growth. How Centralines can spend this money is set out in their ‘Statement of Corporate Intent’, which the Trust sign-off on. The Statement is quite broad, and doesn’t discuss money going to private companies. It does specify that money can be spent on water storage, which is not the company's core business.
Q: What did TWSL do with the $200,000 from Centralines?
A: This was used to hire a consultancy firm to write a report which recommended going ahead and building the Ruataniwha irrigation dam. It appears that the company has funded the report, and there is certainly no suggestion that Mike Petersen has personally gained from this transaction in any way.
Q: What is the tie-up between Tukituki Water Security Ltd. (TWPL) and Tukituki Water Storage Project (TWSP)?
A: This relationship has never been publicly disclosed. The company’s sole director and shareholder, Mike Petersen, is also the spokesperson for Tukituki Water Security Project, which was publicly announced in June 2021 here. Tukituki Water Security Ltd. appears to be the financial arm of the Tukituki Water Storage Project.
Q: Has any any other money been granted to TWSL?
A: Other local businesses have apparently contributed to TWSL or TWSP; however, there has been no public announcement identifying which businesses.
Comments